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