Bill Text: FL S1208 | 2021 | Regular Session | Comm Sub
Bill Title: Resiliency Energy Environment Florida (REEF) Program
Spectrum: Bipartisan Bill
Status: (Failed) 2021-04-30 - Died in Appropriations [S1208 Detail]
Download: Florida-2021-S1208-Comm_Sub.html
Florida Senate - 2021 CS for CS for SB 1208
By the Committees on Finance and Tax; and Community Affairs; and
Senators Rodriguez, Burgess, Gruters, and Polsky
593-03034-21 20211208c2
1 A bill to be entitled
2 An act relating to the Resiliency Energy Environment
3 Florida (REEF) program; amending s. 163.08, F.S.;
4 revising legislative findings; defining and redefining
5 terms; specifying that a property owner may apply to a
6 REEF program for certain purposes; providing that
7 costs incurred by the REEF program may be collected as
8 a non-ad valorem assessment; authorizing a local
9 government to enter into agreements with program
10 administrators and to incur debt; authorizing a local
11 government to enter into an assessment financing
12 agreement only with the record owner of the affected
13 property; revising the items a local government or a
14 program administrator must reasonably determine before
15 entering into an assessment financing agreement;
16 requiring a qualifying improvement to be affixed or
17 plan to be affixed to specified properties before
18 final funding; authorizing an assessment financing
19 agreement to cover qualifying improvements on real
20 properties under new construction; revising the
21 written disclosure statement required to be given by
22 sellers to prospective purchasers when executing a
23 contract for the sale and purchase of certain
24 properties; requiring a program administrator to make
25 specified determinations about a property owner’s
26 ability to pay the annual assessment; specifying
27 information a program administrator must provide to
28 the residential real property owner or an authorized
29 representative before entering into an assessment
30 financing agreement; specifying a timeframe within
31 which a residential real property owner may cancel an
32 assessment financing agreement; prohibiting the term
33 of an assessment financing agreement from exceeding
34 specified timeframes; prohibiting a program
35 administrator from offering specified types of
36 financing for residential real properties; prohibiting
37 a program administrator from enrolling certain
38 contractors unless certain conditions are met;
39 providing requirements that must be met before a
40 program administrator may disburse funds; specifying
41 marketing and communications guidelines that program
42 administrators and contractors must comply with when
43 communicating with residential real property owners;
44 prohibiting a contractor from engaging in certain
45 practices regarding pricing of qualifying improvements
46 on residential real properties; specifying
47 requirements for government leased property; providing
48 exemptions for residential real property that meets
49 certain conditions; providing an effective date.
50
51 Be It Enacted by the Legislature of the State of Florida:
52
53 Section 1. Subsections (1), (2), (4), (6) through (10),
54 (12), (13), and (14) of section 163.08, Florida Statutes, are
55 amended, and subsections (17) through (27) are added to that
56 section, to read:
57 163.08 Supplemental authority for improvements to real
58 property.—
59 (1)(a) In chapter 2008-227, Laws of Florida, the
60 Legislature amended the energy goal of the state comprehensive
61 plan to provide, in part, that the state shall reduce its energy
62 requirements through enhanced conservation and efficiency
63 measures in all end-use sectors and reduce atmospheric carbon
64 dioxide by promoting an increased use of renewable energy
65 resources. That act also declared it the public policy of the
66 state to play a leading role in developing and instituting
67 energy management programs that promote energy conservation,
68 energy security, and the reduction of greenhouse gases. In
69 addition to establishing policies to promote the use of
70 renewable energy, the Legislature provided for a schedule of
71 increases in energy performance of buildings subject to the
72 Florida Energy Efficiency Code for Building Construction. In
73 chapter 2008-191, Laws of Florida, the Legislature adopted new
74 energy conservation and greenhouse gas reduction comprehensive
75 planning requirements for local governments. In the 2008 general
76 election, the voters of this state approved a constitutional
77 amendment authorizing the Legislature, by general law, to
78 prohibit consideration of any change or improvement made for the
79 purpose of improving a property’s resistance to wind damage or
80 the installation of a renewable energy source device in the
81 determination of the assessed value of residential real
82 property.
