Lone Star PACE, a leading administrator of Texas’ C-PACE program, is pleased to announce a change to program guidelines that allows a greater portion of project costs to be financed by Commercial Property Assessed Clean Energy.
Keeping PACE in Texas, the stakeholder group that determines best practices for the Texas C-PACE program, has approved an increase to the loan-to-value cap. Property owners who leverage C-PACE will now have access to up to 35% LTV as complete or as stabilized, a meaningful increase from the existing 25% cap.
Repayment periods are also slated to become more flexible, with capitalized interest and interest-only periods increasing up to five years.
Lee McCormick, President of Lone Star PACE, said: “This decision keeps Texas on the frontlines of financing innovation and is key to the continued success of the state’s C-PACE program. By raising the allowable LTV, C-PACE can now fill more of the capital stack, giving developers the funding they need to make building improvements that support resource conservation and economic growth in our great state.”
The Texas PACE Act was signed into law by Gov. Rick Perry in 2013 and enables access to low-cost, long-term financing for commercial property improvements that save energy and water. Since the program’s inception, close to $835 million in C-PACE assessments have helped reduce utility costs and improve property values in cities and counties across the state.
Shelby DuPont, Manager of Policy at Nuveen Green Capital, said: “We are supportive of the higher loan-to-value ratio for C-PACE projects in Texas, a move that aligns the state with the rest of the market. The increase will provide more flexibility for property owners, ultimately broadening the application of this critical financing mechanism.”
Property owners can use C-PACE financing to cover 100% of efficiency upgrades made before, during or after a building’s construction. No public dollars or taxpayer funds are used to support the financing, which is repaid through a special assessment that attaches to the property rather than the owner.
Nicholas Zubah, Deputy Director of C-PACE Alliance, said: “This increase to the loan-to-value ratio represents a significant step forward for C-PACE in Texas. By expanding the financing flexibility available to property owners, this change will make C-PACE an even more impactful tool for driving economic growth and environmental stewardship across the state.”
Changes to program guidelines approved by Keeping PACE in Texas are effective immediately. For more information on how to qualify for C-PACE financing, schedule a meeting with Lone Star PACE today.