CS/HB 1151 2023
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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 financing improvements to real 2
property; amending s. 163.08, F.S.; revising 3
legislative intent; defining and revising terms; 4
authorizing a residential or commercial property owner 5
to apply to a local government for funding to finance 6
an improvement and to enter into a financing agreement 7
with the local government; providing that a non -ad 8
valorem assessment on certain commercial property is 9
subject to a certain fee; requiring a delinquent 10
assessment with a nongovernmental lessee to be 11
enforced in the manner provided by law; specifying 12
requirements of the financing agreement for government 13
commercial property; specifying the determinations a 14
local government must make before entering into a 15
financing agreement for commercial properties; 16
authorizing a financing agreement to be executed for 17
commercial property under certain circumstances; 18
restricting what improvements may be covered in 19
certain agreements between local governments and 20
commercial property owners; specifying requirements 21
for a local government before entering into a 22
financing agreement; revising notice requirements 23
regarding an owner's intent to enter into a financing 24
agreement; revising the seller's disclosure statement 25
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for commercial properties offered for sale; providing 26
construction; providing an effective date. 27
28
Be It Enacted by the Legislature of the State of Florida: 29
30
Section 1. Paragraph (b) of subsection (1) and subsections 31
(2), (4), (8), (9), (10), (12), (13), and (14) of section 32
163.08, Florida Statutes, are ame nded, and subsection (17) is 33
added to that section, to read: 34
163.08 Supplemental authority for improvements to real 35
property.— 36
(1) 37
(b) The Legislature finds that all energy -consuming-38
improved properties that are not using energy conservation 39
strategies contribute to the burden affecting all improved 40
property resulting from fossil fuel energy production. Improved 41
property that has been retrofitted with energy -related 42
qualifying improvements receives the special benefit of 43
alleviating the property's burd en from energy consumption. All 44
improved properties not protected from wind damage by wind 45
resistance qualifying improvements contribute to the burden 46
affecting all improved property resulting from potential wind 47
damage. Improved commercial property constructed or that has 48
been retrofitted with resiliency qualifying improvements and 49
improved residential property retrofitted with wind resistance 50
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qualifying improvements receive receives the special benefit of 51
reducing the property's burden from potential wind damage. 52
Further, the installation and operation of qualifying 53
improvements not only benefit the affected properties for which 54
the improvements are made, but also assist in fulfilling the 55
goals of the state's energy and hurricane mitigation policies. 56
In order to make qualifying improvements more affordable and 57
assist property owners who wish to undertake such improvements, 58
the Legislature finds that there is a compelling state interest 59
in enabling property owners to voluntarily finance such 60
improvements with local government assistance. 61
(2) As used in this section, the term: 62
(a) "Commercial property" means real property not defined 63
as residential property which will be or has been improved by a 64
qualifying improvement, including, but not limited to, the 65
following: 66
1. A multifamily residential property composed of five or 67
more dwelling units; 68
2. A commercial real property; 69
3. An industrial building or property; 70
4. An agricultural property; 71
5. A nonprofit-owned property; 72
6. A long-term care facility, including nursing homes and 73
assisted living facilities; or 74
7. A government commercial property. 75
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(b) "Government commercial property" means real property 76
owned by a local government and leased to a nongovernmental 77
lessee where the usage by the lessee meets the definition of 78
commercial property. 79
(c) "Local government" means a county, a municipality, a 80
dependent special district as defined in s. 189.012, or a 81
separate legal entity created pursuant to s. 163.01(7). 82
(d) "Nongovernmental lessee" means a person or an entity 83
other than a local government which leases government commercial 84
property. 85
(e)(b) "Qualifying improvements": improvement" 86
1. For residential property, includes any: 87
a.1. Energy conservation and efficiency improvement, whi ch 88
is a measure to reduce consumption through conservation or a 89
more efficient use of electricity, natural gas, propane, or 90
other forms of energy on the property, including, but not 91
limited to, air sealing; installation of insulation; 92
installation of energ y-efficient heating, cooling, or 93
ventilation systems; building modifications to increase the use 94
of daylight; replacement of windows; installation of energy 95
controls or energy recovery systems; installation of electric 96
vehicle charging equipment; and insta llation of efficient 97
lighting equipment. 98
b.2. Renewable energy improvement, which is the 99
installation of any system in which the electrical, mechanical, 100
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or thermal energy is produced from a method that uses one or 101
more of the following fuels or energy so urces: hydrogen, solar 102
energy, geothermal energy, bioenergy, and wind energy. 103
c.3. Wind resistance improvement, which includes, but is 104
not limited to: 105
(I)a. Improving the strength of the roof deck attachment; 106
(II)b. Creating a secondary water barrier to prevent water 107
intrusion; 108
(III)c. Installing wind-resistant shingles; 109
(IV)d. Installing gable-end bracing; 110
(V)e. Reinforcing roof-to-wall connections; 111
(VI)f. Installing storm shutters; or 112
(VII)g. Installing opening protections. 113
2. For commercial property, includes any: 114
a. Energy conservation and efficiency improvement, which 115
