City of Houston Green Building Office Endorses PACE Building Efficiency

October 25, 2018

To Whom It May Concern:

The City of Houston is pro-PACE Financing, adopted in 2015, and prominently featured on the website. Houston believes that PACE Financing is a powerful tool, truly a game changer for any property owner looking to make energy and water efficiency improvements to their property.

I think Tim Crockett of PACE Building Efficiency can provide not only a good education about PACE, but invaluable expertise helping the property owner manage the whole process, complying with PACE requirements, analyzing multiple efficiency components, as well as evaluating the different lenders and their proposals. No longer limited to just helping renovate building's older mechanical systems, PACE has become a meaningful component of the capital stack for large scale redevelopments which typically encompass new HVAC, Building Controls, Lighting, Windows, Water, even on site micro-grid power generation for resiliency as PACE provides a lower cost of capital when compared to Equity or Mezzanine financing.

I can attest that PACE Building Efficiency was instrumental in bringing PACE Financing to Houston and facilitated the first office building in the State to use PACE and in my opinion, provides superior knowledge and service for any property owner considering upgrading or redeveloping a project. I highly recommend Tim and their services. If you have any questions regarding Tim’s abilities, take a few moments to view his commanding performance in our PACE education seminar from February of this year residing on the Green Building Resource Center website:

Steve Stelzer, AIA, LEED AP, TRUE Advisor
Program Director, Green Building Resource Center
1002 Washington Avenue
Houston, Texas 77002
Direct: 832-394-9050

PACE Building Efficiency Reference Letter City of Houston.jpg

2018 List of Consenting Lenders to Date

America’s Christian Credit Union, A2B2 LLC, Academy Bank, Ally Bank, Ally Capital, Amalgamated Bank, American Agricultural Bank, American River Bank*, American West Bank, Ameriprise Financial, Ameritas Investment Partners, Bank of America*, Bank of Ann Arbor, Bank of New York Mellon (as Trustee), Bank of Sullivan, Bank of the West*, Bank Rhode Island, Bankwell, Banner Bank, BBCN Bank, Berkshire Bank*, BMO Harris Bank, Bremer Bank, Bridge Bank, Business Lenders LLC, Byzantine Diocese of Stamford, CAB Associates, California Bank and Trust*, California Plan of Church Fi-nance, Inc, Capital Region Development Authority, Cen-Cal Business Finance Group, Charter Oak Federal Credit Union, Chase, Chelsea Groton Bank, Chelsea State Bank, Chestnutz, Cheviot Savings Bank, Circle Bank, Citibank, Citizens Bank*, Citizens Business Bank, City National Bank, Connecticut Innovations, CT Dept of Economic & Com-munity Development, CTBC Bank Corporation, CW Capital, Department of Economic and Community Development (CT), Deutsche Bank*, Dime Bank, District of Columbia Housing Authority, Eagle Bank, Exchange Bank*, Fairfield County Bank, Farm Credit East, Farmington Bank, Fifth Third Bank*, First Bank of Boulder*, First Bank of Lake Forest, First Citizens Bank & Trust, First Community Bank*, First County Bank, First Mountain Bank, First National Bank of Boulder*, First Niagara Bank*, First Republic Bank*, First State Bank & Trust, First Utah Bank, Five Star Bank, Flatirons Bank of Boulder, Folsom Lake Bank, Free and Clear, Genworth Life Ins. Co, Golden Pacific Bank, Great Western Bank, Greater Sacramento Development Corp., GRS Realty, LLC, Guaranty Bank and Trust*, Hanmi Bank, Helaba Landesbank Hessen-Thüringen, Heritage Bank of Commerce, Hometown Bank, HSH Nordbank, JP Morgan Chase*, Key Bank, Layne Foundation, Lehman Brothers, Liberty Bank, Litchfield Bancorp*, M&T Bank, Marion Haddad, McCoy Ventures, Mechanics Bank, Mercedes Benz Financial Services, Metropolitan Life Insurance(and as LIHTC Investor)*, Michigan Business Connection LLC, Monson Savings Bank, Mortgage Calmwater Capital, Mutual of Omaha Bank, National Iron Bank, New Resource Bank*, Newtek Small Business Finance, LLC, Newtown Savings Bank, NorthEast Community Bank, Northwest Mutual Insurance, NUVO Bank, NY State Teachers’ Retirement System, Oritani Bank, Pacific Alliance Bank, Pacific Premier Bank, Pacific Union 7th Day Adventists (Parker Mortgage & Investment Co.), Patriot Bank, People’s National Bank, Peoples Bank of Massachusetts, Peoples United Bank, Plumas Bank, Preferred Bank, Premier Valley Bank, Presbyterian Church Investment & Loan Program, Inc., ProAmerica, Prosperity Bank, Protective Life Insurance, Prudential Insurance, PyraMax Bank, Milwaukee Economic Develop-ment Corporation, Redwood Credit Union*, Riversource Life Insurance Company, Rockland Trust*, Rockville Bank, Royal Bank of Canada (as LIHTC Syndicator), Royal Credit Union, Salisbury Bank & Trust, Santa Cruz County Bank, Savings Institute Bank & Trust, Security Bank of Kansas City Simsbury Bank, Sonoma Bank*, Stancorp Mortgage Investors*, Standard Life Insurance, State Bank of Delano, Sterling Savings Bank*, Summit State Bank, TD Bank, The Private Bank & Trust, Thomaston Savings Bank, Torrey Pines Bank, Toyota Financial Services, TriCounties Bank/Private party, Umpqua Bank*, Union Bank of California, Union Savings Bank*, United Bank*, UPS Capital Business Credit, US Bank*, US Department of Agriculture (USDA), US Small Business Administration (SBA)*, Vectra Bank, Washington D.C. Housing Authority, Washington Trust*, Waterbury Development Corporation, Webster Bank, Wells Fargo*, West America Bank*, Westerly Community Credit Union, Westfield Bank, Whitcraft, LLC, Whittier Trust Company of Nevada, Wilshire Bank, Windsor Federal Savings

