Florida Senate - 2023 CS for SB 950 By the Committee on Community Affairs; and Senator Rodriguez 578-02924-23 2023950c1 1 A bill to be entitled 2 An act relating to Resiliency Energy Environment 3 Florida programs; amending s. 163.08, F.S.; revising 4 legislative intent; defining and revising terms; 5 providing that a property owner may apply to a 6 Resiliency Energy Environment Florida (REEF) program 7 for funding to finance a qualifying improvement and 8 may enter into an assessment financing agreement with 9 a local government; providing that REEF program costs 10 may be collected as non-ad valorem assessments; 11 authorizing a local government to enter into an 12 agreement with a program administrator to administer a 13 REEF program on the local governments behalf; 14 revising and specifying public recording requirements 15 for assessment financing agreements and notices of 16 lien; revising requirements that apply to local 17 governments or program administrators in determining 18 eligibility for assessment financing; revising 19 requirements for qualifying improvements; revising the 20 calculation of non-ad valorem assessment limits; 21 providing construction; specifying underwriting, 22 financing estimate, disclosure, and confirmation 23 requirements for program administrators relating to 24 residential real property; authorizing a residential 25 real property owner, under certain circumstances and 26 within a certain timeframe, to cancel an assessment 27 financing agreement without financial penalty; 28 specifying limitations on assessment financing 29 agreement terms for residential real property; 30 prohibiting certain financing terms for residential 31 real property; specifying requirements for, and 32 certain prohibited acts by, program administrators 33 relating to assessment financing agreements and 34 contractors for qualifying improvements to residential 35 real property; specifying additional annual reporting 36 requirements for program administrators; providing 37 construction and applicability; conforming provisions 38 to changes made by the act; providing an effective 39 date. 40 41 Be It Enacted by the Legislature of the State of Florida: 42 43 Section 1.Subsection (16) of section 163.08, Florida 44 Statutes, is redesignated as subsection (32), a new subsection 45 (16) and subsections (17) through (31) are added to that 46 section, and subsections (1), (2), (4), and (6) though (14) are 47 amended, to read: 48 163.08Supplemental authority for improvements to real 49 property. 50 (1)(a)In chapter 2008-227, Laws of Florida, the 51 Legislature amended the energy goal of the state comprehensive 52 plan to provide, in part, that the state shall reduce its energy 53 requirements through enhanced conservation and efficiency 54 measures in all end-use sectors and reduce atmospheric carbon 55 dioxide by promoting an increased use of renewable energy 56 resources. That act also declared it the public policy of the 57 state to play a leading role in developing and instituting 58 energy management programs that promote energy conservation, 59 energy security, and the reduction of greenhouse gases. In 60 addition to establishing policies to promote the use of 61 renewable energy, the Legislature provided for a schedule of 62 increases in energy performance of buildings subject to the 63 Florida Energy Efficiency Code for Building Construction. In 64 chapter 2008-191, Laws of Florida, the Legislature adopted new 65 energy conservation and greenhouse gas reduction comprehensive 66 planning requirements for local governments. In the 2008 general 67 election, the voters of this state approved a constitutional 68 amendment authorizing the Legislature, by general law, to 69 prohibit consideration of any change or improvement made for the 70 purpose of improving a propertys resistance to wind damage or 71 the installation of a renewable energy source device in the 72 determination of the assessed value of residential real 73 property. 74 (b)The Legislature finds that all energy-consuming-improved 75 properties that are not using energy conservation strategies 76 contribute to the burden affecting all improved property 77 resulting from fossil fuel energy production. Improved property 78 that has been retrofitted with energy-related qualifying 79 improvements receives the special benefit of alleviating the 80 propertys burden from energy consumption. All improved 81 properties not protected from wind damage by wind resistance 82 qualifying improvements contribute to the burden affecting all 83 improved property resulting from potential wind damage. Improved 84 property that has been retrofitted with wind resistance 85 qualifying improvements receives the special benefit of reducing 86 the propertys burden from potential wind damage. Further, the 87 installation and operation of qualifying improvements not only 88 benefit the affected properties for which the improvements are 89 made, but also assist in fulfilling the goals of the states 90 energy and hurricane mitigation policies. All properties that 91 are not using advanced technologies for wastewater removal 92 contribute to the water quality problems affecting this state, 93 particularly the coastal areas. Improved property that has been 94 retrofitted with an advanced onsite sewage treatment and 95 disposal system or has been converted to central sewerage 96 significantly benefits the quality of water that may enter 97 streams, lakes, rivers, aquifers, or coastal areas. All 98 properties that are not protected from harmful environmental 99 health hazards contribute to the environmental health burden 100 affecting this state. Property that has been improved to 101 mitigate against environmental health hazards benefits the 102 general environmental health of people within this state. 