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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.; revising legislative 3
findings; defining and revising terms; authorizing a 4
residential or commercial property owner to apply to a 5
qualifying improvement program for funding to finan ce 6
an improvement and to enter into a financing agreement 7
with the local government or program administrator; 8
providing that a non -ad valorem assessment on certain 9
commercial property is subject to a certain fee; 10
specifying requirements of a financing agre ement for 11
government commercial property; revising and 12
specifying public records requirements for assessment 13
financing agreements and notices of lien; revising 14
requirements for local governments and program 15
administrators when determining eligibility for 16
assessment financing; revising requirements for 17
qualifying improvements; revising the calculation of 18
non-ad valorem assessment limits; providing 19
construction; specifying underwriting, financing 20
estimate, disclosure, and confirmation requirements 21
for local governments and program administrators; 22
restricting what improvements may be covered in 23
certain agreements between local governments or 24
program administrators and commercial property owners; 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
revising notice and consent requirements regarding a 26
property owner's intent to enter into a financing 27
agreement; revising the seller's disclosure statement 28
for residential and commercial properties offered for 29
sale; authorizing a residential property owner, under 30
certain circumstances and within a certain timeframe, 31
to cancel a financing agreement without financial 32
penalty; specifying limitations on financing agreement 33
terms for residential property; prohibiting certain 34
financing terms for residential property; specifying 35
requirements for, and certain prohibited acts by, 36
program administrators relating to financing 37
agreements and contractors for qualifying improvements 38
to residential property; specifying annual reporting 39
requirements for local governments; providing 40
construction; providing an effective date. 41
42
Be It Enacted by the Legislature of the State of Florida: 43
44
Section 1. Section 163.08, Florida Statutes, is amended to 45
read: 46
163.08 Supplemental authority for improvements to real 47
property.— 48
(1)(a) In chapter 2008 -227, Laws of Florida, the 49
Legislature amended the energy goal of the state comprehensive 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
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 g reenhouse 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 subject to the 61
Florida Energy Efficiency Code for Building Construction. I n 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 general 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 contribute to the burden affecting all improved 75
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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
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 energy consumption. All 79
improved properties not protected from wind dama ge by wind 80
resistance qualifying improvements contribute to the burden 81
affecting all improved property resulting from potential wind 82
damage. Improved commercial property constructed or that has 83
been retrofitted with resiliency qualifying improvements and 84
improved residential property retrofitted with wind resistance 85
qualifying improvements receive receives the special benefit of 86
reducing the property's burden from potential wind damage. 87
Further, the installation and operation of qualifying 88
improvements not only benefit the affected properties for which 89
the improvements are made, but also assist in fulfilling the 90
goals of the state's energy and hurricane mitigation policies. 91
Residential properties that do not use advanced technologies for 92
wastewater removal c ontribute to the water quality problems 93
affecting this state, particularly the coastal areas. Improved 94
residential property retrofitted with an advanced onsite sewage 95
treatment and disposal system or converted to central sewerage 96
significantly benefits the quality of water that may enter 97
streams, lakes, rivers, aquifers, or coastal areas. 98
(c) In order to make qualifying improvements more 99
affordable and assist property owners who wish to undertake such 100
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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
improvements, the Legislature finds that there is a co mpelling 101
state interest in enabling property owners to voluntarily 102
finance such improvements with local government assistance. 103
(d)(c) The Legislature determines that the actions 104
authorized under this section, including, but not limited to, 105
the financing of qualifying improvements through the execution 106
of financing agreements and the related imposition of voluntary 107
assessments are reasonable and necessary to serve and achieve a 108
compelling state interest and are necessary for the prosperity 109
and welfare of the state and its property owners and 110
inhabitants. 111
(2) As used in this section, the term: 112
(a) "Commercial property" means real property not defined 113
as residential property which will be or has been improved by a 114
qualifying improvement, including, but no t limited to, the 115
following: 116
1. A multifamily residential property composed of five or 117
more dwelling units; 118
2. A commercial real property; 119
3. An industrial building or property; 120
4. An agricultural property; 121
5. A nonprofit-owned property; 122
6. A long-term care facility, including nursing homes and 123
assisted living facilities; or 124
7. A government commercial property. 125
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(b) "Facility" means any portion of a building, structure, 126
or site improvement located on a site as defined in s. 202 of 127
the 2020 Florida Building Code. 128
(c) "Government commercial property" means real property 129
owned by a local government and leased to a nongovernmental 130
lessee when the usage by the lessee meets the definition of 131
commercial property. 132
(d)(a) "Local government" means a county, a municipality, 133
a dependent special district as defined in s. 189.012, or a 134
separate legal entity created pursuant to s. 163.01(7). 135
