CS/HB 101 2022
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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 improvements to real property; 2
amending s. 163.08, F.S.; providing and revising 3
definitions; prohibiting financing agreements for 4
qualifying improvements to fund ancillary work unless 5
specified criteria are met; prohibiting financing 6
agreements for qualifying improvements from being 7
approved unless specified criteria are met; requiring 8
the program administrator or other entity to use 9
specified information provided by the property owner 10
to determine the owner's ability to pay the annual 11
non-ad valorem assessment; providing criteria to be 12
used in making the determination; requiring the local 13
government or program administrator to develop a 14
written disclosure form to be given to property owners 15
that meets specified criteria; requiring the loc al 16
government or program administrator to provide a 17
printed cancellation form to and conduct an oral, 18
recorded telephone call with the property owner at a 19
specified time and containing specified information; 20
requiring the local government or program 21
administrator to develop procedures to address the 22
needs of elderly persons; specifying the total amount 23
of any non-ad valorem assessment that may be assessed 24
on properties as a result of qualifying improvements; 25
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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
prohibiting local governments or program 26
administrators from offering financing for certain 27
qualifying improvements if those financing agreements 28
meet certain criteria; providing criteria that must be 29
met before a local government or program administrator 30
may enroll a PACE contractor to offer financing f or 31
residential properties; specifying criteria that must 32
be met before a PACE contractor may receive funds for 33
qualifying improvements on residential properties; 34
providing marketing and communications guidelines that 35
must be met when communicating with res idential real 36
property owners; specifying the types of contracts 37
that are unenforceable and for which PACE contractors 38
may not begin work; providing procedures for the 39
return of chattel and fixtures that were installed in 40
an unenforceable contract; prohibi ting PACE 41
contractors from engaging in specified activities 42
concerning PACE contractors; requiring local 43
governments that have authorized qualifying 44
improvement programs to post specified information on 45
their websites on an annual basis; providing an 46
effective date. 47
48
Be It Enacted by the Legislature of the State of Florida: 49
50
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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
Section 1. Section 163.08, Florida Statutes, is amended to 51
read: 52
163.08 Supplemental authority for improvements to real 53
property.— 54
(1)(a) In chapter 2008 -227, Laws of Florida, the 55
Legislature amended the energy goal of the state comprehensive 56
plan to provide, in part, that the state shall reduce its energy 57
requirements through enhanced conservation and efficiency 58
measures in all end-use sectors and reduce atmospheric carbon 59
dioxide by promoting an increased use of renewable energy 60
resources. That act also declared it the public policy of the 61
state to play a leading role in developing and instituting 62
energy management programs that promote energy conservation, 63
energy security, and the reduction of greenhouse gases. In 64
addition to establishing policies to promote the use of 65
renewable energy, the Legislature provided for a schedule of 66
increases in energy performance of buildings subject to the 67
Florida Energy Efficiency Code for Bu ilding Construction. In 68
chapter 2008-191, Laws of Florida, the Legislature adopted new 69
energy conservation and greenhouse gas reduction comprehensive 70
planning requirements for local governments. In the 2008 general 71
election, the voters of this state approv ed a constitutional 72
amendment authorizing the Legislature, by general law, to 73
prohibit consideration of any change or improvement made for the 74
purpose of improving a property's resistance to wind damage or 75
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the installation of a renewable energy source devi ce in the 76
determination of the assessed value of residential real 77
property. 78
(b) The Legislature finds that all energy -consuming-79
improved properties that are not using energy conservation 80
strategies contribute to the burden affecting all improved 81
property resulting from fossil fuel energy production. Improved 82
property that has been retrofitted with energy -related 83
qualifying improvements receives the special benefit of 84
alleviating the property's burden from energy consumption. All 85
improved properties not pr otected from wind damage by wind 86
resistance qualifying improvements contribute to the burden 87
affecting all improved property resulting from potential wind 88
damage. Improved property that has been retrofitted with wind 89
resistance qualifying improvements rece ives the special benefit 90
