Innovative Financing Tool Helps Property Owners Cut Costs, Increase Efficiency
Mayor Sylvester Turner and the Texas PACE Authority today announced the launch of a commercial Property Assessed Clean Energy or PACE program in Houston, providing an additional tool for Houston property owners to finance energy efficiency, renewable energy, and water conservation projects.
“We are thrilled to launch Houston’s PACE program,” said Mayor Sylvester Turner. “PACE is an innovative way to help spur efficiency investments in Houston’s building infrastructure that would otherwise have been capital intensive. Between the long-term utility savings and the energy and water conservation benefits, it’s a win-win for our community.”
PACE is a nationally-renowned, voluntary financing program that allows owners of commercial, industrial, and multi-family residential properties (with five or more dwelling units) to obtain low-cost, long-term loans for water conservation, energy-efficiency improvements, and distributed generation.
In exchange for funds provided by a private lender to pay for the improvements, the property owner voluntarily requests that the local government place an assessment secured with a senior lien on the property until the assessment is paid in full. As PACE assessment payments are generally offset by the project’s utility cost savings and the term of PACE assessments may extend up to the projected life of the improvement, improvements financed through a PACE program may generate positive cash flow upon completion without up-front, out-of-pocket costs to the property owner.
The State of Texas authorized municipal and county PACE Programs in 2013. Houston City Council adopted a resolution establishing a Houston PACE program on November 4, 2015. To date, PACE programs are being set up in four Texas counties (Travis, Williamson, Cameron, and Willacy) and two cities (Houston and Dallas).
To learn more about Houston’s PACE program or submit an application, visit www.texaspaceauthority.org.
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