Massachusetts 2025-2026 Regular Session

Massachusetts House Bill H3040 Compare Versions

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2	2	HOUSE DOCKET, NO. 1901 FILED ON: 1/15/2025
3	3	HOUSE . . . . . . . . . . . . . . . No. 3040
4	4	The Commonwealth of Massachusetts
5	5	_________________
6	6	PRESENTED BY:
7	7	Daniel Cahill
8	8	_________________
9	9	To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
10	10	Court assembled:
11	11	The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:
12	12	An Act relating to improvements to residential properties.
13	13	_______________
14	14	PETITION OF:
15	15	NAME:DISTRICT/ADDRESS :DATE ADDED:Daniel Cahill10th Essex1/15/2025 1 of 17
16	16	HOUSE DOCKET, NO. 1901 FILED ON: 1/15/2025
17	17	HOUSE . . . . . . . . . . . . . . . No. 3040
18	18	By Representative Cahill of Lynn, a petition (accompanied by bill, House, No. 3040) of Daniel
19	19	Cahill relative to the financing of qualifying improvements to residential property. Revenue.
20	20	The Commonwealth of Massachusetts
21	21	_______________
22	22	In the One Hundred and Ninety-Fourth General Court
23	23	(2025-2026)
24	24	_______________
25	25	An Act relating to improvements to residential properties.
26	26	Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
27	27	of the same, as follows:
28	28	1 SECTION 1. The General Laws are hereby amended by inserting after chapter 80A
29	29	2the following chapter:-
30	30	3 Chapter 80B
31	31	4 Section 1. As used in this chapter, the following words shall, unless the context clearly
32	32	5requires otherwise, have the following meanings:-
33	33	6 “Benefitted property owner”, an owner of qualifying residential property who desires to
34	34	7install qualifying improvements and who provides free and willing consent to the betterment
35	35	8assessment against the qualifying residential property.
36	36	9 “Betterment Assessment”, an assessment of a betterment on qualified residential
37	37	10property in relation to qualifying improvements that have been duly assessed in accordance with
38	38	11chapter 80. 2 of 17
39	39	12 “Municipality”, a city, town, or county.
40	40	13 “Participating municipality”, a municipality that has determined to participate in a
41	41	14program for financing qualifying improvements to residential property.
42	42	15 “Program administrator”, means a municipality or a separate legal entity created
43	43	16pursuant to the provisions of this legislation that directly operates a program for financing
44	44	17qualifying improvements and is authorized pursuant to the provisions of this legislation.
45	45	18 “Property owner”, means the owner or owners of record of real property. The term
46	46	19includes real property held in trust for the benefit of one or more individuals, in which case the
47	47	20individual or individuals may be considered as the property owner or owners, provided that the
48	48	21trustee provides written consent. The term does not include persons renting, using, living in, or
49	49	22otherwise occupying real property.
