HB 101 2022 CODING: Words stricken are deletions; words underlined are additions. hb0101-00 Page 1 of 24 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S A bill to be entitled 1 An act relating to the Resiliency Energy Environment 2 Florida program; amending s. 163.08, F.S.; revising 3 and providing definitions related to the Resiliency 4 Energy Environment Florida (REEF) program; conforming 5 provisions to changes made by the act; provid ing that 6 certain notices of lien may be recorded in the public 7 records of specified counties; providing that such 8 liens are not enforceable; revising the types of items 9 that a local government or program administrator must 10 reasonably determine before enter ing into an 11 assessment financing agreement; specifying conditions 12 that must be met before final funding may be provided; 13 specifying that an assessment financing agreement 14 applies to new nonresidential and residential real 15 properties; providing caps on the non-ad valorem 16 assessments that may exist on properties; creating s. 17 163.081, F.S.; providing additional requirements to be 18 met by program administrators when administering a 19 REEF program; providing exceptions; specifying terms 20 that are not authorized in a n assessment financing 21 agreement; providing guidelines to be used by program 22 administrators dealing with contractors who install 23 qualifying improvements; specifying conditions under 24 which a program administrator may disburse funds to a 25 HB 101 2022 CODING: Words stricken are deletions; words underlined are additions. hb0101-00 Page 2 of 24 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S contractor; providin g marketing and communications 26 guidelines for use by program administrators and 27 contractors; prohibiting contractors from taking 28 certain actions related to pricing of qualifying 29 improvements; prohibiting program administrators from 30 certain actions in excha nge for referring assessment 31 financing business to contractors; requiring program 32 administrators to appropriately develop and implement 33 procedures to handle complaints and monitor 34 contractors; specifying information that dependent 35 special districts or cert ain legal entities must 36 provide in their annual audit reports related to the 37 REEF program; providing program requirements for 38 government leased properties; providing an effective 39 date. 40 41 Be It Enacted by the Legislature of the State of Florida: 42 43 Section 1. Subsections (1), (2), (4), (6) through (10), 44 and (12) through (14) of section 163.08, Florida Statutes, are 45 amended, and subsection (18) is added to that section, to read: 46 163.08 Supplemental Authority for qualifying improvements 47 to real property.— 48 (1)(a) In chapter 2008 -227, Laws of Florida, the 49 Legislature amended the energy goal of the state comprehensive 50 HB 101 2022 CODING: Words stricken are deletions; words underlined are additions. hb0101-00 Page 3 of 24 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S plan to provide, in part, that the state shall reduce its energy 51 requirements through enhanced conservation and efficiency 52 measures in all end-use sectors and reduce atmospheric carbon 53 dioxide by promoting an increased use of renewable energy 54 resources. That act also declared it the public policy of the 55 state to play a leading role in developing and instituting 56 energy management programs that promote energy conservation, 57 energy security, and the reduction of greenhouse gases. In 58 addition to establishing policies to promote the use of 59 renewable energy, the Legislature provided for a schedule of 60 increases in energy performance of buildings subje ct to the 61 Florida Energy Efficiency Code for Building Construction. In 62 chapter 2008-191, Laws of Florida, the Legislature adopted new 63 energy conservation and greenhouse gas reduction comprehensive 64 planning requirements for local governments. In the 2008 ge neral 65 election, the voters of this state approved a constitutional 66 amendment authorizing the Legislature, by general law, to 67 prohibit consideration of any change or improvement made for the 68 purpose of improving a property's resistance to wind damage or 69 the installation of a renewable energy source device in the 70 determination of the assessed value of residential real 71 property. 72 (b) The Legislature finds that all energy -consuming-73 improved properties that are not using energy conservation 74 strategies contribut e to the burden affecting all improved 75 HB 101 2022 CODING: Words stricken are deletions; words underlined are additions. hb0101-00 Page 4 of 24 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S property resulting from fossil fuel energy production. Improved 76 property that has been retrofitted with energy -related 77 qualifying improvements receives the special benefit of 78 alleviating the property's burden from ene rgy consumption. All 79 improved properties not protected from wind damage by wind 80 resistance qualifying improvements contribute to the burden 81 affecting all improved property resulting from potential wind 82 damage. Improved property that has been retrofitted wi th wind 83 resistance qualifying improvements receives the special benefit 84 of reducing the property's burden from potential wind damage. 