of reducing the property's burden from potential wind damage. 91
Further, the installation and operation of qualifying 92
improvements not only benefit the affected properties for which 93
the improvements are made, but also assist in fulfi lling the 94
goals of the state's energy and hurricane mitigation policies. 95
In order to make qualifying improvements more affordable and 96
assist property owners who wish to undertake such improvements, 97
the Legislature finds that there is a compelling state int erest 98
in enabling property owners to voluntarily finance such 99
improvements with local government assistance. 100
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(c) The Legislature determines that the actions authorized 101
under this section, including, but not limited to, the financing 102
of qualifying improve ments through the execution of financing 103
agreements and the related imposition of voluntary assessments 104
are reasonable and necessary to serve and achieve a compelling 105
state interest and are necessary for the prosperity and welfare 106
of the state and its prop erty owners and inhabitants. 107
(2) As used in this section, the term: 108
(a) "Facility" means any portion of a building, structure, 109
or site improvement located on a site as defined in s. 202 of 110
the 2020 Florida Building Code. 111
(b) "Local government" means a county, a municipality, a 112
dependent special district as defined in s. 189.012, or a 113
separate legal entity created pursuant to s. 163.01(7). 114
(c) "PACE contractor" means an independent contractor who 115
is authorized under this section to contract with a p roperty 116
owner to install qualifying improvements on real property and 117
who is not the owner of such property. 118
(d) "Program administrator" means a for -profit or not-for-119
profit entity which administers a qualifying improvement program 120
on behalf and at the d iscretion of a local government. 121
(e)(b) "Qualifying improvement" includes any: 122
1. Energy conservation and efficiency improvement, which 123
is a measure to reduce consumption through conservation or a 124
more efficient use of electricity, natural gas, propane , or 125
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other forms of energy on the property, including, but not 126
limited to, air sealing; installation of insulation; 127
installation of energy -efficient heating, cooling, or 128
ventilation systems; building modifications to increase the use 129
of daylight; replaceme nt of windows; installation of energy 130
controls or energy recovery systems; installation of electric 131
vehicle charging equipment; and installation of efficient 132
lighting equipment. 133
2. Renewable energy improvement, which is the installation 134
of any system in which the electrical, mechanical, or thermal 135
energy is produced from a method that uses one or more of the 136
following fuels or energy sources: hydrogen, solar energy, 137
geothermal energy, bioenergy, and wind energy. 138
3. Wind resistance improvement, which includes the 139
products and installation for , but is not limited to : 140
a. Improving the strength of the roof deck attachment; 141
b. Creating a secondary water barrier to prevent water 142
intrusion; 143
c. Installing wind-resistant shingles; 144
d. Installing gable -end bracing; 145
e. Reinforcing roof -to-wall connections; 146
f. Installing storm shutters; or 147
g. Installing opening protections. 148
(f) "Qualifying improvement program" means a program that 149
includes the financing and adm inistration activities undertaken 150
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by a local government or program administrator for property 151
owners to purchase and install qualifying improvements on a 152
building or facility. 153
(g) "Residential property" means real property upon which 154
any of the following is located: 155
1. One single-family residential unit or one multifamily 156
structure containing one to four residential units; or 157
2. Single-family residential units such as condominiums, 158
townhouses, timeshares, mobile homes, or houses in a subdivision 159
that may be legally sold, leased, or otherwise conveyed on a 160
unit-by-unit basis, regardless of whether the units are a part 161
of a larger building or parcel containing more than four 162
residential units. 163
(3) A local government may levy non -ad valorem assessments 164
to fund qualifying improvements. 165
(4) Subject to local government ordinance or resolution, a 166
property owner may apply to the local government for funding to 167
finance a qualifying improvement and enter into a financing 168
agreement with the local government. C osts incurred by the local 169
government for such purpose may be collected as a non -ad valorem 170
assessment. A non-ad valorem assessment shall be collected 171
pursuant to s. 197.3632 and, notwithstanding s. 197.3632(8)(a), 172
shall not be subject to discount for earl y payment. However, the 173
notice and adoption requirements of s. 197.3632(4) do not apply 174
if this section is used and complied with, and the intent 175
