Bill Text: FL S0770 | 2024 | Regular Session | Comm Sub
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Improvements to Real Property
Spectrum: Slight Partisan Bill (? 2-1)
Status: (Passed) 2024-07-01 - Chapter No. 2024-273 [S0770 Detail]
Download: Florida-2024-S0770-Comm_Sub.html
Bill Title: Improvements to Real Property
Spectrum: Slight Partisan Bill (? 2-1)
Status: (Passed) 2024-07-01 - Chapter No. 2024-273 [S0770 Detail]
Download: Florida-2024-S0770-Comm_Sub.html
Florida Senate - 2024 CS for CS for SB 770 By the Committees on Fiscal Policy; and Community Affairs; and Senator Martin 594-02696-24 2024770c2 1 A bill to be entitled 2 An act relating to improvements to real property; 3 amending s. 163.08, F.S.; deleting provisions relating 4 to legislative findings and intent; defining terms and 5 revising definitions; creating ss. 163.081 and 6 163.082, F.S.; allowing a program administrator to 7 offer a program for financing qualifying improvements 8 for residential or commercial property when authorized 9 by a county or municipality; requiring an authorized 10 program administrator that administers an authorized 11 program to meet certain requirements; authorizing a 12 county or municipality to enter into an interlocal 13 agreement to implement a program; authorizing a 14 program administrator to contract with third-party 15 administrators to implement the program; authorizing a 16 program administrator to levy non-ad valorem 17 assessments for a certain purpose; providing for 18 compensation for tax collectors for actual costs 19 incurred to collect non-ad valorem assessments; 20 authorizing a program administrator to incur debt for 21 the purpose of providing financing for qualifying 22 improvements; authorizing the owner of the residential 23 property or commercial property or certain 24 nongovernmental lessees to apply to the program 25 administrator to finance a qualifying improvement; 26 requiring the program administrator to make certain 27 findings before entering into a financing agreement; 28 requiring the program administrator to ascertain 29 certain financial information from the property owner 30 or nongovernmental lessee before entering into a 31 financing agreement; requiring certain documentation; 32 requiring an advisement and notification for certain 33 qualifying improvements; requiring certain financing 34 agreement and contract provisions for change orders 35 under certain circumstances; prohibiting a financing 36 agreement from being entered into under certain 37 circumstances; requiring the program administrator to 38 provide certain information before a financing 39 agreement may be approved; requiring an oral, recorded 40 telephone call with the residential property owner to 41 confirm findings and disclosures before the approval 42 of a financing agreement; requiring the residential 43 property owner to provide written notice to the holder 44 or loan servicer of his or her intent to enter into a 45 financing agreement as well as other financial 46 information; requiring that proof of such notice be 47 provided to the program administrator; providing that 48 a certain acceleration provision in an agreement 49 between the residential property owner and mortgagor 50 or lienholder is unenforceable; providing that the 51 lienholder or loan servicer retains certain authority; 52 requiring the program administrator to receive the 53 written consent of certain lienholders on commercial 54 property; authorizing a residential property owner, 55 under certain circumstances and within a certain 56 timeframe, to cancel a financing agreement without 57 financial penalty; requiring recording of the 58 financing agreement in a specified timeframe; creating 59 the seller’s disclosure statements for properties 60 offered for sale which have assessments on them for 61 qualifying improvements; requiring the program 62 administrator to confirm that certain conditions are 63 met before disbursing final funds to a qualifying 64 improvement contractor for qualifying improvements on 65 residential property; requiring a program 66 administrator to submit a certain certificate to a 67 county or municipality upon final disbursement and 68 completion of qualifying improvements on commercial 69 property; providing construction; creating s. 163.083, 70 F.S.; requiring a county or municipality to establish 71 or approve a process for the registration of a 72 qualifying improvement contractor to install 73 qualifying improvements; requiring certain conditions 74 for a qualifying improvement contractor to participate 75 in a program; prohibiting a third-party administrator 76 from registering as a qualifying improvement 77 contractor; requiring the program administrator to 78 monitor qualifying improvement contractors, enforce 79 certain penalties for a finding of violation, and post 80 certain information online; creating s. 163.084, F.S.; 81 authorizing the program administrator to contract with 82 entities to administer an authorized program; 83 providing certain requirements for a third-party 84 administrator; prohibiting a program administrator 85 from contracting with a third-party administrator 86 under certain circumstances; requiring the program 87 administrator to include in its contract with the 88 third-party administrator the right to perform annual 89 reviews of the administrator; authorizing the program 90 administrator to take certain actions if the program 91 administrator finds that the third-party administrator 92 has committed a violation of its contract; authorizing 93 a program administrator to terminate an agreement with 94 a third-party administrator under certain 95 circumstances; providing for the continuation of 96 certain financing agreements after the termination or 97 suspension of the third-party administrator; creating 98 s. 163.085, F.S.; requiring that, in communicating 99 with the property owner or nongovernmental lessee, the 100 program administrator, qualifying improvement 101 contractor, or third-party administrator comply with 102 certain requirements; prohibiting the program 103 administrator or third-party administrator from 104 disclosing certain financing information to a 105 qualifying improvement contractor; prohibiting a 106 qualifying improvement contractor from making certain 107 advertisements or solicitations; providing exceptions; 108 prohibiting a program administrator or third-party 109 administrator from providing certain payments, fees, 110 or kickbacks to a qualifying improvement contractor; 111 prohibiting a program administrator or third-party 112 administrator to reimbursing a qualifying improvement 113 contractor for certain expenses; prohibiting a 114 qualifying improvement contractor from providing 115 different prices for a qualifying improvement; 116 requiring a contract between a property owner or 117 nongovernmental lessee and a qualifying improvement 118 contractor to include certain provisions; prohibiting 119 a program administrator, qualifying improvement 120 contractor, or third-party administrator from 121 providing any cash payment or anything of material 122 value to a property owner or nongovernmental lessee 123 which is explicitly conditioned on a financing 124 agreement; providing exceptions; creating s. 163.086, 125 F.S.; prohibiting a recorded financing agreement from 126 being removed from attachment to a property under 127 certain circumstances; providing for the 128 unenforceability of a financing agreement under 129 certain circumstances; providing provisions for when a 130 qualifying improvement contractor initiates work on an 131 unenforceable contract; providing that a qualifying 132 improvement contractor may retrieve chattel or 133 fixtures delivered pursuant to an unenforceable 134 contract if certain conditions are met; providing that 135 an unenforceable contract will remain unenforceable 136 under certain circumstances; creating s. 163.087, 137 F.S.; requiring a program administrator authorized to 138 administer a program for financing a qualifying 139 improvement to post on its website an annual report; 140 specifying requirements for the report; requiring the 141 Auditor General to conduct an operational audit of 142 each authorized program; providing an effective date. 143 144 Be It Enacted by the Legislature of the State of Florida: 145 146 Section 1. Section 163.08, Florida Statutes, is amended to 147 read: 148 (Substantial rewording of section. See 149 s. 163.08, F.S., for present text.) 150 163.08 Definitions.