50	50	23 “Qualifying improvement”, shall include, but shall not be limited to, the following
51	51	24permanent improvements located on residential property: : (i) repairing, replacing, or improving
52	52	25a central sewerage system, converting an onsite sewage treatment and disposal system to a
53	53	26central sewerage system, or, if no central sewerage system is available, removing, repairing,
54	54	27replacing, or improving an onsite sewage treatment and disposal system to an advanced system
55	55	28or technology; (ii) repairing, replacing, or improving a roof, including improvements that
56	56	29strengthen the roof deck attachment; create a secondary water barrier to prevent water intrusion;
57	57	30install wind-resistant shingles or gable-end bracing; or reinforce roof-to-wall connections; (iii)
58	58	31providing flood and water damage mitigation and resiliency improvements, prioritizing repairs,
59	59	32replacement, or improvements that qualify for reductions in flood insurance premiums, including
60	60	33raising a structure above the base flood elevation to reduce flood damage; constructing a flood 3 of 17
61	61	34diversion apparatus, drainage gate, or seawall improvement, including seawall repairs and
62	62	35seawall replacements; purchasing flood damage-resistant building materials; or making
63	63	36electrical, mechanical, plumbing, or other system improvements that reduce flood damage;
64	64	37(iv)replacing windows or doors, including garage doors, with energy-efficient, impact-resistant,
65	65	38wind-resistant, or hurricane windows or doors or installing storm shutters (v) installing energy-
66	66	39efficient heating, cooling, or ventilation systems; (vi) replacing or installing insulation; (vii)
67	67	40replacing or installing energy-efficient water heaters: (viii) installing and affixing a permanent
68	68	41generator; (ix) providing a renewable energy improvement, including the installation of any
69	69	42system in which the electrical, mechanical, or thermal energy is produced from a method that
70	70	43uses solar, geothermal, bioenergy, wind, or hydrogen; (x) energy conservation and efficiency
71	71	44improvements, which are measures to reduce consumption through efficient use or conservation
72	72	45of electricity, natural gas, propane, or other forms of energy, including but not limited to, air
73	73	46sealing; installation of insulation; installation of energy-efficient heating, cooling, or ventilation
74	74	47systems; building modification to increase the use of daylight; window replacement; windows;
75	75	48energy controls or energy recovery systems; installation of electric vehicle charging equipment;
76	76	49installation of efficient lighting equipment; or any other improvements necessary to achieve a
77	77	50sustainable building rating or compliance with a national model green building code; and (xi)
78	78	51water conservation efficiency improvements, which are measures to reduce consumption through
79	79	52efficient use or conservation of water.
80	80	53 “Qualifying improvement contractor”, means a licensed or registered contractor who has
81	81	54been registered to participate by a program administrator pursuant to the provisions of this
82	82	55legislation to install or otherwise perform work to make qualifying improvements on residential
83	83	56property financed pursuant to a program authorized pursuant to the provisions of this legislation. 4 of 17
84	84	57 “Residential property”, means real property zoned as residential or multifamily
85	85	58residential and composed of four or fewer dwelling units.
86	86	59 “Third-party administrator”, means an entity under contract with a program
87	87	60administrator.
88	88	61 Section 2. (a) (1) Each municipality in the commonwealth shall have the option to
89	89	62participate in the program for financing qualifying improvements to residential property as a
90	90	63participating municipality by a majority vote of the city or town council, by a majority vote of
91	91	64the board of selectmen or by resolution of its legislative body, as may be appropriate, pursuant to
92	92	65which the municipality shall assess, collect, remit and assign betterment assessments, in return
93	93	66for qualifying improvements for a benefitted property owner located within such municipality
94	94	67and for costs reasonably incurred in performing such acts.
95	95	68 (2) A program administrator may only offer a program for financing qualifying
96	96	69improvements to residential property within the jurisdiction of a municipality if the municipality
97	97	70has authorized the program administrator to administer the program for financing qualifying
98	98	71improvements to residential property by a majority vote of the city or town council, by a
99	99	72majority vote of the board of selectmen or by resolution of its legislative body, as may be
100	100	73appropriate. The authorized program must, at a minimum, meet the requirements of this section.
101	101	74 (3) Pursuant to this section or as otherwise provided by law, a municipality may enter
102	102	75into an interlocal agreement providing for a partnership between one or more municipalities for
103	103	76the purpose of facilitating a program to finance qualifying improvements to residential property
104	104	77located within the jurisdiction of the municipalities that are party to the agreement. 5 of 17
105	105	78 (4) A municipality may deauthorize a program administrator through repeal of the vote
106	106	79or the resolution adopted pursuant to paragraph (b) or other action. Any recorded financing
107	107	80agreements at the time of deauthorization shall continue, except as otherwise provided herein.
108	108	81 (5) An authorized program administrator may contract with one or more third-party
109	109	82administrators to implement the program as provided herein.
110	110	83 (6) An authorized program administrator may levy betterment assessments to facilitate
111	111	84repayment of financing qualifying improvements. Costs incurred by the program administrator
112	112	85for such purpose may be collected as a betterment assessment.