is a measure to reduce consumption through conservation or a 116
more efficient use of electricity, natural gas, propane, or 117
other forms of energy on the property, in cluding, but not 118
limited to, air sealing; installation of insulation; 119
installation of energy -efficient heating, cooling, or 120
ventilation systems; building modifications to increase the use 121
of daylight; replacement of windows; installation of energy 122
controls or energy recovery systems; installation of electric 123
vehicle charging equipment; installation of efficient lighting 124
equipment; or any other improvements necessary to achieve a 125
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sustainable building rating or compliance with a national model 126
green building code. 127
b. Renewable energy improvement, which is the installation 128
of any system in which the electrical, mechanical, or thermal 129
energy is produced from a method that uses one or more of the 130
following fuels or energy sources: hydrogen, solar energy, 131
geothermal energy, bioenergy, and wind energy. 132
c. Resiliency improvement, which includes, but is not 133
limited to: 134
(I) Improving the strength of the roof deck attachment; 135
(II) Creating a secondary water barrier to prevent water 136
intrusion; 137
(III) Installing wind-resistant shingles; 138
(IV) Installing gable -end bracing; 139
(V) Reinforcing roof -to-wall connections; 140
(VI) Installing storm shutters; 141
(VII) Installing opening protections; 142
(VIII) Creating or improving stormwater and flood 143
resiliency, including sh oreline improvements; or 144
(IX) Making any other improvements necessary to achieve a 145
sustainable building rating or compliance with a national model 146
resiliency standard and any improvements to a structure to 147
achieve wind or flood insurance rate reductions, including 148
building elevation. 149
(f) "Residential property" means a residential real 150
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property of four or fewer dwelling units which will be or has 151
been improved by a qualifying improvement. 152
(4) Subject to local government ordinance or resolution, a 153
residential or commercial property owner may apply to the local 154
government for funding to finance a qualifying improvement and 155
enter into a financing agreement with the local government. 156
Costs incurred by the local government for such purpose may be 157
collected as a non-ad valorem assessment. A non -ad valorem 158
assessment must shall be collected pursuant to s. 197.3632 and, 159
notwithstanding s. 197.3632(8)(a), is shall not be subject to 160
discount for early payment. However, the notice and adoption 161
requirements of s. 197.3632(4) do not apply if this section is 162
used and complied with, and the intent resolution, publication 163
of notice, and mailed notices to the property appraiser, tax 164
collector, and Department of Revenue required by s. 165
197.3632(3)(a) may be provided on or before August 15 in 166
conjunction with any non -ad valorem assessment authorized by 167
this section, if the property appraiser, tax collector, and 168
local government agree. A non-ad valorem assessment on a 169
commercial property securing financing for a qualifyin g 170
improvement, notwithstanding ss. 192.091(2)(b) and 171
197.3632(8)(c), is subject to a maximum annual fee of 1 percent 172
of the annual non-ad valorem assessment collected or $5,000, 173
whichever is less. Notwithstanding this subsection, a delinquent 174
assessment pursuant to a financing agreement with a 175
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nongovernmental lessee must be enforced in the manner provided 176
by law for taxes and assessments on property owned by 177
nongovernmental lessees of government commercial property. 178
(8) A local government may enter into a financing 179
agreement to finance or refinance a qualifying improvement only 180
with the record owner of the affected property. For government 181
commercial property, the financing agreement must be executed by 182
the nongovernmental lessee with the written consent o f the 183
governmental lessor. Evidence of such consent must be provided 184
to the local government. The financing agreement with a 185
nongovernmental lessee must provide that the nongovernmental 186
lessee is the only party obligated to pay the assessment. Any 187
financing agreement entered into pursuant to this section or a 188
summary memorandum of such agreement must shall be recorded in 189
the public records of the county within which the property is 190
located by the sponsoring unit of local government within 5 days 191
after execution of the agreement. The recorded agreement 192
provides shall provide constructive notice that the assessment 193
to be levied on the property constitutes a lien of equal dignity 194
to county taxes and assessments from the date of recordation. 195
(9)(a) Before entering into a financing agreement for a 196
residential property , the local government shall reasonably 197
determine that all of the following conditions have been met: 198
1. that All property taxes and any other assessments 199
levied on the same bill as property taxes are paid and have not 200
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been delinquent for the preceding 3 years or the property 201
owner's period of ownership, whichever is less .; 202
2. that There are no involuntary liens, including, but not 203
limited to, construction liens on the property .; 204
3. that No notices of default or other evidence of 205
property-based debt delinquency have been recorded during the 206
preceding 3 years or the property owner's period of ownership, 207
whichever is less.; 208
4. and that The property owner is current on all mortgage 209
debt on the property. 210
(b) Before entering into a financing agreement for a 211
commercial property, the local government shall reasonably 212
determine that all of the following conditions have been met: 213
1. All property taxes and any other assessments levied on 214
the same bill as property taxes are current. 215
2. There are no involuntary liens greater than $10,000, 216
including, but not limited to, construction liens on the 217
property. 218
3. No notices of default or other evidence of property -219