—As used in ss. 163.081-163.087, the 151 term: 152 (1) “Commercial property” means real property other than 153 residential property. The term includes, but is not limited to, 154 a property zoned multifamily residential which is composed of 155 five or more dwelling units; government commercial property; and 156 real property used for commercial, industrial, or agricultural 157 purposes. 158 (2) “Government commercial property” means real property 159 owned by a local government and leased to a nongovernmental 160 lessee for commercial use. The term does not include residential 161 property. 162 (3) “Nongovernmental lessee” means a person or an entity 163 other than a local government which leases government commercial 164 property. 165 (4) “Program administrator” means a county, a municipality, 166 a dependent special district as defined in s. 189.012, or a 167 separate legal entity created pursuant to s. 163.01(7). 168 (5) “Property owner” means the owner or owners of record of 169 real property. The term includes real property held in trust for 170 the benefit of one or more individuals, in which case the 171 individual or individuals may be considered as the property 172 owner or owners, provided that the trustee provides written 173 consent. The term does not include persons renting, using, 174 living, or otherwise occupying real property, except for a 175 nongovernmental lessee. 176 (6) “Qualifying improvement” means the following permanent 177 improvements located on real property within the jurisdiction of 178 an authorized financing program: 179 (a) For improvements on residential property: 180 1. Repairing, replacing, or improving a central sewerage 181 system, converting an onsite sewage treatment and disposal 182 system to a central sewerage system, or, if no central sewerage 183 system is available, removing, repairing, replacing, or 184 improving an onsite sewage treatment and disposal system to an 185 advanced system or technology. 186 2. Repairing, replacing, or improving a roof, including 187 improvements that strengthen the roof deck attachment; create a 188 secondary water barrier to prevent water intrusion; install 189 wind-resistant shingles or gable-end bracing; or reinforce roof 190 to-wall connections. 191 3. Providing flood and water damage mitigation and 192 resiliency improvements, prioritizing repairs, replacement, or 193 improvements that qualify for reductions in flood insurance 194 premiums, including raising a structure above the base flood 195 elevation to reduce flood damage; constructing a flood diversion 196 apparatus, drainage gate, or seawall improvement, including 197 seawall repairs and seawall replacements; purchasing flood 198 damage-resistant building materials; or making electrical, 199 mechanical, plumbing, or other system improvements that reduce 200 flood damage. 201 4. Replacing windows or doors, including garage doors, with 202 energy-efficient, impact-resistant, wind-resistant, or hurricane 203 windows or doors or installing storm shutters. 204 5. Installing energy-efficient heating, cooling, or 205 ventilation systems. 206 6. Replacing or installing insulation. 207 7. Replacing or installing energy-efficient water heaters. 208 8. Installing and affixing a permanent generator. 209 9. Providing a renewable energy improvement, including the 210 installation of any system in which the electrical, mechanical, 211 or thermal energy is produced from a method that uses solar, 212 geothermal, bioenergy, wind, or hydrogen. 213 (b) For installing or constructing improvements on 214 commercial property: 215 1. Waste system improvements, which consists of repairing, 216 replacing, improving, or constructing a central sewerage system, 217 converting an onsite sewage treatment and disposal system to a 218 central sewerage system, or, if no central sewerage system is 219 available, removing, repairing, replacing, or improving an 220 onsite sewage treatment and disposal system to an advanced 221 system or technology. 222 2. Making resiliency improvements, which includes but is 223 not limited to: 224 a. Repairing, replacing, improving, or constructing a roof, 225 including improvements that strengthen the roof deck attachment; 226 b. Creating a secondary water barrier to prevent water 227 intrusion; 228 c. Installing wind-resistant shingles or gable-end bracing; 229 d. Reinforcing roof-to-wall connections; or 230 e. Providing flood and water damage mitigation and 231 resiliency improvements, prioritizing repairs, replacement, or 232 improvements that qualify for reductions in flood insurance 233 premiums, including raising a structure above the base flood 234 elevation to reduce flood damage; creating or improving 235 stormwater and flood resiliency, including flood diversion 236 apparatus, drainage gates, or shoreline improvements; purchasing 237 flood-damage-resistant building materials; or making any other 238 improvements necessary to achieve a sustainable building rating 239 or compliance with a national model resiliency standard and any 240 improvements to a structure to achieve wind or flood insurance 241 rate reductions, including building elevation. 242 3. Energy conservation and efficiency improvements, which 243 are measures to reduce consumption through efficient use or 244 conservation of electricity, natural gas, propane, or other 245 forms of energy, including but not limited to, air sealing; 246 installation of insulation; installation of energy-efficient 247 heating, cooling, or ventilation systems; building modification 248 to increase the use of daylight; window replacement; windows; 249 energy controls or energy recovery systems; installation of 250 electric vehicle charging equipment; installation of efficient 251 lighting equipment; or any other improvements necessary to 252 achieve a sustainable building rating or compliance with a 253 national model green building code. 254 4. Renewable energy improvements, including the 255 installation of any system in which the electrical, mechanical, 256 or thermal energy is produced from a method that uses solar, 257 geothermal, bioenergy, wind, or hydrogen. 258 5. Water conservation efficiency improvements, which are 259 measures to reduce consumption through efficient use or 260 conservation of water. 261 (7) “Qualifying improvement contractor” means a licensed or 262 registered contractor who has been registered to participate by 263 a program administrator pursuant to s. 163.083 to install or 264 otherwise perform work to make qualifying improvements on 265 residential property financed pursuant to a program authorized 266 under s. 163.081. 267 (8) “Residential property” means real property zoned as 268 residential or multifamily residential and composed of four or 269 fewer dwelling units. 