DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part of the
legislative instrument. The keyword, one-liner, abstract, and digest do not constitute part of the law
or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 619 Original 2021 Regular Session Hilferty
Abstract: Authorizes parish governing authorities to create commercial property assessed clean
energy resilient programs in federally designated opportunity zones.
Proposed law authorizes parish governing authorities to establish, by ordinance, commercial
property assessed clean energy resilient programs (Resilient C-PACE) in federally designated
opportunity zones located within in their respective jurisdictions. Provides that Resilient C-PACE
is a loan program created to encourage, accommodate, and enable financing of eligible
improvements made by capital providers to property owners. Requires that the ordinance designate
the areas within the parish in which Resilient C-PACE activities are eligible. Authorizes the parish
to contract with a third-party program administrator to manage the program.
Proposed law provides that the owner of a qualified property may request a loan from a capital
provider to cover all direct and indirect costs related to the installation, modification, or new
construction of eligible improvements to be affixed to the qualified property. Requires the program
administrator to accept or reject a loan request according to criteria established by the program
administrator. Provides that the term for repayment of a loan cannot exceed the weighted average
usefulness of eligible improvements or 30 years, whichever is less.
Proposed law requires an owner to be current on all outstanding mortgage loans encumbering the
qualified property in order to qualify for financing. Requires an appropriate evaluation, such as
energy analysis or renewable energy system feasibility study to be conducted on the qualified
property prior to the loan. Prohibits acceleration of a loan in the case of default and provides that
a loan delinquency shall exist only for liens not paid when due.
Proposed law requires a capital provider, prior to entering a financing agreement, to receive written
consent from any holder of a lien, mortgage, or security interest in the qualified property that the
property may participate in Resilient C-PACE and the Resilient C-PACE lien takes priority over all
other liens, except for ad valorem tax liens. Provides that the consent takes the form and substance
of a written lender consent and subordination agreement. Provides further with respect to the content
requirements of the agreement.
Proposed law requires that the loan amount, including capitalized interest and administrative fees,
be assessed against the qualified property upon which the eligible improvements are affixed and be
collected by the program administrator, third-party servicer, or capital provider. Requires the capital
provider, in order to secure repayment of a loan, to file a statement of Resilient C-PACE lien with
the recorder of mortgages for the parish in which the qualified property is located upon entering into a loan with a property owner. Provides further with respect to content requirements of the statement.
Proposed law requires that the ordinance that establishes the district authorize the parish to enforce
the Resilient C-PACE lien in the same manner as other parish enforced liens.
Proposed law provides that upon failure of the property owner to pay the current year's Resilient
C-PACE payment, the parish can enforce the Resilient C-PACE lien and privilege to recover and
collect the current year's payment along with payments remaining delinquent from previous years.
Provides that the Resilient C-PACE lien and privilege has the same ranking as ad valorem tax liens
as provided in present law, and may be enforced and collected and authorized by present law.
Proposed law requires that loans be repaid by the property owner through loan payments made in the
amounts and at such times as set forth in the loan documents and the Resilient C-PACE program
guide. Provides that the capital provider is responsible for the servicing of the loans and the
collection of loan payments. Requires the program administrator to provide written evidence of
cancellation and release of the Resilient C-PACE lien and to record it in the public mortgage records
for the parish once the loan is paid in full.
(Adds R.S. 33:4550.1-4550.5)