Assessment appears annually
The property owner repays qualifying-improvement financing through non-ad valorem assessments disclosed on the annual property tax bill.
Paragraph 19 · Addendum EE
An improvement attached to the home can leave financing attached to its property-tax bill.
Addendum EE discloses qualifying-improvement financing repaid through non-ad valorem assessments—and warns that most mortgage lenders require the financing to be satisfied or released.
What Addendum EE does
It exposes property-based improvement debt before it becomes a closing problem.
Qualifying-improvement programs allow property owners to finance authorized permanent improvements and repay the obligation through annual non-ad valorem assessments on the property tax bill.
When an assessment has been levied under Section 163.081, Florida Statutes, and an unpaid balance remains, Addendum EE supplies the written disclosure and the lender warning the parties need to address early.
The financing path
Improvement → assessment → tax bill → closing requirement.
The obligation can feel invisible because repayment is collected with property taxes rather than through an ordinary monthly loan statement.
PACE
→ EEUpdated in 2026 as the Qualifying Improvements Rider
→ EEUpdated in 2026 as the Qualifying Improvements Rider
Lender may require payoff
The revised rider warns that most mortgage lenders will require satisfaction or release of the financing from the property.
Six rider mechanics
The form connects statutory disclosure, tax records and mortgage approval.
Qualifying improvement
The property received an improvement financed through an authorized property-assessment program.
Assessment levied
A non-ad valorem assessment was placed on the property under Section 163.081.
Unpaid balance
The disclosure applies when the qualifying-improvement assessment has a remaining unpaid balance.
Written disclosure
Seller provides the statutory disclosure at or before execution of the applicable purchase contract.
Lender review
Buyer’s lender evaluates whether the assessment must be satisfied or released before closing.
Closing resolution
Title, payoff and contract documents must align so the financing is handled as required.
Why “non-ad valorem” matters
The charge is collected on the tax bill without being based on property value.
Ad valorem taxes are calculated from taxable value. A qualifying-improvement assessment repays a specific financing obligation and is not calculated in the same manner, even though it appears on the same annual bill.
That collection method can affect escrow, monthly affordability and underwriting. A buyer who reviews only the seller’s base property taxes may miss the assessment or misunderstand how long it remains payable.
Read the full tax bill and obtain an official payoff or balance statement. Dividing last year’s assessment by twelve does not establish the closing payoff.
The 2026 form change
The PACE rider became the broader Qualifying Improvements Rider.
Florida Realtors revised Addendum EE in February 2026 to reflect amendments associated with Section 163.081. The current form uses qualifying-improvement terminology while retaining the essential non-ad valorem assessment and lender-payoff warning.
Older records, tax bills and consumer searches may still call the program PACE—Property Assessed Clean Energy. Both terms should be researched when tracing the property’s actual obligation.
1
Older terminology
PACE focused public attention on energy efficiency, renewable energy and wind resistance.
2
Current rider
EE now uses the Qualifying Improvements title and revised statutory references.
3
Same practical question
Does the property carry an unpaid non-ad valorem improvement assessment?
4
Same closing pressure
Will the buyer’s lender require satisfaction or release before funding?
Three possible records
Not every financed improvement is a qualifying-improvement assessment.
The improvement itself does not identify the financing structure. Follow the documents and recorded or tax records.
Qualifying improvement / PACE
Repaid through a non-ad valorem assessment appearing on the property tax bill.
Solar or home-improvement loan
May involve a promissory note, lien, UCC filing, equipment ownership or transfer terms outside Addendum EE.
No remaining financing
The improvement may be paid in full, but ownership, permits, warranties and tax records still require verification.
Similar tax-bill lines, different obligations
Addendum EE is not the same as a neighborhood special taxing district.
Both may appear as non-ad valorem assessments, but they arise for different reasons and require different research.
Improvement financing
An individual property’s qualifying improvement is financed through an assessment with an unpaid balance and a potential mortgage-lender payoff requirement.
Area service assessment
A district assessment funds services or infrastructure for a defined area and is not necessarily a payoff-able loan tied to one owner’s improvement.
Before the title search catches it
Seller, buyer and lender should investigate the assessment early.
Seller checklist
- Review the complete tax bill for non-ad valorem items.
- Locate original qualifying-improvement documents.
- Identify the program administrator and account.
- Order a current payoff or release statement.
- Disclose the unpaid balance using current Addendum EE.
- Do not assume the buyer can continue annual payments.
- Coordinate payoff timing with title and closing.
- Confirm the release will be properly documented.
Buyer and lender checklist
- Give the full tax bill to the lender immediately.
- Identify every non-ad valorem assessment.
- Confirm whether the charge is PACE or another obligation.
- Ask underwriting whether payoff or release is required.
- Review the assessment’s impact on escrow and qualification.
- Do not rely on a verbal balance estimate.
- Confirm payoff on the settlement statement.
- Verify satisfaction or release after closing.
A practical closing path
Early disclosure prevents a tax-bill surprise from becoming a funding delay.
Assessment identified
Seller reviews the tax bill and locates qualifying-improvement records.
EE disclosure delivered
Buyer receives the statutory notice concerning the unpaid assessment.
Lender sets requirement
The mortgage lender determines whether satisfaction or release is required.
Payoff and release
Title and closing professionals document the required resolution.
Frequently asked questions
Florida Addendum EE, in plain English.
Is Addendum EE still called the PACE Disclosure?
The rider was revised in 2026 and is now titled the Qualifying Improvements Rider. PACE remains useful legacy terminology when researching older financing and tax records.
What is a qualifying-improvement assessment?
It is a financing obligation for an authorized permanent property improvement that is repaid through non-ad valorem assessments on the property tax bill.
Does the assessment depend on property value?
No. The statutory disclosure explains that the qualifying-improvement assessment is not based on the property’s value.
When is the disclosure required?
The current rider addresses property for which an assessment has been levied under Section 163.081 and an unpaid balance remains, with written disclosure provided at or before the applicable contract execution.
Can the buyer simply assume the remaining annual payments?
Do not assume so. Addendum EE warns that most mortgage lenders require satisfaction or release of the financing from the property.
Is every solar-panel loan a PACE assessment?
No. Solar equipment may be owned, leased, privately financed or financed through a qualifying-improvement assessment. The documents and public records control.
Where can the assessment be found?
Start with the full annual property tax bill, then obtain program records, financing documents, an unpaid-balance statement and lender/title requirements.
Is Addendum EE the same as a special taxing district disclosure?
No. EE addresses financing for a qualifying improvement to the property. District assessments generally fund area-wide services or infrastructure.
A non-ad valorem improvement assessment appears?
Find the payoff requirement before it controls the closing calendar.
DW&Co. can help coordinate the current rider, tax-bill research and communication with the buyer’s lender, title company, program administrator and appropriate Florida legal professionals.
Talk with DW&Co. Real Estate