270 (9) “Third-party administrator” means an entity under 271 contract with a program administrator pursuant to s. 163.084 to 272 administer a program authorized by a county or municipality 273 pursuant to s. 163.081 or s. 163.082 on behalf of and at the 274 discretion of the program administrator. 275 Section 2. Section 163.081, Florida Statutes, is created to 276 read: 277 163.081 Financing qualifying improvements to residential 278 property.— 279 (1) RESIDENTIAL PROPERTY PROGRAM AUTHORIZATION.— 280 (a) A program administrator may only offer a program for 281 financing qualifying improvements to residential property within 282 the jurisdiction of a county or municipality if the county or 283 municipality has authorized by ordinance or resolution the 284 program administrator to administer the program for financing 285 qualifying improvements to residential property. The authorized 286 program must, at a minimum, meet the requirements of this 287 section. 288 (b) Pursuant to this section or as otherwise provided by 289 law or pursuant to a county’s or municipality’s home rule power, 290 a county or municipality may enter into an interlocal agreement 291 providing for a partnership between one or more local 292 governments for the purpose of facilitating a program to finance 293 qualifying improvements to residential property located within 294 the jurisdiction of the local governments that are party to the 295 agreement. 296 (c) An authorized program administrator may contract with 297 one or more third-party administrators to implement the program 298 as provided in s. 163.084. 299 (d) An authorized program administrator may levy non-ad 300 valorem assessments to facilitate repayment of financing 301 qualifying improvements. Costs incurred by the program 302 administrator for such purpose may be collected as a non-ad 303 valorem assessment. A non-ad valorem assessment shall be 304 collected pursuant to s. 197.3632 and, notwithstanding s. 305 197.3632(8)(a), shall not be subject to discount for early 306 payment. However, the notice and adoption requirements of s. 307 197.3632(4) do not apply if this section is used and complied 308 with, and the intent resolution, publication of notice, and 309 mailed notices to the property appraiser, tax collector, and 310 Department of Revenue required by s. 197.3632(3)(a) may be 311 provided on or before August 15 of each year in conjunction with 312 any non-ad valorem assessment authorized by this section, if the 313 property appraiser, tax collector, and program administrator 314 agree. The program administrator shall only compensate the tax 315 collector for the actual cost of collecting non-ad valorem 316 assessments, not to exceed 2 percent of the amount collected and 317 remitted. 318 (e) A program administrator may incur debt for the purpose 319 of providing financing for qualifying improvements, which debt 320 is payable from revenues received from the improved property or 321 any other available revenue source authorized by law. 322 (2) APPLICATION.—The owner of record of the residential 323 property within the jurisdiction of an authorized program may 324 apply to the authorized program administrator to finance a 325 qualifying improvement. The program administrator may only enter 326 into a financing agreement with the property owner. 327 (3) FINANCING AGREEMENTS.— 328 (a) Before entering into a financing agreement, the program 329 administrator must make each of the following findings based on 330 a review of public records derived from a commercially accepted 331 source and the property owner’s statements, records, and credit 332 reports: 333 1. There are sufficient resources to complete the project. 334 2. The total amount of any non-ad valorem assessment for a 335 residential property under this section does not exceed 20 336 percent of the just value of the property as determined by the 337 property appraiser. The total amount may exceed this limitation 338 upon written consent of the holders or loan servicers of any 339 mortgage encumbering or otherwise secured by the residential 340 property. 341 3. The combined mortgage-related debt and total amount of 342 any non-ad valorem assessments under the program for the 343 residential property does not exceed 97 percent of the just 344 value of the property as determined by the property appraiser. 345 4. The financing agreement does not utilize a negative 346 amortization schedule, a balloon payment, or prepayment fees or 347 fines other than nominal administrative costs. Capitalized 348 interest included in the original balance of the assessment 349 financing agreement does not constitute negative amortization. 350 5. All property taxes and any other assessments, including 351 non-ad valorem assessments, levied on the same bill as the 352 property taxes are current and have not been delinquent for the 353 preceding 3 years, or the property owner’s period of ownership, 354 whichever is less. 355 6. There are no outstanding fines or fees related to zoning 356 or code enforcement violations issued by a county or 357 municipality, unless the qualifying improvement will remedy the 358 zoning or code violation. 359 7. There are no involuntary liens, including, but not 360 limited to, construction liens on the residential property. 361 8. No notices of default or other evidence of property 362 based debt delinquency have been recorded and not released 363 during the preceding 3 years or the property owner’s period of 364 ownership, whichever is less. 365 9. The property owner is current on all mortgage debt on 366 the residential property. 367 10. The property owner has not been subject to a bankruptcy 368 proceeding within the last 5 years unless it was discharged or 369 dismissed more than 2 years before the date on which the 370 property owner applied for financing. 371 11. The residential property is not subject to an existing 372 home equity conversion mortgage or reverse mortgage product. 373 12. The term of the financing agreement does not exceed the 374 weighted average useful life of the qualified improvements to 375 which the greatest portion of funds disbursed under the 376 assessment contract is attributable, not to exceed 20 years. The 377 program administrator shall determine the useful life of a 378 qualifying improvement using established standards, including 379 certification criteria from government agencies or nationally 380 recognized standards and testing organizations. 381 13. The total estimated annual payment amount for all 382 financing agreements entered into under this section on the 383 residential property does not exceed 10 percent of the property 384 owner’s annual household income. Income must be confirmed using 385 reasonable evidence and not solely by a property owner’s 386 statement. 387 14. If the qualifying improvement is for the conversion of 388 an onsite sewage treatment and disposal system to a central 389 sewerage system, the property owner has utilized all available 390 local government funding for such conversions and is unable to 391 obtain financing for the improvement on more favorable terms 392 through a local government program designed to support such 393 conversions. 394 (b) Before entering into a financing agreement, the program 395 administrator must determine if there are any current financing 396 agreements on the residential property and if the property owner 397 has obtained or sought to obtain additional qualifying 398 improvements on the same property which have not yet been 399 recorded. The existence of a prior qualifying improvement non-ad 400 valorem assessment or a prior financing agreement is not 401 evidence that the financing agreement under consideration is 402 affordable or meets other program requirements. 