85 Further, the installation and operation of qualifying 86 improvements not only benefit the affected properties for which 87 the improvements are made, but also assist in fulfilling the 88 goals of the state's energy and hurricane mitigation policies. 89 (c) In order to make qualifying improvements more 90 affordable and to assist property owners who wish to undertake 91 such improvements, t he Legislature finds that there is a 92 compelling state interest in enabling property owners to 93 voluntarily finance such improvements under the REEF program 94 with local government assistance . 95 (d)(c) The Legislature determines that the actions 96 authorized under this section, including, but not limited to, 97 the financing of qualifying improvements through the execution 98 of assessment financing agreements and the related imposition of 99 voluntary assessments are reasonable and necessary to serve and 100 HB 101 2022 CODING: Words stricken are deletions; words underlined are additions. hb0101-00 Page 5 of 24 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S achieve a compelling state interest and are necessary for the 101 prosperity and welfare of the state and its property owners and 102 inhabitants. 103 (2) As used in this section and s. 163.081, the term: 104 (a) "Assessment financing agreement" means the financing 105 agreement, under a REEF program, between a local government and 106 a property owner for the acquisition or installation of 107 qualifying improvements. 108 (b) "Contractor" means an independent contractor who 109 contracts with a property owner to install qualifying 110 improvements on real property but who is not the owner of such 111 property. 112 (c) "Government leased property" means real property owned 113 by a local government that is subject to taxation due to the 114 lease of the property to a nongovernmental lessee. 115 (d)(a) "Local government" m eans a county, a municipality, 116 a dependent special district as defined in s. 189.012, or a 117 separate legal entity created pursuant to s. 163.01(7). 118 (e) "Non-ad valorem assessment" has the same meaning as in 119 s. 197.3632(1). 120 (f) "Nongovernmental lessee" means a person or an entity 121 other than a local government which leases government real 122 property. 123 (g) "Nonresidential real property" means property not 124 defined as residential real property that will be or has been 125 HB 101 2022 CODING: Words stricken are deletions; words underlined are additions. hb0101-00 Page 6 of 24 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S improved by a qualifying improvement, inc luding, but not limited 126 to, the following: 127 1. Agricultural property. 128 2. Commercial real property. 129 3. Government leased property. 130 4. Industrial building or property. 131 5. Multifamily residential property composed of five or 132 more dwelling units. 133 (h) "Program administrator" means an entity, including, 134 but not limited to, a for -profit or not-for-profit entity, with 135 whom a local government may contract to administer a REEF 136 program. 137 (i)(b) "Qualifying improvement" includes any: 138 1. Energy conservatio n and efficiency improvement, which 139 is a measure to reduce consumption through conservation or a 140 more efficient use of electricity, natural gas, propane, or 141 other forms of energy on the property, including, but not 142 limited to, air sealing; installation of insulation; 143 installation of energy -efficient heating, cooling, or 144 ventilation systems; building modifications to increase the use 145 of daylight; replacement of windows; installation of energy 146 controls or energy recovery systems; installation of electric 147 vehicle charging equipment; and installation of efficient 148 lighting equipment. 149 2. Renewable energy improvement, which is the installation 150 HB 101 2022 CODING: Words stricken are deletions; words underlined are additions. hb0101-00 Page 7 of 24 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S of any system in which the electrical, mechanical, or thermal 151 energy is produced from a method that uses one or more of t he 152 following fuels or energy sources: hydrogen, solar energy, 153 geothermal energy, bioenergy, and wind energy. 154 3. Wind resistance improvement, which includes, but is not 155 limited to: 156 a. Improving the strength of the roof deck attachment; 157 b. Creating a secondary water barrier to prevent water 158 intrusion; 159 c. Installing wind-resistant shingles; 160 d. Installing gable -end bracing; 161 e. Reinforcing roof -to-wall connections; 162 f. Installing storm shutters; or 163 g. Installing opening protections. 164 (j) "Residential real property" means a residential 165 property of four or fewer dwelling units that will be or has 166 been improved by a qualifying improvement. 167 (k) "Resiliency Energy Environment Florida program" or 168 "REEF program" means a program established under this s ection or 169 s. 163.081 by a local government, alone or in partnership with 170 other local governments or a program administrator, to finance 171 qualifying improvements on nonresidential real property or 172 residential real property. 