What we know
The PACE program is a financing initiative provided through the state legislature and the Texas Comptroller's Office, which allows for commercial property owners to apply for long-term loans to upgrade energy and water infrastructure such as:
- Heating, ventilation and air conditioning system upgrades
- LED lighting
- Insulation
- Low-flow bathroom fixtures
"We actually have three right now–commercial property owners–that would like to utilize this program in Montgomery County, which is why we're approaching this county right now," McCormick said. "There is no risk, no liability to the county. This is private dollars doing private projects."
The impact
McCormick said the PACE program provides an incentive for commercial property owners to upgrade to energy- and water-conserving infrastructure instead of funding continued maintenance on old systems, which can be a drain on local energy and water resources.
McCormick said the county would only act as a lien holder against commercial properties that defaulted on loans. However, Precinct 3 Commissioner Ritch Wheeler and Precinct 4 Commissioner Matt Gray said they had concerns regarding the potential impact on small business owners and potentially residential property owners who may seek the loan and be unable to repay.
"Residential PACEs have a lot of problems," McCormick said. "The typical issues of a residential PACE is actually residential contractors that have found ways to game the system. Commercial PACE programs nationwide have not had those issues. ... We haven't had any [residential PACE programs] in Texas."
Montgomery County Tax Assessor-Collector Tammy McRae was also in favor of adopting the program, citing that multiple counties in Texas had been operating the programs for several years, including Fort Bend, Harris, and Galveston counties.
"Denton County has been participating for several years, and they've had great success with it, and I am okay with the program," McRae said.
