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 96 Original 2024 Regular Session Geymann
Abstract: Authorizes a parish to create a program whereby loans are made for improvements to
property and the loans are repaid through an assessment imposed by the parish against the
property.
Proposed law authorizes a parish to establish a property assessed clean energy and resilience loan
program, hereafter in this digest, the "program", to encourage, accommodate, and enable financing
of eligible improvements to property. Provides that an eligible improvement is one that:
(1)Increases the capacity of a structure to withstand natural or manmade disasters or severe
weather.
(2)Promotes indoor air and water quality.
(3)Decreases water consumption or demand.
(4)Decreases energy consumption or demand.
Proposed law provides that loans for such improvements are repaid through an assessment imposed
by the parish on the improved property. Provides that a parish may enforce such an assessment in
the same manner as other parish liens.
Proposed law authorizes a parish to contract with a third-party program administrator.
Program specifications include the following:
(1)The term for repayment of a loan shall not exceed the weighted average usefulness of eligible
improvements or 30 years, whichever is less.
(2)The total loan-to-value ratio for all loans secured by the qualified property shall not exceed
100%.
(3)If there is a nonpayment or default, prohibits acceleration of the loan and provides that a loan
delinquency shall exist only for liens not paid when due.
(4)Requires that the property owner be current on all outstanding mortgage loans encumbering
the property. (5)Requires written consent from any holder of a lien, mortgage, or security interest in the
property authorizing participation in the program and that the program lien shall take priority
over all other liens except for ad valorem tax liens.
(6)Authorizes a lessee to finance improvements if specified conditions are met.
Proposed law provides as follows regarding repayment of the loan:
(1)The parish governing authority shall assess the loan amount, including capitalized interest
and administrative fees, against the property.
(2)Requires the program administrator or capital provider to file a statement of program lien
with the parish recorder of mortgages.
(3)Authorizes the parish to enforce the program lien. Provides that the program lien is not
extinguished by the enforcement or foreclosure of the property.
(4)Requires a seller of property with a program lien and an unpaid balance due to disclose the
lien to the purchaser.
(Adds R.S. 33:4550.1-4550.4)