Property Tax Financing Authorization
Texas

Decided by locally determined municipal official
Decided by locally determined municipal official

Commercial, Industrial, Residential, Multi-Family Residential, Agricultural, Real Property

Locally determined
Municipalities
Bond issuance, money advanced by the municipality, payments collected for reserve funds

H.B. 1937
5/26/2009

Summary:
"Property tax financing" allows property owners to borrow money to pay for energy improvements. The amount borrowed is repaid through an increased property tax assessment over a period of years. Texas enacted legislation in May 2009 that authorizes municipalities to offer property tax financing for energy improvements. Contact your city or town to find out if financing is available for renewable energy and/or energy efficiency through special property tax assessments.  
 
To participate, a municipality must develop a plan that includes the boundaries of the financing district, arrangements for financing the program, and the time and place for a public hearing regarding the proposed program. Municipal programs must specify the following:

• Eligible renewable-energy systems and energy-efficient technologies;  
  
• A method for ranking requests from property owners for financing through contractual assessments if requests exceed the authorization amount;  
  
• Specification of whether the property owner may purchase the equipment directly or contract for the installation;  
  
• The maximum aggregate dollar amount of contractual assessments;  
  
• A map of the boundaries within which contractual assessments will be offered;  
  
• A draft contract specifying the terms to be agreed upon by the municipality and a property owner;  
  
• A method for ensuring that property owners who request financing have the financial ability to fulfill financial obligations; and  
  
• A plan for raising the capital required to pay for work performed, which could include amounts to be advanced by the municipality, the sale of bonds, any reserve funds, and the costs incidental to financing, administration, and collection of the contractual assessment program.

An assessment imposed, interest or penalties on the assessment constitute a lien against the lot until the assessment, interest or penalty is paid.



Contact:
Felix Lopez
State Energy Conservation Office (CPA/SECO)
111 E. 17th Street
LBJ State Office Building, Room #1114
Austin, TX 78774
Phone: (512) 463-1080
Fax: (512) 475-2569
E-Mail: felix.lopez@cpa.state.tx.us
Web Site: http://www.seco.cpa.state.tx.us