83 (b) The Legislature finds that all energy-consuming
84 improved properties that are not using energy conservation
85 strategies contribute to the burden affecting all improved
86 property resulting from fossil fuel energy production. Improved
87 property that has been retrofitted with energy-related
88 qualifying improvements receives the special benefit of
89 alleviating the property’s burden from energy consumption. All
90 improved properties not protected from wind or flood damage by
91 wind or flood resistant resistance qualifying improvements
92 contribute to the burden affecting all improved property
93 resulting from potential wind or flood damage. Improved property
94 that has been retrofitted with wind or flood resistant
95 resistance qualifying improvements receives the special benefit
96 of reducing the property’s burden from potential wind or flood
97 damage. Further, the installation and operation of qualifying
98 improvements not only benefit the affected properties for which
99 the improvements are made, but also assist in fulfilling the
100 goals of the state’s energy and hurricane mitigation policies.
101 (c) Properties that do not use secondary or advanced
102 technologies for wastewater treatment and disposal contribute to
103 the water quality problems affecting the state and particularly
104 the coastal areas. Improved properties that have been
105 retrofitted with secondary or advanced onsite wastewater
106 treatment systems or have converted to central sewerage
107 significantly benefit the quality of water that may enter
108 streams, lakes, rivers, aquifers, canals, estuaries, or coastal
109 areas. Properties that are not protected from harmful
110 environmental health hazards contribute to the environmental
111 health burdens affecting the state. Properties that have been
112 improved to mitigate against or prevent environmental health
113 hazards benefit the general environmental health of the people
114 within this state.
115 (d) In order to make qualifying improvements more
116 affordable and assist property owners who wish to undertake such
117 improvements, the Legislature finds that there is a compelling
118 state interest in enabling property owners to voluntarily
119 finance such improvements with local government assistance.
120 (e)(c) The Legislature determines that the actions
121 authorized under this section, including, but not limited to,
122 the financing of qualifying improvements through the execution
123 of assessment financing agreements and the related imposition of
124 voluntary assessments are reasonable and necessary to serve and
125 achieve a compelling state interest and are necessary for the
126 prosperity and welfare of the state and its property owners and
127 inhabitants.
128 (2) As used in this section, the term:
129 (a) “Assessment” means the non-ad valorem assessment
130 securing the annual repayment of financing obtained by an owner
131 of commercial real property or residential real property for a
132 qualifying improvement under this chapter.
133 (b) “Assessment financing agreement” means the financing
134 agreement, under a REEF program, between a local government and
135 a property owner for the acquisition or installation of
136 qualifying improvements.
137 (c) “Commercial real property” means any property not
138 defined as a residential real property which will be or is
139 improved by a qualifying improvement, including, but not limited
140 to, the following:
141 1. A multifamily residential property composed of five or
142 more dwelling units.
143 2. A commercial real property.
144 3. An industrial building or property.
145 4. An agricultural property.
146 5. A government leased property.
147 (d) “Contractor” means an independent contractor who
148 contracts with a property owner to install qualifying
149 improvements on real property and is not the owner of such
150 property.
151 (e) “Government leased property” means real property owned
152 by any local government which has become subject to taxation due
153 to lease of the property to a nongovernmental lessee.
154 (f)(a) “Local government” means a county, a municipality, a
155 dependent special district as defined in s. 189.012, or a
156 separate legal entity created pursuant to s. 163.01(7).
157 (g) “Nongovernmental lessee” means a person or entity other
158 than a local government which is the lessee of government leased
159 real property.
160 (h) “Program administrator” means an entity, including, but
161 not limited to, for-profit or not-for-profit entities, with whom
162 a local government contracts to administer a REEF program.
163 (i)(b) “Qualifying improvement” includes any:
164 1. Energy conservation and efficiency improvement, which is
165 a measure to reduce consumption through conservation or a more
166 efficient use of electricity, natural gas, propane, or other
167 forms of energy on the property, including, but not limited to,
168 air sealing; installation of insulation; installation of energy
169 efficient heating, cooling, or ventilation systems; building
170 modifications to increase the use of daylight; replacement of
171 windows; installation of energy controls or energy recovery
172 systems; installation of electric vehicle charging equipment;
173 installation of battery storage systems; and installation of
174 efficient lighting equipment.