based debt delinquency have been recorded and not released 220
during the preceding 3 years or the property owner's period of 221
ownership, whichever is less. 222
4. The property owner is current on all mortgage debt on 223
the property. 224
(10) To constitute an improvement to the building or 225
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facility, a qualifying improvement must be shall be affixed to a 226
building or facility that is part of the property and shall 227
constitute an improvement to the building or facility or a 228
fixture attached to the building or facility. A financing 229
agreement may be executed for q ualifying improvements in the 230
construction of a commercial property before a certificate of 231
occupancy or similar evidence of substantial completion of new 232
construction or improvement is issued. Progress payments, or 233
payments made before completion, are all owed for commercial 234
properties, provided that the property owner subsequently 235
provides, upon request for a final progress payment 236
disbursement, written verification to the local government 237
confirming that the qualifying improvements are completed and 238
operating as intended. An agreement between a local government 239
and a qualifying residential property owner may not cover wind-240
resistant wind-resistance improvements in buildings or 241
facilities under new construction or construction for which a 242
certificate of occupancy or similar evidence of substantial 243
completion of new construction or improvement has not been 244
issued. 245
(12)(a) Without the consent of the holders or loan 246
servicers of any mortgage encumbering or otherwise secured by 247
the residential property, the total amount of any non -ad valorem 248
assessment for a property under this section may not exceed 20 249
percent of the just value of the property as determined by the 250
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county property appraiser. 251
(b) Notwithstanding paragraph (a), a non -ad valorem 252
assessment for a qualifying improvement defined in sub-253
subparagraph (2)(e)1.a. or sub -subparagraph (2)(e)1.b. on a 254
residential property subparagraph (2)(b)1. or subparagraph 255
(2)(b)2. that is supported by an energy audit is not subject to 256
the limits in this subsection if t he audit demonstrates that the 257
annual energy savings from the qualified improvement equals or 258
exceeds the annual repayment amount of the non -ad valorem 259
assessment. 260
(c) Before entering into a financing agreement with a 261
commercial property owner, the local government must be in 262
receipt of the written consent of the current holders or loan 263
servicers of any mortgage that encumbers or is otherwise secured 264
by the commercial property or that will otherwise be secured by 265
the property at the time the financing agr eement is executed by 266
the local government. 267
(13) At least 30 days before entering into a financing 268
agreement, the property owner shall provide to the holders or 269
loan servicers of any existing mortgages that encumber the 270
property, encumbering or that will otherwise be otherwise 271
secured by the property at the time the financing agreement is 272
executed by the local government, a notice of the owner's intent 273
to enter into a financing agreement together with the maximum 274
principal amount to be financed and the ma ximum annual 275
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assessment necessary to repay that amount. A verified copy or 276
other proof of such notice must shall be provided to the local 277
government. A provision in any agreement between a mortgagee or 278
other lienholder and a property owner, or otherwise no w or 279
hereafter binding upon a property owner, which allows for 280
acceleration of payment of the mortgage, note, or lien or other 281
unilateral modification solely as a result of entering into a 282
financing agreement as provided for in this section is not 283
enforceable. This subsection does not limit the authority of the 284
holder or loan servicer to increase the required monthly escrow 285
by an amount necessary to annually pay the annual qualifying 286
improvement assessment. 287
(14) At or before the time a purchaser executes a contract 288
for the sale and purchase of any property for which a non -ad 289
valorem assessment has been levied under this section and has an 290
unpaid balance due, the seller shall give the prospective 291
purchaser a written disclosure statement in either of the 292
following forms form, which must shall be set forth in the 293
contract or in a separate writing . 294
(a) For a residential property : 295
296
QUALIFYING IMPROVEMENTS FOR ENERGY EFFICIENCY, 297
RENEWABLE ENERGY, OR WIND RESISTANCE. —The property 298
being purchased is located withi n the jurisdiction of 299
a local government that has placed an assessment on 300
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the property pursuant to s. 163.08, Florida Statutes. 301
The assessment is for a qualifying improvement to the 302
property relating to energy efficiency, renewable 303
energy, or wind resistan ce, and is not based on the 304
value of property. You are encouraged to contact the 305
county property appraiser's office to learn more about 306
this and other assessments that may be provided by 307
law. 308
309
(b) For a commercial property: 310
311
QUALIFYING IMPROVEMENTS FOR E NERGY EFFICIENCY, 312
RENEWABLE ENERGY, OR RESILIENCY. —The property being 313
purchased is located within the jurisdiction of a 314
local government that has placed an assessment on the 315
property pursuant to s. 163.08, Florida Statutes. The 316
assessment is for a qualifyi ng improvement to the 317
property relating to energy efficiency, renewable 318
energy, or resiliency, and is not based on the value 319
of property. You are encouraged to contact the county 320
property appraiser's office to learn more about this 321
and other assessments th at may be provided by law. 322
323
(17) This section is prospective only and does not affect 324
or amend any existing non -ad valorem assessment or any existing 325
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interlocal agreement between local governments. 326
Section 2. This act shall take effect July 1, 2023. 327