(e) "Nongovernmental lessee" means a person or an entity 136
other than a local government which leases government c ommercial 137
property. 138
(f) "Program administrator" means an entity, including, 139
but not limited to, a for -profit or not-for-profit entity, with 140
which a local government has contracted to administer a 141
qualifying improvement program. 142
(g) "Qualifying improvem ent contractor" means an 143
independent contractor who has been enrolled under a qualifying 144
improvement program to install or otherwise perform work on 145
qualifying improvements financed through the program. 146
(h) "Qualifying improvement program" means a progra m 147
established by a local government, alone or in partnership with 148
other local governments or a program administrator, to finance 149
qualifying improvements on residential or commercial real 150
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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
property. 151
(i)(b) "Qualifying improvements improvement": 152
1. For residential property, includes any: 153
a.1. Energy conservation and efficiency improvement, which 154
is a measure to reduce consumption through conservation or a 155
more efficient use of electricity, natural gas, propane, or 156
other forms of energy on the property, i ncluding, but not 157
limited to, air sealing; installation of insulation; 158
installation of energy -efficient heating, cooling, or 159
ventilation systems; building modifications to increase the use 160
of daylight; replacement of windows; installation of energy 161
controls or energy recovery systems; installation of electric 162
vehicle charging equipment; and installation of efficient 163
lighting equipment. 164
b.2. Renewable energy improvement, which is the 165
installation of any system in which the electrical, mechanical, 166
or thermal energy is produced from a method that uses one or 167
more of the following fuels or energy sources: hydrogen, solar 168
energy, geothermal energy, bioenergy, and wind energy. 169
c.3. Wind resistance improvement, which includes, but is 170
not limited to: 171
(I)a. Improving the strength of the roof deck attachment; 172
(II)b. Creating a secondary water barrier to prevent water 173
intrusion; 174
(III)c. Installing wind-resistant shingles; 175
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(IV)d. Installing gable-end bracing; 176
(V)e. Reinforcing roof-to-wall connections; 177
(VI)f. Installing storm shutters; or 178
(VII)g. Installing opening protections. 179
d. Wastewater improvement, which includes, but is not 180
limited to: 181
(I) The removal, replacement, or improvement of an onsite 182
sewage treatment and disposal system with a seco ndary or 183
advanced onsite sewage treatment and disposal system or 184
technology; 185
(II) The replacement or conversion of an onsite sewage 186
treatment and disposal system to a central sewerage system or 187
distributed sewerage system, including, but not limited to, the 188
installation of a sewer lateral and anything necessary to 189
connect the onsite sewage treatment and disposal system or the 190
building's plumbing to a central sewerage system or distributed 191
sewerage system; or 192
(III) Any removal, repairs, or modifications made to an 193
onsite sewage treatment and disposal system, including any 194
repair, modification, or replacement of a system required under 195
a local ordinance enacted pursuant to ss. 381.0065 and 196
381.00651. 197
2. For commercial property, includes any: 198
a. Energy conservation and efficiency improvement, which 199
is a measure to reduce consumption through conservation or a 200
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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
more efficient use of electricity, natural gas, propane, or 201
other forms of energy on the property, including, but not 202
limited to, air sealing; insta llation of insulation; 203
installation of energy -efficient heating, cooling, or 204
ventilation systems; building modifications to increase the use 205
of daylight; replacement of windows; installation of energy 206
controls or energy recovery systems; installation of el ectric 207
vehicle charging equipment; installation of efficient lighting 208
equipment; or any other improvements necessary to achieve a 209
sustainable building rating or compliance with a national model 210
green building code. 211
b. Renewable energy improvement, which is the installation 212
of any system in which the electrical, mechanical, or thermal 213
energy is produced from a method that uses one or more of the 214
following fuels or energy sources: hydrogen, solar energy, 215
geothermal energy, bioenergy, and wind energy. 216
c. Resiliency improvement, which includes, but is not 217
limited to: 218
(I) Improving the strength of the roof deck attachment; 219
(II) Creating a secondary water barrier to prevent water 220
intrusion; 221
(III) Installing wind -resistant shingles; 222
(IV) Installing gab le-end bracing; 223
(V) Reinforcing roof -to-wall connections; 224
(VI) Installing storm shutters; 225
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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
(VII) Installing opening protections; 226
(VIII) Creating or improving stormwater and flood 227
resiliency, including shoreline improvements; or 228
(IX) Making any oth er improvements necessary to achieve a 229
sustainable building rating or compliance with a national model 230
resiliency standard and any improvements to a structure to 231
achieve wind or flood insurance rate reductions, including 232
building elevation. 233
(j) "Residential property" means a residential real 234
property composed of four or fewer dwelling units which has been 235
or will be improved by a qualifying improvement. 236
(3) A local government may levy non -ad valorem assessments 237
to fund qualifying improvements. 238
(4) Subject to local government ordinance or resolution, a 239
residential or commercial property owner may apply to a 240
qualifying improvement program the local government for funding 241
to finance a qualifying improvement and enter into a financing 242
agreement with the l ocal government or program administrator . 243
Costs incurred by the local government for such purpose may be 244
collected as a non-ad valorem assessment. A non -ad valorem 245
assessment must shall be collected pursuant to s. 197.3632 and, 246