173 (4) Subject to local government ordinance or resolution, a 174 property owner may apply to the REEF program the local 175 HB 101 2022 CODING: Words stricken are deletions; words underlined are additions. hb0101-00 Page 8 of 24 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S government for funding to finance a qualifying improvement and 176 enter into an assessment a financing agreement with the local 177 government. Costs incurred by the REEF program the local 178 government for such purpose may be collected as a non -ad valorem 179 assessment. A non-ad valorem assessment shall be collected 180 pursuant to s. 197.3632 and, notwithstanding s. 197.3632(8)(a), 181 is shall not be subject to discount for early payment. How ever, 182 the notice and adoption requirements of s. 197.3632(4) do not 183 apply if this section is used and complied with, and the intent 184 resolution, publication of notice, and mailed notices to the 185 property appraiser, tax collector, and Department of Revenue 186 required by s. 197.3632(3)(a) may be provided on or before 187 August 15 in conjunction with any non -ad valorem assessment 188 authorized by this section, if the property appraiser, tax 189 collector, and local government agree. 190 (6) A local government may enter into a n agreement with a 191 program administrator to administer the REEF program A 192 qualifying improvement program may be administered by a for -193 profit entity or a not -for-profit organization on behalf of and 194 at the discretion of the local government . 195 (7) A local government may incur debt for the purpose of 196 providing financing for the such improvements, which debt is 197 payable from revenues received from the improved properties 198 property, or any other available revenue source authorized under 199 this section or by law. 200 HB 101 2022 CODING: Words stricken are deletions; words underlined are additions. hb0101-00 Page 9 of 24 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S (8) A local government may enter into an assessment a 201 financing agreement to finance or refinance a qualifying 202 improvement only with the record owner of the affected property. 203 Any assessment financing agreement entered into pursuant to this 204 section or a summary memorandum of such agreement must shall be 205 submitted for recording recorded in the public records of the 206 county within which the property is located by the sponsoring 207 unit of local government within 5 days after execution of the 208 agreement. The record ed agreement shall provide constructive 209 notice that the assessment to be levied on the property 210 constitutes a lien of equal dignity to county taxes and 211 assessments from the date of recordation. A notice of lien for 212 the full amount of the financing may be r ecorded in the public 213 records of the county in which the property is located. Such 214 lien is not enforceable in a manner that results in the 215 acceleration of the remaining nondelinquent unpaid balance under 216 the assessment financing agreement. 217 (9) Before entering into an assessment a financing 218 agreement, the local government or the program administrator, as 219 applicable, must shall reasonably determine that : 220 (a) All property taxes and any other assessments levied on 221 the same bill as property taxes are current paid and have not 222 been delinquent for more than 30 days for the preceding 3 years 223 or the property owner's period of ownership, whichever is less; 224 (b) that There are no involuntary liens greater than 225 HB 101 2022 CODING: Words stricken are deletions; words underlined are additions. hb0101-00 Page 10 of 24 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S $1,000, including, but not limited to, construction l iens on the 226 property; 227 (c) that No notices of default or other evidence of 228 property-based debt delinquency have been recorded and not 229 released during the preceding 3 years or the property owner's 230 period of ownership, whichever is less; 231 (d) The property owner has been asked whether any other 232 assessments under this section have been recorded or have been 233 funded and not yet recorded on the property. The failure of a 234 property owner to disclose information set forth in this 235 paragraph does not invalid ate an assessment financing agreement 236 or any obligation thereunder, even if the total financed amount 237 of the qualifying improvements exceeds the amount that would 238 otherwise be authorized under paragraph (12)(a); and 239 (e) that The property owner is curren t on all mortgage 240 debt on the property ; and 241 (f) The residential real property is not subject to an 242 existing home equity conversion mortgage or reverse mortgage 243 product or is not a residential real property gifted to a 244 homeowner for free by a not -for-profit entity. This paragraph 245 does not apply to nonresidential real properties . 246 (10) Before final funding may be provided, a qualifying 247 improvement must shall be affixed, or be planned to be affixed, 248 to a nonresidential or residential real building or facility 249 that is part of the property and constitutes shall constitute an 250 HB 101 2022 CODING: Words stricken are deletions; words underlined are additions. hb0101-00 Page 11 of 24 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S improvement to that property the building or facility or a 251 fixture attached to the building or facility . An assessment 252 financing agreement between a local government and a qualifying 253 property owner may not cover qualifying wind-resistance 254 improvements on new nonresidential or new residential real 255 properties in buildings or facilities under new construction or 256 construction for which a certificate of occupancy or similar 257 evidence of substantial completion of new construction or 258 improvement has not been issued . 