103 (c)In order to make qualifying improvements more 104 affordable and assist property owners who wish to undertake such 105 improvements, the Legislature finds that there is a compelling 106 state interest in enabling property owners to voluntarily 107 finance such improvements with local government assistance. 108 (d)(c)The Legislature determines that the actions 109 authorized under this section, including, but not limited to, 110 the financing of qualifying improvements through the execution 111 of assessment financing agreements and the related imposition of 112 voluntary assessments, are reasonable and necessary to serve and 113 achieve a compelling state interest and are necessary for the 114 prosperity and welfare of the state and its property owners and 115 inhabitants. 116 (2)As used in this section, the term: 117 (a)Assessment financing agreement means the financing 118 agreement, under a REEF program, between a local government and 119 a property owner for the acquisition or installation of 120 qualifying improvements. 121 (b)Financing agreement means an agreement, under a 122 qualifying improvement program, between a local government and a 123 property owner to finance the acquisition or installation of 124 qualifying improvements through a non-ad valorem assessment. 125 (c)(a)Local government means a county, a municipality, a 126 dependent special district as defined in s. 189.012, or a 127 separate legal entity created pursuant to s. 163.01(7). 128 (d)Non-ad valorem assessment or assessment has the 129 same meaning as the term non-ad valorem assessment as defined 130 in s. 197.3632(1)(d). 131 (e)Nonresidential real property means any property not 132 defined as residential real property, including, but not limited 133 to: 134 1.Agricultural real property. 135 2.Commercial real property. 136 3.Industrial real property. 137 4.Office real property. 138 5.Multifamily residential real property composed of five 139 or more dwelling units. 140 (f)Program administrator means an entity, including, but 141 not limited to, a for-profit or not-for-profit entity, with 142 which a local government may contract to administer all or part 143 of a qualifying improvement program under this section. 144 (g)(b)Qualifying improvement means a program established 145 under this section by a local government, alone or in 146 partnership with other local governments or a program 147 administrator, to finance qualifying improvements on real 148 property and includes any: 149 1.Energy conservation and efficiency improvement, which is 150 a measure to reduce consumption through conservation or a more 151 efficient use of electricity, natural gas, propane, or other 152 forms of energy on the property, including, but not limited to, 153 air sealing; installation of insulation; installation of energy 154 efficient heating, cooling, or ventilation systems; building 155 modifications to increase the use of daylight; replacement of 156 windows; installation of energy controls or energy recovery 157 systems; installation of electric vehicle charging equipment; 158 and installation of efficient lighting equipment. 159 2.Renewable energy improvement, which is the installation 160 of any system in which the electrical, mechanical, or thermal 161 energy is produced from a method that uses one or more of the 162 following fuels or energy sources: hydrogen, solar energy, 163 geothermal energy, bioenergy, and wind energy. 164 3.Wind resistance improvement, which includes, but is not 165 limited to: 166 a.Improving the strength of the roof deck attachment; 167 b.Creating a secondary water barrier to prevent water 168 intrusion; 169 c.Installing wind-resistant shingles; 170 d.Installing gable-end bracing; 171 e.Reinforcing roof-to-wall connections; 172 f.Installing storm shutters; or 173 g.Installing opening protections. 174 4.Wastewater improvement, which includes, but is not 175 limited to: 176 a.The removal, replacement, or improvement of an onsite 177 sewage treatment and disposal system with a secondary or 178 advanced onsite sewage treatment and disposal system or 179 technology; 180 b.The replacement or conversion of an onsite sewage 181 treatment and disposal system to a central sewerage system or 182 distributed sewerage system, including, but not limited to, the 183 installation of a sewer lateral and anything necessary to 184 connect the onsite sewage treatment and disposal system or the 185 buildings plumbing to a central sewerage system or distributed 186 sewerage system; or 187 c.Any removal, repairs, or modifications made to an onsite 188 sewage treatment and disposal system, including any repair, 189 modification, or replacement of a system required under a local 190 ordinance enacted pursuant to ss. 381.0065 and 381.00651. 