Texas City Leads Nation in Innovative PACE Program for Property Upgrades

The Houston Resilience Committee meeting highlighted a transformative financing tool known as PACE (Property Assessed Clean Energy), which is revolutionizing how property owners upgrade their buildings. A compelling case study presented showed how a property owner could save $200,000 annually by replacing outdated HVAC systems and lighting, despite an initial investment of $1.3 million.

Traditionally, such an investment would take nearly a decade to break even, especially if financed through conventional bank loans. However, PACE allows property owners to spread the cost over the useful life of the equipment—up to 20 years—enabling them to make manageable annual payments of $120,000 while enjoying immediate savings. This innovative approach not only enhances cash flow but also boosts property values and occupancy rates.

The meeting underscored the widespread issue of deferred maintenance in aging buildings, particularly those from the 1980s, where owners often lack the funds or knowledge to make necessary upgrades. PACE addresses this challenge, providing a viable solution regardless of economic conditions.

Texas was a pioneer in implementing PACE, and now, nearly 40 states have adopted similar statutes. Houston's program, celebrating its 10th anniversary, has already reached 80% of the Texas population, with plans to expand further across the state. The committee's discussions emphasized the importance of raising awareness about PACE to unlock the potential for economic growth and sustainability in the region.