City of Amarillo’s Texas Property Assessed Clean Energy (TX-PACE) Program
Innovative Financing Tool Helps Property Owners Cut Costs, Increase Efficiency
The City of Amarillo’s Texas Property Assessed Clean Energy or TX-PACE program provides an additional tool for City of Amarillo property owners to finance eligible retrofit projects. The Property Assessed Clean Energy Act (Chapter 399 of the Local Government Code) was enacted by the State of Texas in 2013, and The City of Amarillo adopted the program September 5, 2017.
WHAT IS TX-PACE?
TX-PACE is an innovative financing program that incentivizes owners of commercial (including nonprofit, retail, healthcare and hospitality), industrial (including manufacturing and agricultural), and multifamily residential properties (with five or more dwelling units) to obtain low-cost, long-term financing for water conservation, energy-efficiency, renewable, and resilience retrofits.
- TX-PACE programs enable owners to lower their operating costs and use the savings to pay for eligible projects.
- Owners gain access to private, affordable, long-term (typically 10-20 years) financing that is not available through traditional funding avenues.
The PACE Act authorizes municipalities and counties in Texas to work with private sector lenders and property owners to finance qualified improvements using contractual assessments (similar to a sidewalk or sewer assessment) voluntarily imposed on the property by the owner. In exchange for funds provided by a private lender to pay for the improvements, the property owner voluntarily requests that the local government place an assessment secured with a senior lien on the property until the assessment is paid in full.
What is TX-PACE financing?
The City of Amarillo has selected Texas PACE Authority as the third-party administrator of this program.
Visit the Texas PACE Authority website to view frequently asked questions, case studies, educational materials, a financing comparison calculator and upcoming trainings and TX-PACE events.
HOW TX-PACE WORKS
TX-PACE is a simple and effective program that allows property owners to see an immediate increase to net operating income and find investing in efficiency a business-savvy proposition. Owners choose a private sector capital provider and voluntarily request that the local government place a senior lien on the property for the total cost of the project. The owner commits to the local government that he/she will pay the TX-PACE assessment installments. TX-PACE is not a personal or business loan. It is a voluntary land secured assessment that is paid off over time. The energy and/or water savings are structured to exceed the cost of the assessment, resulting in projects that are cash flow positive. As the assessment is tied to the property, the repayment obligation transfers to the next owner if the property is sold.
STEPS TO TX-PACE:
The Barfield Building is the first PACE project in Amarillo. The 1926 building is being revitalized and repurposed into a boutique hotel, with 109 rooms inside the historic 10 story building. After the 73,307 square feet of the building are renovated, it will be energy and water efficient because of the PACE program. Sitting at the intersection of Polk St and 6th St (Route 66), the finished hotel will help continue the revitalization of downtown Amarillo. Groundbreaking for the project was March 6, 2019. For more information, click the picture or the link above.
City of Amarillo PACE Report
State Energy Conservation Office (SECO) https://comptroller.texas.gov/programs/seco/funding/pace.php
To learn more about The City of Amarillo’s PACE program or submit an application, please contact Texas PACE Authority via email: email@example.com or phone: 1-855-738-PACE (7223) or visit www.TexasPACEAuthority.org for additional information.