403 (c) Findings satisfying paragraphs (a) and (b) must be 404 documented, including supporting evidence relied upon, and 405 provided to the property owner prior to a financing agreement 406 being approved and recorded. The program administrator must 407 retain the documentation for the duration of the financing 408 agreement. 409 (d) If the qualifying improvement is estimated to cost 410 $10,000 or more, before entering into a financing agreement the 411 program administrator must advise the property owner in writing 412 that the best practice is to obtain estimates from more than one 413 unaffiliated, registered qualifying improvement contractors for 414 the qualifying improvement and notify the property owner in 415 writing of the advertising and solicitation requirements of s. 416 163.085. 417 (e) A property owner and the program administrator may 418 agree to include in the financing agreement provisions for 419 allowing change orders necessary to complete the qualifying 420 improvement. Any financing agreement or contract for qualifying 421 improvements which includes such provisions must meet the 422 requirements of this paragraph. If a proposed change order on a 423 qualifying improvement will increase the original cost of the 424 qualifying improvement by 20 percent or more or will expand the 425 scope of the qualifying improvement by more than 20 percent, 426 before the change order may be executed which would result in an 427 increase in the amount financed through the program 428 administrator for the qualifying improvement, the program 429 administrator must notify the property owner, provide an updated 430 written disclosure form as described in subsection (4) to the 431 property owner, and obtain written approval of the change from 432 the property owner. 433 (f) A financing agreement may not be entered into if the 434 total cost of the qualifying improvement, including program fees 435 and interest, is less than $2,500. 436 (g) A financing agreement may not be entered into for 437 qualifying improvements in buildings or facilities under new 438 construction or construction for which a certificate of 439 occupancy or similar evidence of substantial completion of new 440 construction or improvement has not been issued. 441 (4) DISCLOSURES.— 442 (a) In addition to the requirements in subsection (3), a 443 financing agreement may not be approved unless the program 444 administrator first provides, including via electronic means, a 445 written financing estimate and disclosure to the property owner 446 which includes all of the following, each of which must be 447 individually acknowledged in writing by the property owner: 448 1. The estimated total amount to be financed, including the 449 total and itemized cost of the qualifying improvement, program 450 fees, and capitalized interest, if any; 451 2. The estimated annual non-ad valorem assessment; 452 3. The term of the financing agreement and the schedule for 453 the non-ad valorem assessments; 454 4. The interest charged and estimated annual percentage 455 rate; 456 5. A description of the qualifying improvement; 457 6. The total estimated annual costs that will be required 458 to be paid under the assessment contract, including program 459 fees; 460 7. The total estimated average monthly equivalent amount of 461 funds that would need to be saved in order to pay the annual 462 costs of the non-ad valorem assessment, including program fees; 463 8. The estimated due date of the first payment that 464 includes the non-ad valorem assessment; 465 9. A disclosure that the financing agreement may be 466 canceled within 3 business days after signing the financing 467 agreement without any financial penalty for doing so; 468 10. A disclosure that the property owner may repay any 469 remaining amount owed, at any time, without penalty or 470 imposition of additional prepayment fees or fines other than 471 nominal administrative costs; 472 11. A disclosure that if the property owner sells or 473 refinances the residential property, the property owner may be 474 required by a mortgage lender to pay off the full amount owed 475 under each financing agreement under this section; 476 12. A disclosure that the assessment will be collected 477 along with the property owner’s property taxes, and will result 478 in a lien on the property from the date the financing agreement 479 is recorded; 480 13. A disclosure that potential utility or insurance 481 savings are not guaranteed, and will not reduce the assessment 482 amount; and 483 14. A disclosure that failure to pay the assessment may 484 result in penalties, fees, including attorney fees, court costs, 485 and the issuance of a tax certificate that could result in the 486 property owner losing the property and a judgment against the 487 property owner, and may affect the property owner’s credit 488 rating. 489 (b) Prior to the financing agreement being approved, the 490 program administrator must conduct an oral, recorded telephone 491 call with the property owner during which the program 492 administrator must confirm each finding or disclosure required 493 in subsection (3) and this section. 494 (5) NOTICE TO LIENHOLDERS AND SERVICERS.—At least 5 495 business days before entering into a financing agreement, the 496 property owner must provide to the holders or loan servicers of 497 any existing mortgages encumbering or otherwise secured by the 498 residential property a written notice of the owner’s intent to 499 enter into a financing agreement together with the maximum 500 amount to be financed, including the amount of any fees and 501 interest, and the maximum annual assessment necessary to repay 502 the total. A verified copy or other proof of such notice must be 503 provided to the program administrator. A provision in any 504 agreement between a mortgagor or other lienholder and a property 505 owner, or otherwise now or hereafter binding upon a property 506 owner, which allows for acceleration of payment of the mortgage, 507 note, or lien or other unilateral modification solely as a 508 result of entering into a financing agreement as provided for in 509 this section is unenforceable. This subsection does not limit 510 the authority of the holder or loan servicer to increase the 511 required monthly escrow by an amount necessary to pay the annual 512 assessment. 513 (6) CANCELLATION.—A property owner may cancel a financing 514 agreement on a form established by the program administrator 515 within 3 business days after signing the financing agreement 516 without any financial penalty for doing so. 517 (7) RECORDING.—Any financing agreement approved and entered 518 into pursuant to this section, or a summary memorandum of such 519 agreement, shall be submitted for recording in the public 520 records of the county within which the residential property is 521 located by the program administrator within 10 business days 522 after execution of the agreement and the 3-day cancelation 523 period. The recorded agreement must provide constructive notice 524 that the non-ad valorem assessment to be levied on the property 525 constitutes a lien of equal dignity to county taxes and 526 assessments from the date of recordation. A notice of lien for 527 the full amount of the financing may be recorded in the public 528 records of the county where the property is located. Such lien 529 is not enforceable in a manner that results in the acceleration 530 of the remaining nondelinquent unpaid balance under the 531 assessment financing agreement. 