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resolution, publication of notice, and mailed notices to the 176
property appraiser, tax collector, and Department of Revenue 177
required by s. 197.3632(3)(a) may be provided on or before 178
August 15 in conjunction with any non -ad valorem assessment 179
authorized by this section, if the property appraiser, tax 180
collector, and local government agree. 181
(5) Pursuant to this sect ion or as otherwise provided by 182
law or pursuant to a local government's home rule power, a local 183
government may enter into a partnership with one or more local 184
governments for the purpose of providing and financing 185
qualifying improvements. 186
(6) A qualifying improvement program may be administered 187
by a for-profit entity or a not -for-profit organization on 188
behalf of and at the discretion of the local government. 189
(7) A local government may incur debt for the purpose of 190
providing such improvements, payable f rom revenues received from 191
the improved property, or any other available revenue source 192
authorized by law. 193
(8) A local government may enter into a financing 194
agreement only with the record owner of the affected property. 195
Any financing agreement entered in to pursuant to this section or 196
a summary memorandum of such agreement shall be recorded in the 197
public records of the county within which the property is 198
located by the sponsoring unit of local government within 5 days 199
after execution of the agreement. The recorded agreement shall 200
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provide constructive notice that the non-ad valorem assessment 201
to be levied on the property constitutes a lien of equal dignity 202
to county taxes and assessments from the date of recordation. 203
(9) A financing agreement may not be us ed to fund 204
ancillary work unless the scope of the ancillary work is 205
directly related to and necessary for the installation and safe 206
operation of a qualifying improvement and the cost of the 207
ancillary work does not exceed the cost of the individual 208
qualifying improvement to which it is directly related.209
(10)(9) Before entering into A financing agreement for a 210
qualifying improvement may not be approved unless , the local 211
government or program administrator, as applicable, has shall 212
reasonably determined determine that: 213
(a) All property taxes and any other assessments levied on 214
the same bill as property taxes are paid and have not been 215
delinquent for the preceding 3 years or the property owner's 216
period of ownership, whichever is less; that 217
(b) There are no involuntary liens, including, but not 218
limited to, construction liens on the property; that 219
(c) No notices of default or other evidence of property -220
based debt delinquency have been recorded during the preceding 3 221
years or the property owner's period of ow nership, whichever is 222
less; and that 223
(d) The property owner is current on all mortgage debt on 224
the property and has had no more than one late payment exceeding 225
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30 days during the 12 months immediately preceding the 226
application date; 227
(e) The holders or loan servicers of any mortgage 228
encumbering or otherwise secured by the property have received 229
the written notice required by subsection (16); 230
(f) Any property owner whose real property taxes are paid 231
through an escrow account has notified the holder of the escrow 232
account that a non-ad valorem assessment will be imposed upon 233
the property pursuant to this section; 234
(g) The term of the financing agreement does not exceed 235
the estimated useful life of the qualifying improvement. The 236
local government or progr am administrator, as applicable, shall 237
determine the useful life using established third -party 238
standards, including certification criteria from government 239
agencies or nationally recognized standards and testing 240
organizations; 241
(h) The property owner has a cknowledged in writing the 242
disclosure statements required by paragraph (12)(b); 243
(i) For residential properties, the property owner has not 244
been subject to a bankruptcy proceeding within the last 7 years 245
unless it was discharged or dismissed more than 2 y ears before 246
the date on which the property owner applied for funding as set 247
forth in subsection (4); 248
(j) For residential properties, the property owner is 249
current on nonmortgage debt excluding medical debt and has had 250
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no more than one late payment exceed ing 30 days during the 12 251
months immediately preceding the date that the property owner 252
applied for funding as set forth in subsection (4); 253
(k) The property is within the geographic boundaries of 254
the applicable qualifying improvement program; and 255
(l) The local government or program administrator, as 256
applicable, has asked if the property owner has obtained or 257
sought to obtain additional qualifying improvements on the same 258
property that have not yet been recorded. The failure of a 259
property owner to discl ose information set forth in this 260
