Page 15 - DEC2022

doing a

Doubletake

The Grove, City of Austin, $12 million, 55+ adult community, Historic Downtown building, Castroville, $690,000, Office
Multifamily (Travis County PACE Program) (Medina County PACE Program)

A Proven Financial Tool
TX-PACE is a proven financial tool that
incentivizes Texas property owners to upgrade facility
infrastructure with little or no capital outlay. Approved
by state legislation in 2013 and voluntarily established
by 82 local governments, TX-PACE programs enable
owners to lower their operating costs and use the
savings to pay for eligible water conservation, energy SWEXAN Hotel,
efficiency, resiliency, and distributed generation City of Dallas,
projects. Texas PACE Authority (TPA) administers $40 million,
TX-PACE programs at no cost to local governments. Hospitality
These Texas local governments span the gamut of
metropolitan, suburban, and rural areas, demonstrating
the versatility and effectiveness of TX-PACE regardless
of geographic location.
TX-PACE provides owners and developers a source
of 100% upfront, long-term, low-cost, high-leverage,
non-recourse private financing that significantly
improves cash flow by reducing a building’s debt service
burden. TX-PACE financing options are used to replace
mezzanine or a portion of equity in the capital stack.
Texas property owners are more focused today than
ever before on energy and water conservation. TX-PACE
helps reduce utility bills by lowering energy and water
use. The annual energy savings for a TX-PACE project
usually exceeds the annual assessment payment, so
property owners are cash flow positive immediately.
Benefits to Property Owners, Communities, and Local
Governments
Since TX-PACE financing terms are based on the When businesses and nonprofit organizations make
useful life of the improvement (often up to and more than energy and water saving improvements to commercial,
20 years), it’s possible to undertake deep, comprehensive industrial, and multifamily properties, they reduce
retrofits that have meaningful energy savings and a operating costs and increase property value as well
significant impact on the bottom line. The increased NOI as contribute economic and environmental benefits to
dollars can then be spent on other capital projects, their communities. This make these communities more
budgetary expenses, or business expansion. resilient, healthy, and sustainable.

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