532 (8) SALE OF RESIDENTIAL PROPERTY.—At or before the time a 533 seller executes a contract for the sale of any residential 534 property for which a non-ad valorem assessment has been levied 535 under this section and has an unpaid balance due, the seller 536 shall give the prospective purchaser a written disclosure 537 statement in the following form, which must be set forth in the 538 contract or in a separate writing: 539 540 QUALIFYING IMPROVEMENTS.—The property being purchased 541 is subject to an assessment on the property pursuant 542 to s. 163.081, Florida Statutes. The assessment is for 543 a qualifying improvement to the property and is not 544 based on the value of the property. You are encouraged 545 to contact the property appraiser’s office to learn 546 more about this and other assessments that may be 547 provided by law. 548 549 (9) DISBURSEMENTS.—Before disbursing final funds to a 550 qualifying improvement contractor for a qualifying improvement 551 on residential property, the program administrator shall confirm 552 that the applicable work or service has been completed or, as 553 applicable, that the final permit for the qualifying improvement 554 has been closed with all permit requirements satisfied or a 555 certificate of occupancy or similar evidence of substantial 556 completion of construction or improvement has been issued. 557 (10) CONSTRUCTION.—This section is additional and 558 supplemental to county and municipal home rule authority and not 559 in derogation of such authority or a limitation upon such 560 authority. 561 Section 3. Section 163.082, Florida Statutes, is created to 562 read: 563 163.082 Financing qualifying improvements to commercial 564 property.— 565 (1) COMMERCIAL PROPERTY PROGRAM AUTHORIZATION.— 566 (a) A program administrator may only offer a program for 567 financing qualifying improvements to commercial property within 568 the jurisdiction of a county or municipality if the county or 569 municipality has authorized by ordinance or resolution the 570 program administrator to administer the program for financing 571 qualifying improvements to commercial property. The authorized 572 program must, at a minimum, meet the requirements of this 573 section. 574 (b) Pursuant to this section or as otherwise provided by 575 law or pursuant to a county’s or municipality’s home rule power, 576 a county or municipality may enter into an interlocal agreement 577 providing for a partnership between one or more local 578 governments for the purpose of facilitating a program for 579 financing qualifying improvements to commercial property located 580 within the jurisdiction of the local governments that are party 581 to the agreement. 582 (c) A program administrator may contract with one or more 583 third-party administrators to implement the program as provided 584 in s. 163.084. 585 (d) An authorized program administrator may levy non-ad 586 valorem assessments to facilitate repayment of financing or 587 refinancing qualifying improvements. Costs incurred by the 588 program administrator for such purpose may be collected as a 589 non-ad valorem assessment. A non-ad valorem assessment shall be 590 collected pursuant to s. 197.3632 and, notwithstanding s. 591 197.3632(8)(a), is not subject to discount for early payment. 592 However, the notice and adoption requirements of s. 197.3632(4) 593 do not apply if this section is used and complied with, and the 594 intent resolution, publication of notice, and mailed notices to 595 the property appraiser, tax collector, and Department of Revenue 596 required by s. 197.3632(3)(a) may be provided on or before 597 August 15 of each year in conjunction with any non-ad valorem 598 assessment authorized by this section, if the property 599 appraiser, tax collector, and program administrator agree. The 600 program administrator shall only compensate the tax collector 601 for the actual cost of collecting non-ad valorem assessments, 602 not to exceed 2 percent of the amount collected and remitted. 603 (e) A program administrator may incur debt for the purpose 604 of providing financing for qualifying improvements, which debt 605 is payable from revenues received from the improved property or 606 any other available revenue source authorized by law. 607 (2) APPLICATION.—The owner of record of the commercial 608 property within the jurisdiction of the authorized program may 609 apply to the program administrator to finance a qualifying 610 improvement and enter into a financing agreement with the 611 program administrator to make such improvement. The program 612 administrator may only enter into a financing agreement with a 613 property owner. However, a nongovernmental lessee may apply to 614 finance a qualifying improvement if the nongovernmental lessee 615 provides the program administrator with written consent of the 616 government lessor. Any financing agreement with the 617 nongovernmental lessee must provide that the nongovernmental 618 lessee is the only party obligated to pay the assessment. 619 (3) FINANCING AGREEMENTS.— 620 (a) Before entering into a financing agreement, the program 621 administrator must make each of the following findings based on 622 a review of public records derived from a commercially accepted 623 source and the statements, records, and credit reports of the 624 commercial property owner or nongovernmental lessee: 625 1. There are sufficient resources to complete the project. 626 2. The total amount of any non-ad valorem assessment for a 627 commercial property under this section does not exceed 20 628 percent of the just value of the property as determined by the 629 property appraiser. The total amount may exceed this limitation 630 upon written consent of the holders or loan servicers of any 631 mortgage encumbering or otherwise secured by the commercial 632 property. 633 3. The combined mortgage-related debt and total amount of 634 any non-ad valorem assessments under the program for the 635 commercial property does not exceed 97 percent of the just value 636 of the property as determined by the property appraiser. 637 4. All property taxes and any other assessments, including 638 non-ad valorem assessments, levied on the same bill as the 639 property taxes are current. 640 5. There are no involuntary liens greater than $5,000, 641 including, but not limited to, construction liens on the 642 commercial property. 643 6. No notices of default or other evidence of property 644 based debt delinquency have been recorded and not been released 645 during the preceding 3 years or the property owner’s period of 646 ownership, whichever is less. 647 7. The property owner is current on all mortgage debt on 648 the commercial property. 649 8. The term of the financing agreement does not exceed the 650 weighted average useful life of the qualified improvements to 651 which the greatest portion of funds disbursed under the 652 assessment contract is attributable, not to exceed 30 years. The 653 program administrator shall determine the useful life of a 654 qualifying improvement using established standards, including 655 certification criteria from government agencies or nationally 656 recognized standards and testing organizations. 657 9. The property owner or nongovernmental lessee is not 658 currently the subject of a bankruptcy proceeding. 