Today the City of Houston announced the official launch of PACE Financing in Houston. PACE Houston along with many other private organizations, non-profits and individuals have worked tirelessly to bring this powerful new financing tool to owners of commercial property in Houston and its Extra Territorial Jurisdiction "ETJ".
In our Mayor's own words, "Houston is the global energy capital of the world and today we are demonstrating that our leadership extends above and beyond to responsible resource management. And today we continue our role as the energy efficiency capital of the world." Mayor Sylvester Turner, August 3, 2016 Houston City Hall
PACE, or Property Assessed Clean Energy, provides 100%, long term (up to 30 years), fixed rate, non-recourse financing for air conditioning upgrades or replacement, lighting retrofits, energy management system controls, energy efficient "cool" roofs and windows, elevator modifications, water conservation and CHP or renewable energy projects. Because PACE provides long term financing, the energy and water savings can exceed the outgoing financing cash flow - making the project cash flow positive. Existing rebates are separate from the PACE program, enabling an owner to receive both preferential financing and the rebates associated with the equipment purchased.
Already proven effective by both large and small property owners spread across 33 states since it was first launched in 2008, in Councilman Christie's own words, PACE is a “win-win” for Houston. PACE is good for the property owner because they can use Other People's Money instead of their own capital; good for the tenants because it lowers their operating costs; and is good for the building because it receives better quality and more reliable mechanical systems, quicker - accelerating future year's capital budgets and improved cash flow to "today".
PACE both creates jobs and is good for the environment. PACE reduces utility consumption and extends the time our existing utility infrastructure will meet the State’s needs. PACE is a public-private concept that uses no public funding - it uses private capital.
“PACE is the single best new idea I have seen in my 35 year commercial real estate career.” Tim Crockett, President PACE Houston.
PACE Houston was created to help bring PACE to the Greater Houston region, educate the marketplace and help property owners use PACE to upgrade their properties. And PACE Houston is already working to help extend the boundaries to neighboring cities and counties.
We can help with any or all steps required in the process, including access to competitive capital.