PACE is a voluntary program that can be used for the following property types.
Eligible Properties
Commercial Real PropertyIncluding non-profit real property such as private schools, medical facilities, churches, etc. | Industrial Real PropertyIncluding privately owned agricultural real property. | Multifamily Residential Real PropertyResidential real property with five or more dwelling units. |
PACE financing may be used to pay for permanent improvements to the property that are intended to decrease water or energy consumption or demand.
Typical Examples Include:
Chillers, boilers, and furnaces • HVAC, BMS, BAS, EMS controls • Lighting • Water heating systems • Energy management systems and controls • Roofing • Windows • Doors • Insulation • Elevator modernization • Pool equipment • Distributed generation systems • Heat recovery and steam traps • Solar panels • Wind turbines • Water management systems and controls • Irrigation equipment • Rainwater collection systems • Toilets • Faucets • Greywater systems… and more!
*This is not an exclusive list of qualified improvements. Send us an email at admin@texaspaceauthority.org with any questions about qualified improvements.
Are you a property owner that wants to make property upgrades while remaining budget neutral?
Are you a developer that wants to take advantage of a low-cost, long-term replacement to expensive equity partner financing?
Are you a service or capital provider who wants to offer more services to customers?
Are you a local government interested in creating jobs and improving the environment?
TX-PACE is a flexible, voluntary program that is available in communities across Texas.
TX-PACE programs are being launched all over the state. Check here to see if its available in your region.
If your local government has not adopted PACE yet, please reach out to us at admin@texaspaceauthority.org
Local governments across the State are taking advantage of the Texas PACE statute and establishing programs to further provide quality and valuable services to their constituencies, stakeholders, and taxpayers. This unique program enables property owners to overcome traditional market barriers, such as extended payback periods and lack of capital, that discourage investment in energy efficiency and water conservation improvements. TX-PACE provides a new source of property-secured financing for energy efficiency and water conservation retrofits that does not affect conventional lending sources and does not compete for capital with other investment opportunities.
The widespread benefits impact the property owner, tenants, environment, and community, resulting in lower operating costs, more local jobs, and a concerted effort to conserve energy and water.
Owners choose a private sector capital provider and voluntarily request that the local government place a senior lien on the property for the total cost of the project. The owner commits to the local government that he/she will pay the TX-PACE assessment installments.
TX-PACE is not a personal or business loan. It is a voluntary land-secured assessment that is paid off over time. The energy and/or water savings are structured to exceed the cost of the assessment, resulting in projects that are cash flow positive. As the assessment is tied to the property, the repayment obligation transfers to the next owner if the property is sold.
View our Quick Start Guide for more information.
PACE in Texas is open-market, and consequently a wide range of parties can make PACE loans. Eligible third-party lenders may include:
- Any federally insured depository institution such as a bank, savings bank, savings and loan association and federal or state credit union;
- Any insurance company authorized to conduct business in one or more states;
- Any registered investment company, registered business development company, or a Small Business Administration small business investment company;
- Any publicly traded entity; or
- Any private entity that:
- Has a minimum net worth of $5 million;
- Has at least three years’ experience in business or industrial lending or commercial real estate lending (including multifamily lending), or has a lending officer that has at least three years’ experience in business or industrial lending or commercial real estate lending; and
- Can provide independent certification as to availability of funds.
All lenders must have the ability to carry out, either directly or through a servicer, the bookkeeping and customer service work necessary to manage the assessment accounts.
Note that the Texas PACE Authority neither recommends nor endorses any particular PACE Service providers. This directory is provided solely for convenience in consolidating a list of PACE service providers. If you would like to be listed as a PACE lender, please contact Texas PACE Authority