New Financing Option for Multifamily Property Owners

The Texas PACE program (Property Assessed Clean Energy), enables multifamily property owners to obtain affordable, long-term financing covering up to 100 percent of the cost for energy efficiency, water conservation, and on site generation technologies.

PACE secures private financing for a term as long as the projected useful life of the improvements, resulting in utility cost savings that exceed the amount of the repayment. You can modernize your facility without fear of over-investment because if you sell the facility, the PACE loan repayment obligation transfers with the property to the new owner.

Typical Examples of Qualified Improvements
  • High efficiency chillers, boilers, and furnaces
  • Systems to capture, treat and use other on-site sources of water (condensate, rainwater, reverse osmosis reject water, etc.)
  • High efficiency lighting
  • Water conservation equipment
  • Wastewater onsite reuse systems
  • Energy management systems
  • Insulation & air sealing
  • HVAC systems
  • Energy recovery & redistribution systems
  • Greywater systems
  • High efficiency toilets
  • Waterless urinals
  • Solar hot water
  • Solar photovoltaics


This example compares self-funding and conventional funding with PACE financing:

  • Project involves a $2.5M 1.3MW CHP system
  • Annual net savings of $473,000 (5.3 yrs simple payback)
  • The project does not pass the company’s hurdle rate for investment in energy efficiency (i.e. the ROI is probably not high enough)
  • Conventional Funding for 5 years at 4.0% (20% down payment)
  • PACE funding available for 20 years at 6.0%.
  • Energy prices held constant. NPV discount rate at 8%.


Compare financing options with the financial comparison calculator.

Your Convenient Loan Assessment Can Include
  • Cost of materials and labor necessary for the installation of a qualified improvement
  • Permit fees
  • Inspection fees
  • Lender fees
  • Program application and administrative fees
  • Project development and engineering fees
  • Independent third party reviewer audit fees, including verification fees
  • Any other fees or costs that may be incurred by the property owner incidental to the installation, modification or improvement
  • Legal, consulting and other fees on an actual cost basis
  • Changes to the existing property incidental to the installation

Learn more about PACE financing opportunities in the Affordable Housing Sector



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