* More than one consent provided

Source: PACENow

First Hotel in Houston to use PACE Financing

Congratulations to Houston and the Regency Inn Hotel

"The City of Houston adds another project to its TX-PACE portfolio with the closing of a $135,000 project at the Regency Inn & Suites. This is the first hotel to utilize the TX-PACE program and the first solar project for the City of Houston's TX-PACE program.

"The project will add a 45 kW solar power system that will offset a portion of the hotel's electric usage and help insulate the business from volatility in the power market. The availability of incentives and tax deductions are further motivating hotels around the country to invest in solar, providing a mechanism to strategically allocate resources while decreasing carbon footprint.

"The Regency Inn Hotel, located at 3617 E. Crosstimbers Street, will benefit from utility savings and tax incentives of more than $250,000 over the project's useful life. The project will be financed over an 18-year term."

Source Quoted: Texas PACE Authority

PACE Houston Facilitates First Texas Office Building PACE Project

PACE Houston acted as project facilitator and consultants to Stellar International Commercial Real Estate, LLC for their multi-tenant office building located at 1225 North Loop West. This project represents Texas' first office building energy retrofit to use PACE financing.

Mayor Turner, the City of Houston and Charlene Heydinger of the Texas PACE Authority are exercising leadership, commitment and vision in championing energy efficiency retrofit financing that makes financial sense.
— Tim Crockett, PACE Houston
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Press Release

For immediate release:

1225 North Loop West First Texas Office Building to Use PACE Financing

1225 North Loop West
First Texas Office Building to Use PACE Financing

PACE Houston has facilitated the closing of Texas' first office building renovation using PACE financing. The 200,000 SF, 11 story multi-tenant office building is located on I-610 at 1225 North Loop West.  A $1.3 million, fixed rate, 20-year PACE loan funded 100% of the cost of two new chillers, HVAC Controls and LED lights. The lifetime energy efficiency and operating cost savings are expected to exceed the cost of financing, making the loan self-liquidating, while increasing tenant comfort and the property’s market position.   

