TX-PACE Insights

Historic Crazy Water Hotel Secures First TX-PACE Loan in Palo Pinto County—What It Means for the Future of Mineral Wells

Hosted by Dub Taylor and joined by Jonathon Blackburn: This T5 Webinar covers the changes impacting the key Loan to

inancial barriers have discouraged many commercial building
owners in Texas from investing
in energy efficiency and water conservation upgrades. Structures in Texas
account for approximately 70 percent
of electricity use and 40 percent of
total energy use according to the
state comptroller. The Texas Property Assessed Clean Energy (PAСE)
Act was designed to address those
barriers by making such investments
financially feasible.
Ten years have passed since the
PACE Act was adopted by the Texas
Legislature and signed by thengovernor Rick Perry. Low interest rates
and the pandemic initially hindered the
program's popularity. However, today's
higher interest rate environment has
worked in the program's favor.
What is the PACE Program?
The PACE program enables owners of
commercial and industrial properties
to obtain low-cost, long-term loans
targeted at reducing energy and
water consumption. Loans can be up
to 100 percent of all costs associated
with the design and installation of the
upgrades, up to a maximum of 25
percent of the property's as-complete
market value. Loans can cover labor
and material costs expended during the installation or modification of
improvements, permit fees, inspection
fees, lender's fees, program application and administrative fees, project
development and engineering fees,
independent third-party reviewer
(ITPR) fees, and any other fees or
costs incurred during the installation
process.
State law enables but does not
require cities and counties to offer a
PACE program. If a local government
chooses to offer PACE, the governing
body is required to designate the specific geographic area (the "region")
where PACE assessments can be
placed. Regional PACE programs can
make it easier for rural counties and
smaller local governments to offer
PACE financing.