WHAT IS TX-PACE?
TX-PACE is an innovative financing program that incentivizes owners of commercial (including nonprofit, retail, healthcare and hospitality), industrial (including manufacturing and agricultural), and multifamily residential properties (with five or more dwelling units) to obtain low-cost, long-term financing for water conservation, energy-efficiency, renewable, and resilience retrofits.
- TX-PACE programs enable owners to lower their operating costs and use the savings to pay for eligible projects.
- Owners gain access to private, affordable, long-term (typically 10-20 years) financing that is not available through traditional funding avenues.
The PACE Act authorizes municipalities and counties in Texas to work with private sector lenders and property owners to finance qualified improvements using contractual assessments (similar to a sidewalk or sewer assessment) voluntarily imposed on the property by the owner. 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.
What is TX-PACE financing?