Louisiana House Bill HB681

Louisiana 2012 Regular Session

• Introduced: 3/12/12
• Refer: 3/12/12

Caption

Provides relative to energy efficiency or renewable energy improvement loans (OR SEE FISC NOTE LF EX)

Impact

The bill stipulates specific requirements when a loan proposal of $100,000 or more for a commercial property encumbered by a mortgage is made. It mandates that property owners provide written notice to existing mortgage holders about planned financing agreements, ensuring adequate transparency and preventing unilateral modifications by mortgage lenders against property owners. This establishes a more regulated approach to the interactions between property owners and lenders regarding improvements tied to financing they may seek.

Summary

House Bill 681 aims to provide a framework for financing energy efficiency and renewable energy improvement loans through sustainable energy financing districts. It allows local governments to create special districts that can incur debt to fund the loans necessary for property owners to make energy efficiency improvements. The bill reinforces the existing framework while ensuring that property owners can request financing for these improvements, thereby promoting energy conservation initiatives within the state.

Sentiment

The sentiment surrounding HB 681 appears to be supportive of enhancing energy efficiency and promoting renewable energy initiatives. Advocates view this bill as a proactive step towards reducing the state's carbon footprint and increasing the sustainability of residential and commercial properties. Concerns may arise around the potential complexities involved for property owners in navigating these financing agreements, particularly regarding communication with mortgage holders, yet the overarching sentiment leans toward favoring sustainability.

Contention

Notable points of contention could arise from the balance struck between encouraging energy improvements and ensuring that property owners are not unduly burdened by the notification requirements to mortgage holders. There is a concern that while aiming to promote sustainable energy use, the oversight and conditions placed on financing agreements may slow down the process for obtaining necessary loans, potentially hampering the timely execution of energy improvement projects.