The Travis Building at 405 N. St. Mary’s St. in downtown San Antonio will undergo $5 million in sustainability-related renovations, all financed through the Texas Property Assessed Clean Energy program. The city of Alamo Heights recently established a PACE program of its own, which provides low-cost, long-term financing for property owners to pay for energy-efficiency and water-conservation improvements.
Madison Iszler /San Antonio Express-NewsAlamo Heights has taken a step toward greener buildings with the approval of a financing tool for property owners.
The city established a Property Assessed Clean Energy program to provide low-cost, long-term financing to pay for energy-efficiency and water-conservation improvements for commercial and nonprofit property owners and owners of multifamily residences of five units or more. Improvements can range from irrigation equipment and windows to roofing and solar panels.
Property owners pay off the cost of improvements over 10 to 20 years or more, using the savings they accrue from lowered utility expenses, said Lyle Hufstetler, natural resources project coordinator for the Alamo Area Council of Governments.
Alamo Heights is the 13th municipality in the area to implement the program. Others that have PACE in their community include San Antonio, Balcones Heights, Comal County and Leon Valley. All of the those programs are administered by the Alamo Area Council of Governments, a political subdivision of the State of Texas that provides general technical assistance to member governments, which also will administer the Alamo Heights program.
In the coming weeks, Hufstetler said the council of governments will reach out to the Alamo Heights business community to let them know that the option for PACE financing is now available. So far, Alamo Heights community members have not reached out to get involved in the program, said Hufstetler and Alamo Heights Assistant City Manager Phil Laney.
Paying for the improvements through a PACE program is different from taking out a personal or business loan. No down payment is required for PACE financing. Owners request a senior lien on the property for the total cost of the project, and the owner pays that back in installments, according to the PACE Authority. The assessment is attached to the property, so if an owner sells it, the next owner is responsible for continuing to make payments.
Property owners interested in PACE financing should start off by going to the council of governments to learn about the program. There they will be directed to a website with a list of lenders and contractors experienced with PACE, as well as third-party reviewers who could estimate the savings an owner might see from desired improvements.
Two community members asked the city council questions about the PACE program during a public hearing last week, after which the council voted 3-2 to establish the PACE program and have the Alamo Area Council of Governments administer the program for the city.