191 5.Flood and water damage mitigation and resiliency 192 improvement, which includes, but is not limited to, projects and 193 installation for: 194 a.The raising of a structure above the base flood 195 elevation to reduce flood damage; 196 b.A flood diversion apparatus or sea wall improvement, 197 which includes seawall repairs and seawall replacements; 198 c.Flood-damage-resistant building materials; 199 d.Electrical, mechanical, plumbing, or other system 200 improvements that reduce flood damage; or 201 e.Other improvements that qualify for reductions in flood 202 insurance premiums. 203 6.Environmental health improvement, which is an 204 improvement or measure intended to mitigate harmful 205 environmental health effects to property occupants, including, 206 but not limited to, measures that do any of the following: 207 a.Mitigate the presence of lead, heavy metals, 208 polyfluoroalkyl substance contamination, or other harmful 209 contaminants in potable water systems, such as conversion of 210 well water to municipal water systems, replacing lead water 211 service lines, or installing water filters; 212 b.Mitigate lead paint contamination in housing built 213 before 1978; or 214 c.Mitigate indoor air pollution or contaminants, such as 215 particulate matter, viruses, bacteria, and mold. 216 (h)Residential real property means a residential real 217 property composed of four or fewer dwelling units. 218 (i)Resiliency Energy Environment Florida (REEF) program 219 means a program established by a local government, alone or in 220 partnership with other local governments or a program 221 administrator, to finance qualifying improvements on 222 nonresidential real property or residential real property. 223 (4)Subject to local government ordinance or resolution, a 224 property owner may apply to the REEF program local government 225 for funding to finance a qualifying improvement and enter into 226 an assessment a financing agreement with the local government. 227 Costs incurred by the REEF program local government for such 228 purpose may be collected as a non-ad valorem assessment. A non 229 ad valorem assessment shall be collected pursuant to s. 197.3632 230 and, notwithstanding s. 197.3632(8)(a), shall not be subject to 231 discount for early payment. However, the notice and adoption 232 requirements of s. 197.3632(4) do not apply if this section is 233 used and complied with, and the intent resolution, publication 234 of notice, and mailed notices to the property appraiser, tax 235 collector, and Department of Revenue required by s. 236 197.3632(3)(a) may be provided on or before August 15 in 237 conjunction with any non-ad valorem assessment authorized by 238 this section, if the property appraiser, tax collector, and 239 local government agree. 240 (6)A local government may enter into an agreement with a 241 program administrator to administer a REEF program on behalf of 242 the local government A qualifying improvement program may be 243 administered by a for-profit entity or a not-for-profit 244 organization on behalf of and at the discretion of the local 245 government. 246 (7)A local government may incur debt for the purpose of 247 providing financing for qualifying such improvements, which debt 248 is payable from revenues received from the improved property, or 249 from any other available revenue source authorized under this 250 section or by other law. 251 (8)A local government may enter into an assessment a 252 financing agreement to finance or refinance a qualifying 253 improvement only with the record owner of the affected property. 254 Any assessment financing agreement entered into pursuant to this 255 section or a summary memorandum of such agreement shall be 256 submitted for recording recorded in the public records of the 257 county within which the property is located by the sponsoring 258 unit of local government within 10 5 days after execution of the 259 agreement. The recorded agreement shall provide constructive 260 notice that the assessment to be levied on the property 261 constitutes a lien of equal dignity to county taxes and 262 assessments from the date of recordation. A notice of lien for 263 the full amount of the financing may be recorded in the public 264 records of the county where the property is located. Such lien 265 is not enforceable in a manner that results in the acceleration 266 of the remaining nondelinquent unpaid balance under the 267 assessment financing agreement. 