notwithstanding s. 197.3632( 8)(a), is shall not be subject to 247
discount for early payment. However, the notice and adoption 248
requirements of s. 197.3632(4) do not apply if this section is 249
used and complied with, and the intent resolution, publication 250
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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
of notice, and mailed notices to th e property appraiser, tax 251
collector, and Department of Revenue required by s. 252
197.3632(3)(a) may be provided on or before August 15 in 253
conjunction with any non -ad valorem assessment authorized by 254
this section, if the property appraiser, tax collector, and 255
local government agree. A non-ad valorem assessment on a 256
commercial property securing financing for a qualifying 257
improvement, notwithstanding ss. 192.091(2)(b) and 258
197.3632(8)(c), is subject to a maximum annual fee of 1 percent 259
of the annual non-ad valorem assessment collected or $5,000, 260
whichever is less. 261
(5) Pursuant to this section or as otherwise provided by 262
law or pursuant to a local government's home rule power, a local 263
government may enter into a partnership with one or more local 264
governments for the purpose of providing and financing 265
qualifying improvements. 266
(6) A qualifying improvement program may be administered 267
by a for-profit entity or a not -for-profit organization on 268
behalf of and at the discretion of the local government. 269
(7) A local government may incur debt for the purpose of 270
providing financing for qualifying such improvements, which debt 271
is payable from revenues received from the improved property , or 272
any other available revenue source authorized by law. 273
(8)(a) A local government may enter into a financing 274
agreement to finance or refinance a qualifying improvement only 275
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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
with the record owner of the affected property. For government 276
commercial property, the financing agreement must be executed by 277
the nongovernmental lessee with the writ ten consent of the 278
governmental lessor. Evidence of such consent must be provided 279
to the local government. The financing agreement with a 280
nongovernmental lessee must provide that the nongovernmental 281
lessee is the only party obligated to pay the assessment. 282
(b) Any financing agreement entered into pursuant to this 283
section or a summary memorandum of such agreement must shall be 284
submitted for recording recorded in the public records of the 285
county within which the property is located by the sponsoring 286
unit of local government within 10 5 days after execution of the 287
agreement. The recorded agreement provides shall provide 288
constructive notice that the non-ad valorem assessment to be 289
levied on the property constitutes a lien of equal dignity to 290
county taxes and assessments from the date of recordation. A 291
notice of lien for the full amount of the financing may be 292
recorded in the public records of the county where the property 293
is located. Such lien shall not be enforceable in a manner that 294
results in the acceleration of the remaining nondelinquent 295
unpaid balance under the assessment financing agreement. 296
(9)(a) Before entering into A financing agreement for a 297
residential property may not be approved unless , the local 298
government, or the program administrator acting on its behalf, 299
has shall reasonably determined determine that all of the 300
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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
following conditions have been met: 301
1. All property taxes and any other assessments levied on 302
the same bill as property taxes are current paid and have not 303
been delinquent for the preceding 3 years or the property 304
owner's period of ownership, whichever is less .; that 305
2. There are no involuntary liens, including, but not 306
limited to, construction liens on the property .; that 307
3. No notices of default or other evidence of property -308
based debt delinquency have been recorded during the preceding 3 309
years or the property owner's period of ownership, whichever is 310
less.; and that 311
4. The property owner is current on all mortgage debt on 312
the property and has had no more than one late payment exceeding 313
30 days during the 12 months immediately preceding the 314
application date. 315
5. The property owner has acknowledged in writing the 316
disclosure statements required by paragraph (11)(b). 317
6. The property is located within the geographic 318
boundaries of the applicable qualifying improvement program. 319
7. The term of the financing agreement does not exceed: 320
a. For a single qualifying improvement, the estim ated 321
useful life of the qualifying improvement. 322
b. For multiple qualifying improvements, the lesser of: 323
(I) Thirty years; or 324
(II) The greater of either the weighted average estimated 325
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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
useful life of all qualifying improvements being financed or the 326
estimated useful life of the qualifying improvements to which 327
the greatest portion of funds is disbursed. 328
329
The local government or program administrator, as applicable, 330
shall determine the useful life of a qualifying improvement 331
using established third -party standards, including certification 332
criteria from government agencies or nationally recognized 333
standards and testing organizations. 334
8. The property owner has not been subject to a bankruptcy 335
proceeding within the last 5 years unless it was discharged o r 336
dismissed more than 2 years before the date on which the 337
property owner applied for funding as set forth in subsection 338
(4). 339
9. The property is not subject to an existing home equity 340
conversion mortgage or reverse mortgage product. 341
10. The property is not currently a residential property 342
gifted to a homeowner for free by a nonprofit entity as may be 343
disclosed by the property owner. The failure of a property owner 344
to disclose information set forth in this paragraph does not 345
invalidate a financing agreem ent or any obligation thereunder. 346
11. The property owner has obtained estimates from at 347
least two unaffiliated, competitive entities, one of which is a 348