259 (12)(a) Without the consent of the holders or loan 260 servicers of any mortgage encumbering or otherwise secured by 261 the property, the total amount of any non -ad valorem assessment 262 for a property under this section may not exceed 20 percent of 263 the fair market value just value of the real property as 264 determined by the county property appraiser . The combined 265 mortgage-related debt and total amount of any non -ad valorem 266 assessments funded under this section for residential real 267 property may not exceed 100 percent of the fair market value of 268 the residential real property. The failure of a property owner 269 to disclose information set forth in paragraph (9)(d) does not 270 invalidate an assessment financing agreement or any obligation 271 thereunder even if the total financed amount of the qualifying 272 improvements exceeds the amount that would otherwise be 273 authorized under this paragraph. 274 (b) Notwithstanding paragraph (a), a non -ad valorem 275 HB 101 2022 CODING: Words stricken are deletions; words underlined are additions. hb0101-00 Page 12 of 24 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S assessment for a qualifying improvement defined in subparagraph 276 (2)(i)1. (2)(b)1. or subparagraph (2)(i)2. (2)(b)2. that is 277 supported by an energy audit is not subject to the limits in 278 this subsection if the audit demonstrates that the annual energy 279 savings from the qualified improvement equals or exceeds the 280 annual repayment amount of the non -ad valorem assessment. 281 (13) At least 30 days before entering into an assessment a 282 financing agreement, the property owner shall provide to the 283 holders or loan servicers of any existing mortgages encumbering 284 or otherwise secured by the property a notice of the owner's 285 intent to enter into an assessment a financing agreement 286 together with the maximum principal amount to be financed and 287 the maximum annual assessment necessary to r epay that amount. A 288 verified copy or other proof of such notice shall be provided to 289 the local government or program administrator . A provision in 290 any agreement between a mortgagee or other lienholder and a 291 property owner, or otherwise now or hereafter bin ding upon a 292 property owner, which allows for acceleration of payment of the 293 mortgage, note, or lien or other unilateral modification solely 294 as a result of entering into an assessment a financing agreement 295 as provided for in this section is not enforceable. This 296 subsection does not limit the authority of the holder or loan 297 servicer to increase the required monthly escrow by an amount 298 necessary to annually pay the annual qualifying improvement 299 assessment. 300 HB 101 2022 CODING: Words stricken are deletions; words underlined are additions. hb0101-00 Page 13 of 24 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S (14) At or before the time a seller purchaser executes a 301 contract for the sale and purchase of any property for which a 302 non-ad valorem assessment has been levied under this section and 303 has an unpaid balance due, the seller must shall give the 304 prospective purchaser a written disclosure statement in the 305 following form, which shall be set forth in the contract or in a 306 separate writing: 307 308 QUALIFYING IMPROVEMENTS FOR ENERGY EFFICIENCY, RENEWABLE ENERGY, 309 OR WIND RESISTANCE.—The property being purchased is located 310 within the jurisdiction of a local government that h as placed an 311 assessment on the property pursuant to s. 163.08, Florida 312 Statutes. The assessment is for a qualifying improvement to the 313 property relating to energy efficiency, renewable energy, or 314 wind resistance, and is not based on the value of property. You 315 are encouraged to contact the county property appraiser's office 316 to learn more about this and other assessments that may be 317 provided by law. 318 319 (18) Notwithstanding any provision of this section or s. 320 163.081 to the contrary, the following applies to g overnment 321 leased property: 322 (a) The assessment financing agreement must be executed 323 by: 324 1. The local government and the nongovernmental lessee; or 325 HB 101 2022 CODING: Words stricken are deletions; words underlined are additions. hb0101-00 Page 14 of 24 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 2. Only the nongovernmental lessee but with the written 326 consent of the local government. Evidence of consent shall be 327 provided to the program administrator or REEF program. 328 (b) The assessment financing agreement must provide that 329 the nongovernmental lessee is the only party obligated to pay 330 the assessment. 331 (c) A delinquent assessment shall be enforced in the 332 manner provided in ss. 196.199(8) and 197.432(10). 