subsection does not invalidate a financing agreement or any 261
obligation thereunder, even if the total financed amount of the 262
qualifying improvement exceeds the amount that would otherwise 263
be authorized under subsection (15) . 264
265
The existence of a prior qualifying improvement non -ad valorem 266
assessment or a prior financing agreement is not evidence that 267
the financing agreement under consideration is affordable or 268
meets other program requirements. 269
(11) In addition to obtaining the information in 270
subsection (10), and before a local government or program 271
administrator, as applicable, approves a qualifying improvement 272
on residential property, he or she must use information 273
contained in the property owner's application, reasonably 274
reliable third-party records, or an automated verification 275
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system to reasonably determine whether the property owner has 276
the ability to pay the annual non -ad valorem assessment for the 277
qualifying improvement. The local government or program 278
administrator, as applicable, must review the property owner's 279
household income, housing expenses, assets, and other debt 280
obligations. If the local government or program administrator, 281
as applicable, uses an automated verification system, it must be 282
a system that can veri fy the property owner's income, is not 283
based on predictive or estimation methodologies, and has been 284
determined sufficient for such verification purposes by a 285
federal mortgage lending authority or regulator. In reviewing 286
the property owner's ability to pay , the local government or 287
program administrator, as applicable: 288
(a) When determining the household income, may include the 289
income of any property owner aged 18 years old or older whose 290
name is on the property title. If a person's income is 291
considered, that person's debt obligations must also be 292
considered. 293
(b) May not consider the equity in the property that will 294
secure the non-ad valorem assessment. 295
(c) Shall determine the property owner's debt obligations 296
using reasonably reliable third -party records, including, at a 297
minimum, one consumer credit report from an agency that meets 298
the requirements of 15 U.S.C. s. 1681a(p). Debt obligations to 299
be reviewed include: 300
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1. Secured and unsecured debt. 301
2. Housing expenses. The local government or program 302
administrator, as applicable, shall make a reasonable estimate 303
of the basic housing expenses based on the number of persons in 304
the household. 305
3. Stated alimony or child support obligations. 306
(d) Shall determine whether the property owner has 307
sufficient income to pay the annual non -ad valorem assessment 308
and that he or she has sufficient residual income to meet his or 309
her household living expenses. 310
(12) Each local government or program administrator that 311
offers a qualifying improvement program must: 312
(a) Develop a written disclosure form that must be 313
provided to the property owner before he or she executes the 314
financing agreement and which contains the key terms of the 315
agreement, including: 316
1. A description of the qualifying improvement; 317
2. The total financed amount, including the cost of the 318
qualifying improvement, ancillary work, installation, program 319
fees, and prepaid interest, if any; 320
3. The annual non-ad valorem assessment process and annual 321
payment schedule; 322
4. The amount of the annual non -ad valorem assessment; 323
5. The term of the total financed amount; 324
6. The interest rate for the financed amount; 325
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7. The annual percentage rate; 326
8. The total estimated annual costs that the residential 327
real property owner will have to pay under the as sessment 328
contract, including applicable fees; 329
9. The total estimated average monthly equivalent amount 330
of funds the residential real property owner would have to save 331
in order to pay the annual costs of the non -ad valorem 332
assessment, including applicable fees; and 333
10. The estimated due date of the residential real 334
property owner's first property tax payment that includes the 335
non-ad valorem assessment. 336
(b) Include the following statements in the written 337
disclosure form, using the same order as listed i n this 338
paragraph, each of which must be individually acknowledged in 339
writing by the property owner: 340
1. "I UNDERSTAND THAT IF I SELL OR REFINANCE THE PROPERTY, 341
I MAY BE REQUIRED TO PAY OFF THE OUTSTANDING FINANCED AMOUNT AS 342
A CONDITION OF THE SALE OR THE REFINANCE OF THE PROPERTY." 343
344
The previous statement must be made in at least 24 -point 345
boldfaced type. 346
347
2. "I understand that the annual non -ad valorem assessment 348
will be paid when property taxes are paid and will result in a 349
lien being placed on my property." 350
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3. "I understand that the annual non -ad valorem assessment 351
will be added to my property tax bill, and if I pay my property 352