qualifying improvement contractor, for the qualifying 349
improvement to be financed. 350
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12. The local government or program administrator, as 351
applicable, has asked if the property owner has obtained or 352
sought to obtain additional qualifying improvements on the same 353
property that have not yet been recorded. The failure of a 354
property owner to disclose informatio n set forth in this 355
subparagraph does not invalidate a financing agreement or any 356
obligation thereunder, even if the total financed amount of the 357
qualifying improvement exceeds the amount that would otherwise 358
be authorized under paragraph (15)(a). 359
360
The existence of a prior qualifying improvement non -ad valorem 361
assessment or a prior financing agreement is not evidence that 362
the financing agreement under consideration is affordable or 363
meets other program requirements. 364
(b) A financing agreement for a commerci al property may 365
not be approved unless the local government, or the program 366
administrator acting on its behalf, has reasonably determined 367
that all of the following conditions have been met: 368
1. All property taxes and any other assessments levied on 369
the same bill as property taxes are current. 370
2. There are no involuntary liens greater than $10,000, 371
including, but not limited to, construction liens on the 372
property. 373
3. No notices of default or other evidence of property -374
based debt delinquency have been recorded and not released 375
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during the preceding 3 years or the property owner's period of 376
ownership, whichever is less. 377
4. The property owner is current on all mortga ge debt on 378
the property. 379
(10) In addition to obtaining the information in paragraph 380
(9)(a), and before a local government or program administrator, 381
as applicable, approves a qualifying improvement on residential 382
property, the local government or program administrator, as 383
applicable, must use information contained in the property 384
owner's application, reasonably reliable third -party records, or 385
an automated verification system to reasonably determine whether 386
the property owner has the ability to pay the ann ual non-ad 387
valorem assessment for the qualifying improvement. The local 388
government or program administrator, as applicable, must review 389
the property owner's household income, housing expenses, assets, 390
and other debt obligations. If the local government or program 391
administrator, as applicable, uses an automated verification 392
system, it must be a system that can verify the property owner's 393
income, is not based on predictive or estimation methodologies, 394
and has been determined sufficient for such verification 395
purposes by a federal mortgage lending authority or regulator. 396
In reviewing the property owner's ability to pay, the local 397
government or program administrator, as applicable: 398
(a) When determining the household income, may include the 399
income of any propert y owner aged 18 years old or older whose 400
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name is on the property title. If a person's income is 401
considered, that person's debt obligations must also be 402
considered. 403
(b) May not consider the equity in the property that will 404
secure the non-ad valorem assessment. 405
(c) Shall determine the property owner's debt obligations 406
using reasonably reliable third -party records, including, at a 407
minimum, one consumer credit report from an agency that meets 408
the requirements of 15 U.S.C. s. 1681a(p). Debt obligations to 409
be reviewed include: 410
1. Secured and unsecured debt. 411
2. Housing expenses. The local government or program 412
administrator, as applicable, shall make a reasonable estimate 413
of the basic housing expenses based on the number of persons in 414
the household. 415
3. Stated alimony or child support obligations. 416
(d) Shall determine whether the property owner has 417
sufficient income to pay the annual non -ad valorem assessment 418
and that he or she has sufficient residual income to meet his or 419
her household living expenses. To participate in a qualifying 420
improvement program, a residential property owner must have a 421
total debt-to-income ratio no higher than 49 percent. 422
(11) Each local government or program administrator that 423
offers a qualifying improvement program for resident ial 424
properties must: 425
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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) Develop a written disclosure form, which may be 426
presented in electronic format, that must be provided to the 427
residential property owner before the property owner executes 428
the financing agreement and which contains the key terms o f the 429
agreement, including: 430
1. A description of the qualifying improvement; 431
2. The estimated total financed amount, including the cost 432
of the qualifying improvement, ancillary work, program fees, and 433
prepaid interest, if any; 434
3. The annual non-ad valorem assessment process and 435
estimated annual payment schedule; 436
4. The estimated amount of the annual non -ad valorem 437
assessment; 438
5. The term of the total financed amount; 439
6. The interest rate for the financed amount; 440
7. The estimated annual percentage rate; 441
8. The total estimated annual costs that the residential 442
property owner will have to pay under the assessment contract, 443
including program fees; 444
9. The total estimated average monthly equivalent amount 445
of funds that the residential prop erty owner would have to save 446
in order to pay the annual costs of the non -ad valorem 447
assessment, including program fees; and 448
10. The estimated due date of the residential property 449
owner's first property tax payment that includes the non -ad 450
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valorem assessment. 451
(b) Include the following statements in the written 452
disclosure form, using the same order as listed in this 453
paragraph, each of which must be individually acknowledged in 454
writing by the residential property owner: 455
1. "I UNDERSTAND THAT IF I SELL O R REFINANCE THE PROPERTY, 456
I MAY BE REQUIRED TO PAY OFF THE OUTSTANDING FINANCED AMOUNT AS 457
A CONDITION OF THE SALE OR THE REFINANCE OF THE PROPERTY." 458