175 2. Renewable energy improvement, which is the installation
176 of any system in which the electrical, mechanical, or thermal
177 energy is produced from a method that uses one or more of the
178 following fuels or energy sources: hydrogen, solar energy,
179 geothermal energy, bioenergy, and wind energy.
180 3. Wind, storm, and flood resistance improvement, which
181 includes, but is not limited to:
182 a. Improving the strength of the roof deck attachment.;
183 b. Creating a secondary water barrier to prevent water
184 intrusion.;
185 c. Installing wind-resistant shingles.;
186 d. Installing gable-end bracing.;
187 e. Reinforcing roof-to-wall connections.;
188 f. Installing storm shutters.; or
189 g. Installing opening protections.
190 h. Installing backup power or battery storage systems.
191 4. Wastewater treatment improvement, which includes the
192 removal, replacement, or improvement of an onsite sewage
193 treatment and disposal system with a secondary or advanced
194 onsite treatment and disposal system or technology or the
195 replacement of an onsite sewage treatment and disposal system
196 with a central sewage system. For purposes of this section, the
197 term “wastewater treatment improvement” includes removal,
198 repairs, or modifications made to an onsite sewage treatment and
199 disposal system under s. 381.0065.
200 5. Flood and water damage mitigation and resiliency
201 improvement, which includes, but is not limited to, projects and
202 installations:
203 a. To raise a structure above the base flood elevation to
204 reduce flood damage.
205 b. To build or repair a flood diversion apparatus or
206 seawall improvement, which includes, but is not limited to,
207 seawall repairs, caps, and replacements; banks; berms; green
208 grey infrastructure; upland stem walls; or other infrastructure
209 that impedes tidal waters from flowing onto adjacent property or
210 public rights-of-way.
211 c. That use flood damage resistant building materials.
212 d. That mitigate or eliminate the potential for microbial
213 growth.
214 e. That use electrical, mechanical, plumbing, or other
215 system improvements to reduce flood damage.
216 f. That may qualify for reductions in flood insurance
217 premiums or reduce repetitive loss such as those recognized by
218 the National Flood Insurance Program, the Community Rating
219 System, the Federal Emergency Management Agency, or other
220 programs, including, but not limited to, those related to
221 disaster recovery.
222 6. Health and environmental hazards measure or improvement,
223 which is a measure or an improvement intended to mitigate
224 harmful health and environmental hazards to property occupants,
225 including measures or improvements that mitigate or remove:
226 a. The presence of lead, heavy metals, polyfluoroalkyl
227 substance contamination, saltwater intrusion, or other harmful
228 contaminants in potable water systems. Improvements may include
229 conversion of well water to municipal water systems, replacement
230 of lead water service lines, or installation of water filters.
231 b. Asbestos.
232 c. Lead paint contamination in housing built before 1978.
233 d. Indoor air pollution or contaminants, including
234 particulate matter, viruses, bacteria, and mold.
235 7. Water conservation or efficiency improvement, which is a
236 measure or improvement to reduce the usage of water or increase
237 the efficiency of water usage.
238 (j) “Residential real property” means a residential
239 property of four or fewer dwelling units which is or will be
240 improved by a qualifying improvement.
241 (k) “Resiliency Energy Environment Florida (REEF) program”
242 means a program established by a local government, alone or in
243 partnership with other local governments or a program
244 administrator, to finance qualifying improvements on commercial
245 real property or residential real property.
246 (4) Subject to local government ordinance or resolution, a
247 property owner may apply to a REEF program the local government
248 for funding to finance a qualifying improvement and enter into
249 an assessment a financing agreement with the local government.
