RÉSUMÉ DIGEST
ACT 643 (HB 766) 2016 Regular Session Broadwater
Prior law authorized the governing authority of a parish or municipality to create a special
district known as a sustainable energy financing district. Relative to financing for projects,
authorized the local governmental subdivision to incur debt in order to provide to the district
sufficient funds to make the loans provided for in prior law and authorized owners of
property in the district to request loans from the district to cover the costs of energy-related
improvements to their property.
Prior law provided that if the property for which an energy improvement loan was sought
was encumbered by a mortgage, then the total amount loaned for such property could not
exceed 10% of the reasonable expected fair market value of the property.
Prior law provided that loans from the district for a particular property could not exceed the
equity value in the property. Prohibited the total loan to value ratio for all loans secured by
the immovable property from exceeding 100%. Provided that the calculation of equity value
used to determine the maximum amount of financing available for a particular property could
take into account the reasonable expected value of the property with the proposed energy
improvements installed.
Prior law required the property owner to be current on all outstanding mortgage loans
encumbering the property and further required the owner to demonstrate an ability to repay
the loan as specified in the program rules. Prior law required that an appropriate evaluation
be conducted on the qualifying property and reviewed by the district prior to approval of the
financing.
Prior law required the district to make written verification that the improvements were
installed on residential property and all work was completed satisfactorily before program
loan funds were disbursed. Authorized disbursement of funds based on multiple stages of
completion.
Prior law required that all energy improvements financed by the program be performed by
duly qualified contractors, subcontractors, or tradesmen pursuant to program rules.
Prior law required that prior written notice be given to the mortgagee, its successors or
assigns, or mortgage servicer of a commercial property for which an energy improvement
loan was proposed in the amount of $100,000 or more. Required the mortgagee, its
successors or assigns, or mortgage servicer to approve or deny the proposed program loan
within 30 days of receipt of notice. Provided further with respect to notice requirements.
Prior law required that the amount of the loan be assessed against the property and collected
in the same manner as ad valorem taxes. Authorized the district to enter into agreements
with the property tax collector for assessing and collecting the assessment.
Prior law required the local governmental subdivision, in order to secure repayment of loans,
to file a statement of lien with the recorder of mortgages for the parish in which the property
was located. Authorized the local governmental subdivision and district, upon failure of the
property owner to pay the current year's assessment when due, to enforce the lien and
privilege. Provided that the lien and privilege had the same ranking as an ad valorem tax lien
and could be enforced and collected by ordinary civil proceeding, executory process, or by
any other applicable state law to enforce and collect the amount due as a property tax lien.
New law repeals prior law.
Effective August 1, 2016.
(Repeals R.S. 33:130.811-814)