268 (9)Before entering into an assessment a financing 269 agreement, the local government, or the program administrator 270 acting on its behalf, shall reasonably determine that all of the 271 following conditions are met: 272 (a)All property taxes and any other assessments levied on 273 the same bill as property taxes are current paid and have not 274 been delinquent for more than 30 days for the preceding 3 years 275 or the property owners period of ownership, whichever is less.; 276 (b)that There are no involuntary liens greater than 277 $1,000, including, but not limited to, construction liens on the 278 property.; 279 (c)that No notices of default or other evidence of 280 property-based debt delinquency have been recorded and not 281 released during the preceding 3 years or the property owners 282 period of ownership, whichever is less.; 283 (d)The local government or program administrator has asked 284 the property owner whether any other assessments under this 285 section have been recorded or have been funded and not yet 286 recorded on the property. The failure of a property owner to 287 disclose information set forth in this paragraph does not 288 invalidate an assessment financing agreement or any obligation 289 thereunder, even if the total financed amount of the qualifying 290 improvements exceeds the amount that would otherwise be 291 authorized under paragraph (12)(a). 292 (e)and that The property owner is current on all mortgage 293 debt on the property. 294 (f)The residential property is not subject to an existing 295 home equity conversion mortgage or reverse mortgage product. 296 This paragraph does not apply to nonresidential real property. 297 (g)The property is not currently a residential property 298 gifted to a homeowner for free by a nonprofit entity as may be 299 disclosed by the property owner. The failure of a property owner 300 to disclose information set forth in this paragraph does not 301 invalidate an assessment financing agreement or any obligation 302 thereunder. This paragraph does not apply to nonresidential real 303 property. 304 (10)Before final funding may be provided, a qualifying 305 improvement must shall be affixed or planned to be affixed to a 306 nonresidential real property or residential real building or 307 facility that is part of the property and constitutes shall 308 constitute an improvement to that property the building or 309 facility or a fixture attached to the building or facility. An 310 assessment financing agreement may between a local government 311 and a qualifying property owner may not cover qualifying wind 312 resistance improvements on nonresidential real property under 313 new construction or residential real property in buildings or 314 facilities under new construction or construction for which a 315 certificate of occupancy or similar evidence of substantial 316 completion of new construction or improvement has not been 317 issued. 318 (11)Any work requiring a license under any applicable law 319 to make a qualifying improvement shall be performed by a 320 contractor properly certified or registered pursuant to part I 321 or part II of chapter 489, as applicable. 322 (12)(a)Without the consent of the holders or loan 323 servicers of any mortgage encumbering or otherwise secured by 324 the property, the total amount of any non-ad valorem assessment 325 for a property under this section may not exceed 20 percent of 326 the fair market just value of the real property as determined by 327 the county property appraiser. The combined mortgage-related 328 debt and total amount of any non-ad valorem assessments funded 329 under this section for residential real property may not exceed 330 100 percent of the fair market value of the residential real 331 property. However, the failure of a property owner to disclose 332 information set forth in paragraph (9)(d) does not invalidate an 333 assessment financing agreement or any obligation thereunder, 334 even if the total financed amount of the qualifying improvements 335 exceeds the amount that would otherwise be authorized under this 336 paragraph. For purposes of this paragraph, fair market value may 337 be determined using reputable third parties. 338 (b)Notwithstanding paragraph (a), a non-ad valorem 339 assessment for a qualifying improvement defined in subparagraph 340 (2)(g)1. (2)(b)1. or subparagraph (2)(g)2. which (2)(b)2. that 341 is supported by an energy audit is not subject to the limits in 342 this subsection if the audit demonstrates that the annual energy 343 savings from the qualified improvement equals or exceeds the 344 annual repayment amount of the non-ad valorem assessment. 345 (13)At least 30 days before entering into an assessment a 346 financing agreement, the property owner shall provide to the 347 holders or loan servicers of any existing mortgages encumbering 348 or otherwise secured by the property a notice of the owners 349 intent to enter into an assessment a financing agreement 350 together with the maximum principal amount to be financed and 351 the maximum annual assessment necessary to repay that amount. A 352 verified copy or other proof of such notice shall be provided to 353 the local government. A provision in any agreement between a 354 mortgagee or other lienholder and a property owner, or otherwise 355 now or hereafter binding upon a property owner, which allows for 356 acceleration of payment of the mortgage, note, or lien or other 357 unilateral modification solely as a result of entering into an 358 assessment a financing agreement as provided for in this section 359 is not enforceable. This subsection does not limit the authority 360 of the holder or loan servicer to increase the required monthly 361 escrow by an amount necessary to annually pay the annual 362 qualifying improvement assessment. 