113	113	86 (7) In accordance with Chapter 80, betterment assessments levied pursuant to this section
114	114	87and the interest, fees and any penalties thereon shall constitute a lien against the qualifying
115	115	88residential property until they are paid, notwithstanding the provisions of section 12 of chapter
116	116	8980, and shall continue notwithstanding any alienation or conveyance of the qualifying residential
117	117	90property by one property owner to a new property owner. Betterment assessments have fixed
118	118	91interest rates based on market conditions and those rates are not capped by statutes or regulations
119	119	92intended to cover the interest rates of unsecured, credit-based finance options, neither are they
120	120	93limited by restrictions on other betterment financings. A new property owner shall take title to
121	121	94the qualifying residential property subject to the betterment assessment and related lien. The lien
122	122	95shall be levied and collected in the same manner as the property taxes of the participating
123	123	96municipality on real property, including, in the event of default or delinquency, with respect to
124	124	97any penalties, fees and lien priorities. Each lien may be continued, recorded and released upon
125	125	98repayment in full of the betterment assessment in the manner provided for property tax liens.
126	126	99Each lien shall take precedence over all other liens or encumbrances, except a lien for taxes of 6 of 17
127	127	100the municipality on real property. If a lien for property taxes of the municipality is foreclosed,
128	128	101the betterment assessment lien shall be extinguished solely with regard to any installments that
129	129	102were due and owing on the date of foreclosure of such tax lien, but the betterment assessment
130	130	103lien shall otherwise survive the foreclosure. To the extent betterment assessments are paid in
131	131	104installments and any such installment is not paid when due, the betterment assessment lien may
132	132	105be foreclosed to the extent of any unpaid installment payments and any penalties, interest and
133	133	106fees related thereto. In the event such betterment assessment lien is foreclosed, such lien shall
134	134	107survive the foreclosure to the extent of any unpaid installment payments of the betterment
135	135	108assessment secured by such lien that were not the subject of such foreclosure.
136	136	109 (8) A program administrator may incur debt for the purpose of providing financing for
137	137	110qualifying improvements, which debt is payable from revenues received from the improved
138	138	111property or any other available revenue source authorized by law.
139	139	112 (b) The owner of record of the residential property within the jurisdiction of an
140	140	113authorized program may apply to the authorized program administrator to finance a qualifying
141	141	114improvement. The program administrator may only enter into a financing agreement with the
142	142	115property owner.
143	143	116 Section 3. (a) Before entering into a financing agreement, the program administrator
144	144	117must make each of the following findings based on a review of public records derived from a
145	145	118commercially accepted source and the property owner’s statements, records, and credit reports:
146	146	119(1) he total amount of any betterment assessment for a residential property under this section
147	147	120does not exceed 20 percent of the fair market value of the property as determined by customary
148	148	121methods; (2)the financing agreement does not utilize a negative amortization schedule, a balloon 7 of 17
149	149	122payment, or prepayment fees or fines other than nominal administrative costs; (3) capitalized
150	150	123interest included in the original balance of the assessment financing agreement does not
151	151	124constitute negative amortization; (4) all property taxes and any other assessments, including
152	152	125betterment assessments, levied on the same bill as the property taxes are current and have not
153	153	126been delinquent for the preceding 3 years, or the property owner’s period of ownership,
154	154	127whichever is less (5) there are no outstanding fines or fees related to zoning or code enforcement
155	155	128violations issued by a municipality, unless the qualifying improvement will remedy the zoning or
156	156	129code violation; (6) there are no involuntary liens, including, but not limited to, construction liens
157	157	130on the residential property; (7) no notices of default or other evidence of property based debt
158	158	131delinquency have been recorded and not released during the preceding 3 years or the property
159	159	132owner’s period of ownership, whichever is less; (8) the property owner is current on all mortgage
160	160	133debt on the residential property; (9) the property owner has not been subject to a bankruptcy
161	161	134proceeding within the last 5 years unless it was discharged or dismissed more than 2 years before
162	162	135the date on which the property owner applied for financing; (10) the residential property is not
163	163	136subject to an existing home equity conversion mortgage or reverse mortgage product; (11) the
164	164	137term of the financing agreement does not exceed the weighted average useful life of the qualified
165	165	138improvements to which the greatest portion of funds disbursed under the assessment contract is
166	166	139attributable, not to exceed 30 years; (12) the program administrator shall determine the useful
167	167	140life of a qualifying improvement using established standards, including certification criteria from
168	168	141government agencies or nationally recognized standards and testing organizations; (13) the total
169	169	142estimated annual payment amount for all betterment assessments entered into under this section
170	170	143on the residential property does not exceed 10 percent of the property owner’s annual household
171	171	144income; (14) income must be confirmed using reasonable evidence and not solely by a property 8 of 17
172	172	145owner’s statement; and (15) if the qualifying improvement is for the conversion of an onsite
173	173	146sewage treatment and disposal system to a central sewerage system, the property owner has
174	174	147utilized all available local government funding for such conversions and is unable to obtain
175	175	148financing for the improvement on more favorable terms through a local government program
176	176	149designed to support such conversions.