659 (b) Before entering into a financing agreement, the program 660 administrator shall determine if there are any current financing 661 agreements on the commercial property and whether the property 662 owner or nongovernmental lessee has obtained or sought to obtain 663 additional qualifying improvements on the same property which 664 have not yet been recorded. The existence of a prior qualifying 665 improvement non-ad valorem assessment or a prior financing 666 agreement is not evidence that the financing agreement under 667 consideration is affordable or meets other program requirements. 668 (c) Findings satisfying paragraphs (a) and (b) must be 669 documented, including supporting evidence relied upon, and 670 provided to the property owner or nongovernmental lessee prior 671 to a financing agreement being approved and recorded. The 672 program administrator must retain the documentation for the 673 duration of the financing agreement. 674 (d) A property owner or nongovernmental lessee and the 675 program administrator may agree to include in the financing 676 agreement provisions for allowing change orders necessary to 677 complete the qualifying improvement. Any financing agreement or 678 contract for qualifying improvements which includes such 679 provisions must meet the requirements of this paragraph. If a 680 proposed change order on a qualifying improvement will increase 681 the original cost of the qualifying improvement by 20 percent or 682 more or will expand the scope of the qualifying improvement by 683 20 percent or more, before the change order may be executed 684 which would result in an increase in the amount financed through 685 the program administrator for the qualifying improvement, the 686 program administrator must notify the property owner or 687 nongovernmental lessee, provide an updated written disclosure 688 form as described in subsection (4) to the property owner or 689 nongovernmental lessee, and obtain written approval of the 690 change from the property owner or nongovernmental lessee. 691 (e) A financing agreement may not be entered into if the 692 total cost of the qualifying improvement, including program fees 693 and interest, is less than $2,500. 694 (4) DISCLOSURES.—In addition to the requirements in 695 subsection (3), a financing agreement may not be approved unless 696 the program administrator provides, whether on a separate 697 document or included with other disclosures or forms, a 698 financing estimate and disclosure to the property owner or 699 nongovernmental lessee which includes all of the following: 700 (a) The estimated total amount to be financed, including 701 the total and itemized cost of the qualifying improvement, 702 program fees, and capitalized interest, if any; 703 (b) The estimated annual non-ad valorem assessment; 704 (c) The term of the financing agreement and the schedule 705 for the non-ad valorem assessments; 706 (d) The interest charged and estimated annual percentage 707 rate; 708 (e) A description of the qualifying improvement; 709 (f) The total estimated annual costs that will be required 710 to be paid under the assessment contract, including program 711 fees; 712 (g) The estimated due date of the first payment that 713 includes the non-ad valorem assessment; and 714 (h) A disclosure that the property owner or nongovernmental 715 lessee may repay any remaining amount owed, at any time, without 716 penalty or imposition of additional prepayment fees or fines 717 other than nominal administrative costs. 718 (5) CONSENT OF LIENHOLDERS AND SERVICERS.—Before entering 719 into a financing agreement with a property owner, the program 720 administrator must have received the written consent of the 721 current holders or loan servicers of any mortgage that encumbers 722 or is otherwise secured by the commercial property or that will 723 otherwise be secured by the property at the time the financing 724 agreement is executed. 725 (6) RECORDING.—Any financing agreement approved and entered 726 into pursuant to this section or a summary memorandum of such 727 agreement must be submitted for recording in the public records 728 of the county within which the commercial property is located by 729 the program administrator within 10 business days after 730 execution of the agreement. The recorded agreement must provide 731 constructive notice that the non-ad valorem assessment to be 732 levied on the property constitutes a lien of equal dignity to 733 county taxes and assessments from the date of recordation. A 734 notice of lien for the full amount of the financing may be 735 recorded in the public records of the county where the property 736 is located. Such lien is not enforceable in a manner that 737 results in the acceleration of the remaining nondelinquent 738 unpaid balance under the assessment financing agreement. 739 (7) SALE OF COMMERCIAL PROPERTY.—At or before the time a 740 seller executes a contract for the sale of any commercial 741 property for which a non-ad valorem assessment has been levied 742 under this section and has an unpaid balance due, the seller 743 shall give the prospective purchaser a written disclosure 744 statement in the following form, which must be set forth in the 745 contract or in a separate writing: 746 747 QUALIFYING IMPROVEMENTS.—The property being purchased 748 is subject to an assessment on the property pursuant 749 to s. 163.082, Florida Statutes. The assessment is for 750 a qualifying improvement to the property and is not 751 based on the value of the property. You are encouraged 752 to contact the property appraiser’s office to learn 753 more about this and other assessments that may be 754 provided for by law. 755 756 (8) COMPLETION CERTIFICATE.—Upon disbursement of all 757 financing and completion of installation of qualifying 758 improvements financed, the program administrator shall file with 759 the applicable county or municipality a certificate that the 760 qualifying improvements have been installed and are in good 761 working order. 762 (9) CONSTRUCTION.—This section is additional and 763 supplemental to county and municipal home rule authority and not 764 in derogation of such authority or a limitation upon such 765 authority. 766 Section 4. Section 163.083, Florida Statutes, is created to 767 read: 768 163.083 Qualifying improvement contractors.— 769 (1) A county or municipality shall establish a process, or 770 approve a process established by a program administrator, to 771 register contractors for participation in a program authorized 772 by a county or municipality pursuant to s. 163.081. A qualifying 773 improvement contractor may only perform such work that the 774 contractor is appropriately licensed, registered, and permitted 775 to conduct. At the time of application to participate and during 776 participation in the program, contractors must: 777 (a) Hold all necessary licenses or registrations for the 778 work to be performed which are in good standing. Good standing 779 includes no outstanding complaints with the state or local 780 government which issues such licenses or registrations. 781 (b) Comply with all applicable federal, state, and local 782 laws and regulations, including obtaining and maintaining any 783 other permits, licenses, or registrations required for engaging 784 in business in the jurisdiction in which it operates and 785 maintaining all state-required bond and insurance coverage. 786 (c) File with the program administrator a written statement 787 in a form approved by the county or municipality that the 788 contractor will comply with applicable laws and rules and 789 qualifying improvement program policies and procedures, 790 including those on advertising and marketing. 791 (2) A third-party administrator or a program administrator, 792 either directly or through an affiliate, may not be registered 793 as a qualifying improvement contractor. 