PACE Houston was engaged to guide the project through the PACE process from start to finish by the building management who noted, "PACE Houston has been the key partner to this project from the beginning. They know everything there is to know about PACE. Also, they have probably done more educating Houstonians on PACE than any other organization."

Tim Crockett, a 30+ year veteran in Houston Commercial Real Estate and co-founder of PACE Houston said, "PACE is the single biggest improvement in our industry I’ve seen in my 30-year real estate career."  

The City of Houston and the Texas PACE Authority exercised leadership in implementing this important energy efficiency financing program.  Mayor Turner first worked to pass PACE while working in the State Legislature and again when he launched the program last year as Mayor.

PACE legislation has now been adopted by 34 states and Washington DC.  Houston’s PACE program went live last year with Simon Properties adding Houston to the $500 million of PACE improvement projects they are doing around the nation. 

More information on PACE financing can be found at

Tim Crockett, President, PACE Houston at 713-530-7922



Permeable Paving

Houston has endured two "once in 100 years flood" and one "once in 500 year flood" in two years.  I'm not very clear on that math but the point is we have had some serious flooding.  Our hearts go out to those who lost loved ones, homes, cars and were otherwise affected.  

1900 Storm Grade Raising.jpg

What are we going to do about it?   There are some who say, it's too complicated a problem, there is nothing we can do about it.  When asked how do you deal with an overwhelming problem as large as global poverty, Mother Teresa said, I do what is in front of me.   And as Texan, we won't sit idly and do nothing, that's not in our DNA.  We can do what is in front of us.  Galveston pumped sand and mud out of the gulf and bay to raise much of the island by 6 feet after the 1900 storm. Their actions in response to the storm were called "Galveston's finest hour". The Netherlands built dikes to hold back the ocean.  I suggest we begin with some incremental steps - that collectively could have a big impact in addressing flooding.  Over time we may find many other improvements to deal with the problem but here is one idea we can do today.

How many people have you spoken with since the flood who said their house did not flood, BUT just by inches and others who said we took on only a small amount of water.  For these people, a tiny difference made all the difference.  What if we focused on one incremental change which could make a huge difference to the thousands of people?

TRUEGRID Tire on Permeable Grid.jpg

One such incremental improvement is to replace at least some parking lots with permeable paving.  Rather than using concrete or asphalt which causes all the rain that falls there to run off to some other place and contribute to area flooding, one Houston company has developed a better idea.  An effective and affordable alternative utilizing stabilized porous material, covered with either stone or grass, strong enough to support fully loaded 18 wheelers that allows water to be both absorbed into the ground and some be retained temporarily within the permeable paving itself and allowed to drain away at a slower pace, lessening flooding. 

Interestingly, this solution has been developed by a Houston based company who is a leader in that field.  They have partnered with us at PACE Houston to help educate the public and get more of this solution installed. If you want to know more we are available to discuss your specific application.

Contact Tim Crockett at 713-530-7922 or at 


Historic building near Dallas' city hall lands biggest clean energy-tied loan in Texas history

Dallas Business Journal Complete Article by Candace Carlisle, Senior ReporterDallas Business Journal

Begin Quote

The Dallas developer behind proposed plans to bring a Trump-branded hotel to downtown Dallas has landed $23.9 million in Property Assessed Clean Energy finance funds — which will help update the $120 million historic building with energy-efficient systems and water reduction technology.

This loan is the largest commercial Property Assessed Clean Energy (PACE) deal in Texas and is believed to be the second largest of its kind in the country.

Alterra International, which is based in Dallas and San Francisco, decided to apply for the PACE loan for the nine-story, century-old building at 500 S. Ervay St. to help it increase the energy-efficiency of the redevelopment project, which is still underway.

Munsch Hardt Kopf & Harr P.C. represented Alterra International in securing the PACE funds.

”With the loan’s focus to increase energy-efficiency, the development will likely attract even more interest, as today’s residents and tenants look for high-efficiency and low maintenance costs for their apartments and businesses and hotel guests want to stay in buildings that are sustainable,” said Mike Sarimsakci, president of Alterra International, in a statement.