177	177	150 (b) A property owner and the program administrator may agree to include in the
178	178	151financing agreement provisions for allowing change orders necessary to complete the qualifying
179	179	152improvement. Any financing agreement or contract for qualifying improvements which includes
180	180	153such provisions must meet the requirements of this paragraph. If a proposed change order on a
181	181	154qualifying improvement will increase the original cost of the qualifying improvement by 20
182	182	155percent or more or will expand the scope of the qualifying improvement by more than 20
183	183	156percent, before the change order may be executed which would result in an increase in the
184	184	157amount financed through the program administrator for the qualifying improvement, the program
185	185	158administrator must notify the property owner, provide an updated written disclosure form as
186	186	159described in section 4 to the property owner, and obtain written approval of the change from the
187	187	160property owner.
188	188	161 (c) A financing agreement may not be entered into if the total cost of the qualifying
189	189	162improvement, including program fees and interest, is less than $5,000.
190	190	163 (d) A financing agreement may not be entered into for qualifying improvements in
191	191	164buildings or facilities under new construction or construction for which a certificate of
192	192	165occupancy or similar evidence of substantial completion of new construction or improvement has
193	193	166not been issued. 9 of 17
194	194	167 Section 4. (a) In addition to the requirements of sections 3 and 4 , a financing agreement
195	195	168may not be executed unless the program administrator first provides, including via electronic
196	196	169means, a written financing estimate and disclosure to the property owner which includes all of
197	197	170the following, each of which must be individually acknowledged in writing by the property
198	198	171owner: (1) the estimated total amount to be financed, including the total and itemized cost of the
199	199	172qualifying improvement, program fees, and capitalized interest; (2) the estimated annual
200	200	173betterment assessment; (3) the term of the financing agreement and the schedule for the
201	201	174betterment assessments; (4) the interest charged and estimated annual percentage rate; (5 a
202	202	175description of the qualifying improvement; (6) the total estimated annual costs that will be
203	203	176required to be paid under the assessment contract, including program fees; (7) the total estimated
204	204	177average monthly equivalent amount of funds that would need to be saved in order to pay the
205	205	178annual costs of the betterment assessment, including program fees; (8) the estimated due date of
206	206	179the first payment that includes the betterment assessment; (9) a disclosure that the financing
207	207	180agreement may be canceled within 3 business days after signing the financing agreement without
208	208	181any financial penalty for doing so; (10 a disclosure that the property owner may repay any
209	209	182remaining amount owed, at any time, without penalty or imposition of additional prepayment
210	210	183fees or fines other than nominal administrative costs; (11) s disclosure that if the property
211	211	184owner sells or refinances the residential property, the property owner may be required by a
212	212	185mortgage lender to pay off the full amount owed under each financing agreement under this
213	213	186section; (12) a disclosure that the assessment will be collected along with the property owner’s
214	214	187property taxes, and will result in a lien on the property from the date the financing agreement is
215	215	188recorded; (13) a disclosure that potential utility or insurance savings are not guaranteed, and will
216	216	189not reduce the assessment amount; and (14) a disclosure that failure to pay the assessment may 10 of 17
217	217	190result in penalties, fees, including attorney fees, court costs, and the issuance of a tax certificate
218	218	191that could result in the property owner losing the property and a judgment against the property
219	219	192owner, and may affect the property owner’s credit rating.