794 (3) A program administrator shall establish and maintain: 795 (a) A process to monitor qualifying improvement contractors 796 for performance and compliance with requirements of the program 797 and must conduct regular reviews of qualifying improvement 798 contractors to confirm that each qualifying improvement 799 contractor is in good standing. 800 (b) Procedures for notice and imposition of penalties upon 801 a finding of violation, which may consist of placement of the 802 qualifying improvement contractor in a probationary status that 803 places conditions for continued participation, suspension, or 804 termination from participation in the program. 805 (c) An easily accessible page on its website that provides 806 information on the status of registered qualifying improvement 807 contractors, including any imposed penalties, and the names of 808 any qualifying improvement contractors currently on probationary 809 status or that are suspended or terminated from participation in 810 the program. 811 Section 5. Section 163.084, Florida Statutes, is created to 812 read: 813 163.084 Third-party administrator for financing qualifying 814 improvements programs.— 815 (1)(a) A program administrator may contract with one or 816 more third-party administrators to administer a program 817 authorized by a county or municipality pursuant to s. 163.081 or 818 s. 163.082 on behalf of and at the discretion of the program 819 administrator. 820 (b) The third-party administrator must be independent of 821 the program administrator and have no conflicts of interest 822 between managers or owners of the third-party administrator and 823 program administrator managers, owners, officials, or employees 824 with oversight over the contract. The contract must provide for 825 the entity to administer the program according to the 826 requirements of s. 163.081 or s. 163.082 and the ordinance or 827 resolution adopted by the county or municipality authorizing the 828 program. However, only the program administrator may levy or 829 administer non-ad valorem assessments. 830 (2) A program administrator may not contract with a third 831 party administrator that, within the last 3 years, has been 832 prohibited from serving as a third-party administrator for 833 another program administrator for program or contract violations 834 or has been found by a court of competent jurisdiction to have 835 violated state or federal laws related to the administration of 836 ss. 163.081-163.086 or a similar program in another 837 jurisdiction. 838 (3) The program administrator must include in any contract 839 with the third-party administrator the right to perform annual 840 reviews of the administrator to confirm compliance with ss. 841 163.081-163.086, the ordinance or resolution adopted by the 842 county or municipality, and the contract with the program 843 administrator. If the program administrator finds that the 844 third-party administrator has committed a violation of ss. 845 163.081-163.086, the adopted ordinance or resolution, or the 846 contract with the program administrator, the program 847 administrator shall provide the third-party administrator with 848 notice of the violation and may, as set forth in the adopted 849 ordinance or resolution or the contract with the third-party 850 administrator: 851 (a) Place the third-party administrator in a probationary 852 status that places conditions for continued operations. 853 (b) Impose any fines or sanctions. 854 (c) Suspend the activity of the third-party administrator 855 for a period of time. 856 (d) Terminate the agreement with the third-party 857 administrator. 858 (4) A program administrator may terminate the agreement 859 with a third-party administrator, as set forth by the county or 860 municipality in its adopted ordinance or resolution or the 861 contract with the third-party administrator, if the program 862 administrator makes a finding that: 863 (a) The third-party administrator has violated the contract 864 with the program administrator. The contract may set forth 865 substantial violations that may result in contract termination 866 and other violations that may provide for a period of time for 867 correction before the contract may be terminated. 868 (b) The third-party administrator, or an officer, a 869 director, a manager or a managing member, or a control person of 870 the third-party administrator, has been found by a court of 871 competent jurisdiction to have violated state or federal laws 872 related to the administration a program authorized of the 873 provisions of ss. 163.081-163.086 or a similar program in 874 another jurisdiction within the last 5 years. 875 (c) Any officer, director, manager or managing member, or 876 control person of the third-party administrator has been 877 convicted of, or has entered a plea of guilty or nolo contendere 878 to, regardless of whether adjudication has been withheld, a 879 crime related to administration of a program authorized of the 880 provisions of ss. 163.081-163.086 or a similar program in 881 another jurisdiction within the last 10 years. 882 (d) An annual performance review reveals a substantial 883 violation or a pattern of violations by the third-party 884 administrator. 885 (5) Any recorded financing agreements at the time of 886 termination or suspension by the program administrator shall 887 continue. 888 Section 6. Section 163.085, Florida Statutes, is created to 889 read: 890 163.085 Advertisement and solicitation for financing 891 qualifying improvements programs under s. 163.081 or s. 892 163.082.— 893 (1) When communicating with a property owner or a 894 nongovernmental lessee, a program administrator, qualifying 895 improvement contractor, or third-party administrator may not: 896 (a) Suggest or imply: 897 1. That a non-ad valorem assessment authorized under s. 898 163.081 or s. 163.082 is a government assistance program; 899 2. That qualifying improvements are free or provided at no 900 cost, or that the financing related to a non-ad valorem 901 assessment authorized under s. 163.081 or s. 163.082 is free or 902 provided at no cost; or 903 3. That the financing of a qualifying improvement using the 904 program authorized pursuant to s. 163.081 or s. 163.082 does not 905 require repayment of the financial obligation. 906 (b) Make any representation as to the tax deductibility of 907 a non-ad valorem assessment. A program administrator, qualifying 908 improvement contractor, or third-party administrator may 909 encourage a property owner or nongovernmental lessee to seek the 910 advice of a tax professional regarding tax matters related to 911 assessments. 912 (2) A program administrator or third-party administrator 913 may not provide to a qualifying improvement contractor any 914 information that discloses the amount of financing for which a 915 property owner or nongovernmental lessee is eligible for 916 qualifying improvements or the amount of equity in a residential 917 property or commercial property. 918 (3) A qualifying improvement contractor may not advertise 919 the availability of financing agreements for, or solicit program 920 participation on behalf of, the program administrator unless the 921 contractor is registered by the program administrator to 922 participate in the program and is in good standing with the 923 program administrator. 