250 Costs incurred by the REEF program local government for such
251 purpose may be collected as a non-ad valorem assessment. A non
252 ad valorem assessment shall be collected pursuant to s. 197.3632
253 and, notwithstanding s. 197.3632(8)(a), is shall not be subject
254 to a discount for early payment. However, the notice and
255 adoption requirements of s. 197.3632(4) do not apply if this
256 section is used and complied with, and the intent resolution,
257 publication of notice, and mailed notices to the property
258 appraiser, tax collector, and Department of Revenue required by
259 s. 197.3632(3)(a) may be provided on or before August 15 in
260 conjunction with any non-ad valorem assessment authorized by
261 this section, if the property appraiser, tax collector, and
262 local government agree.
263 (6) A local government may enter into an agreement with a
264 program administrator to administer a REEF program A qualifying
265 improvement program may be administered by a for-profit entity
266 or a not-for-profit organization on behalf of and at the
267 discretion of the local government.
268 (7) A local government may incur debt for the purpose of
269 providing financing for the such improvements, which is payable
270 from revenues received from the improved property, or any other
271 available revenue source authorized by law.
272 (8) A local government may enter into an assessment a
273 financing agreement to finance or refinance a qualifying
274 improvement only with the record owner of the affected property.
275 Any assessment financing agreement entered into pursuant to this
276 section or a summary memorandum of such agreement shall be
277 submitted for recording recorded in the public records of the
278 county within which the property is located by the sponsoring
279 unit of local government within 5 days after execution of the
280 agreement. The recorded agreement shall provide constructive
281 notice that the assessment to be levied on the property
282 constitutes a lien of equal dignity to county taxes and
283 assessments from the date of recordation.
284 (9) Before entering into an assessment a financing
285 agreement, the local government or the program administrator
286 acting on its behalf shall reasonably determine that:
287 (a) All property taxes and any other assessments levied on
288 the same bill as property taxes are current and have been paid
289 and have not been delinquent for the preceding 3 years or the
290 property owner’s period of ownership, whichever is less;
291 (b) That There are no involuntary liens greater than
292 $1,000, including, but not limited to, construction liens on the
293 property;
294 (c) That No notices of default or other evidence of
295 property-based debt delinquency have been recorded and not
296 released during the preceding 3 years or the property owner’s
297 period of ownership, whichever is less;
298 (d) The local government or program administrator has asked
299 the property owner whether any other assessments have been
300 recorded or that have been funded and not yet recorded on the
301 property; and
302 (e) That The property owner is current on all mortgage debt
303 on the property.
304 (10) Before final funding, a qualifying improvement must
305 shall be affixed or plan to be affixed to a commercial or
306 residential real building or facility that is part of the
307 property and shall constitute an improvement to that property
308 the building or facility or a fixture attached to the building
309 or facility. An assessment financing agreement An agreement
310 between a local government and a qualifying property owner may
311 not cover qualifying wind-resistance improvements on commercial
312 or residential real properties in buildings or facilities under
313 new construction or construction for which a certificate of
314 occupancy or similar evidence of substantial completion of new
315 construction or improvement has not been issued.
316 (12)(a) Without the consent of the holders or loan
317 servicers of any mortgage encumbering or otherwise secured by
318 the property, the total amount of any non-ad valorem assessment
319 for a property under this section may not exceed 20 percent of
320 the just value of the property as determined by the county
321 property appraiser.
322 (b) Notwithstanding paragraph (a), a non-ad valorem
323 assessment for a qualifying improvement defined in subparagraph
324 (2)(i)1. (2)(b)1. or subparagraph (2)(i)2. (2)(b)2. that is
325 supported by an energy audit is not subject to the limits in
326 this subsection if the audit demonstrates that the annual energy
327 savings from the qualified improvement equals or exceeds the
328 annual repayment amount of the non-ad valorem assessment.
329 (13) At least 30 days before entering into an assessment a
330 financing agreement, the property owner shall provide to the
331 holders or loan servicers of any existing mortgages encumbering
332 or otherwise secured by the property a notice of the owner’s
333 intent to enter into an assessment a financing agreement
334 together with the maximum principal amount to be financed and
335 the maximum annual assessment necessary to repay that amount. A
336 verified copy or other proof of such notice shall be provided to
337 the local government. A provision in any agreement between a
338 mortgagee or other lienholder and a property owner, or otherwise
339 now or hereafter binding upon a property owner, which allows for
340 acceleration of payment of the mortgage, note, or lien or other
341 unilateral modification solely as a result of entering into an
342 assessment a financing agreement as provided for in this section
343 is not enforceable. This subsection does not limit the authority
344 of the holder or loan servicer to increase the required monthly
345 escrow by an amount necessary to annually pay the annual
346 qualifying improvement assessment.
