Texas PACE Authority urges Houston outreach to expand property‑assessed clean energy financing

At a meeting of the City of Houston resilience committee, Charlene Heitinger, president of Texas PACE Authority, urged council members and committee staff to promote Property Assessed Clean Energy financing as a way for commercial, industrial and multifamily owners to pay for energy‑ and water‑saving upgrades without using taxpayer dollars.

Heitinger said the Texas PACE Authority is a 501(c)(3) nonprofit created to administer PACE programs after the Texas PACE Act gave cities and counties the legal authority to allow assessments under local programs. “This is enormously successful, but we have not gained traction in Houston the way we should and we really need help with outreach and education,” Heitinger said.

The presentation described how PACE works in Texas: a property owner contracts with a private lender to finance qualifying energy‑ or water‑saving upgrades, the local government places a non‑tax lien (an “assessment”) on the property for the cost, and the lender collects installments under a contractual relationship with the city. Heitinger said the program does not use taxpayer dollars and that Texas PACE Authority will not close a project without an independent, third‑party engineer validating that projected savings exceed project costs.

Heitinger and James Kargas, counsel for Texas PACE Authority, gave examples of projects the authority has supported in Houston and elsewhere. According to the presentation, the program has supported more than $500 million in projects across Texas over roughly 10 years; Houston has completed 11 projects totaling about $38 million, the largest at just over $20 million and the smallest a few hundred thousand dollars. The presentation also highlighted conversions and rehab projects, including a recent hotel‑to‑multifamily conversion the authority said will produce affordable, market‑based housing.

Speakers during the meeting pressed on several practical points. Council Member Julian Ramirez asked whether the assessment functions like a loan payment; Heitinger confirmed it can be treated similarly for cash‑flow purposes and noted many property owners with triple‑net leases pass assessment costs through to tenants because the assessment is due and owing to the local government. She also said the authority had obtained a Texas Attorney General opinion enabling HUD to consent to PACE projects in cases that required HUD approval.

Presenters identified common barriers to wider adoption: limited awareness among property owners and lenders, and the need for mortgage‑holder consent and bank familiarity with the PACE structure. Heitinger said Texas PACE’s model intentionally preserves marketplace flexibility — owners choose lenders and contractors — while the authority enforces program standards and verifies savings estimates.

Council members and staff in the meeting offered to help with outreach. Vice Mayor Pro Tem Amy Peck said she would promote digital assets and local messaging to raise awareness. Heitinger asked committee members to share the city’s PACE page and local case studies in newsletters and social media to re‑engage developers and property owners who had not pursued PACE previously.

No formal action or vote was taken during the meeting. The presentation closed with an open offer from Texas PACE Authority to provide more examples and training for contractors and lenders.

Sources: presentation by Charlene Heitinger and remarks by James Kargas at the City of Houston resilience committee meeting (transcript).