General FAQ
Lone Star PACE is an authorized administrator of the Commercial Property Assessed Clean Energy program in Texas. We work closely with property owners, municipalities, capital providers and contractors to facilitate the C-PACE process, providing our clients with comprehensive support from project inception to completion.
Commercial Property Assessed Clean Energy is low-cost, long-term financing for energy efficiency, water conservation and renewable energy improvements at new and existing buildings. C-PACE is funded through private capital providers and adopted by municipalities.
Dozens of cities and counties across Texas have already adopted a C-PACE program, but more are being added regularly. For the latest list of municipalities where Lone Star PACE has a presence, visit our Authorized Jurisdictions map.
Yes, nonprofit properties have a property tax ID number and are eligible for C-PACE.
Funding a project starts with a vetting process by Lone Star PACE or the C-PACE capital provider to ensure eligibility. Several steps precede the disbursement of proceeds. For a full breakdown, please refer to the program guide or schedule a meeting with Lone Star PACE here.
Closing typically takes between four to six weeks from the acceptance of a term sheet by the C-PACE capital provider.
Property Owners FAQ
C-PACE is secured through a voluntary assessment on the property over a term that can be structured as long as the useful life of improvements. Assessment terms tend to fall between 20 to 30 years.
Nearly all commercial properties are eligible for C-PACE financing. A list of property types, qualified improvements and project types can be found on our Eligibility page.
C-PACE financing has many advantages that set it apart from other types of loans. It is secured in the form of an assessment, with competitive interest rates and longer repayment terms than a traditional loan. It is attached to the property, not the owner, and may automatically transfer in the event of a sale if not paid off in full.
Yes! The C-PACE assessment attaches to the property, not the owner, meaning it is immediately transferrable in the event of a sale, similar to an assumable loan. The assessment can also be repaid in full at the time of sale.
Yes! C-PACE financing pairs well with other incentives, rebates or grants.
Yes, C-PACE can be used to recapitalize energy and water-efficient improvements installed within the last 24 months.
Yes, senior lender consent is required for all C-PACE projects. For more information, visit our C-PACE for Senior Lenders page.
C-PACE programs in Texas generally allow property owners to choose their own contractor.
C-PACE financing typically has a five-year step-down prepayment penalty; however, this may be negotiated with the C-PACE capital provider before term sheet acceptance.
Local Government FAQ
C-PACE was signed into law in 2013 by Gov. Rick Perry to encourage economic development and further the state’s energy and water conservation goals.
Local governments are responsible for establishing their own C-PACE program. After a program is established, Lone Star PACE handles 100% of the administration on behalf of local government.
Local governments must adopt a C-PACE program in order for property owners within their jurisdiction to take advantage of the financing. Programs are established through a two-meeting process, which is outlined in the Texas PACE Act, Chapter 399 of local government code.
No! C-PACE assessments are funded through private-sector lenders. A list of C-PACE capital providers can be found here.
Senior Capital Provider FAQ
C-PACE is secured through a voluntary tax assessment on the property over a term that matches the useful life of the improvements. Assessment terms tend to fall between 20 to 30 years.
If a property owner defaults on a C-PACE payment, only the current or past-due amount may be enforced in the same manner as a delinquent property tax. Unlike traditional financing, the entire C-PACE assessment does not accelerate. The outstanding balance remains due and transfers with the property upon sale, or may be paid off upon sale.
No, C-PACE does not interfere with a senior lender’s foreclosure process or their foreclosure rights. A senior lender still has all of its rights and remedies available.
More than 350 capital providers have consented to C-PACE to date. A nationwide list of consenting institutions can be found here.