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 62 Original 2025 Regular Session Tarver
Abstract: Authorizes a parish to create a program whereby financing is made for improvements to
commercial property and the financing is repaid through an assessment imposed by the parish
against the property.
Proposed law authorizes a parish governing authority to establish a commercial property assessed
capital expenditure and resilience financing program (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 financing 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 the financing shall not exceed the useful life of the longest lived
eligible improvement or 30 years, whichever is less.
(2)The total loan-to-value ratio for all liens secured by the qualified property shall not exceed
100%.
(3)If there is a nonpayment or default, prohibits acceleration of the financing and provides that
a delinquency shall exist only for the portion of the financing 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 mortgage on 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 financing:
(1)The parish governing authority shall assess the financing amount, including accrued interest,
together with attorney fees and other administrative costs, against the property.
(2)Requires the program administrator 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 provide a
written disclosure of the lien to the purchaser.
(Adds R.S. 33:4550.1-4550.4)