taxes through my mortgage payment using an escrow account, I 353
must notify my mortgage lender." 354
4. "I understand that if I fail to pay the annual non -ad 355
valorem assessment, I may incur penalties and fees, and the 356
local government could issue a tax certificate which might 357
result in the loss of my property." 358
5. "I understand that any potential utility or insurance 359
savings are not guaranteed and will not reduce the annual non -ad 360
valorem assessment or total assessment amount." 361
6. "I understand that I have 3 days to cancel the 362
financing agreement. The 3 -day right expires at midnight of the 363
third business day after I sign the agreement." 364
7. "I understand that the local government, program 365
administrator, or PACE contractor do not provide tax advice and 366
that I should seek professional tax advice if I have questions 367
regarding tax credits, tax deductibility, or other tax impacts 368
of the qualifying improvement or the assessment contract. 369
8. "I understand that I cannot be assessed a penalty if I 370
prepay the outstanding financed amount." 371
(c) Provide a printed cancellation form to the property 372
owner no later than the date on which t he property owner signs 373
the financing agreement which allows the property owner to 374
cancel the contract, within the 3 -day period specified in 375
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subparagraph (b)6. 376
(d) Conduct, with at least one residential real property 377
owner or an authorized representative , an oral, recorded 378
telephone call during which time the local government or program 379
administrator, as applicable, must use plain language. The local 380
government or program administrator, as applicable, must ask the 381
residential real property owner or author ized representative if 382
he or she would like to communicate primarily in a language 383
other than English and, if so, must conduct the call in the 384
owner's or representative's preferred language. A local 385
government or program administrator, as applicable, may n ot 386
leave a voicemail for the residential real property owner or 387
authorized representative to satisfy this requirement. The owner 388
or representative must provide written acknowledgement that the 389
oral confirmation was given. A local government or program 390
administrator, as applicable, as part of this telephone call, 391
must confirm with the residential real property owner or 392
authorized representative: 393
1. That at least one residential real property owner has 394
access to a copy of the assessment contract and financi ng 395
estimates and disclosures. 396
2. The qualifying improvement that is being financed. 397
3. The total estimated annual costs that the residential 398
real property owner will have to pay under the assessment 399
contract, including applicable fees. 400
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4. The total estimated average monthly equivalent amount 401
of funds the residential real property owner would have to save 402
in order to pay the annual costs of the non -ad valorem 403
assessment, including applicable fees. 404
5. The estimated due date of the residential real pro perty 405
owner's first property tax payment that includes the non -ad 406
valorem assessment. 407
6. The term of the assessment contract. 408
7. That payments for the assessment contract will cause 409
the residential real property owner's annual tax bill to 410
increase and that payments will be made through an additional 411
annual non-ad valorem assessment on the property and will be 412
paid either directly to the county tax collector's office as 413
part of the total annual secured property tax bill or may be 414
paid through the residen tial real property owner's mortgage 415
escrow account. 416
8. That the qualifying residential property owner has 417
disclosed whether the property has received or is seeking 418
additional non-ad valorem assessments and has disclosed all 419
other assessments or special t axes that are or will be placed on 420
the property. 421
9. That the property will be subject to a lien during the 422
term of the assessment contract and that the obligations under 423
the contract may be required to be paid in full before the 424
residential real property owner sells or refinances the 425
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property. 426
10. That any potential utility or insurance savings are 427
not guaranteed and will not reduce the annual non -ad valorem 428
assessment or total assessment amount. 429
11. That the local government, program administrator, o r 430
PACE contractor does not provide tax advice and that the 431
residential real property owner should seek professional tax 432
advice if he or she has questions regarding tax credits, tax 433
deductibility, or other tax impacts of the qualifying 434
improvement or the as sessment contract. 435
(e) The local government or program administrator shall 436
develop additional procedures under this subsection to address 437
the needs and concerns of elderly persons The property owner is 438
current on all mortgage debt on the property . 439