347 (14) At or before the time a purchaser executes a contract
348 for the sale and purchase of any property for which a non-ad
349 valorem assessment has been levied under this section and has an
350 unpaid balance due, the seller must shall give the prospective
351 purchaser a written disclosure statement in the following form,
352 which shall be set forth in the contract or in a separate
353 writing:
354
355 QUALIFYING IMPROVEMENTS FOR ENERGY EFFICIENCY,
356 RENEWABLE ENERGY, FLOOD MITIGATION, OR WIND OR STORM
357 RESILIENCE, ADVANCED TECHNOLOGIES FOR WASTEWATER
358 TREATMENT, ENVIRONMENTAL HEALTH, OR WATER CONSERVATION
359 RESISTANCE.—The property being purchased is located
360 within the jurisdiction of a local government that has
361 placed an assessment on the property pursuant to s.
362 163.08, Florida Statutes. The assessment is for a
363 qualifying improvement to the property relating to
364 energy efficiency, renewable energy, flood mitigation,
365 or wind or storm resilience, advanced technologies for
366 wastewater treatment, environmental health, or water
367 conservation resistance, and is not based on the value
368 of property. You are encouraged to contact the county
369 property appraiser’s office to learn more about this
370 and other assessments that may be provided by law.
371
372 (17) Before entering into an assessment financing agreement
373 for a qualifying improvement on a residential real property, a
374 program administrator must reasonably determine that the
375 property owner has an ability to pay the estimated annual
376 assessment based, at a minimum, on the following:
377 (a) For property owners seeking financing where the total
378 estimated annual payment amount of all assessments authorized
379 under this section on the property is $4,800 or less, or the
380 equivalent of $400 per month, the program administrator, at a
381 minimum, must use the underwriting requirements in subsection
382 (9) and confirm the property owner is not currently in
383 bankruptcy in determining whether the property owner has a
384 reasonable ability to pay the assessment. A program
385 administrator shall annually recalculate the $4,800 limit to
386 account for the rate of inflation established by the United
387 States Bureau of Labor Statistics’ Consumer Price Index for All
388 Urban Consumers (CPI-U), using the prior year 12-month average
389 of the CPI-U, at an appropriate time following the release of
390 the December CPI-U data from that prior year.
391 (b) For property owners seeking financing where the total
392 estimated annual payment amount of all assessments authorized
393 under this section on the property is greater than $4,800, or
394 the equivalent of $400 per month, the program administrator, at
395 a minimum, must use the underwriting requirements in subsection
396 (9), to confirm that the property owner is not in bankruptcy and
397 determine that the total estimated annual payment amount for all
398 the assessment financing agreements authorized under this
399 section on the property does not exceed 10 percent of the
400 property owner’s annual household income. Income may be
401 confirmed using information gathered from reputable third
402 parties that provide reasonably reliable evidence of the
403 property owner’s household income. Income may not be confirmed
404 solely from a property owner’s statement. A program
405 administrator shall annually recalculate the $4,800 limit to
406 account for the rate of inflation established by the United
407 States Bureau of Labor Statistics’ Consumer Price Index for All
408 Urban Consumers (CPI-U), using the prior year 12-month average
409 of the CPI-U, at an appropriate time following the release of
410 the December CPI-U data from that prior year.
411 (18) Before an assessment financing agreement is entered
412 into for a qualifying improvement on a residential real
413 property, the program administrator must:
414 (a) Provide a financing estimate and disclosure to the
415 residential real property owner which includes all of the
416 following:
417 1. The total amount estimated to be funded, including the
418 cost of the qualifying improvements, program fees, and
419 capitalized interest, if any.
420 2. The estimated annual assessment.
421 3. The term of the assessment.