924 (4) A program administrator or third-party administrator 925 may not provide any payment, fee, or kickback to a qualifying 926 improvement contractor for referring property owners or 927 nongovernmental lessees to the program administrator or third 928 party administrator. However, a program administrator or third 929 party administrator may provide information to a qualifying 930 improvement contractor to facilitate the installation of a 931 qualifying improvement for a property owner or nongovernmental 932 lessee. 933 (5) A program administrator or third-party administrator 934 may not reimburse a qualifying improvement contractor for its 935 expenses in advertising and marketing campaigns and materials. 936 (6) A qualifying improvement contractor may not provide a 937 different price for a qualifying improvement financed under s. 938 163.081 than the price that the qualifying improvement 939 contractor would otherwise provide if the qualifying improvement 940 was not being financed through a financing agreement. Any 941 contract between a property owner or nongovernmental lessee and 942 a qualifying improvement contractor must clearly state all 943 pricing and cost provisions, including any process for change 944 orders which meet the requirements of s. 163.081(3)(d). 945 (7) A program administrator, qualifying improvement 946 contractor, or third-party administrator may not provide any 947 direct cash payment or other thing of material value to a 948 property owner or nongovernmental lessee which is explicitly 949 conditioned upon the property owner or nongovernmental lessee 950 entering into a financing agreement. However, a program 951 administrator or third-party administrator may offer programs or 952 promotions on a non-discriminatory basis that provide reduced 953 fees or interest rates if the reduced fees or interest rates are 954 reflected in the financing agreements and are not provided to 955 the property owner or nongovernmental lessee as cash 956 consideration. 957 Section 7. Section 163.086, Florida Statutes, is created to 958 read: 959 163.086 Unenforceable financing agreements for qualifying 960 improvements programs under s. 163.081 or s. 163.082; 961 attachment; fraud.— 962 (1) A recorded financing agreement may not be removed from 963 attachment to a residential property or commercial property if 964 the property owner or nongovernmental lessee fraudulently 965 obtained funding pursuant to s. 163.081 or s. 163.082. 966 (2) A financing agreement may not be enforced, and a 967 recorded financing agreement may be removed from attachment to a 968 residential property or commercial property and deemed null and 969 void, if: 970 (a) The property owner or nongovernmental lessee applied 971 for, accepted, and canceled a financing agreement within the 3 972 business-day period pursuant to s. 163.081(6). A qualifying 973 improvement contractor may not begin work under a canceled 974 contract. 975 (b) A person other than the property owner or 976 nongovernmental lessee obtained the recorded financing 977 agreement. The court may enter an order which holds that person 978 or persons personally liable for the debt. 979 (c) The program administrator, third-party administrator, 980 or qualifying improvement contractor approved or obtained 981 funding through fraudulent means and in violation of ss. 982 163.081-163.085, or this section for qualifying improvements on 983 the residential property or commercial property. 984 (3) If a qualifying improvement contractor has initiated 985 work on residential property or commercial property under a 986 contract deemed unenforceable under this section, the qualifying 987 improvement contractor: 988 (a) May not receive compensation for that work under the 989 financing agreement. 990 (b) Must restore the residential property or commercial 991 property to its original condition at no cost to the property 992 owner or nongovernmental lessee. 993 (c) Must immediately return any funds, property, and other 994 consideration given by the property owner or nongovernmental 995 lessee. If the property owner or nongovernmental lessee provided 996 any property and the qualifying improvement contractor does not 997 or cannot return it, the qualifying improvement contractor must 998 immediately return the fair market value of the property or its 999 value as designated in the contract, whichever is greater. 1000 (4) If the qualifying improvement contractor has delivered 1001 chattel or fixtures to residential property or commercial 1002 property pursuant to a contract deemed unenforceable under this 1003 section, the qualifying improvement contractor has 90 days after 1004 the date on which the contract was executed to retrieve the 1005 chattel or fixtures, provided that: 1006 (a) The qualifying improvement contractor has fulfilled the 1007 requirements of paragraphs (3)(a) and (b). 1008 (b) The chattel and fixtures can be removed at the 1009 qualifying improvement contractor’s expense without damaging the 1010 residential property or commercial property. 1011 (5) If a qualifying improvement contractor fails to comply 1012 with this section, the property owner or nongovernmental lessee 1013 may retain any chattel or fixtures provided pursuant to a 1014 contract deemed unenforceable under this section. 1015 (6) A contract that is otherwise unenforceable under this 1016 section remains enforceable if the property owner or 1017 nongovernmental lessee waives his or her right to cancel the 1018 contract or cancels the financing agreement pursuant to s. 1019 163.081(6) or s. 163.082(6) but allows the qualifying 1020 improvement contractor to proceed with the installation of the 1021 qualifying improvement. 1022 Section 8. Section 163.087, Florida Statutes, is created to 1023 read: 1024 163.087 Reporting for financing qualifying improvements 1025 programs under s. 163.081 or s. 163.082.— 1026 (1) Each program administrator that is authorized to 1027 administer a program for financing qualifying improvements to 1028 residential property or commercial property under s. 163.081 or 1029 s. 163.082 shall post on its website an annual report within 45 1030 days after the end of its fiscal year containing the following 1031 information from the previous year for each program authorized 1032 under s. 163.081 or s. 163.082: 1033 (a) The number and types of qualifying improvements funded. 1034 (b) The aggregate, average, and median dollar amounts of 1035 annual non-ad valorem assessments and the total number of non-ad 1036 valorem assessments collected pursuant to financing agreements 1037 for qualifying improvements. 1038 (c) The total number of defaulted non-ad valorem 1039 assessments, including the total defaulted amount, the number 1040 and dates of missed payments, and the total number of parcels in 1041 default and the length of time in default. 1042 (d) A summary of all reported complaints received by the 1043 program administrator related to the program, including the 1044 names of the third-party administrator, if applicable, and 1045 qualifying improvement contractors and the resolution of each 1046 complaint. 1047 (2) The Auditor General must conduct an operational audit 1048 of each program authorized under s. 163.081 or s. 163.082, 1049 including any third-party administrators, for compliance with 1050 the provisions of ss. 163.08-163.086 and any adopted ordinance 1051 at least once every 24 months. The Auditor General may stagger 1052 evaluations such that a portion of all programs are evaluated in 1053 1 year; however, every program must be evaluated at least once 1054 by September 1, 2027. Each program administrator, and third 1055 party administrator if applicable, must post the most recent 1056 report on its website. 1057 Section 9. This act shall take effect July 1, 2024.