363 (14)At or before the time a seller purchaser executes a 364 contract for the sale and purchase of any property for which a 365 non-ad valorem assessment has been levied under this section and 366 has an unpaid balance due, the seller must shall give the 367 prospective purchaser a written disclosure statement in the 368 following form, which shall be set forth in the contract or in a 369 separate writing: 370 371 QUALIFYING IMPROVEMENTS FOR ENERGY EFFICIENCY, 372 RENEWABLE ENERGY, FLOOD MITIGATION, ADVANCED 373 TECHNOLOGIES FOR WASTEWATER REMOVAL, OR ENVIRONMENTAL 374 HEALTH OR WIND RESISTANCE.The property being 375 purchased is located within the jurisdiction of a 376 local government that has placed an assessment on the 377 property pursuant to s. 163.08, Florida Statutes. The 378 assessment is for a qualifying improvement to the 379 property relating to energy efficiency, renewable 380 energy, or wind resistance, and is not based on the 381 value of property. This agreement uses a program 382 formerly referred to as Property Assessed Clean 383 Energy, or PACE. You are encouraged to contact the 384 county property appraisers office to learn more about 385 this and other assessments that may be provided by 386 law. 387 388 (16)(a)Before final approval of an assessment financing 389 agreement for a qualifying improvement on a residential real 390 property, a program administrator shall reasonably determine 391 that the property owner has the ability to pay the estimated 392 annual assessment. To do so, the program administrator shall, at 393 a minimum, use the underwriting requirements in subsection (9), 394 confirm that the property owner is not in bankruptcy, and 395 determine that the total estimated annual payment amount for all 396 assessment financing agreements funded under this section on the 397 property does not exceed 10 percent of the property owners 398 annual household income. Income may be confirmed using 399 information gathered from reputable third parties that provide 400 reasonably reliable evidence of the property owners household 401 income. Income may not be confirmed solely by a property owners 402 statement. 403 (b)In the event that a court or tribunal determines, by 404 clear and convincing evidence, that the program administrators 405 determination of the property owners ability to pay was not 406 objectively reasonable based on the information provided by the 407 property owner, the yearly assessment payment shall be reduced 408 in the amount which is within the property owners ability to 409 pay. This paragraph does not require or authorize the 410 administrator to reduce the amount owed on the assessment. 411 (c)The failure of a property owner to disclose information 412 set forth in paragraph (9)(d) does not invalidate an assessment 413 financing agreement or any obligation thereunder, even if the 414 total estimated annual payment amount exceeds the amount that 415 would otherwise be authorized under this subsection. 416 (17)Before or contemporaneously with a property owner 417 signing an assessment financing agreement on a residential real 418 property, the program administrator shall provide a financing 419 estimate and disclosure to the residential real property owner 420 which includes all of the following: 421 (a)The total amount estimated to be funded, including the 422 cost of the qualifying improvements, program fees, and 423 capitalized interest, if any. 424 (b)The estimated annual assessment. 425 (c)The term of the assessment. 426 (d)The interest charged and estimated annual percentage 427 rate. 428 (e)A description of the qualifying improvement. 429 (f)A disclosure that if the property owner sells or 430 refinances the property, the property owner, as a condition of 431 the sale or the refinance, may be required by a mortgage lender 432 to pay off the full amount owed under each assessment financing 433 agreement. 434 (g)A disclosure that the assessment will be collected 435 along with the property owners property taxes and will result 436 in a lien on the property from the date the assessment financing 437 agreement is recorded. 438 (h)A disclosure that failure to pay the assessment may 439 result in penalties and fees, along with the issuance of a tax 440 certificate that could result in the property owner losing the 441 real property. 442 (18)Before a notice to proceed is issued on residential 443 real property, the program administrator shall conduct with the 444 residential real property owner or an authorized representative 445 an oral, recorded telephone call. The program administrator 446 shall ask the residential real property owner if he or she would 447 like to communicate primarily in a language other than English. 