PHOTO #1: Renovations at the Barfield Building in Amarillo were funded by a PACE program loan that enabled power and water efficiency improvements at the historic building.
The Victoria City Council on April 19 approved the City’s participation in the Texas Property Assessed Clean Energy (PACE) program, which encourages development by helping property owners pursue loans for projects that improve energy efficiency.
“Our city has many older buildings that are hard to develop because they have inefficient designs that lead to high utility costs,” said Economic Development Director Danielle Williams. “This program will help to attract developers, return these properties to productive use and improve their property values.”
How it works
Under the program, property owners who are seeking loans for energy efficiency improvements may voluntarily enter into a PACE program agreement with a private lender. As part of the agreement, the property owner gives the City permission to place a lien on the property. This gives the lender confidence that the loan will be repaid, so the lender allows the loan to be repaid over time instead of requiring a large upfront payment.
PHOTO #2: The owner of Elgin General Store in Bastrop County used a PACE program loan to add solar PV and reduce energy demand on the small business. Photo contributed by Texas PACE Authority
During a March 1 presentation to the City Council, Texas PACE Authority Chief Operating Officer Dub Taylor explained how the program is a “win-win-win-win-win” for everyone:
- Borrowers: Easier funding for projects that decrease utility costs
- Lenders: Stable loan process with reliable collateral
- Contractors: More local hiring for property improvements
- City: More economic and community development
- State: Reduced energy demand and improved grid reliability
Which properties are eligible?
PHOTO #3: Central Texas nonprofit Family Eldercare was able to add solar panels and a sunlight-reflecting “cool” roof through a PACE program loan. Photo contributed by Texas PACE Authority
Businesses, manufacturing facilities, nonprofits and multifamily residences are eligible for the program. Schools, government institutions and single-family homes are not eligible.
How it’s funded
PACE program loans are between private lenders and private property owners. No state or local funds are used for the program.
The program is administered by the nonprofit Texas PACE Authority, which collects an administrative fee from developers in the form of closing costs.
By the numbers
The Texas PACE Authority was established in 2013. The PACE program has been adopted in 39 cities and 38 counties.
Since it was created, the program has yielded $223.5 million worth of local investment and created 2,791 jobs.
To learn more about the PACE program, contact Williams at 361-485-3060 or firstname.lastname@example.org or visit www.texaspaceauthority.org.