(13)(10) A qualifying improvement shall be affixed or 440
connected to a building or facility that is part of the property 441
and shall constitute an improvement to the building or facility 442
or a fixture attached to the building or facility. An agreement 443
between a local government and a qualifying property owner may 444
not cover wind-resistance improvements in buildings or 445
facilities under new construction or construction for which a 446
certificate of occupancy or similar evidence of substantial 447
completion of new construction or improvement has not been 448
issued. 449
(14)(11) Any work requiring a license under any applicable 450
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law to make or install a qualifying improvement shall be 451
performed by a contractor properly certified or registered 452
pursuant to part I or part II of chapter 489. 453
(15)(12)(a) Without the consent of the holders or lo an 454
servicers of any mortgage encumbering or otherwise secured by 455
the property, The total amount of any non -ad valorem assessment 456
for a property under this section may not exceed 20 percent of 457
the fair market just value of the property as determined by the 458
county property appraiser . In addition, the total of any non -ad 459
valorem assessments plus any mortgage -related debt on the 460
property may not exceed 97 percent of the fair market value of 461
the property. The fair market value of the property shall be 462
derived using any methodology commonly used in the real estate 463
finance industry. 464
(b) Notwithstanding paragraph (a), a non -ad valorem 465
assessment for a qualifying improvement defined in subparagraph 466
(2)(b)1. or subparagraph (2)(b)2. that is supported by an energy 467
audit is not subject to the limits in this subsection if the 468
audit demonstrates that the annual energy savings from the 469
qualified improvement equals or exceeds the annual repayment 470
amount of the non-ad valorem assessment. 471
(16)(13) At least 30 days before e ntering into a financing 472
agreement, the property owner shall provide to the holders or 473
loan servicers of any existing mortgages encumbering or 474
otherwise secured by the property a written notice of the 475
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owner's intent to enter into a financing agreement toge ther with 476
the maximum principal amount to be financed and the maximum 477
annual assessment necessary to repay that amount. A verified 478
copy or other proof of such notice shall be provided to the 479
local government or program administrator, as applicable . A 480
provision in any agreement between the a mortgagee or other 481
lienholder and a property owner, or otherwise now or hereafter 482
binding upon a property owner, which allows for acceleration of 483
payment of the mortgage, note, or lien or other unilateral 484
modification solely as a result of entering into a financing 485
agreement as provided for in this section is not enforceable. 486
This subsection does not limit the authority of the holder or 487
loan servicer to increase the required monthly escrow by an 488
amount necessary to annual ly pay the qualifying improvement 489
assessment. 490
(17)(14) At or before the time a purchaser executes a 491
contract for the sale and purchase of any property for which a 492
non-ad valorem assessment has been levied under this section and 493
has an unpaid balance due, the seller shall give the prospective 494
purchaser a written disclosure statement in the following form, 495
which shall be set forth in the contract or in a separate 496
writing: 497
498
QUALIFYING IMPROVEMENTS FOR ENERGY EFFICIENCY, RENEWABLE ENERGY, 499
OR WIND RESISTANCE.—The property being purchased is located 500
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within the jurisdiction of a local government that has placed an 501
non-ad valorem assessment on the property pursuant to s. 163.08, 502
Florida Statutes. The non-ad valorem assessment is for a 503
qualifying improvement to the property relating to energy 504
efficiency, renewable energy, or wind resistance, and is not 505
based on the value of property. You are encouraged to contact 506
the county property appraiser's office to learn more about this 507
and other assessments that may be provid ed by law. 508
(18)(15) A provision in any agreement between a local 509
government and a public or private power or energy provider or 510
other utility provider is not enforceable to limit or prohibit 511
any local government from exercising its authority under this 512
section. 513
(19)(16) This section is additional and supplemental to 514
county and municipal home rule authority and not in derogation 515
of such authority or a limitation upon such authority. 516
(20) A local government or program administrator, as 517
applicable, may not offer financing f or a qualifying improvement 518
authorized pursuant to this section on any residential real 519
property that includes any of the following: 520
(a) A negative amortization schedule; 521
(b) A balloon payment; or 522
(c) Prepayment fees, other than nominal administrativ e 523
costs. 524
