At the Jacksonville City Council Finance Committee meeting on May 6, two public commenters asked the committee to slow or block a measure on residential Property Assessed Clean Energy (PACE) financing.

Chris Peterson, senior vice president of government affairs for Fortify Financial, a PACE provider, told the committee the industry asks the city to “respectfully to slow this item down” and warned the ordinance as drafted lists only one provider, which he said would limit competition and consumer choice.

Peterson said limited provider options can raise rates and reduce service levels, and he urged the committee to “table this item and maybe come back to it and then have some more discussions about why it's important to have all providers in.” The chair noted the item is on second reading and that Council Member Arias, the introducer, would consider the comments.

Linda Isdale of Jacksonville Area Legal Aid urged the committee to go further. “I would agree with Mister Peterson that the matter should be tabled, but in our opinion, it should be permanently tabled as to residential PACE liens,” she said. Isdale characterized the program as neither cost-effective nor a conventional loan program, and said the PACE product being considered carries interest rates she described as “anywhere from 11% to 12%” and rests on a secured super lien that can have priority over a mortgage and may lead to a tax deed sale.

Isdale also said the structure being proposed strips typical consumer protections required for other loans, such as disclosure and term limitations, and recommended the city “stick with its resolution of 2023 and prohibit residential PACE lending in the city and county.”

No committee motion or vote on the PACE item occurred during the public-comment segment; the chair noted the item will be in committee in two weeks for the second reading.

Supporters and opponents in the public record asked for more time for review and for broader competition among providers rather than immediate approval.