New Fee Language for Texas PACE Authority’s Project Administration

The goal of TPA is to have a well-funded, efficient, and financially healthy organization, while keeping costs to a minimum and operating in a lean fashion. To that end, TPA charges two types of fees as part of administration, an application fee and an ongoing interest rate residual. These fees cover the basic administrative service to complete a PACE project as well as the ongoing oversight and program reporting to local governments that enact a PACE region.

Application Fee is the greater of:

• $2,000; or
• Amounting to
  • 1% of total project cost of first $5 million;
  • 0.5% of marginal amount above $5 million; and
  • 0.25% of marginal amount above $20 million,

Initial $500 to be paid with application. Balance to be paid at closing.

Ongoing Residual Fee amounting to 8 basis points annually on the loan, resulting in a declining payment based on the outstanding principal balance to be paid as part of annual assessment. Note: This fee can be capitalized and paid in full at closing.

To meet its commitment to lower rates as TPA becomes self-sufficient, the TPA board voted to lower rates in June 2017 and again in September 2019.