448 A program administrator may not leave a voicemail on the 449 residential real property owners or authorized representatives 450 telephone to satisfy this requirement. A program administrator, 451 as part of such telephone call, shall confirm all of the 452 following with the residential real property owner: 453 (a)That at least one residential real property owner has 454 access to a copy of the assessment financing agreement and 455 financing estimates and disclosures. 456 (b)The qualifying improvements being financed. 457 (c)The total estimated annual costs that the residential 458 real property owner will have to pay under the assessment 459 financing agreement, including applicable fees. 460 (d)The total estimated average monthly equivalent amount 461 of funds the residential real property owner would have to save 462 in order to pay the annual costs of the assessment, including 463 applicable fees. 464 (e)The estimated due date of the residential real property 465 owners first property tax payment that includes the assessment 466 will be due. 467 (f)The term of the assessment financing agreement. 468 (g)That payments for the assessment financing agreement 469 will cause the residential real property owners annual property 470 tax bill to increase, and that payments will be made through an 471 additional annual assessment on the property and either will be 472 paid directly to the county tax collectors office as part of 473 the total annual secured property tax bill or may be paid 474 through the residential real property owners mortgage escrow 475 account. 476 (h)That the residential real property owner has disclosed 477 whether the property has received, or the owner is seeking, 478 additional assessments funded under this section and that the 479 owner has disclosed all other assessments funded under this 480 section which are or are about to be placed on the property. 481 (i)That the property will be subject to a lien during the 482 term of the assessment financing agreement and that the 483 obligations under the agreement may be required to be paid in 484 full before the residential real property owner sells or 485 refinances the property. 486 (j)That any potential utility or insurance savings are not 487 guaranteed and will not reduce the assessment or total 488 assessment amount. 489 (k)That the program administrator does not provide tax 490 advice, and the residential real property owner should seek 491 professional tax advice if he or she has questions regarding tax 492 credits, tax deductibility, or other tax impacts of the 493 qualifying improvement or the assessment financing agreement. 494 (19)A residential real property owner may cancel an 495 assessment financing agreement within 3 business days after 496 signing the assessment financing agreement without any financial 497 penalty from the program administrator for doing so. 498 (20)The term of an assessment financing agreement on 499 residential real property may not exceed the lesser of: 500 (a)Thirty years; or 501 (b)The greater of either the weighted average estimated 502 useful life of all qualifying improvements being financed or the 503 estimated useful life of the qualifying improvements to which 504 the greatest portion of funds is disbursed. 505 (21)An assessment financing agreement authorized under 506 this section on residential real property may not include any of 507 the following financing terms: 508 (a)A negative amortization schedule. Capitalized interest 509 included in the original balance of the assessment financing 510 agreement does not constitute negative amortization. 511 (b)A balloon payment. 512 (c)Prepayment fees, other than nominal administrative 513 costs. 514 (22)For residential real property, a program 515 administrator: 516 (a)May not enroll a contractor who contracts with 517 residential real property owners to install qualifying 518 improvements unless: 519 1.The program administrator makes a reasonable effort to 520 review that the contractor maintains in good standing an 521 appropriate license from the state, if applicable, as well as 522 any other permit, license, or registration required for engaging 523 in business in the jurisdiction in which he or she operates and 524 that the contractor maintains all state-required bond and 525 insurance coverage; and 526 2.The program administrator obtains the contractors 527 written agreement that the contractor will act in accordance 528 with all applicable laws, including applicable advertising and 529 marketing laws and regulations. 530 (b)Shall maintain a process to enroll new contractors 531 which includes reasonable review of the following for each 532 contractor: 533 1.Relevant work or project history. 534 2.Financial and reputational background checks. 535 3.A criminal background check. 536 4.Status on the Better Business Bureau online platform or 537 another online platform that tracks contractor reviews. 538 (c)A program administrator may pay or reimburse 539 contractors for any expense allowable under applicable state law 540 and not otherwise prohibited under this section, including, but 541 not limited to, marketing, training, and promotions. 542 (d)A program administrator may not disclose to a 543 contractor or to a third party engaged in soliciting a financing 544 agreement the maximum financing amount for which a residential 545 real property owner is eligible. 