(21) For residential real property, a local government or 525
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program administrator, as applicable: 526
(a) May not enroll a PACE contractor who offers financing 527
on residential real property unless: 528
1. The local government or program administrator, as 529
applicable, determines that the PACE contractor maintains in 530
good standing an appropriate license from the state, if 531
applicable, as well as any other permits, licenses, or 532
registrations required for engaging in its business in the 533
jurisdiction in which it operates and maintains all state -534
required bond and insurance coverage. 535
2. A local government or program administrator, as 536
applicable, obtains the PACE contractor's written agreement that 537
the PACE contractor will comply with all applicable laws, 538
including applicable advertising and marketing laws and 539
regulations and the requirements of subsection (23). 540
(b) Must maintain a process to enroll new PACE contractors 541
that includes reasonable review of the following for each 542
contractor: 543
1. Relevant work or project history. 544
2. Financial and reputational background checks. 545
3. The contractor's status on the Better Business Bureau 546
platform or other online platforms that track contractor 547
reviews. 548
(22)(a) Before disbursing funds to a PACE contractor for a 549
qualifying improvement on residential real property, the local 550
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government or program administrator, as applicable, must first 551
confirm that the applicable work or service has been completed 552
and the local government has determined the work complies with 553
applicable codes and standards, including, but not limited to, 554
the Florida Building Code and the Florida Fire Prevention Code. 555
(b) A local government or program administrator, as 556
applicable, may not disclose the maximum financing amount for 557
which a residential real property owner is eligible to a PACE 558
contractor or to a third party engaged in soliciting assessment 559
contracts financed pursuant to this section. 560
(23) When communicating with residential real property 561
owners, a local government, program administrat or, or PACE 562
contractor, or a third party engaged in marketing on behalf of 563
these entities, must comply with the following marketing and 564
communications guidelines and may not: 565
(a) Suggest or imply: 566
1. That a non-ad valorem assessment authorized under th is 567
section is a government assistance program; 568
2. That qualifying improvements are free or provided at no 569
cost or that the financing related to a non -ad valorem 570
assessment authorized under this section is free or provided at 571
no cost; or 572
3. That the financing of a qualifying improvement using 573
the program authorized pursuant to this section does not require 574
the property owner to repay the financial obligation. 575
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(b) Make any representation as to the tax deductibility of 576
a non-ad valorem assessment on resi dential real property. A 577
local government, program administrator, or PACE contractor, or 578
a third party engaged in marketing on behalf of these entities, 579
may encourage a property owner to seek the advice of a tax 580
professional regarding tax matters related t o assessments. 581
(24)(a) A contract to sell or install a qualifying 582
improvement that is related to an application for financing in a 583
qualifying improvement program for a residential property is 584
unenforceable, and a PACE contractor may not begin work under 585
such a contract if: 586
1. The property owner would not have entered into the 587
contract but for the belief that the qualifying improvement or 588
its installation would be paid under the financing agreement; or 589
2. The property owner applied for, accepted, and c anceled 590
a qualifying improvement financing agreement within the 3 -day 591
right-to-cancel period set forth in subparagraph (12)(b)6. 592
(b) If a PACE contractor has initiated work on a 593
residential property under an unenforceable contract as 594
determined under paragraph (a), the PACE contractor: 595
1. May not receive compensation for that work under the 596
financing agreement. 597
2. Must restore the property to its original condition at 598
no cost to the property owner. 599
3. Must immediately return any money, property, and other 600
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consideration given by the property owner. If the property owner 601
provided any property and the PACE contractor does not or cannot 602
return it, the PACE contractor shall immediately return the fair 603
market value of the property or its value as design ated in the 604
contract, whichever is greater. 605
(c) If the PACE contractor has delivered chattel or 606
fixtures to the residential property pursuant to an 607
unenforceable contract, the PACE contractor shall have 90 days 608
from the date on which the contract was executed to retrieve the 609
chattel or fixtures, provided that: 610
1. The PACE contractor has fulfilled the requirements of 611
subparagraphs (b)2. and 3. 612
