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STEP ONE - MAKE THE CALL

terms and interest rates directly with 7 Morningstar notes that, “Standardization Yes, CECL Affects Taxes, Too Edith Snow
property owners. TPA is the non-profit across the C-PACE sector also would be continued from pg. 31 817-676-3316
administrator of the PACE in a Box model beneficial.” • Selling loans or securities with losses
programs. 8 Morningstar • Deferring the sale of loans or securities James Walsh
8 Impact of Energy Factors on Default Risk with gains
The Bottom Line 281-794-0065
in Commercial Mortgages, June 28, 2017; • Accelerating charitable contributions
Local banks will play a vital role in the https://cbs.lbl.gov/sites/default/files/docs/ • Selling Other Real Estate Owned Celena Ivanitch
new TX-PACE paradigm. “Texas PACE Mortgage%20Default%20Risk%20and%20 property with post-foreclosure write-
presents significant opportunities and Energy%20-Technical%20Report%206-28-17. downs 512-787-2164
unique challenges for community banks,” pdf • Increasing depreciation and expensing
explains Steve Scurlock, Executive 10 https://www.keepingpaceintexas.org/pace- of qualified fixed assets through bonus Richard Grimes
Vice President of Independent Bankers in-a-box depreciation and Section 179 expense 469-543-9337
Association of Texas. “Bankers need to 11 Steve Minick, VP, Texas Association • Performing a cost segregation study
be cognizant of this alternate financing of Business chaired the Underwriting on new and existing buildings
tool and prepared to take advantage of Working Group. The Financial Platform
Working Group, chaired by John Fleming,
the benefits that it can provide for their General Counsel, Texas Mortgage Bankers While these are available regardless
banks as well as their customers.” Association, established the first policy and of CECL, banks may find themselves
searching for extra tax deductions in the
Who in your organization will evalu- process for financing PACE projects with pri- year of adopting CECL to help soften the
ate TX-PACE and train your loan officers vate capital in lieu of bonds and established income statement and capital effect and
to support your current customers and an open market for all lenders. The Technical lower the cash outflow to cover income
Standards Working Group, chaired by Dub
attract new customers with TX-PACE?  Taylor, director, State Energy Conservation tax. In addition, if tax reform is passed
Office, wrote the Technical Standards and tax rates are reduced, accelerating
Charlene Heydinger is the President Manual that is similar to the State’s policies
of Texas PACE Authority. She can be for state buildings. Hon. Kip Averitt, former these temporary deductions could result
in a permanent tax savings. The best
contacted at charlene.heydinger@ Senate Natural Resources Committee chair, advice for truly understanding and miti-
keeppace.org. www.TexasPACEAuthority. and Steve Wiese, former Texas Renewable gating CECL’s tax effect is to start plan-
org Energy Industry Association chair co-chaired
the Design Working Group. The Education, ning as soon as possible. 
1 Distributed generation includes solar, wind, Marketing and Training Working Group was
geothermal, combined heat and power chaired by Calley Jones, Commercial Market Keith Foster, CPA is a director with BKD in
(CHP), microgrids, and other technologies Manager, Way Service, Ltd. The collaborative Dallas, Texas. He can be reached at 972-
that create power onsite. This equipment process took 1½ years to complete. 788-4467 or [email protected].
can enable hospitals, factories, and hotels 12 Morningstar
to maintain operations, support life-saving
operations and pump flood water after a
loss of power from the grid – an increasingly
important subject after Hurricane Harvey.
2 Texas PACE Authority User Guide and
Technical Standards Manual, https://
www.texaspaceauthority.org/Documents/
Program%20Guide%20Version%20
2.0.pdf?dl=0
3 http://pacenation.us/pace-market-data
4 Morningstar ABS Research, Risk Evaluation
of Commercial PACE Securitizations Differs
From Residential Deals, September 2017
http://lending-times.com/wp-content/uploads/
2017/09/ABS-Research-Risk-Evaluation-of-
Commercial-PACE-Securitizations-Differs-
From-Residential-Deals.pdf (Morningstar).
5 For a list of consenting lenders in the
U.S., see: http://pacenation.us/wp-con-
tent/uploads/2017/10/List-of-Consenting-
Lenders-07.2017.pdf
6 http://urbaningenuity.com/includes/storage/
brio/files/44/Menkiti-Annie’s%20ACE%20
PR%20DRAFT%20-%207-6%20Final.pdf
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