Florida Senate - 2023 CS for CS for SB 950 By the Committees on Fiscal Policy; and Community Affairs; and Senator Rodriguez 594-04316-23 2023950c2 1 A bill to be entitled 2 An act relating to improvements to real property; 3 amending s. 163.08, F.S.; revising legislative 4 findings and intent; defining terms and revising 5 definitions; authorizing a residential or commercial 6 property owner to apply to a qualifying improvement 7 program for funding to finance an improvement and to 8 enter into a financing agreement with the local 9 government; providing that a non-ad valorem assessment 10 on certain commercial property is subject to a certain 11 fee; specifying requirements of a financing agreement 12 for government commercial property; authorizing a 13 local government to incur debt for the purpose of 14 providing financing for qualifying improvements; 15 authorizing a local government to enter into a 16 financing agreement to finance or refinance a 17 qualifying improvement; providing that, for government 18 commercial property, the financing agreement must meet 19 specified conditions; revising and specifying public 20 recording requirements for assessment financing 21 agreements and notices of lien; providing that a 22 financing agreement for a residential property may not 23 be approved unless certain conditions are met; 24 providing that a financing agreement for a commercial 25 property may not be approved unless the local 26 government, or the program administrator acting on its 27 behalf, reasonably determines that that specified 28 conditions have been met; authorizing certain 29 determinations, considerations, and confirmations by 30 the local government or program administrator, as 31 applicable, regarding the owners ability to pay; 32 authorizing the local government or program 33 administrator to consider certain statements by the 34 property owner regarding his or her income, but 35 requiring additional confirmation; authorizing a 36 reduction in the annual assessment payment under 37 certain circumstances; providing construction; 38 specifying certain requirements for a local government 39 or program administrator that offers a qualifying 40 improvement program for residential properties; 41 authorizing a residential real property owner, under 42 certain circumstances and within a certain timeframe, 43 to cancel a financing agreement without financial 44 penalty; providing that certain contracts are 45 unenforceable and prohibiting a qualifying improvement 46 contractor from initiating work under such contracts; 47 specifying certain requirements if a qualifying 48 improvement contractor initiates work on a residential 49 property under an unenforceable agreement; providing a 50 procedure that must be followed if a qualifying 51 improvement contractor has delivered chattel or 52 fixtures to a residential property pursuant to an 53 unenforceable contract; providing that a residential 54 property owner may retain such chattel or fixtures in 55 a certain circumstance; providing that an 56 unenforceable contract is enforceable under certain 57 circumstances; providing that a financing agreement 58 may be executed for qualifying improvements in the 59 construction of a commercial property before a 60 certificate of occupancy or similar evidence of 61 substantial completion of new construction or 62 improvement is issued; authorizing specified payments 63 for commercial properties under certain circumstances; 64 providing that a financing agreement with a commercial 65 property owner may cover wind-resistance improvements 66 in certain buildings or facilities; prohibiting wind 67 resistance improvements in certain buildings or 68 facilities between a local government and a 69 residential property owner; authorizing execution of 70 an assessment financing agreement before a certificate 71 of occupancy or certain evidence is issued; 72 authorizing progress payments before completion of a 73 qualifying improvement on a commercial property if the 74 property owner provides certain information; 75 authorizing an assessment financing agreement to cover 76 certain qualifying improvements; requiring certain 77 work to be performed by properly certified or 78 registered contractors; revising the calculation of 79 non-ad valorem assessment limits; providing 80 construction; requiring the local government or 81 program administrator to be in receipt of the written 82 consent of the holders or loan servicers of certain 83 mortgages at a specified time; requiring the property 84 owner to provide written notice within a specified 85 timeframe to the holders or loan servicers of any 86 existing mortgages; revising the sellers disclosure 87 statement for residential and commercial properties 88 offered for sale; prohibiting certain items in a 89 financing agreement for residential property; 90 prohibiting a local government or program 91 administrator from enrolling a qualifying improvement 92 contractor that contracts with residential property 93 owners to install qualifying improvements; providing 94 exceptions; prohibiting a program administrator from 95 being enrolled as a qualifying improvement contractor; 96 requiring the local government or program 97 administrator to confirm certain information before 98 disbursing funds financed under a residential program 99 to a qualifying improvement contractor; prohibiting a 100 local government or program administrator from 101 disclosing maximum financing amounts to certain 102 persons; requiring that, in communicating with 103 residential property owners, the local government or 104 program administrator comply with certain marketing 105 and communications guidelines and prohibiting such 106 entities from certain communication; prohibiting a 107 qualifying improvement contractor from advertising the 108 availability of assessment financing agreements; 109 providing exceptions; prohibiting a local government 110 or program administrator from providing certain 111 payments, fees, or kickbacks; authorizing a local 112 government or program administrator to provide 113 information or services to a qualifying improvement 114 contractor to facilitate certain installations; 115 authorizing a local government or program 116 administrator to reimburse a qualifying improvement 117 contractor or third party for certain expenses; 118 prohibiting a local government or program 119 administrator from providing certain information to a 120 qualifying improvement contractor; prohibiting a 121 qualifying improvement contractor from providing 122 certain prices for a qualifying improvement; 123 prohibiting a local government or program 124 administrator from providing cash payment or anything 125 of material value to a residential property owner 126 explicitly on certain conditions; authorizing a local 127 government or program administrator to offer certain 128 programs or promotions; requiring each local 129 government and program administrator to develop and 130 implement certain policies and procedures; requiring a 131 local government that has authorized a residential 132 program to post on its website a certain report; 133 specifying the requirements for such report; providing 134 applicability and construction; providing an effective 135 date. 136 137 Be It Enacted by the Legislature of the State of Florida: 138 139 Section 1.Section 163.08, Florida Statutes, is amended to 140 read: 141 163.08Supplemental authority for improvements to real 142 property. 143 (1)(a)In chapter 2008-227, Laws of Florida, the 144 Legislature amended the energy goal of the state comprehensive 145 plan to provide, in part, that the state shall reduce its energy 146 requirements through enhanced conservation and efficiency 147 measures in all end-use sectors and reduce atmospheric carbon 148 dioxide by promoting an increased use of renewable energy 149 resources. That act also declared it the public policy of the 150 state to play a leading role in developing and instituting 151 energy management programs that promote energy conservation, 152 energy security, and the reduction of greenhouse gases. In 153 addition to establishing policies to promote the use of 154 renewable energy, the Legislature provided for a schedule of 155 increases in energy performance of buildings subject to the 156 Florida Energy Efficiency Code for Building Construction. In 157 chapter 2008-191, Laws of Florida, the Legislature adopted new 158 energy conservation and greenhouse gas reduction comprehensive 159 planning requirements for local governments. In the 2008 general 160 election, the voters of this state approved a constitutional 161 amendment authorizing the Legislature, by general law, to 162 prohibit consideration of any change or improvement made for the 163 purpose of improving a propertys resistance to wind damage or 164 the installation of a renewable energy source device in the 165 determination of the assessed value of residential real 166 property. 167 (b)The Legislature finds that all energy-consuming 168 improved properties that are not using energy conservation 169 strategies contribute to the burden affecting all improved 170 property resulting from fossil fuel energy production. Improved 171 property that has been retrofitted with energy-related 172 qualifying improvements receives the special benefit of 173 alleviating the propertys burden from energy consumption. All 174 improved properties not protected from wind damage by wind 175 resistance qualifying improvements contribute to the burden 176 affecting all improved property resulting from potential wind 177 damage. Improved commercial property constructed or that has 178 been retrofitted with resiliency qualifying improvements and 179 improved residential property retrofitted with wind resistance 180 qualifying improvements receive receives the special benefit of 181 reducing the propertys burden from potential wind damage. 182 Further, the installation and operation of qualifying 183 improvements not only benefit the affected properties for which 184 the improvements are made, but also assist in fulfilling the 185 goals of the states energy and hurricane mitigation policies. 186 Residential properties that do not use advanced technologies for 187 wastewater removal contribute to the water quality problems 188 affecting this state, particularly in coastal areas. Improved 189 residential property that has been retrofitted with an advanced 190 onsite sewage treatment and disposal system or has been 191 converted to central sewerage significantly benefits the quality 192 of water that may enter streams, lakes, rivers, aquifers, or 193 coastal areas. 194 (c)In order to make qualifying improvements more 195 affordable and assist property owners who wish to undertake such 196 improvements, the Legislature finds that there is a compelling 197 state interest in enabling property owners to voluntarily 198 finance such improvements with local government assistance. 199 (d)(c)The Legislature determines that the actions 200 authorized under this section, including, but not limited to, 201 the financing of qualifying improvements through the execution 202 of financing agreements and the related imposition of voluntary 203 assessments are reasonable and necessary to serve and achieve a 204 compelling state interest and are necessary for the prosperity 205 and welfare of the state and its property owners and 206 inhabitants. 207 (2)As used in this section, the term: 208 (a)Commercial property means real property not defined 209 as residential property which will be, or has been, improved by 210 a qualifying improvement, including, but not limited to, the 211 following: 212 1.A multifamily residential property composed of five or 213 more dwelling units; 214 2.A commercial real property; 215 3.An industrial building or property; 216 4.An agricultural property; 217 5.A nonprofit-owned property; 218 6.A long-term care facility, including a nursing home or 219 an assisted living facility; or 220 7.A government commercial property. 221 (b)Facility means any portion of a building, structure, 222 or site improvement located on a site as defined in s. 202 of 223 the 2020 Florida Building Code. 224 (c)Government commercial property means real property 225 owned by a local government and leased to a nongovernmental 226 lessee where the usage by the lessee meets the definition of 227 commercial property. 228 (d)(a)Local government means a county, a municipality, a 229 dependent special district as defined in s. 189.012, or a 230 separate legal entity created pursuant to s. 163.01(7). 231 (e)Nongovernmental lessee means a person or an entity 232 other than a local government which leases government commercial 233 property. 234 (f)Program administrator means an entity, including, but 235 not limited to, a for-profit or not-for-profit entity, with 236 which a local government has contracted to administer a 237 qualifying improvement program. 238 (g)Qualifying improvement contractor means an 239 independent contractor who has been enrolled under a qualifying 240 improvement program to install or otherwise perform work on 241 qualifying improvements financed through the program. 242 (h)Qualifying improvement program means a program 243 established by a local government, alone or in partnership with 244 other local governments or a program administrator, to finance 245 qualifying improvements on residential or commercial real 246 property. 247 (i)(b)Qualifying improvements: improvement 248 1.For residential property, includes any: 249 a.1.Energy conservation and efficiency improvement, which 250 is a measure to reduce consumption through conservation or a 251 more efficient use of electricity, natural gas, propane, or 252 other forms of energy on the property, including, but not 253 limited to, air sealing; installation of insulation; 254 installation of energy-efficient heating, cooling, or 255 ventilation systems; building modifications to increase the use 256 of daylight; replacement of windows; installation of energy 257 controls or energy recovery systems; installation of electric 258 vehicle charging equipment; and installation of efficient 259 lighting equipment. 260 b.2.Renewable energy improvement, which is the 261 installation of any system in which the electrical, mechanical, 262 or thermal energy is produced from a method that uses one or 263 more of the following fuels or energy sources: hydrogen, solar 264 energy, geothermal energy, bioenergy, and wind energy. 265 c.3.Wind resistance improvement, which includes, but is 266 not limited to: 267 (I)a.Improving the strength of the roof deck attachment; 268 (II)b.Creating a secondary water barrier to prevent water 269 intrusion; 270 (III)c.Installing wind-resistant shingles; 271 (IV)d.Installing gable-end bracing; 272 (V)e.Reinforcing roof-to-wall connections; 273 (VI)f.Installing storm shutters; or 274 (VII)g.Installing opening protections. 275 d.Wastewater improvement, which includes, but is not 276 limited to: 277 (I)Removing, replacing, or improving an onsite sewage 278 treatment and disposal system with a secondary or advanced 279 onsite sewage treatment and disposal system or technology; 280 (II)Replacing or converting an onsite sewage treatment and 281 disposal system to a central sewerage system or distributed 282 sewerage system, including, but not limited to, installing a 283 sewer lateral and anything necessary to connect the onsite 284 sewage treatment and disposal system or the buildings plumbing 285 to a central sewerage system or distributed sewerage system; or 286 (III)Any removal, repairs, or modifications made to an 287 onsite sewage treatment and disposal system, including any 288 repair, modification, or replacement of a system required under 289 a local ordinance enacted pursuant to ss. 381.0065 and 290 381.00651. 291 e.Flood and water damage mitigation and resiliency 292 improvement, which includes, but is not limited to, projects and 293 installation for: 294 (I)Raising a structure above the base flood elevation to 295 reduce flood damage; 296 (II)A flood diversion apparatus or seawall improvement, 297 which includes seawall repairs and seawall replacements; 298 (III)Flood-damage-resistant building materials; 299 (IV)Electrical, mechanical, plumbing, or other system 300 improvements that reduce flood damage; or 301 (V)Other improvements that qualify for reductions in flood 302 insurance premiums. 303 2.For commercial property, includes any: 304 a.Energy conservation and efficiency improvement, which is 305 a measure to reduce consumption through conservation or a more 306 efficient use of electricity, natural gas, propane, or other 307 forms of energy on the property, including, but not limited to, 308 air sealing; installation of insulation; installation of energy 309 efficient heating, cooling, or ventilation systems; building 310 modifications to increase the use of daylight; replacement of 311 windows; installation of energy controls or energy recovery 312 systems; installation of electric vehicle charging equipment; 313 installation of efficient lighting equipment; or any other 314 improvements necessary to achieve a sustainable building rating 315 or compliance with a national model green building code. 316 b.Renewable energy improvement, which is the installation 317 of any system in which the electrical, mechanical, or thermal 318 energy is produced from a method that uses one or more of the 319 following fuels or energy sources: hydrogen, solar energy, 320 geothermal energy, bioenergy, or wind energy. 321 c.Resiliency improvement, which includes, but is not 322 limited to: 323 (I)Improving the strength of the roof deck attachment; 324 (II)Creating a secondary water barrier to prevent water 325 intrusion; 326 (III)Installing wind-resistant shingles; 327 (IV)Installing gable-end bracing; 328 (V)Reinforcing roof-to-wall connections; 329 (VI)Installing storm shutters; 330 (VII)Installing opening protections; 331 (VIII)Creating or improving stormwater and flood 332 resiliency, including shoreline improvements; or 333 (IX)Making any other improvements necessary to achieve a 334 sustainable building rating or compliance with a national model 335 resiliency standard and any improvements to a structure to 336 achieve wind or flood insurance rate reductions, including 337 building elevation. 338 (j)Residential property means a residential real 339 property composed of four or fewer dwelling units which has been 340 or will be improved by a qualifying improvement. 341 (3)A local government may levy non-ad valorem assessments 342 to fund qualifying improvements. 343 (4)Subject to local government ordinance or resolution, a 344 residential or commercial property owner may apply to the 345 qualifying improvement program local government for funding to 346 finance a qualifying improvement and enter into a financing 347 agreement with the local government. Costs incurred by the local 348 government for such purpose may be collected as a non-ad valorem 349 assessment. A non-ad valorem assessment must shall be collected 350 pursuant to s. 197.3632 and, notwithstanding s. 197.3632(8)(a), 351 is shall not be subject to discount for early payment. However, 352 the notice and adoption requirements of s. 197.3632(4) do not 353 apply if this section is used and complied with, and the intent 354 resolution, publication of notice, and mailed notices to the 355 property appraiser, tax collector, and Department of Revenue 356 required by s. 197.3632(3)(a) may be provided on or before 357 August 15 in conjunction with any non-ad valorem assessment 358 authorized by this section, if the property appraiser, tax 359 collector, and local government agree. 360 (5)Pursuant to this section or as otherwise provided by 361 law or pursuant to a local governments home rule power, a local 362 government may enter into a partnership with one or more local 363 governments for the purpose of providing and financing 364 qualifying improvements. 365 (6)A qualifying improvement program may be administered by 366 a for-profit entity or a not-for-profit organization on behalf 367 of and at the discretion of the local government. 368 (7)A local government may incur debt for the purpose of 369 providing financing for qualifying such improvements, which debt 370 is payable from revenues received from the improved property, or 371 any other available revenue source authorized by law. 372 (8)(a)A local government may enter into a financing 373 agreement to finance or refinance a qualifying improvement only 374 with the record owner of the affected property. For government 375 commercial property, the financing agreement must be executed by 376 the nongovernmental lessee with the written consent of the 377 governmental lessor. Evidence of such consent must be provided 378 to the local government. The financing agreement with the 379 nongovernmental lessee must provide that the nongovernmental 380 lessee is the only party obligated to pay the assessment. 381 (b)Any financing agreement entered into pursuant to this 382 section or a summary memorandum of such agreement must shall be 383 submitted for recording recorded in the public records of the 384 county within which the property is located by the sponsoring 385 unit of local government within 10 5 days after execution of the 386 agreement. The recorded agreement provides shall provide 387 constructive notice that the non-ad valorem assessment to be 388 levied on the property constitutes a lien of equal dignity to 389 county taxes and assessments from the date of recordation. A 390 notice of lien for the full amount of the financing may be 391 recorded in the public records of the county where the property 392 is located. Such lien is not enforceable in a manner that 393 results in the acceleration of the remaining nondelinquent 394 unpaid balance under the assessment financing agreement. 395 (9)(a)Before entering into A financing agreement for a 396 residential property may not be approved unless, the local 397 government, or the program administrator acting on its behalf, 398 has shall reasonably determined determine that all of the 399 following conditions have been met: 400 1.All property taxes and any other assessments levied on 401 the same bill as property taxes are current paid and have not 402 been delinquent for the preceding 3 years or the property 403 owners period of ownership, whichever is less.; that 404 2.There are no involuntary liens, including, but not 405 limited to, construction liens on the property.; that 406 3.There are no notices of default or other evidence of 407 property-based debt delinquency which have been recorded during 408 the preceding 3 years or the property owners period of 409 ownership, whichever is less.; and that 410 4.The property owner is current on all mortgage debt on 411 the property. 412 5.The property owner has acknowledged in writing the 413 disclosure statements required by paragraph (11)(b). 414 6.The property is within the geographic boundaries of the 415 applicable qualifying improvement program. 416 7.The term of the financing agreement does not exceed: 417 a.For a single qualifying improvement, the estimated 418 useful life of the qualifying improvement. 419 b.For multiple qualifying improvements, the lesser of: 420 (I)Thirty years; or 421 (II)The greater of either the weighted average estimated 422 useful life of all qualifying improvements being financed or the 423 estimated useful life of the qualifying improvements to which 424 the greatest portion of funds is disbursed. The local government 425 or program administrator, as applicable, shall determine the 426 useful life of a qualifying improvement using established third 427 party standards, including certification criteria from 428 government agencies or nationally recognized standards and 429 testing organizations. 430 8.The property owner is not currently the subject to 431 bankruptcy proceedings. 432 9.The property is not subject to an existing home equity 433 conversion mortgage or reverse mortgage product. 434 10.The property is not a residential property gifted to a 435 homeowner for free by a nonprofit entity as may be disclosed by 436 the property owner. The failure of a property owner to disclose 437 the gift does not invalidate a financing agreement or any 438 obligation thereunder. 439 11.The property owner has obtained estimates from at least 440 two unaffiliated, competitive entities, one of which is a 441 qualifying improvement contractor, for the qualifying 442 improvement to be financed. 443 12.The local government or program administrator, as 444 applicable, has asked if the property owner has obtained or 445 sought to obtain additional qualifying improvements on the same 446 property which have not yet been recorded. The failure of a 447 property owner to disclose such information does not invalidate 448 a financing agreement or any obligation thereunder, even if the 449 total financed amount of the qualifying improvement exceeds the 450 amount that would otherwise be authorized under paragraph 451 (15)(a). The existence of a prior qualifying improvement non-ad 452 valorem assessment or a prior financing agreement is not 453 evidence that the financing agreement under consideration is 454 affordable or meets other program requirements. 455 (b)A financing agreement for a commercial property may not 456 be approved unless the local government, or the program 457 administrator acting on its behalf, has reasonably determined 458 that all of the following conditions have been met: 459 1.All property taxes and any other assessments levied on 460 the same bill as property taxes are current. 461 2.There are no involuntary liens greater than $10,000, 462 including, but not limited to, construction liens, on the 463 property. 464 3.No notices of default or other evidence of property 465 based debt delinquency have been recorded and not released 466 during the preceding 3 years or the property owners period of 467 ownership, whichever is less. 468 4.The property owner is current on all mortgage debt on 469 the property. 470 (10)In addition to obtaining the information in subsection 471 (9)(a), and before a local government or program administrator, 472 as applicable, approves a qualifying improvement on residential 473 property, the local government or program administrator must use 474 information contained in the property owners application, 475 reasonably reliable third-party records, or an automated 476 verification system to reasonably determine whether the property 477 owner has the ability to pay the annual non-ad valorem 478 assessment for the qualifying improvement. The local government 479 or program administrator, as applicable, must review the 480 property owners household income. To do so, the program 481 administrator shall, at a minimum, use the underwriting 482 requirements in subsection (9), confirm that the property owner 483 is not in bankruptcy, and determine that the total estimated 484 annual payment amount for all financing agreements funded under 485 this section on the property does not exceed 10 percent of the 486 property owners annual household income. In reviewing the 487 property owners ability to pay, the local government or program 488 administrator, as applicable, when determining the household 489 income: 490 (a)May include the income of any nonproperty owners who 491 reside on the property. 492 (b)May not consider the equity in the property which will 493 secure the non-ad valorem assessment. 494 (c)May confirm income by use of any of the following: 495 1.Information or income models gathered from and prepared 496 by reputable third parties which provide reasonably reliable 497 evidence of the property owners household income. 498 2.Federal and state tax returns. 499 3.Statements prepared by a certified public accountant. 500 4.Bank statements. 501 5.Credit reports. 502 6.Retirement accounts. 503 7.Social security statements. 504 8.Trust documents. 505 9.Any other reputable sources of financial information. 506 507 The local government or program administrator may consider 508 statements by the property owner regarding the property owners 509 income, but income may not be confirmed solely by a property 510 owners statements. 511 (d)In the event that a court or tribunal determines, by 512 clear and convincing evidence, that the program administrators 513 determination of the property owners ability to pay was not 514 objectively reasonable based on the information provided by the 515 property owner, the yearly assessment payment must be reduced by 516 an amount that is within the property owners ability to pay. 517 This paragraph does not require or authorize the administrator 518 to reduce the amount owed on the assessment. 519 (e)The failure of a property owner to disclose information 520 specified in subsection (9) does not invalidate a financing 521 agreement or any obligation thereunder, even if the total 522 estimated annual payment amount exceeds the amount that would 523 otherwise be authorized under this subsection. 524 (11)Each local government or program administrator that 525 offers a qualifying improvement program for residential 526 properties shall: 527 (a)Develop a written disclosure form, which may be 528 presented in electronic format, which must be provided to a 529 residential property owner before he or she executes the 530 financing agreement, and which contains the key terms of the 531 agreement, including: 532 1.A description of the qualifying improvement; 533 2.The estimated total financed amount, including the cost 534 of the qualifying improvement, ancillary work, program fees, and 535 prepaid interest, if any; 536 3.The annual non-ad valorem assessment process and 537 estimated yearly payment schedule; 538 4.The estimated amount of the annual non-ad valorem 539 assessment; 540 5.The term of the total financed amount; 541 6.The interest rate for the financed amount; 542 7.The estimated annual percentage rate; 543 8.The total estimated annual costs that the residential 544 property owner will be required to pay under the assessment 545 contract, including program fees; 546 9.The total estimated average monthly equivalent amount of 547 funds that the residential property owner would have to save in 548 order to pay the annual costs of the non-ad valorem assessment, 549 including program fees; and 550 10.The estimated due date of the residential property 551 owners first property tax payment that includes the non-ad 552 valorem assessment. 553 (b)Include the following statements verbatim and in the 554 following order in the written disclosure form, each of which 555 must be individually acknowledged in writing by the property 556 owner: 557 1.I UNDERSTAND THAT IF I SELL OR REFINANCE THE PROPERTY, I 558 MAY BE REQUIRED TO PAY OFF THE OUTSTANDING FINANCED AMOUNT AS A 559 CONDITION OF THE SALE OR THE REFINANCE OF THE PROPERTY. The 560 previous statement must be made in at least 24point boldfaced 561 type. 562 2.I understand that the annual non-ad valorem assessment 563 will be paid when property taxes are paid and will result in a 564 lien being placed on my property. 565 3.I understand that the annual non-ad valorem assessment 566 will be added to my property tax bill and that if I pay my 567 property taxes through my mortgage payment using an escrow 568 account, I must notify my mortgage lender. 569 4.I understand that if I fail to pay the annual non-ad 570 valorem assessment, I may incur penalties and fees and the local 571 government could issue a tax certificate that might result in 572 the loss of my property. 573 5.I understand that any potential utility or insurance 574 savings are not guaranteed and will not reduce the annual non-ad 575 valorem assessment or total assessment amount. 576 6.I understand that I have 5 days to cancel the financing 577 agreement. The 5-day right expires at midnight on the 5th 578 business day after I sign the agreement. 579 7.I understand that the local government, program 580 administrator, or qualifying improvement contractor does not 581 provide tax advice and that I should seek professional tax 582 advice if I have questions regarding tax credits, tax 583 deductibility, or other tax impacts of the qualifying 584 improvement or the assessment contract. 585 8.I understand that I cannot be assessed a penalty if I 586 prepay the outstanding financed amount. 587 (c)Provide a printed or electronic cancellation form to 588 the residential property owner no later than the date that the 589 property owner signs the financing agreement, which allows the 590 property owner to cancel the contract within the 5-day period 591 specified in subparagraph (b)6. 592 (d)Before a notice to proceed is issued, conduct, with at 593 least one residential property owner or an individual who is not 594 affiliated or associated with the local government, program 595 administrator, or qualifying improvement contractor and who is 596 legally authorized to act on behalf of the property owner, an 597 oral, recorded telephone call, during which the local government 598 or program administrator must use plain language. The local 599 government or program administrator, as applicable, shall ask 600 the residential property owner or authorized representative if 601 he or she would like to communicate primarily in a language 602 other than English. A local government or program administrator, 603 as applicable, may not leave a voicemail for the residential 604 property owner or authorized representative to satisfy this 605 requirement. A local government or program administrator, as 606 applicable, as part of this telephone call, must confirm with 607 the residential property owner or authorized representative: 608 1.That at least one residential property owner has access 609 to a copy of the financing agreement and financing estimates and 610 disclosures. 611 2.The qualifying improvement that is being financed. 612 3.The total estimated annual costs that the residential 613 property owner will have to pay under the financing agreement, 614 including program fees. 615 4.The total estimated average monthly equivalent amount of 616 funds that the residential property owner would have to save in 617 order to pay the annual costs of the non-ad valorem assessment, 618 including program fees. 619 5.The estimated due date of the residential property 620 owners first property tax payment that includes the non-ad 621 valorem assessment. 622 6.The term of the financing agreement. 623 7.That payments for the financing agreement will cause the 624 residential property owners annual tax bill to increase and 625 that payments will be made through an additional annual non-ad 626 valorem assessment on the property and will be paid either 627 directly to the county tax collectors office as part of the 628 total annual secured property tax bill or may be paid through 629 the residential property owners mortgage escrow account. 630 8.That the qualifying residential property owner has 631 disclosed whether the property has received or is seeking 632 additional non-ad valorem assessments and has disclosed all 633 other assessments or special taxes that are or are projected to 634 be placed on the property. 635 9.That the property will be subject to a lien during the 636 term of the financing agreement and that the obligations under 637 the agreement may be required to be paid in full before the 638 residential property owner sells or refinances the property. 639 10.That any potential utility or insurance savings are not 640 guaranteed and will not reduce the annual non-ad valorem 641 assessment or total assessment amount. 642 11.That the local government, program administrator, or 643 qualifying improvement contractor does not provide tax advice 644 and that the residential property owner should seek professional 645 tax advice if he or she has questions regarding tax credits, tax 646 deductibility, or other tax impacts of the qualifying 647 improvement or the financing agreement. 648 (12)(a)A residential property owner may cancel a financing 649 agreement within 5 business days after signing the financing 650 agreement without being assessed a financial penalty by the 651 local government or program administrator, as applicable. 652 (b)A contract to sell or install a qualifying improvement 653 that is related to an application for financing in a qualifying 654 improvement program for a residential property is unenforceable, 655 and a qualifying improvement contractor may not begin work under 656 such a contract, if the property owner applied for, accepted, 657 and canceled a qualifying improvement financing agreement within 658 the 5-business-day right-to-cancel period set forth in paragraph 659 (a). 660 (c)If a qualifying improvement contractor has initiated 661 work on a residential property under a contract deemed 662 unenforceable under this subsection, the qualifying improvement 663 contractor: 664 1.May not receive compensation for that work under the 665 financing agreement. 666 2.Must restore the property to its original condition at 667 no cost to the property owner. 668 3.Must immediately return any money, property, and other 669 consideration given by the property owner. If the property owner 670 provided any property and the qualifying improvement contractor 671 does not or cannot return it, the qualifying improvement 672 contractor must immediately return the fair market value of the 673 property or its value as designated in the contract, whichever 674 is greater. 675 (d)If the qualifying improvement contractor has delivered 676 chattel or fixtures to the residential property pursuant to a 677 contract deemed unenforceable under this subsection, the 678 qualifying improvement contractor has 90 days after the date on 679 which the contract was executed to retrieve the chattel or 680 fixtures, provided that: 681 1.The qualifying improvement contractor has fulfilled the 682 requirements of subparagraphs (c)2. and 3. 683 2.The chattel and fixtures can be removed at the 684 qualifying improvement contractors expense without damaging the 685 property owners property. 686 (e)If a qualifying improvement contractor fails to comply 687 with this subsection, the residential property owner may retain 688 any chattel or fixtures provided pursuant to a contract deemed 689 unenforceable under this subsection. 690 (f)A contract that is otherwise unenforceable under this 691 subsection remains enforceable if the residential property owner 692 waives his or her right to cancel the contract or cancels the 693 financing agreement under paragraph (b) but allows the 694 qualifying improvement contractor to proceed with the 695 installation of the qualifying improvement. 696 (13)To constitute an improvement to a building or 697 facility, a qualifying improvement must shall be affixed to a 698 building or facility that is part of the property and shall 699 constitute an improvement to the building or facility or a 700 fixture attached to the building or facility. 701 (a)A financing an agreement between a local government and 702 a residential qualifying property owner may not cover wind 703 resistance improvements in buildings or facilities under new 704 construction or construction for which a certificate of 705 occupancy or similar evidence of substantial completion of new 706 construction or improvement has not been issued. 707 (b)A financing agreement may be executed for qualifying 708 improvements in the construction of a commercial property before 709 a certificate of occupancy or similar evidence of substantial 710 completion of new construction or improvement is issued. 711 Progress payments, or payments made before completion, are 712 allowed for commercial properties, provided that the property 713 owner subsequently provides, upon request for a final progress 714 payment disbursement, written verification to the local 715 government confirming that the qualifying improvements are 716 completed and operating as intended. A financing agreement with 717 a commercial property owner may cover wind-resistance 718 improvements in buildings or facilities under new construction 719 or construction for which a certificate of occupancy or similar 720 evidence of substantial completion of new construction or 721 improvement has not been issued. 722 (14)(11)Any work requiring a license under any applicable 723 law to make a qualifying improvement must shall be performed by 724 a contractor properly certified or registered pursuant to part I 725 or part II of chapter 489. 726 (15)(12)(a)Without the consent of the holders or loan 727 servicers of any mortgage encumbering or otherwise secured by 728 the residential property:, 729 1.The total amount of any non-ad valorem assessment for a 730 residential property under this section may not exceed 20 731 percent of the fair market just value of the property as 732 determined by the county property appraiser. 733 2.The combined mortgage-related debt and total amount of 734 any non-ad valorem assessments funded under this section for 735 residential property may not exceed 97 percent of the fair 736 market value of the residential property. 737 738 The failure of a property owner to disclose information set 739 forth in paragraph (9)(a) does not invalidate a financing 740 agreement or any obligation thereunder, even if the total 741 financed amount of the qualifying improvements exceeds the 742 amount that would otherwise be authorized under this paragraph. 743 For purposes of this paragraph, fair market value may be 744 determined using third party valuations based on reputable 745 methodologies. 746 (b)Before entering into a financing agreement with the 747 owner of a commercial property, the local government or program 748 administrator, as applicable, must be in receipt of the written 749 consent of the current holders or loan servicers of any mortgage 750 that encumbers or is otherwise secured by the property or that 751 will otherwise be secured by the property at the time the 752 financing agreement is executed by the local government or 753 program administrator Notwithstanding paragraph (a), a non-ad 754 valorem assessment for a qualifying improvement defined in 755 subparagraph (2)(b)1. or subparagraph (2)(b)2. that is supported 756 by an energy audit is not subject to the limits in this 757 subsection if the audit demonstrates that the annual energy 758 savings from the qualified improvement equals or exceeds the 759 annual repayment amount of the non-ad valorem assessment. 760 (16)(13)At least 30 days before entering into a financing 761 agreement, the property owner shall provide to the holders or 762 loan servicers of any existing mortgages encumbering or 763 otherwise secured by the property a written notice of the 764 owners intent to enter into a financing agreement together with 765 the maximum principal amount to be financed and the maximum 766 annual assessment necessary to repay that amount. A verified 767 copy or other proof of such notice must shall be provided to the 768 local government or program administrator, as applicable. A 769 provision in any agreement between a mortgagee or other 770 lienholder and a property owner, or otherwise now or hereafter 771 binding upon a property owner, which allows for acceleration of 772 payment of the mortgage, note, or lien or other unilateral 773 modification solely as a result of entering into a financing 774 agreement as provided for in this section is not enforceable. 775 This subsection does not limit the authority of the holder or 776 loan servicer to increase the required monthly escrow by an 777 amount necessary to annually pay the annual qualifying 778 improvement assessment. 779 (17)(14)At or before the time a seller purchaser executes 780 a contract for the sale and purchase of any property for which a 781 non-ad valorem assessment has been levied under this section and 782 has an unpaid balance due, the seller must shall give the 783 prospective purchaser a written disclosure statement in either 784 of the following forms form, which must shall be set forth in 785 the contract or in a separate writing. 786 (a)For a residential property: 787 788 QUALIFYING IMPROVEMENTS FOR ENERGY EFFICIENCY, 789 RENEWABLE ENERGY, ADVANCED TECHNOLOGIES FOR WASTEWATER 790 REMOVAL, OR WIND RESISTANCE.The property being 791 purchased is located within the jurisdiction of a 792 local government that has placed an assessment on the 793 property pursuant to s. 163.08, Florida Statutes. The 794 assessment is for a qualifying improvement to the 795 property relating to energy efficiency, renewable 796 energy, advanced technologies for wastewater removal, 797 or wind resistance, and is not based on the value of 798 property. You are encouraged to contact the county 799 property appraisers office to learn more about this 800 and other assessments that may be provided by law. 801 802 (b)For a commercial property: 803 804 QUALIFYING IMPROVEMENTS FOR ENERGY EFFICIENCY, 805 RENEWABLE ENERGY, OR RESILIENCY.The property being 806 purchased is located within the jurisdiction of a 807 local government that has placed an assessment on the 808 property pursuant to s. 163.08, Florida Statutes. The 809 assessment is for a qualifying improvement to the 810 property relating to energy efficiency, renewable 811 energy, or resiliency, and is not based on the value 812 of property. You are encouraged to contact the county 813 property appraisers office to learn more about this 814 and other assessments that may be provided by law. 815 816 (18)A financing agreement authorized under this section on 817 residential property may not include any of the following: 818 (a)A negative amortization schedule. Capitalized interest 819 included in the original balance of the financing agreement does 820 not constitute negative amortization. 821 (b)A balloon payment. 822 (c)Prepayment fees, other than nominal administrative 823 costs. 824 (19)For residential property, a local government or 825 program administrator: 826 (a)May not enroll a qualifying improvement contractor who 827 contracts with residential property owners to install qualifying 828 improvements unless: 829 1.The local government or program administrator, as 830 applicable, determines that the qualifying improvement 831 contractor maintains in good standing an appropriate license 832 from the state, if applicable, as well as any other permits, 833 licenses, or registrations required for engaging in its business 834 in the jurisdiction in which it operates and maintains all 835 state-required bond and insurance coverage. 836 2.The local government or program administrator, as 837 applicable, obtains the qualifying improvement contractors 838 written agreement that the qualifying improvement contractor 839 will comply with all applicable laws, including applicable 840 advertising and marketing laws and regulations and the 841 requirements of this section. 842 (b)Must maintain a process to enroll new qualifying 843 improvement contractors which includes reasonable review of the 844 following for each contractor: 845 1.Relevant work or project history. 846 2.Financial and reputational background checks, including 847 a criminal background check. 848 3.The contractors status on the Better Business Bureau 849 platform or other online platform that tracks contractor 850 reviews. 851 (c)Must establish and maintain a process for monitoring 852 qualifying improvement contractors with regard to performance 853 and compliance with program policies and must implement policies 854 for suspending, reinstating, and terminating qualifying 855 improvement contractors based on violations of program policies 856 or unscrupulous behavior. 857 858 A program administrator, either directly or through an 859 affiliate, may not be enrolled as a qualifying improvement 860 contractor. 861 (20)(a)Before disbursing final funds to a qualifying 862 improvement contractor for a qualifying improvement on 863 residential property, the local government or program 864 administrator, as applicable, must confirm that the applicable 865 work or service has been completed or that the final permit for 866 the qualifying improvement has been closed with all permit 867 requirements satisfied. 868 (b)A local government or program administrator, as 869 applicable, may not disclose the maximum financing amount for 870 which a residential property owner is eligible to a qualifying 871 improvement contractor or to a third party engaged in soliciting 872 financing agreements financed pursuant to this section. 873 (21)When communicating with residential property owners, a 874 local government or program administrator must comply with the 875 following marketing and communication guidelines and may not: 876 (a)Suggest or imply: 877 1.That a non-ad valorem assessment authorized under this 878 section is a government assistance program; 879 2.That qualifying improvements are free or provided at no 880 cost, or that the financing related to a non-ad valorem 881 assessment authorized under this section is free or provided at 882 no cost; or 883 3.That the financing of a qualifying improvement using the 884 program authorized pursuant to this section does not require the 885 property owner to repay the financial obligation. 886 (b)Make any representation as to the tax deductibility of 887 a non-ad valorem assessment on residential property. A local 888 government, program administrator, or qualifying improvement 889 contractor, or a third party engaged in marketing on behalf of 890 such entities, may encourage a property owner to seek the advice 891 of a tax professional regarding tax matters related to 892 assessments. 893 (22)(a)A qualifying improvement contractor may not 894 advertise the availability of financing agreements for, or 895 solicit property owners on behalf of, the local government or 896 program administrator unless: 897 1.The qualifying improvement contractor maintains the 898 appropriate registration or certification from the Construction 899 Industry Licensing Board or any other permit, license, or 900 registration required to conduct business in the jurisdiction in 901 which it operates, and provides proof of having the required 902 bond and insurance coverage amounts. 903 2.The local government or program administrator, as 904 applicable, obtains the qualifying improvement contractors 905 written agreement that the qualifying improvement contractor or 906 third party will comply with applicable laws and rules and 907 qualifying improvement program policies and procedures, 908 including those on advertising and marketing. 909 (b)A local government or program administrator may not 910 provide any payment, fee, or kickback to a qualifying 911 improvement contractor for referring financing business relating 912 to a specific financing agreement on a residential property. 913 However, a local government or program administrator may provide 914 information or services to a qualifying improvement contractor 915 to facilitate the installation of a qualifying improvement for a 916 property owner. 917 (c)A local government or program administrator may 918 reimburse a qualifying improvement contractor or third party for 919 its expenses in advertising and marketing campaigns and 920 materials. 921 (d)A local government or program administrator may not 922 provide to a qualifying improvement contractor any information 923 that discloses the amount of funds for which a property owner is 924 eligible for qualifying improvements or the amount of equity in 925 a property. 926 (e)For residential properties, a qualifying improvement 927 contractor may not provide a different price for a qualifying 928 improvement financed under this section than the price that the 929 qualifying improvement contractor would otherwise reasonably 930 provide if the qualifying improvement was not being financed 931 through an assessment financing agreement. 932 (f)A local government or program administrator may not 933 provide any direct cash payment or other thing of material value 934 to a residential property owner explicitly conditioned upon the 935 property owner entering into a financing agreement. However, a 936 local government or program administrator may offer programs or 937 promotions that provide reduced fees or interest rates if the 938 reduced fees or interest rates are reflected in the financing 939 agreements and are not provided to the property owners as cash 940 consideration. 941 (23)Each local government and program administrator must 942 develop and implement policies and procedures for responding to, 943 tracking, and resolving questions and complaints about its 944 qualifying improvement program. 945 (24)Each local government that has authorized a qualifying 946 improvement program shall post on its website an annual report 947 for the period ending December 31 each year containing the 948 following information: 949 (a)The number of qualifying improvements funded. 950 (b)The aggregate, average, and median dollar amounts of 951 annual non-ad valorem assessments and the total number of non-ad 952 valorem assessments that funded qualifying improvements. 953 (c)The percentage, number, and dollar value of non-ad 954 valorem assessments that funded qualifying improvements, 955 aggregated by the following category types: energy efficiency, 956 renewable energy, wind resistance, residential property 957 wastewater, commercial property resiliency, and other commercial 958 property qualifying improvements. 959 (d)The number of defaulted non-ad valorem assessments, 960 including the total number and defaulted amount, the number and 961 dates of missed payments, the total number of parcels defaulted 962 and the years in default, and the percentage of defaults by 963 total assessments. 964 (e)A summary of all reported complaints received by the 965 local government and its program administrators related to 966 authorized qualifying improvements programs, including the 967 resolution of each complaint. 968 (f)The estimated number of jobs created. 969 (g)The number and percentage of homeowners 60 years of age 970 or older participating in a qualifying improvement program. 971 972 This report must be posted no later than April 1 of the year 973 following the calendar year covered by the report. 974 (25)(15)A provision in any agreement between a local 975 government and a public or private power or energy provider or 976 other utility provider is not enforceable to limit or prohibit 977 any local government from exercising its authority under this 978 section. 979 (26)(16)This section is additional and supplemental to 980 county and municipal home rule authority and not in derogation 981 of such authority or a limitation upon such authority. 982 (27)This section is prospective only and does not affect 983 or amend any existing non-ad valorem assessment or any existing 984 interlocal agreement between local governments. 985 Section 2.This act shall take effect January 1, 2024.