For many property owners and developers, submitting a TX-PACE eligibility check is the beginning of a much larger conversation. One of the most common questions we hear is: “What happens next?” The answer is that every project follows its own path.

Some projects come to us with a well-defined scope, committed financing, and a clear construction schedule. Others are still evaluating budgets, refining plans, securing tenants, or coordinating multiple funding sources. Regardless of where a project is in the development process, the goal of the eligibility review remains the same: to determine whether TX-PACE is a good fit and identify opportunities to strengthen the project's financing strategy before major decisions are finalized.

The Initial Review

Once an eligibility check is submitted, our team begins with a high-level review of the property, proposed improvements, estimated financing needs, and overall project goals. Rather than focusing on every project detail, we're looking at whether the project appears to align with TX-PACE eligibility requirements and whether the anticipated financing size is likely to attract appropriate capital providers.

Projects that include improvements such as HVAC systems, roofing, lighting, insulation, windows, building controls, water conservation measures, solar, and other qualifying improvements are often strong candidates for further evaluation.

Our questions are designed to better understand the project so we can connect the right people, identify potential considerations early, and help position the project for a successful closing.

Looking Beyond Eligibility

One of the advantages of engaging with TX-PACE early is that the conversation extends well beyond determining whether a project qualifies.

As part of the review process, we begin identifying factors that could influence project structure or timing, including existing mortgage financing, ownership structure, title considerations, appraisal timing, historic tax credits, construction sequencing, or local program requirements. As projects move forward, additional members of the project team may also join the discussion, including capital providers, legal counsel, contractors, engineers, energy auditors, and Independent Third-Party Reviewers (ITPRs).

Identifying these considerations and bringing the right people to the table early can help reduce surprises later in the process.

Every Project Follows Its Own Path

There isn't a single roadmap that every TX-PACE project follows. Some projects move quickly from eligibility review to closing because the scope and financing are already well established. Others evolve over time as redevelopment plans expand, construction budgets change, tenants are secured, or additional funding sources are incorporated.

Every project has its own story.

Some, like 501 Elm in downtown Dallas, involved coordinating TX-PACE alongside a complex redevelopment and broader capital stack. Others, such as the Hyatt Centric Austin, required collaboration among lenders, engineers, attorneys, and contractors to move a large hospitality refinancing forward. More recently, projects like the Herring Hotel in Amarillo demonstrate how engaging early allows project teams to evaluate financing options while redevelopment plans are still taking shape.

While the project types, financing structures, and timelines may differ, one thing remains consistent: starting the conversation early creates more opportunities to build the strongest financing strategy possible.

Why Starting Early Matters

The greatest advantage of submitting an eligibility check early is flexibility.

Early conversations uncover opportunities to incorporate additional qualifying improvements, strengthen the capital stack, preserve liquidity, improve long-term project economics, and coordinate with other financing sources before major project decisions are locked in. They can also help identify potential challenges before they become obstacles and create opportunities that may not have been considered otherwise.

TPA's eligibility check is about beginning a conversation early enough to help a project succeed.

The Conversation Continues

Whether you're evaluating your first TX-PACE project or your fifteenth, the earlier the conversation begins, the more opportunities there are to evaluate eligible improvements, strengthen the capital stack, coordinate financing partners, and position the project for long-term success.

Sometimes the most valuable part of the eligibility check isn't confirming that a project qualifies. It's discovering opportunities that might otherwise have been missed.

Whether your project is in the conceptual stage or already moving toward construction, we're here to help answer questions, discuss financing considerations, and explore whether TX-PACE may support your long-term project goals.

About Texas PACE Authority

Texas PACE Authority (TPA) is a nonprofit organization and the leading administrator of TX-PACE programs serving 114 cities and counties across Texas at the time of this publication. TPA works with local governments, property owners, and capital providers to facilitate financing for energy and water efficiency, resiliency, and distributed generation improvements in commercial properties. Through its program administration and market leadership, TPA helps ensure that high-performance building solutions are accessible, scalable, and aligned with the long-term needs of Texas communities.

www.texaspaceauthority.org