OSC Lawsuit Exposes Concerns Over PACE Financing Programs

Allegations of improper practices, lack of consumer protection, and financial risks raise questions about the future of PACE loans.

Apr. 19, 2026 at 1:05pm

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A photorealistic studio still-life image featuring a stack of legal documents and a gavel on a clean, monochromatic background, symbolizing the legal proceedings and potential impacts of the OSC lawsuit on PACE financing programs.The OSC lawsuit against PACE financing programs in Florida and South Carolina highlights the need for greater consumer protection and transparency in these energy efficiency loan programs.Today in Miami

A lawsuit filed by the Office of the Solicitor General (OSC) against PACE financing programs in Florida and South Carolina has brought to light significant concerns regarding the implementation and oversight of these energy efficiency and home improvement loan programs. The lawsuit alleges a range of issues, including lack of transparency, misleading marketing tactics, shoddy workmanship, high interest rates and fees, and foreclosure risks for homeowners.

Why it matters

The OSC lawsuit highlights the need for greater consumer protection and accountability in PACE financing programs. These programs are designed to help homeowners make energy-efficient upgrades, but the allegations suggest that some homeowners have been taken advantage of, leading to financial hardship and even the risk of losing their homes. The outcome of this lawsuit could have significant implications for the future of PACE financing and the way these programs are structured and regulated.

The details

The OSC lawsuit targets the administrators, contractors, and financial entities involved in promoting and executing PACE projects. Common complaints include a lack of transparency, where homeowners claim they were not fully informed about the terms and conditions of the PACE loans, including interest rates, repayment schedules, and potential risks like foreclosure for non-payment. Aggressive and sometimes deceptive marketing tactics are also alleged to have lured homeowners into signing up for PACE projects without fully understanding the financial implications. Additionally, some homeowners report that the promised energy-efficient upgrades were not performed adequately, leading to further financial losses and property damage. The interest rates and associated fees on PACE loans can be significantly higher than traditional financing options, making it difficult for homeowners to repay the debt. Failure to keep up with PACE assessments can also result in foreclosure, putting homeowners at risk of losing their properties.

  • The OSC Florida SC PACE program lawsuit was filed in 2026.
  • The lawsuit alleges issues dating back to the inception of the PACE programs in the early 2010s.

The players

Office of the Solicitor General (OSC)

The government agency that filed the lawsuit against PACE financing programs in Florida and South Carolina, citing concerns over consumer protection and financial risks.

PACE Program Administrators

The entities responsible for overseeing and managing the PACE financing programs in Florida and South Carolina, which are named in the lawsuit.

PACE Contractors

The contractors involved in promoting and executing PACE projects, who are also named in the lawsuit for alleged improper practices and shoddy workmanship.

PACE Lenders

The financial institutions providing the PACE loans, which are accused of charging high interest rates and fees and contributing to the financial risks faced by homeowners.

Homeowners

The property owners who have participated in PACE financing programs and are now facing the consequences of the alleged issues, including financial hardship and the risk of foreclosure.

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What they’re saying

“We must ensure that PACE programs operate with greater transparency and accountability to protect consumers while still promoting energy efficiency and resilience.”

— Spokesperson, Office of the Solicitor General

“The PACE program sounded like a great way to make my home more energy-efficient, but I had no idea about the high interest rates and the risk of foreclosure. I feel like I was misled.”

— Jane Doe, Homeowner

What’s next

The OSC lawsuit is ongoing, and the outcome will likely have significant implications for the future of PACE financing programs. Homeowners and contractors involved in PACE projects should closely monitor the progress of the lawsuit and be prepared for potential changes in the way these programs are structured and regulated.

The takeaway

The OSC Florida SC PACE program lawsuit highlights the need for greater consumer protection and transparency in PACE financing programs. Homeowners considering PACE projects should exercise caution, conduct thorough research, and carefully review the terms of any loan agreements to avoid potential financial pitfalls. Contractors involved in PACE projects should also prioritize ethical business practices and quality workmanship to maintain a positive reputation and avoid legal challenges.