459
The statement in this subparagraph must be made in at least 24 -460
point boldfaced type. 461
2. "I understand th at the annual non-ad valorem assessment 462
will be paid when property taxes are paid and will result in a 463
lien being placed on my property." 464
3. "I understand that the annual non -ad valorem assessment 465
will be added to my property tax bill, and if I pay my pr operty 466
taxes through my mortgage payment using an escrow account, I 467
must notify my mortgage lender." 468
4. "I understand that if I fail to pay the annual non -ad 469
valorem assessment, I may incur penalties and fees, and the 470
local government could issue a tax c ertificate which might 471
result in the loss of my property." 472
5. "I understand that any potential utility or insurance 473
savings are not guaranteed and will not reduce the annual non -ad 474
valorem assessment or total assessment amount." 475
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6. "I understand that I have 5 days to cancel the 476
financing agreement. The 5 -day right expires at midnight of the 477
fifth business day after I sign the agreement." 478
7. "I understand that the local government, program 479
administrator, or qualifying improvement contractor do not 480
provide tax advice and that I should seek professional tax 481
advice if I have questions regarding tax credits, tax 482
deductibility, or other tax impacts of the qualifying 483
improvement or the assessment contract." 484
8. "I understand that I cannot be assessed a penal ty if I 485
prepay the outstanding financed amount." 486
(c) Provide a printed or electronic cancellation form to 487
the residential property owner no later than the date on which 488
the property owner signs the financing agreement which allows 489
the property owner to c ancel the contract within the 5 -day 490
period specified in subparagraph (b)6. 491
(d) Before a notice to proceed is issued, conduct, with at 492
least one residential property owner or an individual legally 493
authorized to act on behalf of the property owner, who is not 494
affiliated or associated with the local government, program 495
administrator, or qualifying improvement contractor, an oral, 496
recorded telephone call during which time the local government 497
or program administrator, as applicable, must use plain 498
language. The local government or program administrator, as 499
applicable, must ask the residential property owner or 500
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authorized representative if he or she would like to communicate 501
primarily in a language other than English and, if so, must 502
conduct the telephone call in the owner's or representative's 503
preferred language. A local government or program administrator, 504
as applicable, may not leave a voicemail for the residential 505
property owner or authorized representative to satisfy this 506
requirement. A local government or program administrator, as 507
applicable, as part of this telephone call, must confirm with 508
the residential property owner or authorized representative: 509
1. That at least one residential property owner has access 510
to a copy of the assessment contract and finan cing estimates and 511
disclosures. 512
2. The qualifying improvement that is being financed. 513
3. The total estimated annual costs that the residential 514
property owner will have to pay under the assessment contract, 515
including program fees. 516
4. The total estimat ed average monthly equivalent amount 517
of funds the residential property owner would have to save in 518
order to pay the annual costs of the non -ad valorem assessment, 519
including program fees. 520
5. The estimated due date of the residential property 521
owner's first property tax payment that includes the non -ad 522
valorem assessment. 523
6. The term of the assessment contract. 524
7. That payments for the assessment contract will cause 525
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the residential property owner's annual tax bill to increase and 526
that payments will be ma de through an additional annual non -ad 527
valorem assessment on the property and will be paid either 528
directly to the county tax collector's office as part of the 529
total annual secured property tax bill or may be paid through 530
the residential property owner's mo rtgage escrow account. 531
8. That the qualifying residential property owner has 532
disclosed whether the property has received or is seeking 533
additional non-ad valorem assessments and has disclosed all 534
other assessments or special taxes that are or will be plac ed on 535
the property. 536
9. That the property will be subject to a lien during the 537
term of the assessment contract and that the obligations under 538
the contract may be required to be paid in full before the 539
residential property owner sells or refinances the pro perty. 540
10. That any potential utility or insurance savings are 541
not guaranteed and will not reduce the annual non -ad valorem 542
assessment or total assessment amount. 543
11. That the local government, program administrator, or 544
qualifying improvement contractor does not provide tax advice 545
and that the residential property owner should seek professional 546
tax advice regarding questions about tax credits, tax 547
deductibility, or other tax impacts of the qualifying 548
improvement or the assessment contract. 549
(12)(a) A residential property owner may cancel a 550
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financing agreement within 5 business days after signing the 551
financing agreement without any financial penalty from the 552
program administrator for doing so. 553
(b) A contract to sell or install a qualifying improvement 554
that is related to an application for financing in a qualifying 555
improvement program for a residential property is unenforceable, 556
and a qualifying improvement contractor may not begin work under 557
such a contract, if the property owner applied for , accepted, 558
and canceled a qualifying improvement financing agreement within 559
the 5-day right-to-cancel period set forth in paragraph (a). 560
(c) If a qualifying improvement contractor has initiated 561
work on a residential property under a contract deemed 562
unenforceable under this subsection, the qualifying improvement 563
contractor: 564
1. May not receive compensation for that work under the 565
financing agreement. 566
