Program Documents
Texas PACE Authority copyrighted forms and checklists may not be copied, altered, or used for non-TPA administered projects without the express written permission of Texas PACE Authority.
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The PACE in a BOX toolkit includes everything a local government needs to establish a high-quality uniform, user-friendly, scalable, and sustainable Property Assessed Clean Energy program with best practices in administration, underwriting, and technical standards. Texas PACE Authority is committed to following these standards on behalf of the local governments it serves.
The toolkit was released in 2014 after a year-long effort by the Keeping PACE in Texas collaboration of 130 stakeholder volunteers in five working groups. The PACE in a Box toolkit, accompanying Technical Standards Manual, and working group updates can be found in the Keeping PACE in Texas Document Library. Use this library to stay abreast of the PACE in a Box standards and guidance.
TPA provides a toolbox of materials to facilitate TX-PACE projects. Please contact admin@texaspaceauthority.org if you have questions.
Program Guide:
Texas PACE Authority Program Guide (English) (Spanish)
Technical Standards Manual & PACE ITPR Workbook:
Provided with permission from Keeping PACE in Texas
KPT Technical Standards Manual V.3.2 (English) (Spanish)
KPT Standardized PACE ITPR Workbook V.3.3 (English)
The TX-PACE application process is similar to getting any other loan. There will be several documents which you must submit for the required technical and legal review process. The regional template documents and checklist will be provided upon complete application submission, including the required application initial fee. Samples of some of these documents can be found below. Please note these are samples for viewing purposes only and will not be accepted as part of an application. If you have an eligible TX-PACE project and are ready to apply, please contact admin@texaspaceauthority.org to request an application form.
The goal of TPA is to have a well-resourced, efficient, and financially stable 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.
TPA Fee Structure
TPA is committed to maintaining a lean, efficient, and financially stable program administrator. To support high-quality project administration while minimizing costs to stakeholders, TPA charges two fees: an Application Fee and an Ongoing Residual (Administrative)Fee.
Application Fee
The Application Fee covers project intake, eligibility screening, document coordination, and preparation for funding and closing.
This fee is based on the Total Financed Amount, defined as the sum of all eligible hard and soft costs associated with the project, excluding the TPA Application Fee itself. This includes, but is not limited to:
- Construction and equipment costs
- Engineering, architectural, legal, and permitting fees
- Lender origination fees
- Capitalized interest
- Title, recording, escrow, and other financing-related costs
Effective April 1, 2025, the Application Fee is the greater of:
- $2,000; or
- 1.00% of the first $5 million of the Total Financed Amount,
- 0.50% of the portion exceeding $5 million.
- An initial $500 deposit is due with the application; the balance is due at closing.
Exception: Legacy 3-Tier Fee Structure
A limited number of TPA-administered programs still use the previous three-tier Application Fee, calculated as the greater of:
- $2,000; or
- 1.00% of the first $5 million of the Total Financed Amount,
- 0.50% of the portion exceeding $5 million, and
- 0.25% of the portion exceeding $20 million
- An initial $500 deposit is due with the application; the balance is due at closing.
If you are unsure whether your project falls under the updated or legacy fee structure, please contact our Transaction Team for confirmation.
Amendments
For amendments to an existing PACE assessment, the Application Fee will apply to the increased Total Financed Amount (i.e., the difference between the original and revised amounts), or $2,000—whichever is greater. A $500 deposit is due with the amendment application.
Partial Releases and Early Payoffs are considered amendments and require the $2,000 fee to be paid with the amendment request.
Ongoing Residual (Administrative) Fee
This fee supports long-term program administration, compliance monitoring, and reporting to local governments.
- Charged at 8 basis points (0.08%) annually on the outstanding loan principal
- Paid as part of the annual PACE assessment
- The Ongoing Residual (Administrative) Fee remains due and payable to TPA regardless of any interest-only or capitalized payment periods
- May be capitalized and prepaid at closing
If the PACE assessment is amended and the financed amount increases, the ongoing administrative fee may be recalculated accordingly.
Policy Statement: Multi-Tranche Funding for Single PACE Projects
Date Adopted: 7/16/2025
Purpose
This policy establishes the procedures for processing multiple funding tranches under a single Property Assessed Clean Energy (PACE) project, ensuring clarity, consistency, and compliance with statutory requirements.
Scope
This policy applies to all multi-tranche funding structures where a single scope of eligible improvements is funded in two or more stages.
