The Texas C-PACE program offers a smart solution for upgrading your building while reducing your utility costs. This program provides long-term financing for energy efficiency, water efficiency, and renewable energy projects, using private capital from an open market for existing properties and new construction. You can choose the best financing terms and repayments are made through a voluntary assessment on your property, similar to a sewer assessment.
Getting started with C-PACE is easy and we will guide you through every step of the process. Simply contact Lone Star PACE to prequalify your project and work with your chosen capital provider to model different scenarios.
100% FINANCING ON HARD AND SOFT COSTS:
PACE does not have any upfront costs, thus protecting the building owner’s capital and may provide capital up to 25% of the properties appraised value.
LONG TERM FINANCING OPTION:
PACE allows for up to 30 years of loan amortization, reducing annual payments and supporting projects that have longer useful lives.
POSITIVE CASH FLOW FROM DAY ONE:
Projected utility and maintenance savings are typically greater than the annual PACE assessment, generating positive cash flow.
ASSESSMENT MAY PASS TO TENANTS:
Commercial leases generally classify property assessments as an operating expense that is reimbursed by tenants.
The PACE assessment and qualified improvements are attached to the property and may be transferred to new owner or paid off in the event of a sale, meaning property owners are no longer at a loss if the building is sold before an ROI is realized.
What types of projects are eligible for PACE?
Texas PACE legislation authorizes PACE funding for the installation of Qualified Improvements. Qualified Improvements must:
- Be permanently fixed to the real property;
- Have a demonstrated capacity to decrease
- Water consumption or demand; and/or
- Energy consumption or demand (Includes renewables and distributed generation products or devices on the customer’s side of the meter that use energy technology to generate electricity, provide thermal energy, or regulate temperature); and
- Have a useful life that exceeds the term of the PACE financing agreement.
What type of properties do not qualify for PACE?
Properties that are statutorily ineligible for PACE assessments include:
- Facilities for undeveloped lots or lots undergoing development at the time of the assessment; and
- Government owned real property.
What types of properties qualify for PACE?
The PACE Act permits PACE assessments to be placed on property that is:
- Privately owned commercial real property – including not-for-profit real property such as private schools, medical facilities, churches, etc.;
- Privately owned industrial real property; or
- Privately owned residential real property with five or more dwelling units.
Any of these properties must also:
- Be located within the jurisdiction of the PACE program;
- Have a title that is not in dispute; and
Where there is a preexisting mortgage lien on the property: the mortgagee must be given written notice of the owner’s intention to participate in the PACE program at least 30 days before the owner enters into a contract with the PACE program; and, the mortgagee must provide written consent to participation in the PACE program.