220	220	193 (b) Prior to the financing agreement being approved, the program administrator must
221	221	194conduct an oral, recorded telephone call with the property owner during which the program
222	222	195administrator must confirm each finding or disclosure required in section 3 and this section.
223	223	196 Section 5. At least 5 business days before entering into a financing agreement, the
224	224	197property owner must provide to the holders or loan servicers of any existing mortgages
225	225	198encumbering or otherwise secured by the residential property a written notice of the owner’s
226	226	199intent to enter into a financing agreement together with the maximum amount to be financed,
227	227	200including the amount of any fees and interest, and the maximum annual assessment necessary to
228	228	201repay the total. A verified copy or other proof of such notice must be provided to the program
229	229	202administrator. A provision in any agreement between a mortgagor or other lienholder and a
230	230	203property owner, or otherwise now or hereafter binding upon a property owner, which allows for
231	231	204acceleration of payment of the mortgage, note, or lien or other unilateral modification solely as a
232	232	205result of entering into a financing agreement as provided for in this section is unenforceable. This
233	233	206subsection does not limit the authority of the holder or loan servicer to increase the required
234	234	207monthly escrow by an amount necessary to pay the annual assessment.
235	235	208 Section 6. A property owner may cancel a financing agreement on a form established by
236	236	209the program administrator within 3 business days after signing the financing agreement without
237	237	210any financial penalty for doing so. 11 of 17
238	238	211 Section 7. .Any financing agreement executed pursuant to this section, or a summary
239	239	212memorandum of such agreement, shall be submitted for recording in the appropriate public
240	240	213records of the municipality within which the residential property is located by the program
241	241	214administrator within 10 business days after execution of the agreement and the 3-day
242	242	215cancellation period. A notice of lien for the full amount of the financing may be recorded in the
243	243	216public records of the county where the property is located. Such lien is not enforceable in a
244	244	217manner that results in the acceleration of the remaining nondelinquent unpaid balance under the
245	245	218assessment financing agreement.
246	246	219 Section 8. At or before the time a seller executes a contract for the sale of any residential
247	247	220property for which a betterment assessment has been levied under this section and has an unpaid
248	248	221balance due, the seller shall give the prospective purchaser a written disclosure statement in the
249	249	222following form, which must be set forth in the contract or in a separate writing:
250	250	223 QUALIFYING IMPROVEMENTS.—The property being purchased is subject to an
251	251	224assessment on the property pursuant to chapter 80 of the Massachusetts General Laws. The
252	252	225assessment is for a qualifying improvement to the property and is not based on the value of the
253	253	226property. You are encouraged to contact the property appraiser’s office to learn more about this
254	254	227and other assessments that may be provided by law.
255	255	228 Section 9. Before disbursing any funds to a qualifying improvement contractor for a
256	256	229qualifying improvement on residential property, the program administrator shall confirm that the
257	257	230applicable work or service has been completed by verifying, either through TruePic or a similar
258	258	231geolocational verification application, or as applicable, that the final permit for the qualifying 12 of 17
259	259	232improvement has been closed with all permit requirements satisfied or a certificate of occupancy
260	260	233or similar evidence of substantial completion of construction or improvement has been issued .
