If a seller agrees to pay off an outstanding Property Assessed Clean Energy (PACE) lien or obligation as a condition of the sale of the property to an FHA borrower, the amount of the payoff is not considered to be an Interested Party Contribution.
For policy information see Handbook 4000.1 II.A.4.d.iii(G)(2) and II.A.5.c.iii(G)(2) at https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh