Residential Property Assessed Clean Energy (PACE) is an innovative financing program that allows homeowners to borrow for energy efficiency or resilience upgrades and repay the loans through their property tax bills. We collect new Florida PACE loan-level data and recover households’ home improvement investment decisions from permit descriptions. PACE projects are capitalized into home values, but expansions of the property tax base are partially offset by an uptick in borrowers’ tax delinquency rates. Lenders in PACE-enabled counties expand mortgage credit access, indicating improved recovery values despite a PACE lien’s super seniority. Overall, PACE adoption increases local fiscal income while improving climate-proofing of the housing stock and lowering homeowners’ insurance costs.
