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 provides local governments with a standardized framework for establishing uniform, user-friendly, scalable, and sustainable Property Assessed Clean Energy (PACE) programs. Originally developed in 2014 by Keeping PACE in Texas through a collaboration of more than 130 stakeholders, the toolkit establishes best practices for program administration, underwriting, and technical standards.
The Texas PACE Standards Alliance (TPSA), housed at the Houston Advanced Research Center (HARC), now maintains and advances the PACE in a Box toolkit and its statewide standards. TPSA works with industry stakeholders to develop and update guidance that supports consistency, transparency, and program integrity across Texas.
Texas PACE Authority follows PACE in a Box standards when administering TX-PACE programs on behalf of participating local governments. Visit the TPSA Document Library for the latest technical standards, underwriting guidance, workbooks, and program updates.
Originally developed by Keeping PACE in Texas in 2014, the PACE in a Box toolkit transitioned to the Texas PACE Standards Alliance (TPSA) in 2026, which now oversees its maintenance, updates, and ongoing development.
The PACE in a Box Technical Standards Manual establishes the technical requirements for TX-PACE projects, including energy and water assessments, projected savings, and independent third-party verification. The manual is maintained by the Texas PACE Standards Alliance (TPSA).
Program Guide
Your roadmap to TX-PACE program participation
Technical Standards Manual &
PACE ITPR Workbook
The PACE in a Box Independent Third-Party Reviewer (ITPR) Workbook provides a standardized framework for evaluating project energy and water savings in accordance with TX-PACE technical standards. The workbook is maintained by the Texas PACE Standards Alliance (TPSA).
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.
Required Document Checklist Sample
Property Owner Certification Template
TX-PACE Capital Provider Certification Template
Owner and Capital Provider Request for Variance of LTV Recommendation Template
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 three fees: an Application Fee, a Transaction Fee and an Annual Servicing Fee.
Application Fee
The Application Fee covers project intake, eligibility screening, document coordination, and preparation for funding and closing.
A non-refundable $500 Application Fee is due upon submission of each project application. The Application Fee will be credited toward the Transaction Fee due at closing.
Transaction Fee
The Transaction Fee is due at closing and is calculated based on the Total Project Costs, which include all eligible hard and soft costs associated with the project, including but not limited to:
- Construction and equipment costs
- Engineering, architectural, legal, and permitting fees
- Lender origination fees
- Administrator fees
- Capitalized interest
- Title, recording, escrow, and other financing-related costs
The Transaction Fee is the greater of:
| Total Project Costs | Transaction Fee |
|---|---|
| Minimum Fee | $2,000 |
| First $5,000,000 | 1.00% |
| Amount over $5,000,000 | 0.50% |
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.
Annual Servicing Fee
This fee supports TPA's ongoing administration of the PACE assessment for the life of the financing. Services include maintaining assessment records, coordinating assessment amendments and releases, monitoring ongoing program compliance, supporting participating local governments, and providing administrative support to property owners and lenders.
- Assessed annually at 8 basis points (0.08%) of the outstanding assessment balance.
- Collected as part of the annual PACE assessment payment.
- Remains payable throughout the term of the assessment, including during any interest-only or capitalized interest periods.
- May be capitalized into the financing and prepaid at closing.
If the PACE assessment is amended to increase the financed amount, the Annual Servicing Fee will be adjusted 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.
All TX-PACE projects require an Independent Third-Party Reviewer (ITPR) to evaluate projected energy and water savings and verify compliance with applicable technical standards. The review includes two phases:
Pre-Construction Verification
Before construction begins, the ITPR evaluates the project's technical documentation, assumptions, and projected savings to confirm they are reasonable and meet TX-PACE requirements.
Post-Construction Verification
Following installation, the ITPR verifies that the approved improvements have been completed and are operating as intended.
The ITPR or their representative must conduct site visits before and after installation and submit the required verification documentation.
Energy and Water Assessment Report Template
Texas PACE Authority provides an Energy and Water Assessment Report Template to help engineering teams prepare the technical information required for TX-PACE projects. The template establishes a consistent format for documenting proposed improvements, baseline conditions, and projected savings. Using this format helps streamline the ITPR review process and may reduce review costs.
Technical Standards and Additional Resources
Originally developed by Keeping PACE in Texas, the PACE in a Box technical standards and ITPR Workbook transitioned to the Texas PACE Standards Alliance (TPSA) in 2026. TPSA now maintains and updates these resources to support consistent technical standards across Texas.
Visit the TPSA Document Library for the latest Technical Standards Manual and ITPR Workbook.
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: