PACE Announces Updated Program Guide
On September 29, 2022, the Texas PACE Authority released a T5 Webinar announcing an updated Program Guide containing “substantial changes.”
The key updates to the Guide can be found in Section one: TPA’s Project Development Process
Clarification that a lot which may have previously been ineligible for PACE financing due to the fact that it was “undeveloped” may be considered a “developed lot” by adding an “improvement” to the lot. These qualifying improvements are defined as a “building structure or fixture” as well as a “transportable structure …. whether or not it is affixed to the land.” This clarification may make PACE financing more easily accessible.
In the context of refinancing eligible improvements, the requirement of proving the project was “intended to reduce energy or water consumption” may now be satisfied by “drawings, plans, and equipment specifications” as “refinancing enables a property owner to retroactively finance qualified retrofits and development projects.” The speaker clarified that this will ease the refinancing process as “any project has” these components. Refinancing of TX-PACE projects can occur up to 24 months after the date on which the last qualifying improvement was installed, so long as all other requirements are satisfied.
The Texas PACE Authority was given the authority to waive the requirement that the Loan to Assessed Value Ration (LTV) cap of 25% of the assessed value and accept up to 25% of the market value of the property instead.
The Savings to Investment requirement (SIR) was clarified to outline the items that qualify as a utility or operating savings and a financial savings.
The guide is currently in the process of being translated to Spanish.