”Combined with federal and state history tax credits, we feel the PACE loan will enable us to bring this catalytic and complicated project into a reality,” he added.

The energy-efficiency updates will improve the property’s value and enable the owner of the building to lower an overall first lien loan on the project. The PACE loan was secured through a contractual assessment lien — which has the same priority as a tax lien loan.

The PACE assessment lien cannot be accelerated, like a conventional construction financing loan, and can only be enforced for the delinquent assessment amounts.

PACE loans, which are made through a city ordinance adopted by Dallas city officials, pair well with historic buildings that require additional capital to bring an aging property to modern energy efficiency standards, said Phil Geheb, a shareholder at Munsch Hardt.

”In my practice, I am beginning to see greater interest in the utilization of this program for history and non-history renovation projects because of its flexibility, relative low-cost and non-recourse nature,” he added.

Alterra International has been working on the redevelopment of 500 S. Ervay for years, transforming long-vacated real estate next to Dallas City Hall into 238 apartments and a 270-room dual-branded Fairfield Inn and Town Home Suites by Marriott, as well as retail and a small office complex on the ground floor of the property.

Sarimsakci says he hopes the redevelopment of the century-old building will be a catalyst for the immediate neighborhood. The apartments and small office space have been completed.

The dual-branded hotel is slated for completion by the end of the year.
— Dallas Business Journal Complete Article by Candace Carlisle, Senior Reporter Dallas Business Journal

City of Houston and Hays County Property Assessed Clean Energy (PACE) Programs Close First Projects

City of Houston and Hays County Property Assessed Clean Energy (PACE) Programs Close First Projects

Simon Properties Projects in Houston, Hays County Exceed
$4 million in PACE Investment

HAYS COUNTY / HOUSTON -- The City of Houston and Hays County announced the closing of their first commercial Property Assessed Clean Energy (PACE) projects at the Houston Premium Outlets and San Marcos Premium Outlets. Combined, the Simon Properties projects will receive over $4 million in energy and water saving retrofit investments financed by Petros PACE Finance.

"Houston is the energy capital of the world and has a responsibility to lead by example and use our energy resources as efficiently as possible," said Houston Mayor Sylvester Turner. "We created the Houston PACE program to help Houston businesses access low-cost financing and lower their utility bills. We're thrilled our first PACE project is at the Houston Premium Outlets and we hope more businesses will follow their lead."

"Hays County created a PACE program to help our businesses lower their operating costs with energy and water saving updates that benefit all of our citizens," comments Hays County Judge, Bert Cobb. "It's great to see the San Marcos Premium Outlets, one of Texas' top tourist destinations, be the first of many Hays County PACE projects."

PACE is an innovative financing program that enables owners of commercial and industrial properties to obtain low-cost, long-term loans for water conservation, energy-efficiency improvements, and distributed generation retrofits.

PACE financing will fund energy and water efficiency improvements at both outlet malls. Examples of efficiency improvements include: interior and exterior LED lighting, HVAC replacement, smart glass, heat reducing awning technology, replacement of hundreds of faucets, and conservation updates to water features and irrigation technology.

Combined, Anticipated Savings Benefits at Houston Premium Outlets and San Marcos Premium Outlets:

  • Annual electricity use will be reduced by 2,546,000 kWh
  • Annual water savings of over 11,500,000 gallons of water per year
  • Carbon dioxide emissions (CO2e) reduction of over 1,845 tonnes per year
  • Sulfur oxide emissions (SOX) reductions just under one tonne each year
  • Nitrogen oxide emissions (NOX) reductions exceeding 3 tonnes annually


Financing Energy Efficiency - National Association of Realtors Article by Bobby Hickman

The National Association of Realtors published this article "Financing Energy Efficiency" by Mr. Bobby L. Hickman. In this article Mr. Hickman reviews the evolving and fragmented residential PACE market and interviews Tim Crockett about Commercial PACE in Texas. Tim's comments highlight how Texas has chosen an open lender model, requires an engineer to stamp the energy report prior to funding and requires that the existing lender consent to the PACE loan.  (Click on the above Picture for the full article)

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