422 4. The fixed interest charged and estimated annual
423 percentage rate.
424 5. A description of the qualifying improvement.
425 6. A disclosure that if the property owner sells or
426 refinances the property, the property owner, as a condition of
427 the sale or the refinance, may be required by a mortgage lender
428 to pay off the full amount owed under each assessment financing
429 agreement.
430 7. A disclosure that the assessment will be collected along
431 with the property owner’s property taxes and will result in a
432 lien on the property from the date the assessment financing
433 agreement is executed.
434 8. A disclosure that failure to pay the assessment may
435 result in penalties and fees, along with the issuance of a tax
436 certificate that could result in the property owner losing the
437 real property.
438 (b) Conduct, with a residential real property owner or an
439 authorized representative, an oral, recorded telephone call
440 during which time the program administrator must use plain
441 language. The program administrator must ask the residential
442 real property owner if he or she would like to communicate
443 primarily in a language other than English. A program
444 administrator may not leave a voicemail to the residential real
445 property owner to satisfy this requirement. A program
446 administrator, as part of such telephone call, must confirm all
447 of the following with the residential real property owner:
448 1. That at least one residential real property owner has
449 access to a copy of the assessment financing agreement and
450 financing estimates and disclosures.
451 2. The qualifying improvement that is being financed.
452 3. The total estimated annual costs that the residential
453 real property owner will have to pay under the assessment
454 financing agreement, including applicable fees.
455 4. The total estimated average monthly equivalent amount of
456 funds the residential real property owner would have to save in
457 order to pay the annual costs of the assessment, including
458 applicable fees.
459 5. The estimated date the residential real property owner’s
460 first property tax payment that includes the assessment will be
461 due.
462 6. The term of the assessment financing agreement.
463 7. That payments for the assessment financing agreement
464 will cause the residential real property owner’s annual tax bill
465 to increase and that payments will be made through an additional
466 annual assessment on the property and will be paid either
467 directly to the county tax collector’s office as part of the
468 total annual secured property tax bill or may be paid through
469 the residential real property owner’s mortgage escrow account.
470 8. That the qualifying residential property owner has
471 disclosed whether the property has received or is seeking
472 additional assessments authorized under this section and has
473 disclosed all other assessments or special taxes that are or are
474 about to be placed on the property.
475 9. That the property will be subject to a lien during the
476 term of the assessment financing agreement and that the
477 obligations under the agreement may be required to be paid in
478 full before the residential real property owner sells or
479 refinances the property.
480 10. That any potential utility or insurance savings are not
481 guaranteed and will not reduce the assessment or total
482 assessment amount.
483 11. That the program administrator or contractor do not
484 provide tax advice and that the residential real property owner
485 should seek professional tax advice if he or she has questions
486 regarding tax credits, tax deductibility, or other tax impacts
487 of the qualifying improvement or the assessment financing
488 agreement.
489 (19) The residential real property owner may cancel the
490 assessment financing agreement within 3 business days after
491 signing the assessment financing agreement without any financial
492 penalty for doing so.
493 (20) The term of an assessment financing agreement on
494 residential real property may not exceed:
495 (a) The estimated useful life of the qualifying improvement
496 being installed if one improvement is being financed; or
497 (b) Either the weighted average estimated useful life of
498 all qualifying improvements being financed or the estimated
499 useful life of the qualifying improvements to which the greatest
500 portion of funds are disbursed if multiple qualifying
501 improvements are being financed.
502
503 A financing term on residential real property may not exceed 30
504 years.
505 (21) A program administrator may not offer assessment
506 financing on any residential real property if the financing
507 includes any of the following:
508 (a) A negative amortization schedule;
509 (b) A balloon payment; or
510 (c) Prepayment fees, other than nominal administrative
511 costs.
512 (22) For residential real property, a program
513 administrator:
514 (a) May not enroll a contractor who offers assessment
515 financing on residential real property unless:
516 1. The program administrator makes a reasonable effort to
517 review that the contractor maintains in good standing an
518 appropriate license from the state, if applicable, as well as
519 any other permits, licenses, or registrations required for
520 engaging in business in the jurisdiction in which it operates
521 and that the contractor maintains all state required bond and
522 insurance coverage.