261	261	234 Section 10. (a) A program administrator or its third party administrator shall establish a
262	262	235process to register contractors for participation in a program authorized by a municipality
263	263	236pursuant to the provisions of this legislation. A qualifying improvement contractor may only
264	264	237perform such work that the contractor is appropriately licensed, registered, and permitted to
265	265	238conduct. At the time of application to participate and during participation in the program,
266	266	239contractors must: (1) hold all necessary licenses or registrations for the work to be performed
267	267	240which are in good standing; (2)comply with all applicable federal, state, and local laws and
268	268	241regulations, including obtaining and maintaining any other permits, licenses, or registrations
269	269	242required for engaging in business in the jurisdiction in which it operates and maintaining all
270	270	243state-required bond and insurance coverage; and (3) file with the program administrator a written
271	271	244statement that the contractor will comply with applicable laws and rules and qualifying
272	272	245improvement program policies and procedures, including those on advertising and marketing.
273	273	246 (b)A third-party administrator or a program administrator, either directly or through an
274	274	247affiliate, may not be registered as a qualifying improvement contractor.
275	275	248 (c)A program administrator shall establish and maintain: (1) a process to monitor
276	276	249qualifying improvement contractors for performance and compliance with requirements of the
277	277	250program and must conduct regular reviews of qualifying improvement contractors to confirm
278	278	251that each qualifying improvement contractor is in good standing; and (2) procedures for notice
279	279	252and imposition of penalties upon a finding of violation, which may consist of placement of the 13 of 17
280	280	253qualifying improvement contractor in a probationary status that places conditions for continued
281	281	254participation, suspension, or termination from participation in the program.
282	282	255 Section 11. (a)A program administrator may contract with one or more third-party
283	283	256administrators to administer a program authorized by a municipality pursuant to the provisions of
284	284	257this legislation on behalf of and at the discretion of the program administrator.
285	285	258 (b) The third-party administrator must be independent of the program administrator and
286	286	259have no conflicts of interest between managers or owners of the third-party administrator and
287	287	260program administrator managers, owners, officials, or employees with oversight over the
288	288	261contract. A program administrator, either directly or through an affiliate, may not act as a third
289	289	262party administrator for itself or for another program administrator.
290	290	263 (c) The contract must provide for the entity to administer the program according to the
291	291	264requirements set forth herein and the terms of the vote or resolution by which the municipality
292	292	265authorized the program. However, only the program administrator may levy or administer
293	293	266betterment assessments.
294	294	267 The program administrator must include in any contract with the third-party administrator
295	295	268the right to perform annual reviews of the administrator to confirm compliance with the
296	296	269requirements set forth herein, the terms of the vote or resolution by which the municipality
297	297	270authorized the program, and the contract with the program administrator.
298	298	271 Section 12. (a) When communicating with a property owner, a program administrator,
299	299	272qualifying improvement contractor, or third-party administrator may not suggest or imply: (1)
300	300	273that a betterment assessment authorized under the provisions of this legislation is a government
301	301	274assistance program; (2)that qualifying improvements are free or provided at no cost, or that the 14 of 17
302	302	275financing related to a betterment assessment authorized under the provisions of this legislation is
303	303	276free or provided at no cost; or (3) that the financing of a qualifying improvement using the
304	304	277program authorized pursuant to this legislation does not require repayment of the financial
305	305	278obligation.
306	306	279 (b) When communicating with a property owner, a program administrator, qualifying
307	307	280improvement contractor, or third-party administrator may not (1) make any representation as to
308	308	281the tax deductibility of a betterment assessment; (2) provide to a qualifying improvement
309	309	282contractor any information that discloses the amount of financing for which a property owner is
310	310	283eligible for qualifying improvements or the amount of equity in a residential property; (3)
311	311	284advertise the availability of betterment assessments for, or solicit program participation on behalf
312	312	285of, the program administrator unless the contractor is registered by the program administrator to
313	313	286participate in the program and is in good standing with the program administrator; (4) provide
314	314	287any payment, fee, or kickback to a qualifying improvement contractor for referring property
315	315	288owners to the program administrator or third-party administrator. However, a program
316	316	289administrator or third-party administrator may provide information to a qualifying improvement
317	317	290contractor to facilitate the installation of a qualifying improvement for a property owner; (5)
318	318	291reimburse a qualifying improvement contractor for its expenses in advertising and marketing
319	319	292campaigns and materials; or (6) provide any direct cash payment or other thing of material value
320	320	293to a property owner which is explicitly conditioned upon the property owner entering into a
321	321	294financing agreement. However, a program administrator or third-party administrator may offer
322	322	295programs or promotions on a nondiscriminatory basis that provide reduced fees or interest rates
323	323	296if the reduced fees or interest rates are reflected in the betterment assessments and are not
324	324	297provided to the property owner as cash consideration. 15 of 17
325	325	298 (c) A program administrator, qualifying improvement contractor, or third-party
326	326	299administrator may encourage a property owner to seek the advice of a tax professional regarding
327	327	300tax matters related to assessments.