333 (d) The recorded assessment financing agreement or a 334 summary memorandum of such recorded agreement must provide 335 constructive notice that the assessment to be levied on the 336 property is subject to enforcement in the manner provided in ss. 337 196.199(8) and 197.432(10). 338 (e) For purposes of subsections (9) and (13) only, 339 references to the property owner are deemed to refer to the 340 nongovernmental lessee and references to the period of ownership 341 are deemed to refer to the period during which the 342 nongovernmental lessee leased the property from the local 343 government. 344 (f) The term of the assessment financing agreement on 345 government leased property may not exceed: 346 1. Thirty years; 347 2. The remaining term o f the lease on the government 348 leased property; or 349 3. The weighted average estimated useful life of all 350 HB 101 2022 CODING: Words stricken are deletions; words underlined are additions. hb0101-00 Page 15 of 24 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S qualifying improvements being financed or the estimated useful 351 life of the qualifying improvements to which the greatest 352 portion of funds are disbursed . 353 Section 2. Section 163.081, Florida Statutes, is created 354 to read: 355 163.081 Additional requirements for program administrators 356 for qualifying improvements on residential real property. — 357 (1)(a) In addition to the requirements in s. 163.08, a 358 program administrator must comply with this section when 359 administering a REEF program for qualifying improvements on 360 residential real property. 361 (b) This section does not apply to residential real 362 property: 363 1. Residential real property owned by a local government. 364 2. To residential real property if the program 365 administrator reasonably determines that: 366 a. The residential real property is owned by a business 367 entity that owns more than four residential real properties; and 368 b. The business entity's managing member, partner, or 369 beneficial owner does not reside in the residential real 370 property. 371 (2) Before final approval of the assessment financing 372 agreement for a qualifying improvement on a residential real 373 property, the program administrator must reasonably determine 374 that the property owner has the ability to pay the estimated 375 HB 101 2022 CODING: Words stricken are deletions; words underlined are additions. hb0101-00 Page 16 of 24 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S annual assessment. To do so, the program administrator must, at 376 a minimum, use the underwriting requirements in s. 163.08(9) to 377 confirm that the property owner is not in bankruptcy and to 378 determine that the total estimated annual payment amount for all 379 assessment financing agreements funded under this section on the 380 property do not exceed 10 percent of the property owner's annual 381 household income. Annual household income may be confirmed using 382 information gathered from reputable third parties that provide 383 reasonably reliable evidence of the property owner's annual 384 household income. Annual household income may not be confirmed 385 solely from a property owner's statement. The failure of a 386 property owner to disclose information set forth in s. 387 163.08(9)(d) does not invalidate an assessment financing 388 agreement or any obligation thereunder, even if the total 389 estimated annual payment amount exceeds the amount that would 390 otherwise be authorized unde r this section or s. 163.08. 391 (3) Before or contemporaneously with a property owner 392 signing an assessment financing agreement on a residential real 393 property, the program administrator must provide a financing 394 estimate and disclosure to the residential rea l property owner 395 which includes all of the following: 396 (a) The total amount estimated to be funded, including the 397 cost of the qualifying improvements, program fees, and 398 capitalized interest, if any. 399 (b) The estimated annual non -ad valorem assessment. 400 HB 101 2022 CODING: Words stricken are deletions; words underlined are additions. hb0101-00 Page 17 of 24 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S (c) The term of the non -ad valorem assessment. 401 (d) The interest charged and the estimated annual 402 percentage rate. 403 (e) A description of the qualifying improvement. 404 (f) A disclosure that if the property owner sells or 405 refinances the property, the prope rty owner, as a condition of 406 the sale or the refinance, may be required by a mortgage lender 407 to pay off the full amount owed under each assessment financing 408 agreement. 409 (g) A disclosure that the non -ad valorem assessment will 410 be collected along with the p roperty owner's property taxes and 411 will result in a lien on the property beginning on the date the 412 assessment financing agreement is recorded. 413 (h) A disclosure that failure to pay the non -ad valorem 414 assessment may result in penalties and fees along with the 415 issuance of a tax certificate that could result in the property 416 owner losing the real property. 