2. Must restore the property to its original condition at 567
no cost to the property owner. 568
3. Must immediately return any money, property, and other 569
consideration given by the property owner. If the property owner 570
provided any property and the qualifying improvement contractor 571
does not or cannot return it, the qualifying improvement 572
contractor shall immedia tely return the fair market value of the 573
property or its value as designated in the contract, whichever 574
is greater. 575
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(d) If the qualifying improvement contractor has delivered 576
chattel or fixtures to the residential property pursuant to a 577
contract deemed unenforceable under this subsection, the 578
qualifying improvement contractor shall have 90 days from the 579
date on which the contract was executed to retrieve the chattel 580
or fixtures, provided that: 581
1. The qualifying improvement contractor has fulfilled the 582
requirements of subparagraphs (c)2. and 3. 583
2. The chattel and fixtures can be removed at the 584
qualifying improvement contractor's expense without damaging the 585
property owner's property and practically returned. 586
(e) If a qualifying improvement contractor fails to comply 587
with this subsection, the residential property owner may retain 588
any chattel or fixtures provided pursuant to a contract deemed 589
unenforceable under this subsection. 590
(f) A contract which is otherwise unenforceable under this 591
subsection remains enforceable if the residential property owner 592
waives his or her right to cancel the contract, allows the 593
qualifying improvement contractor to proceed with the 594
installation of the qualifying improvement, and cancels the 595
financing agreement. 596
(13)(10) To constitute an improvement to a building or 597
facility, a qualifying improvement must shall be affixed to a 598
building or facility that is part of the property and shall 599
constitute an improvement to the building or facility or a 600
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fixture attached to the buildi ng or facility. 601
(a) A financing An agreement between a local government 602
and a residential qualifying property owner may not cover wind -603
resistance improvements in buildings or facilities under new 604
construction or construction for which a certificate of 605
occupancy or similar evidence of substantial completion of new 606
construction or improvement has not been issued. 607
(b) A financing agreement may be executed for qualifying 608
improvements in the construction of a commercial property before 609
a certificate of occup ancy or similar evidence of substantial 610
completion of new construction or improvement is issued. 611
Progress payments, or payments made before completion, are 612
allowed for commercial properties, provided that the property 613
owner subsequently provides, upon requ est for a final progress 614
payment disbursement, written verification to the local 615
government confirming that the qualifying improvements are 616
completed and operating as intended. A financing agreement with 617
a commercial property owner may cover wind -resistance 618
improvements in buildings or facilities under new construction 619
or construction for which a certificate of occupancy or similar 620
evidence of substantial completion of new construction or 621
improvement has not been issued. 622
(14)(11) Any work requiring a lice nse under any applicable 623
law to make a qualifying improvement shall be performed by a 624
contractor properly certified or registered pursuant to part I 625
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or part II of chapter 489, as applicable. 626
(15)(a)(12)(a) Without the consent of the holders or loan 627
servicers of any mortgage encumbering or otherwise secured by 628
residential the property:, 629
1. The total amount of any non -ad valorem assessment for a 630
residential property under this section may not exceed 20 631
percent of the fair market just value of the real property as 632
determined by the county property appraiser . 633
2. The combined mortgage -related debt and total amount of 634
any non-ad valorem assessments funded under this section for 635
residential property may not exceed 97 percent of the fair 636
market value of the residential property. 637
638
The failure of a property owner to disclose information set 639
forth in subparagraph (9)(a)12. does not invalidate a financing 640
agreement or any obligation thereunder, even if the total 641
financed amount of the qualifying improvements exc eeds the 642
amount that would otherwise be authorized under this paragraph. 643
For purposes of this paragraph, fair market value shall be 644
established by a written appraisal report prepared by a 645
certified residential appraiser under chapter 475. 646
(b) Before entering into a financing agreement with the 647
owner of a commercial property, the local government or program 648
administrator, as applicable, must be in receipt of the written 649
consent of the current holders or loan servicers of any mortgage 650
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that encumbers or is o therwise secured by the property or that 651
will otherwise be secured by the property at the time the 652
financing agreement is executed by the local government or 653
program administrator. Notwithstanding paragraph (a), a non -ad 654
valorem assessment for a qualifying improvement defined in 655
subparagraph (2)(b)1. or subparagraph (2)(b)2. that is supported 656
by an energy audit is not subject to the limits in this 657
subsection if the audit demonstrates that the annual energy 658
savings from the qualified improvement equals or ex ceeds the 659
annual repayment amount of the non -ad valorem assessment. 660
(16)(13) At least 30 days before entering into a financing 661
agreement, the property owner must shall provide to the holders 662
or loan servicers of any existing mortgages encumbering or 663
otherwise secured by the property a written notice of the 664
owner's intent to enter into a financing agreement together with 665
the maximum principal amount to be financed and th e maximum 666
annual assessment necessary to repay that amount. A verified 667
copy or other proof of such notice must shall be provided to the 668
local government or program administrator, as applicable . A 669
provision in any agreement between a mortgagee or other 670
