1 | A bill to be entitled |
2 | An act relating to qualifying improvements to real |
3 | property; creating s. 163.08, F.S.; providing legislative |
4 | purposes and findings and intent; providing definitions; |
5 | authorizing a local government to levy non-ad valorem |
6 | assessments to fund certain improvements; authorizing a |
7 | property owner to apply for funding and enter into a |
8 | financing agreement with a local government to finance |
9 | certain improvements; authorizing a local government to |
10 | collect moneys for such purposes through non-ad valorem |
11 | assessments, municipal or county liens, or other lawful |
12 | methods; providing collection requirements; providing for |
13 | discontinuance of utility service under certain |
14 | circumstances; authorizing local governments to partner |
15 | with other local governments to provide and finance |
16 | certain improvements; authorizing a qualifying improvement |
17 | program to be administered by a for-profit entity or not- |
18 | for-profit organization under certain circumstances; |
19 | authorizing a local government to incur debt payable from |
20 | revenues received from the improved property; providing a |
21 | financing restriction for local governments; specifying |
22 | responsibilities for local governments before entering |
23 | into financing agreements; requiring qualifying |
24 | improvements to be affixed to an existing building or |
25 | facility on the property and be performed by a properly |
26 | certified or registered contractor; excluding certain |
27 | projects from financing agreement coverage; limiting the |
28 | amount the just value of the property subject to non-ad |
29 | valorem assessments or municipal or county liens; |
30 | providing exceptions; specifying information provision |
31 | requirements for property owners before entering into |
32 | financing agreements; prohibiting acceleration of a |
33 | mortgage under certain circumstances; specifying |
34 | unenforceability of certain agreement provisions; |
35 | providing construction preserving a local government's |
36 | home rule authority; providing an effective date. |
37 |
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38 | Be It Enacted by the Legislature of the State of Florida: |
39 |
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40 | Section 1. Section 163.08, Florida Statutes, is created to |
41 | read: |
42 | 163.08 Supplemental authority for improvements to real |
43 | property.- |
44 | (1)(a) In chapter 2008-227, Laws of Florida, the |
45 | Legislature amended the energy goal of the state comprehensive |
46 | plan to provide, in part, that the state shall reduce its energy |
47 | requirements through enhanced conservation and efficiency |
48 | measures in all end-use sectors and shall reduce atmospheric |
49 | carbon dioxide by promoting an increased use of renewable energy |
50 | resources. That act also declared it the public policy of the |
51 | state to play a leading role in developing and instituting |
52 | energy management programs that promote energy conservation, |
53 | energy security, and reduction of greenhouse gases. In addition |
54 | to establishing policies to promote the use of renewable energy, |
55 | the Legislature provided for a schedule of increases in energy |
56 | performance of buildings subject to the Florida Energy |
57 | Efficiency Code for Building Construction. In chapter 2008-191, |
58 | Laws of Florida, the Legislature adopted new energy conservation |
59 | and greenhouse gas reduction comprehensive planning requirements |
60 | for local governments. In the 2008 general election, the voters |
61 | of this state approved a constitutional amendment authorizing |
62 | the Legislature, by general law, to prohibit consideration of |
63 | any change or improvement made for the purpose of improving a |
64 | property's resistance to wind damage or the installation of a |
65 | renewable energy source device in the determination of the |
66 | assessed value of residential real property. |
67 | (b) The Legislature finds that all energy-consuming- |
68 | improved properties not using energy conservation strategies |
69 | contribute to the burden affecting all improved property |
70 | resulting from fossil fuel energy production. Improved property |
71 | that has been retrofitted with energy-related qualifying |
72 | improvements receives the special benefit of alleviating the |
73 | property's burden from energy consumption. All improved |
74 | properties not protected from wind damage by wind resistance |
75 | qualifying improvements contribute to the burden affecting all |
76 | improved property resulting from potential wind damage. Improved |
77 | property that has been retrofitted with wind resistance |
78 | qualifying improvements receives the special benefit of reducing |
79 | the property's burden from potential wind damage. Further, the |
80 | installation and operation of qualifying improvements not only |
81 | benefit the affected properties for which the improvements are |
82 | made, but also assist in fulfilling the goals of the state's |
83 | energy and hurricane mitigation policies. To make qualifying |
84 | improvements more affordable and assist property owners who wish |
85 | to undertake such improvements, there is a compelling state |
86 | interest in enabling property owners, on a voluntary basis, to |
87 | finance such improvements with local government assistance. |
88 | (c) The Legislature determines that the actions authorized |
89 | under this section, including, but not limited to, the financing |
90 | of qualifying improvements through the execution of financing |
91 | agreements and the related imposition of voluntary assessments |
92 | or charges, are reasonable and necessary to serve and achieve a |
93 | compelling state interest and are necessary for the prosperity |
94 | and welfare of the state and its property owners and |
95 | inhabitants. |
96 | (2) As used in this section, the term: |
97 | (a) "Local government" means a county, municipality, or |
98 | special district. |
99 | (b) "Qualifying improvement" includes any: |
