17 Apr PACE in a Box (Property Assessed Clean Energy) Financing
PACE, or Property Assessed Clean Energy, is a financing mechanism passed by the TX legislature last year which:
"…enables owners of commercial and industrial properties to obtain low-cost, long-term loans for water conservation, energy-efficiency improvements, and renewable retrofits. The term of a PACE loan may extend up to 20 years, resulting in utility cost savings that exceed the amount of the assessment payment. As a result, improvements financed through PACE generate positive cash flow upon completion with no up-front, out-of-pocket cost to the property owner. If the property is sold before the full amount of the PACE loan is repaid, the repayment obligation automatically transfers to the next owner because the lien securing the PACE assessment follows title to the property."– from Keeping PACE in Texas
A lot of work has gone into creating a turn-key toolkit designed to provide everything local government needs to establish and administer uniform, user-friendly, sustainable and scalable PACE programs to create economy and conserve local water and energy resources. The result, a standardized system called "PACE in a box" that can be adopted by financial institutions across the state is underway…
Released this week, the toolkit, will be put into action after one more round of comments and suggestions from third-party administrators, lenders and other stakeholders. You can submit your input, here. Follow Keeping PACE in Texas (a non-profit association) on Facebook and their News Blog for latest developments.
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