Policy
- Unified Assessment Framework
All funding tranches must be administered as amendments to the original PACE assessment, rather than as independent assessments. Multiple assessments are only appropriate when distinctly separate improvements are being financed at different times. For a unified project scope, the original Savings-to-Investment Ratio (SIR) analysis shall govern all tranches (they do not need to each meet a separate SIR investment so long as the unified scope is in SIR compliance). - Comprehensive Financial Analysis and SIR
Each tranche shall be supported by a single, comprehensive Independent Third-Party Report (ITPR) worksheet. This worksheet must reflect the totality of the eligible improvements and a unified SIR calculation that applies to the entire project. As tranches (amendments) are closed, the total investment cannot exceed the amount used in the ITPR at the beginning. - Consistent Project Documentation of Qualified Improvements
All assessment filings—initial and amended—must include the full scope of qualified improvements. These improvements shall be itemized in the exhibits, even if particular improvements are not being funded in a particular tranche. - Flexible Payment Structure
The capital provider may elect between:- A single, blended payment schedule where the prior payment schedule is deleted and replaced with a payment schedule with a blended interest rate; or
- Separate payment schedules per tranche, each with its respective interest rate. Prior payments schedules remain in full force and effect as new ones are added. This may result in multiple assessments being due different times of the year.
- Loan-to-Value (LTV) Compliance
While Loan-to-Value ratio may change with each tranche, the cumulative LTV for the entire project may not exceed the maximum threshold allowed under program guidelines (currently 35% under PACE in a Box standards).
Implementation
For the first tranche, full underwriting documentation will be required, and all PACE Act requirements must be met. However, for subsequent tranches, only the following documentation will need to be updated:
- Property Owner Certification
- Verification of Franchise Tax Account Status
- CAD Search
- Verification of Property Tax Payments
- Capital Provider Certification
- Sources and Uses and Payment Schedule (updated or new)
- Title Report
- Owner Contract and Lender Contract Amendments
- Amended Notice of Assessment
- Amended Financing Documents
- Lender Consent to PACE Assessment (for any new mortgages)
- Variance of LTV (if applicable; may use prior appraisal)
The LTV will be recalculated for each new tranche.
It is recommended that the initial Lender Consent to PACE Assessment includes consent to the total amount contemplated in all tranches. This negates the need to secure new consents for each tranche.
It is possible that a property owner may intend to have a series of four tranches but only execute three. This should not present any problems since the ITPR (including the SIR and consideration of all qualified improvements) are calculated on the maximum potential financing. Should the property owner finance less, the project will still meet all statutory and standards requirements.
Effective Date
This policy is effective immediately upon adoption and applies to all applicable projects moving forward.
To successfully complete a TX-PACE application, all projects must be accompanied by a review from an Independent Third Party Reviewer (ITPR). The ITPR will review the project savings to determine if the projected savings are reasonable. If so, the ITPR validates projected savings. The review has two phases:
| Pre-Construction – the “before” analysis – the ITPR will review the project, assumptions, and projected savings and complete the following: ITPR Pre-Construction Verification Certificate PACE ITPR Workbook | Post-Construction – the “after” analysis – the ITPR will verify that the project was completed and is operating as intended. ITPR Post-Construction Statement of Compliance |
The ITPR must conduct a site visit both before and after the project is installed and submit the required documentation as part of the TX-PACE application process.
For engineering firms unfamiliar with the TX-PACE process, TPA designed a template to assist engineering teams in presenting the required information needed as part of the Texas PACE technical review. This information will support that provided by the ITPR. Following this format will result in uniform inputs that will reduce ITPR review costs.
Energy and Water Assessment Report Template
PACE ITPR Workbook provided with permission from Keeping PACE in Texas
Regional template documents will be provided upon complete application submission, including the required application initial fee. The samples below are for viewing purposes only and will not be accepted as part of an application. If you have an eligible TX-PACE project and are ready to apply, please contact admin@texaspaceauthority.org to request an application form.
As part of a PACE project, the property owner will sign a contract with the local government where the property owner voluntarily consents to having an assessment placed on the property, as a means of paying for the property upgrades. A sample of the contract can be found here:
Download Sample Owner Contract
As part of a PACE project, the PACE capital provider will sign a contract with the local government where the government assigns the proceeds of the assessment to the PACE capital provider. A sample of the contract can be found here:
Download Sample Lender Contract
The end result of a PACE project is a lien that will be filed with the local tax assessor/collector. A sample from for the assessment can be found here:
If there is an existing mortgage on the property, the current lender will have to consent to allowing a PACE assessment on the property. While this can at first sound tricky, with a little legwork it can be obtained. First, we will help you prepare the case for consent. Resources to help you prepare the case for consent are below:
An overview of why a lender would consent:
A more in-depth manual for how to obtain consent:
A Sample Consent Form:
Lender Consent to PACE Assessment
Finally, a list of senior lenders that have consented: