23 LC 50 0465ER
H. B. 206
- 1 -
House Bill 206
By: Representatives Sainz of the 180
th
, LaHood of the 175
th
, Stephens of the 164
th
, Taylor
of the 173
rd
, Williams of the 148
th
, and others
A BILL TO BE ENTITLED
AN ACT
To amend Title 36 of the Official Code of Georgia Annotated, relating to local government,
1
so as to provide for the creation of Commercial Property Assessed Conservation, Energy, and2
Resiliency Development Authorities in certain counties and municipalities; to specify their3
purpose; to define certain terms; to provide for the creation and activation of authorities; to4
provide for joint authorities; to provide for boards of directors; to provide for organization;5
to specify powers; to provide for financial obligations; to specify provisions, remedies,6
obligations, and procedures; to provide for construction; to provide that authority obligations7
do not constitute public debt; to specify certain tax exemptions; to provide for cities and8
counties to cooperate with authorities in financing qualifying improvements by imposing9
special assessments on qualifying commercial properties; to provide for the collection and10
lien status of such assessments; to provide for the dissolution of such authorities; to provide11
for related matters; to provide an effective date; to repeal conflicting laws; and for other12
purposes.13
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:14 23 LC 50 0465ER
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SECTION 1.
15
Title 36 of the Official Code of Georgia Annotated, relating to local government, is amended16
by adding a new chapter to read as follows:17
"CHAPTER 77
18
ARTICLE 119
36-77-1.20
As used in this chapter, the term:21
(1) 'Assessment' means a special assessment imposed by a participating local22
government pursuant to Article 3 of this chapter.23
(2) 'Assessment agreement' means an agreement between an authority and a qualifying24
property owner, in which, among other things, the authority agrees to pay the costs of25
qualifying improvements and the qualifying property owner voluntarily requests26
assessments to be imposed by the participating local government on the qualifying27
property.28
(3) 'Assessment financing' means the financing or refinancing of qualifying29
improvements.30
(4) 'Authority' means each public corporation created pursuant to Article 2 of this31
chapter.32
(5) 'Capital provider' means a private entity or its designee, successor, or assign that33
purchases an obligation of an authority pursuant to Article 2 of this chapter.34
(6) 'Cost of the qualifying improvements' or 'cost of any qualifying improvement' means35
and includes:36
(A) All costs of acquisition (by purchase or otherwise), construction, assembly,37
installation, modification, renovation, or rehabilitation incurred in connection with any38
qualifying improvement or any part of any qualifying improvement;39 23 LC 50 0465ER
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(B) All costs of real property, fixtures, or materials used in or in connection with or40
necessary for any qualifying improvement or for any facilities related thereto,41
including, but not limited to, the cost of all easements, rights, improvements, water42
rights, connections for utility services, fees, franchises, permits, approvals, licenses, and43
certificates; the cost of securing any such franchises, permits, approvals, licenses, or44
certificates; and the cost of preparation of any application therefor and the cost of all45
labor and materials used in or in connection with or necessary for any qualifying46
improvement;47
(C) All financing charges and loan fees and all interest on revenue bonds, notes, or48
other obligations of an authority that accrues or is paid prior to and during the period49
of construction of a qualifying improvement and during such additional period as the50
authority may reasonably determine to be necessary to place such qualifying51
improvement in operation;52
(D) All costs of engineering, architectural, and legal services and all expenses incurred53
by engineers, architects, and attorneys in connection with any qualifying improvement;54
(E) All expenses for inspection and any third party review or verification fees;55
(F) All fees of fiscal agents, paying agents, and trustees for bondholders under any trust56
agreement, indenture of trust, or similar instrument or agreement; all expenses incurred57
by any such fiscal agents, paying agents, and trustees; and all other costs and expenses58
incurred relative to the issuance of any revenue bonds, notes, or other obligations for59
any qualifying improvement, including capital provider's fees;60
(G) All fees of any type charged by an authority in connection with any qualifying61
improvement;62
(H) All expenses necessary or incidental to determining the feasibility or practicability63
of any qualifying improvement;64
(I) All costs of plans and specifications for any qualifying improvement;65 23 LC 50 0465ER
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(J) Repayment of any loans made for the advance payment of any part of any of the66
foregoing costs, including interest thereon and any other expenses of such loans;67
(K) Administrative expenses of the authority and such other expenses as may be68
necessary or incidental to any qualifying improvement or the financing thereof or the69
placing of any qualifying improvement in operation; and70
(L) The establishment of a fund or funds for the creation of a debt service reserve, a71
renewal and replacement reserve, or such other funds or reserves, including for ad72
valorem taxes and insurance, as the authority may approve with respect to the financing73
and operation of any qualifying improvement and as may be authorized by any bond74
resolution, trust agreement, indenture of trust, or similar instrument or agreement75
pursuant to the provisions of which the issuance of any revenue bonds, notes, or other76
obligations of the authority may be authorized.77
Any cost, obligation, or expense incurred for any of the foregoing purposes shall be a part78
of the cost of the qualifying improvement and may be paid or reimbursed as such out of79
proceeds of revenue bonds, notes, or other obligations issued by the authority.80
(7) 'County' means any county of this state or a governmental entity formed by the81
consolidation of a county and one or more municipal corporations.82
(8) 'Financing application' means an application submitted to an authority or program83
administrator to demonstrate that the proposed improvements qualify for financing84
pursuant to a program.85
(9) 'Governing body' means the elected or duly appointed officials constituting the86
governing body of each municipal corporation and county in this state.87
(10) 'Intergovernmental agreement' means a contract entered into pursuant to Article IX,88
Section III, Paragraph I of the Constitution of Georgia between a county or a municipal89
corporation, as party of the first part, and an authority, as party of the second part,90
pursuant to which the county or municipal corporation agrees to make payments to the91 23 LC 50 0465ER
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authority, the sole source of which shall be assessments, to furnish financial assistance92
to aid in the planning, undertaking, or carrying out of a qualifying improvement.93
(11) 'Municipal corporation' means each city and town in this state.94
(12) 'Participating local government' means a municipal corporation or a county that95
enters into an intergovernmental agreement with an authority.96
(13) 'Program' means a commercial property assessed conservation, energy, and97
resiliency program established by an authority.98
(14) 'Program administrator' means any official or agency designated by an authority to99
administer a program or a private and independent third party designated by an authority100
to administer a program, provided that the administration procedures used conform to the101
requirements of Article 2 of this chapter.102
(15) 'Program guidebook' means a comprehensive document that establishes appropriate103
guidelines, specifications, approval criteria, and other standard forms consistent with104
administering a program and not detailed in Article 2 of this chapter, including forms for105
an assessment agreement, notice of assessment, and financing application.106
(16) 'Qualifying improvement' means a permanently affixed energy efficiency107
improvement, renewable energy improvement, water conservation improvement, or108
resiliency improvement installed on qualifying property as part of the construction or109
renovation of the qualifying property.110
(17) 'Qualifying property' means privately owned or leased commercial, industrial, or111
agricultural real property or multifamily residential real property with five or more112
dwelling units.113
(18) 'Resiliency improvement' means any improvement to qualifying property intended114
to increase resilience and improve durability of such property, including, but not limited115
to, seismic retrofits, flood mitigation, fire suppression, wind resistance, energy storage,116
microgrids, and backup power generation.117 23 LC 50 0465ER
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ARTICLE 2118
36-77-2.119
This article shall be known and may be referred to as the 'Commercial Property Assessed120
Conservation, Energy, and Resiliency Development Authorities Law.'121
36-77-3.122
The General Assembly finds that the construction and renovation of commercial buildings123
in a manner that reduces energy and water consumption, produces on-site clean sources of124
energy, and improves resiliency promotes trade, commerce, industry, and employment125
opportunities in the State of Georgia by reducing operating costs for business enterprises126
and promoting the long-term competitiveness of the economy of the State for Georgia.127
Because implementing such improvements requires high up-front capital costs with the128
resulting benefits achieved only over time, such improvements often cannot be financed129
on reasonable terms and are therefore not economically feasible for property owners. It is130
therefore in the public interest and vital to the public welfare of the people of the State of131
Georgia, and it is declared to be the purpose of this article, to create commercial property132
assessed conservation, energy, and resiliency development authorities to facilitate free and133
willing owners of agricultural, commercial, and industrial properties and of multifamily134
residential properties with five or more dwelling units to obtain low-cost, long-term135
financing for qualifying improvements, including energy efficiency, water conservation,136
renewable energy, and resiliency improvements.137
36-77-4.138
This article is enacted pursuant to authority granted to the General Assembly by the139
Constitution of Georgia. Each authority created pursuant to this article is created for140
nonprofit and public purposes, and it is found, determined, and declared that the creation141 23 LC 50 0465ER
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of each authority and the carrying out of its corporate purposes is in all respects for the142
benefit of the people of this state and that each authority is an institution of purely public143
charity and will be performing an essential governmental function in the exercise of the144
power conferred upon it by this article. For such reasons, the state covenants with the145
holders from time to time of the revenue bonds, notes, and other obligations issued under146
this article that no such authority shall be required to pay any taxes or assessments imposed147
by this state or any of its counties, municipal corporations, political subdivisions, or taxing148
districts upon any property acquired by the authority or under its jurisdiction, control,149
possession, or supervision or upon its activities or on any income derived by the authority150
in any form and that the revenue bonds, notes, and other obligations of each such authority,151
their transfer, and the income therefrom shall at all times be exempt from taxation within152
this state. The tax exemption provided in this Code section shall not include any153
exemption from sales and use tax on property purchased by an authority or for use by an154
authority.155
36-77-5.156
(a) There is created in and for each county and municipal corporation in this state a public157
body corporate and politic, to be known as the 'commercial property assessed conservation,158
energy, and resiliency development authority' of such county or municipal corporation. No159
authority shall transact any business or exercise any powers under this article until the160
governing body of the county or municipal corporation, by proper ordinance or resolution,161
declares that there is a need for an authority to function in the county or municipal162
corporation.163
(b) Any number of counties and municipal corporations, whether or not located in the164
same county or within a county participating in the formation of a joint authority, may165
jointly form an authority, to be known as the 'joint commercial property assessed166
conservation, energy, and resiliency development authority' for such counties and167 23 LC 50 0465ER
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municipal corporations. No authority shall transact any business or exercise any powers168
under this article until the governing authorities of the units of local government involved169
declare, by ordinance or resolution, that there is a need for an authority to function and170
until the governing authorities authorize the chief elected official of the unit of local171
government to enter into an agreement with the other units of local government for the172
activation of an authority and such agreement is executed.173
(c) A copy of such ordinances, resolutions, and agreements shall be filed with the174
Secretary of State, who shall maintain a record of all authorities activated under this article.175
36-77-6.176
(a) Except as provided in this Code section, control and management of each authority shall177
be vested in a board of five directors who shall be residents of the county or municipal178
corporation and shall serve at the pleasure of the governing body of the county or179
municipal corporation. Directors shall be appointed, and may be reappointed, by the180
governing body of the county or municipal corporation for terms of four years. In the case181
of a joint commercial property assessed conservation, energy, and resiliency development182
authority, each unit of local government participating in the authority shall appoint two183
members, with an additional member to be appointed by the directors themselves. The184
directors shall elect one of their members as chairperson and another as vice chairperson185
and shall also elect a secretary and a treasurer or a secretary-treasurer, either of whom may186
be, but need not be, a director. The directors shall receive no compensation for their187
services but shall be reimbursed for their actual expenses incurred in the performance of188
their duties. The directors may make bylaws and regulations for the governing of the189
authority and may delegate to one or more of the officers, agents, and employees of the190
authority such powers and duties as may be deemed necessary and proper.191 23 LC 50 0465ER
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(b) Directors or members appointed by the county or municipal corporation to any other192
authority and elected or appointed officials of the county or municipal corporation may193
serve as directors of the authority.194
36-77-7.195
A majority of the directors shall constitute a quorum for the transaction of business of an196
authority; provided, however, that any action with respect to any assessment financing by197
an authority shall be approved by the affirmative vote of not less than a majority of the198
directors.199
36-77-8.200
(a) Each authority shall have all of the powers necessary or convenient to carry out and201
effectuate the purposes and provisions of this article, including, but without limiting the202
generality of the foregoing, the power:203
(1) To bring and defend actions;204
(2) To adopt and amend a corporate seal;205
(3) To make and execute contracts, agreements, and other instruments necessary or206
convenient to exercise the powers of the authority or to further the public purpose for207
which the authority is created, including, but not limited to, intergovernmental208
agreements, assessment agreements, and agreements for grants or loans to finance or209
refinance qualifying improvements;210
(4) To finance by loan, grant, or otherwise, including through assessment agreements,211
and refinance qualifying improvements and to pay the cost of any qualifying212
improvement from the proceeds of revenue bonds, notes, or other obligations of the213
authority or any other funds of the authority, or from any contributions or loans by214
persons, corporations, partnerships, whether limited or general, or other entities, all of215
which the authority is authorized to receive, accept, and use;216 23 LC 50 0465ER
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(5) To borrow money to further or carry out its public purpose and to execute revenue217
bonds, notes, or other obligations; trust indentures; trust agreements; agreements for the218
sale of its revenue bonds, notes, or other obligations; loan agreements; security219
agreements; assignments; and such other agreements or instruments as may be necessary220
or desirable, in the judgment of the authority, to evidence and to provide security for such221
borrowing;222
(6) To issue revenue bonds, notes, or other obligations of the authority and use the223
proceeds thereof for the purpose of paying, or loaning or granting the proceeds thereof224
to pay, all or any part of the cost of any qualifying improvement and otherwise to further225
or carry out the public purpose of the authority and to pay all costs of the authority226
incidental to, or necessary and appropriate to, furthering or carrying out such purpose;227
(7) To make application directly or indirectly to any federal, state, county, or municipal228
government or agency or to any other source, whether public or private, for loans, grants,229
guarantees, or other financial assistance in furtherance of the authority’s public purpose230
and to accept and use the same upon such terms and conditions as are prescribed by such231
federal, state, county, or municipal government or agency or other source; 232
(8) To extend credit or make loans or grants to any person, corporation, partnership,233
whether limited or general, or other entity for the costs of any qualifying improvement234
or any part of the costs of any qualifying improvement, which credit, loans, or grants may235
be evidenced or secured by loan agreements, grant agreements, assessment agreements,236
notes, mortgages, deeds to secure debt, trust deeds, security agreements, assignments, or237
such other instruments, or by assessments, revenues, fees, or charges, upon such terms238
and conditions as the authority shall determine to be reasonable in connection with such239
extension of credit, loans, or grants, including provision for the establishment and240
maintenance of reserve funds; and, in the exercise of powers granted by this article in241
connection with any qualifying improvement, the authority shall have the right and power242
to require the inclusion in any such loan agreement, grant agreement, assessment243 23 LC 50 0465ER
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agreement, note, mortgage, deed to secure debt, trust deed, security agreement,244
assignment, or other instrument of such provisions or requirements for guaranty of any245
obligations, insurance, construction, use, operation, maintenance, and financing of a246
qualifying improvement, and such other terms and conditions as the authority may deem247
necessary or desirable;248
(9) As security for repayment of any revenue bonds, notes, or other obligations of the249
authority, to pledge, convey, assign, hypothecate, or otherwise encumber any property250
of the authority, including, but not limited to, contract rights under intergovernmental251
agreements and revenues or other funds, and to execute any trust indenture; trust252
agreement; agreement for the sale of the authority’s revenue bonds, notes, or other253
obligations; loan agreement; security agreement; assignment; or other agreement or254
instrument as may be necessary or desirable, in the judgment of the authority, to secure255
any such revenue bonds, notes, or the obligations, which instruments or agreements may256
provide for foreclosure or forced sale of any property of the authority upon default in any257
obligation of the authority, either in payment of principal, premium, if any, or interest or258
in the performance of any term or condition contained in any such agreement or259
instrument. The State of Georgia, on behalf of itself and each county, municipal260
corporation, political subdivision, or taxing district therein, waives any right it or such261
county, municipal corporation, political subdivision, or taxing district may have to262
prevent the forced sale or foreclosure of any property of the authority upon such default263
and agrees that any agreement or instrument encumbering such property may be264
foreclosed in accordance with law and the terms thereof;265
(10) To receive and use the proceeds of any assessment imposed by a municipal266
corporation or a county to pay the costs of any qualifying improvement or for any other267
purpose for which the authority may use its own funds pursuant to this article, including268
the payment of principal of, premium, if any, and interest on revenue bonds, notes, or269
other obligations of the authority;270 23 LC 50 0465ER
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(11) To receive and administer gifts, grants, and devises or money and property of any271
kind and to administer trusts;272
(12) To acquire, by purchase, lease, or otherwise, and use any real property, personal273
property, or fixtures or any interest therein or to rent or lease such property to or from274
others or make contracts with respect to the use thereof, or to sell, lease, exchange,275
transfer, assign, pledge, or otherwise dispose of or grant options for any such property in276
any manner as it deems to the best advantage of the authority and the public purpose277
thereof;278
(13) To acquire, accept, or retain equitable interests, security interests, or other interests279
in any real property, personal property, or fixtures by loan agreement, note, mortgage,280
deed to secure debt, trust deed, security agreement, assignment, pledge, conveyance,281
contract, lien, or other consensual transfer in order to secure the repayment of any282
moneys loaned or credit extended by the authority;283
(14) To establish and administer programs;284
(15) To appoint, select, and employ program administrators, accountants, fiscal agents,285
attorneys, and others and to fix their compensation and pay their expenses;286
(16) To adopt bylaws governing the conduct of business by the authority, the election287
and duties of officers of the authority, and other matters that the authority determines to288
address in its bylaws;289
(17) To exercise any power granted by the laws of this state to public or private290
corporations that is not in conflict with the public purpose of the authority; and291
(18) To do all things necessary or convenient to carry out the powers conferred by this292
article.293
(b) The powers enumerated in each paragraph of subsection (a) of this Code section are294
cumulative of and in addition to those powers enumerated elsewhere in this article, and no295
such power limits or restricts any other power of the authority except that, notwithstanding296 23 LC 50 0465ER
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any other provision of this article, no authority described in this article shall be granted the297
power of eminent domain.298
(c) When an authority exercises its grant powers given by subsection (a) of this Code299
section, in determining compliance with Article III, Section VI, Paragraph VI(a) of the300
Constitution of Georgia, the authority may take into consideration the assessments to be301
paid by the grant recipient, as well as the substantiality of the public purpose to be achieved302
by the grant.303
36-77-9.304
(a) Revenue bonds, notes, or other obligations issued by an authority shall be paid solely305
from the property, including, but not limited to, contract rights, revenues, or other funds,306
pledged, conveyed, assigned, hypothecated, or otherwise encumbered to secure or to pay307
such bonds, notes, or other obligations.308
(b) All revenue bonds, notes, and other obligations shall be authorized by resolution of the309
authority, adopted by a majority vote of the directors of the authority at a regular or special310
meeting.311
(c) Revenue bonds, notes, or other obligations shall bear such date or dates; shall mature312
at such time or times, not more than 40 years from their respective dates; shall bear interest313
at such rate or rates, which may be fixed or may fluctuate or otherwise change from time314
to time; shall be subject to redemption on such terms; and shall contain such other terms,315
provisions, covenants, assignments, and conditions as the resolution authorizing the316
issuance of such bonds, notes, or other obligations may permit or provide. The terms,317
provisions, covenants, assignments, and conditions contained in or provided or permitted318
by any resolution of the authority authorizing the issuance of such revenue bonds, notes,319
or other obligations shall bind the directors of the authority then in office and their320
successors.321 23 LC 50 0465ER
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(d) The authority shall have the power from time to time and whenever it deems it322
expedient to refund any revenue bonds, notes, or other obligations by the issuance of new323
revenue bonds, notes, or other obligations, whether or not the revenue bonds, notes, or324
other obligations to be refunded have matured, and may issue revenue bonds, notes, or325
other obligations partly to refund revenue bonds, notes, or other obligations then326
outstanding and partly for any other purpose permitted under this article. The refunding327
revenue bonds, notes, or other obligations may be exchanged for the revenue bonds, notes,328
or other obligations to be refunded, with such cash adjustments as may be agreed upon, or329
may be sold and the proceeds applied to the purchase or redemption of the revenue bonds,330
notes, or other obligations to be refunded.331
(e) There shall be no limitation upon the amount of revenue bonds, notes, or other332
obligations that an authority may issue. Any limitations with respect to interest rates or any333
maximum interest rate or rates found in Article 3 of Chapter 82 of this title, the "Revenue334
Bond Law," the usury laws of this state, or any other laws of this state shall not apply to335
revenue bonds, notes, or other obligations of an authority.336
36-77-10.337
(a) All revenue bonds issued by an authority under this article shall be issued and validated338
under and in accordance with Article 3 of Chapter 82 of this title, the "Revenue Bond339
Law," except as provided in this article, provided that notes and other obligations of an340
authority may, but shall not be required to, be so validated.341
(b) Bonds issued by an authority may be in such form, either coupon or fully registered,342
or both coupon and fully registered, and may be subject to such exchangeability and343
transferability provisions, as the bond resolution authorizing the issuance of such bonds or344
any indenture or trust agreement may provide.345
(c) Bonds shall bear a certificate of validation. The signature of the clerk of the superior346
court of the county in which the issuing authority is located may be made on the certificate347 23 LC 50 0465ER
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of validation of such bonds by facsimile or by manual execution, stating the date on which348
such bonds were validated, and such entry shall be original evidence of the fact of349
judgment and shall be received as original evidence in any court in this state.350
(d) In lieu of specifying the rate or rates of interest that bonds to be issued by an authority351
are to bear, the notice to the district attorney or the Attorney General; the notice to the352
public of the time, place, and date of the validation hearing; and the petition and complaint353
for validation may state that the bonds when issued will bear interest at a rate not exceeding354
a maximum per annum rate of interest, which may be fixed or may fluctuate or otherwise355
change from time to time, specified in such notices and petition and complaint or may state356
that, in the event the bonds are to bear different rates of interest for different maturity dates,357
none of such rates will exceed the maximum rate, which may be fixed or may fluctuate or358
otherwise change from time to time, so specified; provided, however, that nothing in this359
Code section shall be construed as prohibiting or restricting the right of an authority to sell360
such bonds at a discount, even if in doing so the effective interest cost resulting therefrom361
would exceed the maximum per annum interest rate specified in such notices and in the362
petition and complaint.363
(e) The terms 'cost of the qualifying improvement' and 'cost of any qualifying364
improvement' shall have the meaning prescribed in this article whenever those terms are365
referred to in bond resolutions of an authority; in bonds, notes, or other obligations of an366
authority; or in notices or proceedings to validate such bonds, notes, or other obligations367
of an authority.368
36-77-11.369
(a) Subject to the limitations and procedures provided by this Code section and by Code370
Section 36-77-10, the agreements or instruments executed by an authority may contain371
such provisions not inconsistent with law as shall be determined by the board of directors372
of the authority.373 23 LC 50 0465ER
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(b) The proceeds derived from the sale of all bonds, notes, and other obligations issued by374
an authority shall be held and used for the ultimate purpose of paying, directly or indirectly375
as permitted in this article, all or part of the cost of any qualifying improvement, or for the376
purpose of refunding any bonds, notes, or other obligations issued in accordance with this377
article.378
(c) Issuance by an authority of one or more series of bonds, notes, or other obligations for379
one or more purposes shall not preclude it from issuing other bonds, notes, or other380
obligations in connection with the same qualifying improvement or with any other381
qualifying improvements, but the proceeding wherein any subsequent bonds, notes, or382
other obligations are issued shall recognize and protect any prior loan agreement, security383
agreement, or other agreement or instrument made for any prior issue of bonds, notes, or384
other obligations, unless in the resolution authorizing such prior issue the right is expressly385
reserved to the authority to issue subsequent bonds, notes, or other obligations on a parity386
with such prior issue.387
(d) An authority shall have the power and is authorized, whenever bonds of the authority388
shall have been validated as provided in this article, to issue from time to time its bond389
anticipation notes in anticipation of such bonds as validated and to renew from time to time390
any such bond anticipation notes by the issuance of new bond anticipation notes, whether391
or not the bond anticipation notes to be renewed have matured. The authority may issue392
such bond anticipation notes only to provide funds that would otherwise be provided by the393
issuance of the bonds as validated. Such bond anticipation notes may be authorized, sold,394
executed, and delivered in the same manner as bonds. As with its bonds, the authority may395
sell such bond anticipation notes at public sale or at private sale. Any resolution or396
resolutions authorizing bond anticipation notes of the authority or any issue thereof may397
contain any provisions that the authority is authorized to include in any resolution or398
resolutions authorizing bonds of the authority or any issue thereof, and the authority may399
include in any bond anticipation notes any terms, covenants, or conditions that the authority400 23 LC 50 0465ER
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is authorized to include in any bonds. Validation of such bonds shall be a condition401
precedent to the issuance of such bond anticipation notes, but it shall not be required that402
such bond anticipation notes be judicially validated. Bond anticipation notes shall not be403
issued in an amount exceeding the par value of the bonds in anticipation of which they are404
to be issued.405
36-77-12.406
No bonds, notes, or other obligations of, and no indebtedness incurred by, an authority407
shall constitute an indebtedness or obligation of the State of Georgia or of any county,408
municipal corporation, or political subdivision thereof, nor shall any act of any authority409
in any manner constitute or result in the creation of an indebtedness of this state or of any410
county, municipal corporation, or political subdivision thereof. No holder or holders of any411
such bonds, notes, or other obligations shall ever have the right to compel any exercise of412
the taxing power of this state or of any county, municipal corporation, or political413
subdivision thereof, nor to enforce the payment thereof against any property of this state414
or of any county, municipal corporation, or political subdivision.415
36-77-13.416
(a) A program shall establish a financing application and review process to evaluate such417
applications. The program shall prescribe the form and manner of the financing418
application. At a minimum:419
(1) An applicant shall demonstrate that the qualifying improvement provides a benefit420
to the public in the form of energy or water resource conservation or improved resiliency;421
(2) For an existing building:422
(A) When energy or water efficiency improvements are proposed, an applicant shall423
provide:424 23 LC 50 0465ER
H. B. 206
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(i) An energy or water efficiency analysis by a licensed engineering firm, engineer,425
or other qualified professional listed in the program guidebook; and426
(ii) A statement by the author of the analysis that the proposed qualifying427
improvements will result in more efficient use or conservation of energy or water, the428
reduction of greenhouse gas emissions, or the addition of renewable sources of energy429
or water; or430
(B) When resiliency improvements are proposed, an applicant shall provide431
certification by a licensed engineering firm, engineer, or other qualified professional432
listed in the program guidebook stating that the proposed qualifying improvements will433
result in improved resilience;434
(3) For new construction, an applicant shall provide certification by a licensed435
engineering firm, engineer, or other qualified professional listed in the program436
guidebook stating that the proposed qualifying improvements will enable the qualifying437
property to exceed the current building code requirements for:438
(A) Energy efficiency;439
(B) Water efficiency;440
(C) Renewable energy; or441
(D) Resilience;442
(4) An applicant shall include a certification that the person requesting the proposed443
qualifying improvements is the owner of the qualifying property and that there are no444
delinquent taxes or assessments on the qualifying property; and445
(5) An applicant must demonstrate that the proposed assessment financing meets the446
following guidelines and any other guidelines adopted by the authority, which may be in447
addition to or more restrictive than the following guidelines:448
(A) Unless a higher percentage is agreed to by the holder of a lien, mortgage, or449
security deed encumbering the qualifying property in the written consent required by450
subsection (b) of this Code section, an applicant must demonstrate that the amount of451 23 LC 50 0465ER
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the proposed assessment and all other debt secured by the qualifying property upon452
execution of the assessment agreement will not exceed 80 percent of the fair market453
value of the qualifying property as determined by a qualified appraiser, whose appraisal454
may take into account the expected increase in fair market value of the qualifying455
property resulting from the proposed qualifying improvements, as completed or as456
stabilized;457
(B) An applicant must demonstrate that the amount of the proposed assessment458
financing will not exceed 25 percent of the fair market value of the qualifying property459
as determined by a qualified appraiser, which appraisal may take into account the460
expected increase in fair market value of the qualifying property resulting from the461
proposed qualifying improvements, as completed or as stabilized; and462
(C) An applicant must demonstrate that the period or term of the assessment financing463
will not exceed the weighted average useful life expected for the proposed qualifying464
improvements. The applicant shall include a statement from a qualified professional465
indicating the weighted average useful life expected for the proposed qualifying466
improvements.467
(b) For approved qualifying improvements, an authority may enter into an assessment468
agreement with the owner of the qualifying property to pay the cost of qualifying469
improvements. Prior to entering into an assessment agreement, an applicant shall provide470
written consent from any holder of a lien, mortgage, or security deed encumbering the471
qualifying property. Such written consent shall be signed in the sole and absolute472
discretion of the holder of a prior lien, mortgage, or security deed encumbering the473
qualifying property and, at a minimum, shall state that the holder of such prior lien,474
mortgage, or security deed has reviewed the final terms of the financing and the assessment475
agreement; that the qualifying property may participate in the program; and that the476
assessment lien shall have the same priority status as a lien for ad valorem taxes of the477
participating local government.478 23 LC 50 0465ER
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(c) Each assessment agreement shall include:479
(1) A description of the qualifying improvements;480
(2) A statement describing the procedures for billing and collection of assessments to be481
imposed by the participating local government pursuant to an intergovernmental482
agreement, which the owner of the qualifying property shall voluntarily request to be483
imposed and shall agree to pay either directly or through an escrow account that may be484
established or increased by a prior lien holder on the qualifying property;485
(3) The total amount of the assessment;486
(4) A schedule of assessment installments requested to be imposed by the participating487
local government;488
(5) Any administrative fees to be paid to the authority or to the participating local489
government;490
(6) The number of years the assessment shall be imposed on the qualifying property; and491
(7) The conditions under which the owner of the qualifying property may prepay and492
permanently satisfy the unpaid portion of the assessment and remove the assessment lien493
from the qualifying property, including a description of the terms of any prepayment494
penalty.495
(d) An assessment agreement may authorize the owner of the qualifying property to496
contract directly, including through lease, power purchase agreement, or other service497
contract, for installing or modifying a qualifying improvement.498
(e) Upon execution of an assessment agreement by an owner of the qualifying property499
and an authority, the authority shall cause the participating local government to execute and500
record a notice of assessment in the land record of the jurisdiction in which the qualifying501
property is located, in accordance with Article 3 of this chapter.502
(f) No authority described in this article shall grant any capital provider the exclusive right503
to provide financing or refinancing on a program-wide basis. It is the intent of this504
subsection to enable owners of qualifying properties to recommend to authorities the505 23 LC 50 0465ER
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capital providers to finance or refinance the qualifying improvements owned or to be506
owned by such qualifying property owners.507
36-77-14.508
A municipal corporation, a county, or any number of counties and municipal corporations509
shall have the right to activate an authority under this article, notwithstanding the existence510
of any other development authority within the county or municipal corporation created511
pursuant to any general law or amendment to the Constitution of this state. Nothing in this512
article shall be construed as repealing, amending, superseding, or altering the organization513
of or abridging the powers of such authorities as are now in existence.514
36-77-15.515
This article shall be liberally construed to effect the purposes hereof. The offer, sale, or516
issuance of bonds, notes, or other obligations by an authority shall not be subject to517
regulation under Chapter 5 of Title 10, the "Georgia Uniform Securities Act of 2008." No518
notice, proceeding, or publication except those required by this article shall be necessary519
to the performance of any act authorized by this article, nor shall any such act be subject520
to referendum.521
36-77-16.522
(a) Except as otherwise provided in this Code section, an authority created pursuant to this523
article shall have perpetual existence.524
(b) If an authority does not have any outstanding undischarged obligations, the authority525
may be dissolved as provided in this subsection. If the authority was activated for a single526
county or municipal corporation as provided in subsection (a) of Code Section 36-77-5, the527
authority may be dissolved by adoption of an appropriate resolution by the governing body528
of such county or municipal corporation. If the authority was activated for two or more529 23 LC 50 0465ER
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counties or municipal corporations as provided in subsection (b) of Code Section 36-77-5,530
the authority may be dissolved by the adoption of appropriate concurrent resolutions by the531
governing bodies of all such counties or municipal corporations.532
(c) If an authority previously activated for a single county or municipal corporation is so533
dissolved, all assets, rights, and undischarged obligations of the former authority shall534
devolve to the parent county or municipal corporation. If an authority previously activated535
for two or more counties or municipal corporations is so dissolved, all assets and536
undischarged obligations of the former authority shall devolve to the parent counties or537
municipal corporations in such proportions and manner as shall be specified in the538
appropriate concurrent resolutions dissolving the authority.539
(d) When an authority is dissolved as provided in this Code section, it shall cease to exist540
as of the effective date specified in the appropriate resolution or resolutions. The541
dissolution of an authority, however, shall not prevent the subsequent activation of a new542
authority under this article for the same counties or municipal corporations, in the same543
manner as otherwise specified in this article.544
ARTICLE 3545
36-77-20.546
This article shall be known and may be cited as the 'Commercial Property Assessed547
Conservation, Energy, and Resiliency Cooperation Law.'548
36-77-21.549
The General Assembly finds that it is in the public interest and vital to the public welfare550
of the people of the State of Georgia, and it is declared to be the intent of this article, to551
authorize municipal corporations and counties to enact ordinances or resolutions to552
establish commercial property assessed conservation, energy, and resiliency programs and553 23 LC 50 0465ER
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to enter into agreements with commercial property assessed conservation, energy, and554
resiliency development authorities to carry out such programs, all for the purpose of555
developing trade, commerce, industry, and employment opportunities. It is found and556
declared that the assistance provided in this article for the purposes set forth in Article 2557
of this chapter constitutes a public use and purpose and an essential governmental function558
for which public moneys may be spent and that the provisions hereinafter enacted are559
necessary in the public interest.560
36-77-22.561
(a) For the purpose of aiding and cooperating in the planning, undertaking, constructing,562
or carrying out of qualifying improvements located within the area in which it is authorized563
to act, any municipal corporation or county, upon such terms, with or without564
consideration, as it may determine, may:565
(1) Enter into intergovernmental agreements with an authority respecting action to be566
taken by such municipal corporation or county pursuant to any of the powers granted by567
this article, including the furnishing of funds or other assistance in connection with568
qualifying improvements, provided that the obligations of any such municipal corporation569
or county under any such intergovernmental agreement shall be limited obligations570
payable solely from assessments;571
(2) Do any and all things necessary or convenient to aid or cooperate in the planning,572
undertaking, constructing, and carrying out of qualifying improvements; and573
(3) Grant or contribute assessments to an authority or agree to take such action.574
(b) Any participating local government shall have the power to impose, bill, and collect575
assessments and to pledge and assign assessments to an authority to secure its obligations576
under an intergovernmental agreement.577
(c) Pursuant to Code Section 36-77-13, an authority may enter into an assessment578
agreement with an owner of qualifying property for qualifying improvements, under which579 23 LC 50 0465ER
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such owner voluntarily agrees to the imposition of assessments under this article. After an580
assessment agreement is entered into, and upon notice from the authority, a participating581
local government shall have the power to execute and record a notice of assessment on the582
subject property in the real property records of the relevant county. Such notice of583
assessment shall contain:584
(1) The principal amount of the assessment;585
(2) The legal description of the property;586
(3) The name of each property owner;587
(4) A copy of the assessment agreement, including a schedule of assessments to be588
imposed by the participating local government; and589
(5) A reference to subsection (d) of this Code section authorizing the creation of an590
assessment lien to secure an assessment imposed under this article.591
(d) An assessment imposed by a participating local government under this article:592
(1) Is a lien against the property on which the assessment is imposed, from the date on593
which the notice of assessment is recorded until the assessment, interest, and penalties594
are paid in full; and595
(2) Has the same priority status as a lien for ad valorem taxes levied by the participating596
local government.597
(e) The assessment lien created under this article runs with the land and that portion of the598
assessment that is not yet due may not be accelerated or eliminated by foreclosure of a599
property tax lien or other lien.600
(f) Assessments imposed under this article shall be billed and collected in installments in601
the same manner, by the same tax collector, and at the same times as ad valorem taxes602
levied by the participating local government are billed and collected. The tax collector may603
include any assessment installment as a separate line item on an ad valorem tax bill or may604
send a separate bill for any assessment installment. All proceeds of assessment605
installments received by a participating local government that are subject to a pledge606 23 LC 50 0465ER
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created in an intergovernmental agreement shall be remitted to the applicable authority607
pursuant to the terms of the intergovernmental agreement.608
(g) A delinquent assessment installment that is unpaid when due shall incur interest and609
penalties in the same manner as delinquent ad valorem taxes and shall be enforced by the610
participating local government in the same manner as its ad valorem tax liens. All611
proceeds from enforcing a delinquent assessment installment and related penalties and612
interest received by a participating local government that are subject to a pledge created in613
an intergovernmental agreement shall be remitted to the applicable authority pursuant to614
the terms of the intergovernmental agreement.615
(h) Subject to an intergovernmental agreement, a participating local government may616
charge fees that shall reflect the reasonable costs of the participating local government for617
its actions under this article and that shall be added to the assessment.618
(i) Assessments shall not count against the tax limitations contained in paragraph (20) of619
Code Section 48-5-220 or Code Section 48-5-350.620
36-77-23.621
The exercise by a participating local government of the powers granted by this article may622
be authorized by resolution of the governing body of such participating local government.623
The resolution shall be adopted by a majority of the members of the governing body624
present at a meeting of such governing body, which resolution may be adopted at the625
meeting at which such resolution is introduced. Such a resolution or resolutions shall take626
effect immediately and need not be laid over or published or posted."627
SECTION 2.628
This Act shall become effective upon its approval by the Governor or upon its becoming law629
without such approval.630 23 LC 50 0465ER
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SECTION 3.
631
All laws and parts of laws in conflict with this Act are repealed.632