lienholder and a property owner, or otherwise now or hereafter 671
binding upon a property owner, which allows for acceleration of 672
payment of the mortgage, note, or lien or other unilateral 673
modification solely as a result of entering into a financing 674
agreement as provided for in this section is not enforceable. 675
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This subsection does not limit the authority of the holder or 676
loan servicer to increase the required monthly escrow by an 677
amount necessary to annually pay the annual qualifying 678
improvement assessment. 679
(17)(14) At or before the time a seller purchaser executes 680
a contract for the sale and purchase of any property for which a 681
non-ad valorem assessment has been levied under this section and 682
has an unpaid balance due, the seller must shall give the 683
prospective purchaser a written disclosure statement in either 684
of the following forms form, which must shall be set forth in 685
the contract or in a separate writing . 686
(a) For residential property : 687
688
QUALIFYING IMPROVEMENTS FOR ENERGY EFFICIENCY, 689
RENEWABLE ENERGY, ADVANCED TECHNOLOGIES FOR WASTEWATER 690
REMOVAL, OR WIND RESISTANCE.—The property being 691
purchased is located within the jurisdiction of a 692
local government that has placed an assessment on the 693
property pursuant to s. 163.08, Florida Statutes. The 694
assessment is for a qualifying improvement to the 695
property relating to energy efficiency, renewable 696
energy, advanced technologies for wastewater removal, 697
or wind resistance, and is not based on the value of 698
property. You are encouraged to contact the county 699
property appraiser's office to learn more about this 700
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and other assessments that may be provided by law. 701
(b) For commercial property: 702
703
QUALIFYING IMPROVEMENTS FOR ENERGY EFFICIENCY, 704
RENEWABLE ENERGY, OR RESILIENCY. —The property being 705
purchased is located within the jurisdiction of a 706
local government that has placed an assessment on the 707
property pursuant to s. 163.08, Florida Statutes. The 708
assessment is for a qualifying improvement to the 709
property relating to energy efficiency, renewable 710
energy, or resiliency, and is not based on the value 711
of property. You are encouraged to contact the county 712
property appraiser's office to learn more about this 713
and other assessments that may be provided by law. 714
715
(18) A financing agreement authorized under this section 716
on residential property may not include any of the following 717
financing terms: 718
(a) A negative amortization schedule. Capitalized interest 719
included in the original balance of the assessment financing 720
agreement does not constitute negative amortization. 721
(b) A balloon payment. 722
(c) Prepayment fees, other than nominal administrative 723
costs. 724
(19) For residential property, a local government or 725
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program administrator, as applicable: 726
(a) May not enroll a qualifying improvement contractor who 727
contracts with residential property owners to install qualifying 728
improvements unless: 729
1. The local government or program administrator, as 730
applicable, determines that the qualifying improvement 731
contractor maintains in good standing an appropriate license 732
from the state, if applicable, as well as any other permits, 733
licenses, or registrations required for engaging in its business 734
in the jurisdiction in which it operates and maintains all 735
state-required bond and insurance coverage. 736
2. The local government or program administrator, as 737
applicable, obtains the qualifying improvement contractor's 738
written agreement that the qualifying improvement contractor 739
will comply with all applicable laws, including applicable 740
advertising and marketing laws and regulations and the 741
requirements of this section. 742
(b) Must maintain a process to enroll new qualifying 743
improvement contractors that includes reasonable review of the 744
following for each contractor: 745
1. Relevant work or project history. 746
2. Financial and reputational background checks, including 747
a criminal background check. 748
3. The contractor's status on the Better Business Bureau 749
online platform or other online platf orms that track contractor 750
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reviews. 751
(c) Must establish and maintain a process for monitoring 752
qualifying improvement contractors with regard to performance 753
and compliance with program policies and must implement policies 754
for suspending, reinstating, and terminating qualifying 755
improvement contractors based on violations of program policies 756
or unscrupulous behavior. 757
758
A program administrator, either directly or through an 759
affiliate, may not be enrolled as a qualifying improvement 760
contractor. 761
(20)(a) Before disbursing funds to a qualifying 762
improvement contractor for a qualifying improvement on 763
residential property, the local government or program 764
administrator, as applicable, must confirm that the applicable 765
work or service has been completed and that the fi nal permit for 766
the qualifying improvement has been closed with all permit 767
requirements satisfied. 768
(b) A local government or program administrator, as 769
applicable, may not disclose the maximum financing amount for 770
which a residential property owner is elig ible to a qualifying 771
improvement contractor or to a third party engaged in soliciting 772
assessment contracts financed pursuant to this section. 773
(21) When communicating with residential property owners, 774
a local government, program administrator, or qualifyi ng 775
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improvement contractor, or a third party engaged in marketing on 776
behalf of these entities, must comply with the following 777
marketing and communications guidelines and may not: 778
(a) Suggest or imply: 779
1. That a non-ad valorem assessment authorized under this 780
section is a government assistance program; 781
2. That qualifying improvements are free or provided at no 782
cost or that the financing related to a non -ad valorem 783
assessment authorized under this section is free or provided at 784
no cost; or 785
3. That the financing of a qualifying improvement using a 786