2. The chattel and fixtures can be removed at the PACE 613
contractor's expense without damaging the property o wner's 614
property and practically returned. 615
(d) The residential property owner may retain any chattel 616
or fixtures provided pursuant to an unenforceable contract if a 617
PACE contractor fails to comply with this subsection. 618
(e) A contract which is otherwise unenforceable under this 619
subsection remains enforceable if the residential property owner 620
waives his or her right to cancel the contract, allows the PACE 621
contractor to proceed with the installation of the qualifying 622
improvement, and cancels the financing a greement. 623
(25)(a) A PACE contractor or third party may not advertise 624
the availability of financing agreements or solicit property 625
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owners on behalf of the local government or program 626
administrator unless: 627
1. The PACE contractor or third party maintains the 628
appropriate registration or certification from the Construction 629
Industry Licensing Board or any other permit, license, or 630
registration required to conduct business in the jurisdiction in 631
which it operates and provides proof of having the required bond 632
and insurance coverage amounts. 633
2. The local government or program administrator, as 634
applicable, obtains the PACE contractor's or third party's 635
written agreement that the PACE contractor or third party will 636
meet applicable laws and rules and qualifying i mprovement 637
program policies and procedures, including those on advertising 638
and marketing. 639
(b) A local government or program administrator may not 640
provide any direct or indirect cash payment or thing of material 641
value to a PACE contractor or third party i n excess of the 642
actual price charged by that PACE contractor for the sale and 643
installation of the qualifying improvements that are financed by 644
a financing agreement. However, a program administrator may 645
provide information or services to a PACE contractor to 646
facilitate the installation of a qualifying improvement for a 647
property owner. 648
(c) A local government or program administrator may not 649
reimburse a PACE contractor or third party for its expenses in 650
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advertising and marketing campaigns and materials. A l ocal 651
government or program administrator, as applicable, and a PACE 652
contractor may share expenses in connection with joint 653
advertising and marketing campaigns and materials if the 654
expenses are shared on a commercially reasonable basis. 655
(d) A local government or program administrator may not 656
provide to a PACE contractor engaged in soliciting financing 657
agreements on its behalf any information that discloses the 658
amount of funds for which a property owner is eligible for 659
qualifying improvements or the amount of equity in a property. 660
(e) For residential properties, a PACE contractor may not 661
provide a different price for a qualifying improvement financed 662
under this section than the PACE contractor would provide if the 663
property owner paid for the improvement in cash. 664
(f) A program administrator may not provide any direct 665
cash payment or other thing of material value to a property 666
owner explicitly conditioned upon the property owner entering 667
into a financing agreement. However, a program administrator may 668
offer programs or promotions that provide reduced fees or 669
interest rates if the reduced fees or interest rates are 670
reflected in the financing agreements and are not provided to 671
the property owners as cash consideration. 672
(26) Each local government that has aut horized a 673
qualifying improvement program shall post on its website an 674
annual report for the period ending December 31 each year 675
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containing the following information: 676
(a) The number of qualifying improvements funded. 677
(b) The aggregate, average, and medi an dollar amounts of 678
annual non-ad valorem assessments and the total number of non -ad 679
valorem assessments that funded qualifying improvements. 680
(c) The percentage, number, and dollar value of non -ad 681
valorem assessments that funded qualifying improvements, 682
aggregated by the category types consisting of energy 683
efficiency, renewable energy, and wind resistance. 684
(d) The number of defaulted non -ad valorem assessments, 685
including the total number and defaulted amount, the number and 686
dates of missed payments, th e total number of parcels defaulted 687
and the years in default, and the percentage of defaults by 688
total assessments. 689
(e) A summary of all reported violations of this section, 690
including the resolution of each. 691
(f) Estimated number of jobs created. 692
(g) The number and percentage of homeowners 60 years of 693
age or older participating in a qualifying improvement program. 694
695
This report shall be posted no later than April 1 of the year 696
following the calendar year covered by the report. 697
Section 2. This act sha ll take effect July 1, 2022. 698