417 (4)(a) Before a notice to proceed is issued on residential 418 real property, the program administrator must conduct, with a 419 residential real property owner o r an authorized representative, 420 an oral, recorded telephone call during which time the program 421 administrator: 422 1. Must ask the residential real property owner if he or 423 she would like to communicate primarily in a language other than 424 English. 425 HB 101 2022 CODING: Words stricken are deletions; words underlined are additions. hb0101-00 Page 18 of 24 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 2. May not leave a voicemail for the residential real 426 property owner to satisfy subparagraph 1. 427 (b) During the telephone call, the program administrator 428 must confirm all of the following with the residential real 429 property owner: 430 1. That at least one residential r eal property owner has 431 access to a copy of the assessment financing agreement and 432 financing estimates and disclosures. 433 2. The qualifying improvements that are being financed. 434 3. The total estimated annual costs that the residential 435 real property owner will have to pay under the assessment 436 financing agreement, including applicable fees. 437 4. The total estimated average monthly equivalent amount 438 of funds the residential real property owner would have to save 439 in order to pay the annual costs of the assessm ent, including 440 applicable fees. 441 5. The estimated date the residential real property 442 owner's first property tax payment that includes the assessment 443 will be due. 444 6. The term of the assessment financing agreement. 445 7. That payments for the assessment fi nancing agreement 446 will cause the residential real property owner's annual tax bill 447 to increase and that payments will be made through an additional 448 annual assessment on the property and will be paid directly to 449 the county tax collector's office as part of the total annual 450 HB 101 2022 CODING: Words stricken are deletions; words underlined are additions. hb0101-00 Page 19 of 24 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S secured property tax bill or may be paid through the residential 451 real property owner's mortgage escrow account. 452 8. That the residential real property owner has disclosed 453 whether the property has received or is seeking additional 454 assessments funded under this section or s. 163.08 and has 455 disclosed all other assessments funded under this section or s. 456 163.08 that are or are about to be placed on the property. 457 9. That the property will be subject to a lien during the 458 term of the assessment financing agreement and that the 459 obligations under the agreement may be required to be paid in 460 full before the residential real property owner sells or 461 refinances the property. 462 10. That any potential utility or insurance savings are 463 not guaranteed and w ill not reduce the assessment or total 464 assessment amount. 465 11. That the program administrator does not provide tax 466 advice and that the residential real property owner should seek 467 professional tax advice if he or she has questions regarding tax 468 credits, tax deductibility, or other tax impacts of the 469 qualifying improvement or the assessment financing agreement. 470 (5) The residential real property owner may cancel the 471 assessment financing agreement within 3 business days after 472 signing the assessment financing agreement without any financial 473 penalty for doing so. 474 (6) The term of an assessment financing agreement on 475 HB 101 2022 CODING: Words stricken are deletions; words underlined are additions. hb0101-00 Page 20 of 24 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S residential real property may not exceed: 476 (a) Thirty years; or 477 (b) The weighted average estimated useful life of all 478 qualifying improvements being financed or the estimated useful 479 life of the qualifying improvements to which the greatest 480 portion of funds are disbursed. 481 (7) An assessment financing agreement authorized under 482 this section or s. 163.08 on residential real property may not 483 include any of the following: 484 (a) A negative amortization schedule. 485 (b) A balloon payment. 486 (c) Prepayment fees, other than nominal administrative 487 costs. 488 (8) For residential real property, a program 489 administrator: 490 (a) May not enroll a contractor who cont racts with 491 residential real property owners to install qualifying 492 improvements unless the program administrator: 493 1. Makes a reasonable effort to review that the contractor 494 maintains in good standing an appropriate license from the 495 state, if applicable, a s well as any other permits, licenses, or 496 registrations required for engaging in business in the 497 jurisdiction in which he or she operates and that the contractor 498 maintains all state-required bond and insurance coverage. 499 2. Obtains the contractor's writte n agreement that the 500 HB 101 2022 CODING: Words stricken are deletions; words underlined are additions. hb0101-00 Page 21 of 24 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S contractor will act in accordance with all applicable laws and 501 rules, including applicable advertising and marketing laws and 502 rules. 503 (b) Must maintain a process to enroll new contractors that 504 includes reasonable review of the followi ng for each contractor: 505 1. Relevant work or project history. 506 2. Financial and reputational background checks. 