546 (23)Before disbursing funds to a contractor for a 547 qualifying improvement on residential real property, a program 548 administrator must first confirm that the applicable work or 549 service has been completed through any of the following: 550 (a)A written certification from the property owner; 551 (b)A recorded telephone call with the property owner; 552 (c)A review of geotagged and time-stamped photographs; 553 (d)A review of a final permit; or 554 (e)A site inspection through third-party means. 555 (24)A program administrator shall comply with the 556 following marketing and communications guidelines when 557 communicating with residential real property owners: 558 (a)A program administrator may not represent: 559 1.That the REEF program or assessment financing is a 560 government assistance program; 561 2.That qualifying improvements are free or that assessment 562 financing is a free program; or 563 3.That the financing of a qualifying improvement using the 564 REEF program does not require the property owner to repay the 565 financial obligation. 566 (b)A program administrator may not make any representation 567 as to the tax deductibility of an assessment authorized under 568 this section. A program administrator may encourage a property 569 owner to seek the advice of a tax professional regarding tax 570 matters related to assessments. 571 (25)A contractor may not present a higher price for a 572 qualifying improvement on residential real property financed by 573 an assessment financing agreement than the contractor would 574 otherwise reasonably present if the qualifying improvement was 575 not being financed through an assessment financing agreement. 576 (26)A program administrator shall use appropriate 577 methodologies or technologies to identify and verify the 578 identity of the residential real property owner who executes an 579 assessment financing agreement. 580 (27)A program administrator may not provide a contractor 581 with any payment, fee, or kickback in exchange for referring 582 assessment financing business relating to a specific assessment 583 financing agreement on residential real property. 584 (28)A program administrator shall develop and implement 585 policies and procedures for responding to, tracking, and helping 586 to resolve questions and property owner complaints as soon as 587 reasonably practicable. 588 (29)A program administrator shall maintain a process for 589 monitoring enrolled contractors that contract with residential 590 real property owners to install qualifying improvements with 591 regard to performance and compliance with program policies and 592 shall implement policies for suspending and terminating enrolled 593 contractors based on violations of program policies or 594 unscrupulous behavior. A program administrator shall maintain a 595 policy for determining the conditions on which a contractor may 596 be reinstated to the program. 597 (30)A program administrator shall provide, at a reasonable 598 time following the end of the prior calendar year, an annual 599 report to the dependent special district as defined in s. 600 189.012 or a separate legal entity created pursuant to s. 601 163.01(7) which it has contracted with to administer a REEF 602 program and shall include information and data related to the 603 following: 604 (a)The total number of property owner complaints received 605 which are associated with project funding in the report year. 606 (b)Of the total number of property owner complaints 607 received which are associated with project funding in the report 608 year: 609 1.The number and percentage of complaints that relate to 610 the assessment financing. 611 2.The number and percentage of complaints that relate to a 612 contractor or the workmanship of a contractor and are not 613 related to assessment financing. 614 3.The number and percentage of complaints that relate to 615 both a contractor and the assessment financing. 616 4.The number and percentage of complaints received 617 pursuant to subparagraphs 1., 2., and 3. which were resolved and 618 the number and percentage of complaints received pursuant to 619 subparagraphs 1., 2., and 3. which were not resolved. 620 (c)The percentage of property owner complaints received 621 pursuant to subparagraphs (b)1., 2., and 3. expressed as a total 622 of all projects funded in the report year. 623 (31)(a)Subsections (16) through (30) do not apply to 624 residential real property if the program administrator 625 reasonably determines that: 626 1.The residential real property is owned by a business 627 entity that owns more than four residential real properties; and 628 2.The business entitys managing member, partner, or 629 beneficial owner does not reside in the residential real 630 property. 631 (b)Subsections (16) through (30) apply to a program 632 administrator only when administering a REEF program for 633 qualifying improvements on residential real property. 634 Subsections (16) through (30) do not apply with respect to a 635 local government, to residential property owned by a local 636 government, or to nonresidential real property. 637 Section 2.This act shall take effect July 1, 2023.