|Program Type||Property-based Financing|
|Required Documentation||Locally Determined|
|Official Web Site||http://pacenation.us/pace-in-texas/|
Property-Assessed Clean Energy (PACE) financing allows home, building, and property owners to finance renewable energy and energy-efficiency projects by placing an assessment on the land. The amount financed often is paid via property taxes on a yearly basis until the system is paid off.
The Federal Housing Financing Agency issued a statement in July 2010 concerning the senior lien status associated with most PACE programs that has suspended PACE financing for now.
In Texas, the PACE statutes are carried out by local governments. The only way to find out if a local government offers PACE financing in Texas is to call them or visit their website. Not all local governments offer PACE financing.
The legislation that enabled PACE in Texas was enacted in May 2009. It allows municipalities to create assessments or loans for property owners that want to finance renewable installations or energy efficiency projects on their property. But most of the details are left up to the local municipality.
To enable local PACE financing, a municipality must first pass a resolution stating its intent to designate at least part of the area (if not the whole area) where properties are eligible for the assessment. The local government’s resolution must be heard publicly and receive feedback from constituents, and it has to include proposed details of the program.
The plan must determine which renewables and energy-efficiency measures will be accepted, develop a ranking request methodology, determine whether or not contractors must be used or if it can be self-installed, what the maximum allowable loan amount is, develop an assessment boundary map, a draft contract, and the ability to ensure that property owners applying for the assessment can fulfill the financial obligations of the assessment, and the municipality has to figure out if it will finance the PACE funds, whether directly or with proceeds from bonds.
After all the conditions are met, property owners living in the assessment area can opt-in to the program. When the agreement is finalized and funding is distributed, a lien is placed on the property and remains until fully repaid.