qualifying improvement program authorized under this section 787
does not require the property owner to repay the financial 788
obligation. 789
(b) Make any representation as to the tax deductibility of 790
a non-ad valorem assessment on residential property. A local 791
government, program administrator, or qualifying improvement 792
contractor, or a third party engaged in marketing on behalf of 793
these entities, may encourage a property owner to seek the 794
advice of a tax professional regarding tax matters related to 795
assessments. 796
(22)(a) A qualifying improvement contractor or third party 797
engaged in marketing a qualifying improvement program may not 798
advertise the availability of financing agreements or solicit 799
property owners on behalf of the local government or program 800
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administrator, as applicable, unless: 801
1. The qualifying improvement contractor or third party 802
maintains the appropriate registration or certification from the 803
Construction Industry Licensing Board or any other permit, 804
license, or registration required to conduct business in the 805
jurisdiction where it operates and provides proof of having the 806
required bond and insurance coverage amounts. 807
2. The local government or program administrator, as 808
applicable, obtains the qualifying improvement contractor's or 809
third party's written agreement that the qualifying improvement 810
contractor or third party will comply with applicable laws and 811
rules and qualifying improvement program policies and 812
procedures, including those on adver tising and marketing. 813
(b) A local government or program administrator, as 814
applicable, may not provide any payment, fee, or kickback to a 815
qualifying improvement contractor for referring financing 816
business relating to any financing agreement on residential 817
property. However, a program administrator may provide 818
information or services to a qualifying improvement contractor 819
to facilitate the installation of a qualifying improvement for a 820
property owner. 821
(c) A local government or program administrator, as 822
applicable, may not reimburse a qualifying improvement 823
contractor or third party for its expenses in advertising and 824
marketing campaigns and materials. A local government or program 825
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administrator, as applicable, and a qualifying improvement 826
contractor may share expenses in connection with joint 827
advertising and marketing campaigns and materials if the 828
expenses are shared on a commercially reasonable basis. 829
(d) A local government or program administrator, as 830
applicable, may not provide to a qualifying improve ment 831
contractor any information that discloses the amount of funds 832
for which a property owner is eligible for qualifying 833
improvements or the amount of equity in a property. 834
(e) For residential properties, a qualifying improvement 835
contractor may not provi de a different price for a qualifying 836
improvement financed under this section than the qualifying 837
improvement contractor would otherwise reasonably provide if the 838
qualifying improvement was not being financed through a 839
financing agreement under this sectio n. 840
(f) A program administrator may not provide any direct 841
cash payment or other thing of material value to a property 842
owner explicitly conditioned upon the property owner entering 843
into a financing agreement. However, a program administrator may 844
offer programs or promotions that provide reduced fees or 845
interest rates if the reduced fees or interest rates are 846
reflected in the financing agreements and are not provided to 847
the property owners as cash consideration. 848
(23) Each local government and program admi nistrator must 849
develop and implement policies and procedures for responding to, 850
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tracking, and resolving questions and complaints about its 851
qualifying improvement program. 852
(24) Each local government that has authorized a 853
qualifying improvement program sha ll post on its website an 854
annual report for the period ending December 31 each year 855
containing the following information: 856
(a) The number of qualifying improvements funded. 857
(b) The aggregate, average, and median dollar amounts of 858
annual non-ad valorem assessments and the total number of non -ad 859
valorem assessments that funded qualifying improvements. 860
(c) The percentage, number, and dollar value of non -ad 861
valorem assessments that funded qualifying improvements, 862
aggregated by the category types consisting of energy 863
efficiency, renewable energy, wind resistance, residential 864
property wastewater, commercial property resiliency, and other 865
commercial property qualifying improvements. 866
(d) The number of defaulted non -ad valorem assessments, 867
including the total number and defaulted amount, the number and 868
dates of missed payments, the total number of parcels defaulted 869
and the years in default, and the percentage of defaults by 870
total assessments. 871
(e) A summary of all reported complaints received by the 872
local government and its program administrators related to 873
authorized qualifying improvements programs, including the 874
resolution of each complaint. 875
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(f) Estimated number of jobs created. 876
(g) The number and percentage of homeowners 60 years of 877
age or older participating in a qualifying improvement program. 878
879
This report shall be posted no later than April 1 of the year 880
following the calendar year covered by the report. 881
(25)(15) A provision in any agreement between a local 882
government and a public or private power or energy provider or 883
other utility provider is not enforceable to limit or prohibit 884
any local government from exercising its authority under this 885
section. 886
(26)(16) This section is additional and supplemental to 887
county and municipal home rule authority a nd not in derogation 888
of such authority or a limitation upon such authority. 889
(27) This section is prospective only and does not affect 890
or amend any existing non -ad valorem assessment or any existing 891
interlocal agreement between local governments. 892
Section 2. This act shall take effect July 1, 2023. 893