523 2. The program administrator obtains the contractor’s
524 written agreement that the contractor will act in accordance
525 with all applicable laws, including applicable advertising and
526 marketing laws and regulations.
527 (b) Must maintain a process to enroll new contractors which
528 includes reasonable review of the following for each contractor:
529 1. Relevant work or project history.
530 2. Financial and reputational background checks.
531 3. Criminal background check. A program administrator may
532 rely on a background check conducted by the Florida Department
533 of Business and Professional Regulation Construction Industry
534 Licensing Board to comply with this requirement.
535 4. Status on Better Business Bureau or other online
536 platforms that track contractor reviews.
537 (23)(a) Before disbursing funds to a contractor for a
538 qualifying improvement on residential real property, a program
539 administrator must first confirm the applicable work or service
540 has been completed, either through written certification from
541 the property owner, a recorded telephone call with the property
542 owner, or a site inspection through third-party means.
543 (b) A program administrator may not disclose to a
544 contractor or to a third party engaged in soliciting an
545 assessment financing agreement the maximum financing amount for
546 which a residential real property owner is eligible.
547 (24) Each program administrator and contractor must comply
548 with the following marketing and communications guidelines when
549 communicating with residential real property owners:
550 (a) A program administrator or contractor may not suggest
551 or imply:
552 1. That a REEF program or assessment financing is a
553 government assistance program;
554 2. That qualifying improvements are free or that assessment
555 financing is a free program; or
556 3. That the financing of a qualifying improvement using the
557 REEF program does not require the property owner to repay the
558 financial obligation.
559 (b) A program administrator or contractor may not make any
560 representation as to the tax deductibility of an assessment
561 authorized under this section on residential real property. A
562 program administrator or contractor may encourage a property
563 owner to seek the advice of a tax professional regarding tax
564 matters related to assessments.
565 (25) A contractor should not present a higher price for a
566 qualifying improvement on residential real property financed by
567 assessment financing agreement than the contractor would
568 otherwise reasonably present if the qualifying improvement were
569 not being financed through a PACE assessment contract.
570 (26) Notwithstanding any provisions to the contrary
571 contained in this section, the following applies to government
572 leased property:
573 (a) The assessment financing agreement shall be executed by
574 either:
575 1. Both the local government and the nongovernmental
576 lessee; or
577 2. Solely by the nongovernmental lessee but with the
578 written consent of the local government that must provide
579 evidence of such consent to the program administrator or REEF
580 program.
581 (b) The assessment financing agreement must provide that
582 the nongovernmental lessee is the only party obligated to pay
583 the assessment.
584 (c) A delinquent assessment shall be enforced in the manner
585 provided in s. 196.199(8).
586 (d) The recorded assessment financing agreement or a
587 summary memorandum of such recorded agreement shall provide
588 constructive notice that the assessment to be levied on the
589 property is subject to enforcement in the manner provided in ss.
590 197.432(10) and 196.199(8).
591 (e) For purposes of subsections (9) and (13) only,
592 references to the property owner shall be deemed to refer to the
593 nongovernmental lessee, and references to the period of
594 ownership shall be deemed to refer to the period that the
595 nongovernmental lessee has been leasing the property from the
596 local government.
597 (f) The term of the assessment financing agreement on
598 government leased property may not exceed the lesser of:
599 1. The useful life of the qualifying improvement being
600 financed if one improvement is being financed, or, either the
601 weighted average estimated useful life of all qualifying
602 improvements being financed or the estimated useful life of the
603 qualifying improvements to which the greatest portion of funds
604 are disbursed if multiple qualifying improvements are being
605 financed;
606 2. The remaining term of the lease on the government leased
607 property; or
608 3. Thirty years.
609 (27) Residential real property is exempt from subsections
610 (17) through (25) if:
611 (a) The residential real property is owned by a business
612 entity that owns more than one residential real property; and
613 (b) The business entity’s managing member, partner, or
614 beneficial owner does not reside in the residential real
615 property.
616 Section 2. This act shall take effect July 1, 2021.