507 3. A criminal background check. A program administrator 508 may rely on a criminal background check conducted by the 509 Construction Industry Licen sing Board within the Department of 510 Business and Professional Regulation to comply with this 511 requirement. 512 4. Rating with the Better Business Bureau or other online 513 platform that tracks contractor reviews. 514 (9)(a) Before disbursing funds to a contractor for a 515 qualifying improvement on residential real property, a program 516 administrator must confirm that the relevant work or service has 517 been completed, either through a written certification from the 518 property owner, a recorded telephone call with the propert y 519 owner, review of time -stamped photographs, review of a final 520 permit, or a site inspection through a third party. 521 (b) A program administrator may not disclose to a 522 contractor or to a third party engaged in soliciting an 523 assessment financing agreement th e maximum financing amount for 524 which a residential real property owner is eligible. 525 HB 101 2022 CODING: Words stricken are deletions; words underlined are additions. hb0101-00 Page 22 of 24 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S (10) When communicating with residential real property 526 owners, a program administrator may not : 527 (a) Represent that: 528 1. The REEF program or assessment financing is a 529 government assistance program; 530 2. Qualifying improvements are free or assessment 531 financing is a free program; or 532 3. The financing of a qualifying improvement using the 533 REEF program does not require the property owner to repay the 534 financial obligation. 535 (b) Make any representation as to the tax deductibility of 536 a non-ad valorem assessment authorized under this section or s. 537 163.08. A program administrator may encourage a property owner 538 to seek the advice of a tax professional regarding tax matters 539 related to such assessments. 540 (11) A contractor may not present a higher price for a 541 qualifying improvement on residential real property financed by 542 an assessment financing agreement than the contractor would 543 otherwise reasonably present if the qualifying impro vement was 544 not being financed through an assessment financing agreement. 545 (12) A program administrator shall use appropriate 546 methodologies or technologies to identify and verify the 547 identity of the residential real property owners who execute an 548 assessment financing agreement. 549 (13) A program administrator may not provide a contractor 550 HB 101 2022 CODING: Words stricken are deletions; words underlined are additions. hb0101-00 Page 23 of 24 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S with any payment, fee, or kickback in exchange for referring 551 assessment financing business relating to a specific assessment 552 financing agreement. 553 (14) A program administra tor must develop and implement 554 policies and procedures for responding to, tracking, and helping 555 resolve questions and property owner complaints as soon as 556 reasonably practicable. 557 (15) A program administrator must maintain a process for 558 monitoring contractors who contract with residential real 559 property owners to install qualifying improvements with regard 560 to performance and compliance with program policies and shall 561 implement policies for suspending and terminating contractors 562 based on violations of progra m policies or unscrupulous 563 behavior. A program administrator shall maintain a policy for 564 determining the conditions upon which a contractor may be 565 reinstated to the REEF program. 566 (16) A program administrator shall provide an annual 567 report to each depende nt special district as defined in s. 568 189.012 or separate legal entity created pursuant to s. 569 163.01(7) that it has been contracted to administer the REEF 570 program authorized under this section. The annual report shall 571 be provided at a reasonable time follow ing the end of the prior 572 calendar year and shall include information and data related to 573 the following: 574 (a) The total number of property owner complaints received 575 HB 101 2022 CODING: Words stricken are deletions; words underlined are additions. hb0101-00 Page 24 of 24 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S that are associated with project funding in the report year. 576 (b) Of the total number of property owner complaints 577 received that are associated with project funding in the report 578 year: 579 1. The number and percentage of complaints that relate to 580 the assessment financing. 581 2. The number and percentage of complaints that relate to 582 a contractor or the workmanship of a contractor but do not 583 relate to assessment financing. 584 3. The number and percentage of complaints that relate to 585 a contractor and assessment financing. 586 4. The number and percentage of complaints unde r 587 subparagraphs 1., 2., and 3. that were resolved and the number 588 and percentage of complaints that were not resolved. 589 (c) The percentage of property owner complaints under 590 subparagraphs (b)1., 2., and 3. expressed as a total of all 591 projects funded in th e report year. 592 Section 3. This act shall take effect July 1, 2022. 593