328	328	301 Section 13. (a) A recorded financing agreement may not be removed from attachment to
329	329	302a residential property if the property owner fraudulently obtained funding pursuant to the
330	330	303provisions of this legislation. A financing agreement may not be enforced, and a recorded
331	331	304financing agreement may be removed from attachment to a residential property and deemed null
332	332	305and void, if: (1)the property owner applied for, accepted, and canceled a financing agreement
333	333	306within the 3-business-day period pursuant to the provisions of this legislation. A qualifying
334	334	307improvement contractor may not begin work under a canceled contract; (2) a person other than
335	335	308the property owner obtained the recorded financing agreement. The court may enter an order
336	336	309which holds that person or persons personally liable for the debt; or (3)the program
337	337	310administrator, third-party administrator, or qualifying improvement contractor approved or
338	338	311obtained funding through fraudulent means and in violation of the provisions of this legislation
339	339	312for qualifying improvements on the residential property.
340	340	313 (b)If a qualifying improvement contractor has initiated work on residential property
341	341	314under a contract deemed unenforceable under this section, the qualifying improvement
342	342	315contractor: (1) may not receive compensation for that work under the financing agreement;
343	343	316(2)must restore the residential property to its original condition at no cost to the property owner;
344	344	317and (3) must immediately return any funds, property, and other consideration given by the
345	345	318property owner. If the property owner provided any property and the qualifying improvement
346	346	319contractor does not or cannot return it, the qualifying improvement contractor must immediately 16 of 17
347	347	320return the fair market value of the property or its value as designated in the contract, whichever is
348	348	321greater.
349	349	322 (c) If the qualifying improvement contractor has delivered chattel or fixtures to
350	350	323residential property pursuant to a contract deemed unenforceable under this section, the
351	351	324qualifying improvement contractor has 90 days after the date on which the contract was executed
352	352	325to retrieve the chattel or fixtures, provided that: (1)the qualifying improvement contractor has
353	353	326fulfilled the requirements of paragraphs (3)(a) and (b); and (2) and the chattel and fixtures can
354	354	327be removed at the qualifying improvement contractor’s expense without damaging the residential
355	355	328property.
356	356	329 (d) If a qualifying improvement contractor fails to comply with this section, the
357	357	330property owner may retain any chattel or fixtures provided pursuant to a contract deemed
358	358	331unenforceable under this section.
359	359	332 (e) A contract that is otherwise unenforceable under this section remains enforceable if
360	360	333the property owner waives his or her right to cancel the contract or cancels the financing
361	361	334agreement pursuant to the provisions of this legislation, but allows the qualifying improvement
362	362	335contractor to proceed with the installation of the qualifying improvement.
363	363	336 Section 14. (a) Each program administrator that is authorized to administer a program for
364	364	337financing qualifying improvements to residential property under the provisions of this
365	365	338legislation shall post on its website an annual report within 45 days after the end of its fiscal year
366	366	339containing the following information from the previous year for each program authorized under
367	367	340the provisions of this legislation: (1) the number and types of qualifying improvements funded;
368	368	341and (2) he aggregate, average, and median dollar amounts of annual betterment assessments and 17 of 17
369	369	342the total number of betterment assessments collected pursuant to financing agreements for
370	370	343qualifying improvements.