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Ygrene Energy Fund, one of the leading finance companies for clean-energy home improvements in Florida, was accused in a newly filed federal lawsuit of paying contractors before work was complete — leaving homeowners with big liens and unfinished projects.
Two South Florida couples — one in Broward County and one in Miami-Dade County — are co-plaintiffs in the lawsuit, which seeks class action status, filed on Friday in U.S. District Court in Miami.
The suit accuses Miami-based Ygrene Energy Fund of “systematically, repeatedly, and continually breaching material terms in the Financing Agreement by disbursing funds to (the company’s) authorized contractors before home improvements were completed in accordance with all applicable building codes, regulations, and other governmental requirements.”
As a result, the lawsuit states, the homeowners were deprived of “the full use of their home improvements” while paying for them as assessments on their property tax bills. They also had to pay third-party contractors to complete the work that was never finished by the authorized contractors, and for code violations and other costs arising from the breaches, the suit states.
Ygrene officials did not respond to requests for comment about the lawsuit. Contractors involved in the incidents described in the lawsuit were not identified.
Ygrene has been financing home improvement projects in South Florida since 2013, following adoption by South Florida counties and cities of legislation authorizing providers of Property Assessed Clean Energy financing to extend loans repayable on homeowners’ property tax bills.
Local officials supported PACE financing because it provides homeowners with a mechanism to finance such improvements as hurricane-resistant impact windows, new roofs, solar energy systems, hot water heaters, air conditioning systems and more with no money down and no credit check.
But in the years since, PACE financing companies, including Ygrene, have faced criticism.
In October 2022, an order by the Federal Trade Commission said the company deceived customers about potential impacts of its financing and unfairly placed liens on homes without customers’ consent. As part of an agreement with the FTC, the company created a $3 million fund to pay off liens and increase monitoring of how contractors disclosed financing arrangements to consumers.
The latest lawsuit alleges that contractors forged consumers’ e-signatures onto Certificates of Completion to get paid before completing work, and in some cases, before work had even began.
Two couples are identified as plaintiffs:
Nivaldo and Tania Prieto, of Homestead, contracted with a Ygrene-authorized contractor for installation of three high-impact doors, 10 impact windows and a central air conditioning and heating unit, the suit states, with the total cost of the project at $50,409. Following installation of the improvements, a Miami-Dade county inspector issued a violation because the contractor failed to submit plans for the improvements and the windows were installed in violation of the county’s code, the lawsuit states.
In or about that time, Ygrene released the funds to the contractor, the suit says. It adds that when Tania Prieto received a copy of the Certificate of Completion, she noticed that the e-signature had the initials TCP. But she said has always initialed TCH, with the CH signifying her middle name, Chinea. The contractor, the suit says, has failed to correct the code violations or submit required plans, the suit states.
Gino and Mariella Leon, of Miramar, contracted in September 2021 for a solar energy system consisting of 22 panels, plus an air conditioning unit, solar attic fan, LED lights, thermostat, insulation and water heater, according to the suit. Total cost of the system was $53,300.
A month after the contractor represented that the solar system was installed, the suit says, it failed inspection. It remains inoperable and has not been connected to the power grid, the lawsuit states. It adds that later, the couple learned that Ygrene had disbursed the funds in full to the contractor a year earlier. The couple had to hire third-party contractors, the suit says, to repair the AC unit for $300 and the water heater needed new electrical connections for $500.
Noting similar stories about Ygrene posted by customers on the Better Business Bureau website, the lawsuit alleges that more than 100 Ygrene customers are victims and that damages exceed $5 million. It seeks creation of a nationwide or statewide class.
Ron Hurtibise covers business and consumer issues for the South Florida Sun Sentinel. He can be reached by phone at 954-356-4071, on Twitter @ronhurtibise or by email at [email protected].
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