100 | 1. "Energy conservation and efficiency improvement," which |
101 | means a measure to reduce consumption, through conservation or |
102 | more efficient use, of electricity, natural gas, propane, or |
103 | other forms of energy on the property, including, but not |
104 | limited to, air sealing; installation of insulation; |
105 | installation of energy-efficient heating, cooling, or |
106 | ventilation systems; building modifications to increase the use |
107 | of daylight; replacement of windows; installation of energy |
108 | controls or energy recovery systems; and installation of |
109 | efficient lighting equipment. |
110 | 2. "Renewable energy improvement," which means the |
111 | installation of any system whose electrical, mechanical, or |
112 | thermal energy is produced from a method that uses one or more |
113 | of the following fuels or energy sources: hydrogen, solar |
114 | energy, geothermal energy, bioenergy, and wind energy. |
115 | 3. "Wind resistance improvement," which includes, but is |
116 | not limited to: |
117 | a. Improving the strength of the roof deck attachment; |
118 | b. Creating a secondary water barrier to prevent water |
119 | intrusion; |
120 | c. Installing wind-resistant shingles; |
121 | d. Installing gable-end bracing; |
122 | e. Reinforcing roof-to-wall connections; |
123 | f. Installing storm shutters; or |
124 | g. Installing opening protections. |
125 | (3) A local government may levy non-ad valorem assessments |
126 | to fund qualifying improvements. |
127 | (4) Subject to local government ordinance or resolution, a |
128 | property owner may apply to the local government for funding to |
129 | finance a qualifying improvement and enter into a financing |
130 | agreement with the local government. Costs incurred by the local |
131 | government for such purpose may be collected as a non-ad valorem |
132 | assessment, by means of a municipal or county lien, or by any |
133 | other lawful method. |
134 | (a) A non-ad valorem assessment shall be collected |
135 | pursuant s. 197.3632. However, the notice and adoption |
136 | requirements of s. 197.3632(4) do not apply if this section is |
137 | used and complied with, and the initial resolution, publication |
138 | of notice, and mailed notices to the property appraiser, tax |
139 | collector, and Department of Revenue required by s. |
140 | 197.3632(3)(a) may be provided on or before August 15 in |
141 | conjunction with any non-ad valorem assessment authorized by |
142 | this section, if the property appraiser, tax collector, and |
143 | local government agree. |
144 | (b) If the financing agreement provides for repayment |
145 | through a surcharge on a utility or other municipal service bill |
146 | in the form of a municipal lien, the utility provider may |
147 | discontinue the delivery of all utility service for nonpayment |
148 | of the surcharge. However, the financing agreement must set |
149 | forth the terms and costs of such discontinuance of service, |
150 | including the period of time of nonpayment of the surcharge |
151 | after which the discontinuance of service will be imposed. |
152 | (5) Pursuant to this chapter or as otherwise provided by |
153 | law or pursuant to a local government's home rule power, a local |
154 | government may partner with one or more local governments for |
155 | the purpose of providing and financing qualifying improvements. |
156 | (6) A qualifying improvement program may be administered |
157 | by a for-profit entity or a not-for-profit organization on |
158 | behalf of and at the discretion of the local government. |
159 | (7) A local government may incur debt for the purpose of |
160 | providing such improvements, payable from revenues received from |
161 | the improved property, or any other available revenue source |
162 | authorized by law. |
163 | (8) A local government may enter into a financing |
164 | agreement only with the record owner of the affected property. |
165 | (9) Before entering into a financing agreement, the local |
166 | government shall reasonably determine that all property taxes |
167 | and any other assessments levied on the same bill as property |
168 | taxes are paid and have not been delinquent for the preceding 3 |
169 | years or the property owner's period of ownership, whichever is |
170 | less; that there are no involuntary liens, including, but not |
171 | limited to, construction liens on the property; that no notices |
172 | of default or other evidence of property-based debt delinquency |
173 | have been recorded during the preceding 3 years or the property |
174 | owner's period of ownership, whichever is less; and that the |
175 | property owner is current on all mortgage debt on the property. |
176 | (10) A qualifying improvement shall be affixed to an |
177 | existing building or facility that is part of the property and |
178 | shall constitute an improvement to the building or facility or a |
179 | fixture attached to the building or facility. An agreement |
180 | between a local government and a qualifying property owner may |
181 | not cover projects in buildings or facilities under new |
182 | construction or construction for which a certificate of |
183 | occupancy or similar evidence of substantial completion of new |
184 | construction or improvement has not been issued. |
185 | (11) Any work requiring a license under any applicable law |
186 | to make a qualifying improvement shall be performed by a |
187 | contractor properly certified or registered pursuant to part I |
188 | or part II of chapter 489. |
189 | (12)(a) Without the consent of the holders or loan |
190 | servicers of any mortgage encumbering or otherwise secured by |
191 | the property, the total amount of any non-ad valorem assessment |
192 | or municipal or county lien for a property under this section |
193 | may not exceed 20 percent of the just value of the property as |
194 | determined by the county property appraiser. |
195 | (b) Notwithstanding paragraph (a), a non-ad valorem |
196 | assessment or municipal or county lien for a qualifying |
197 | improvement defined in subparagraph (2)(b)1. or subparagraph |
198 | (2)(b)2. that is supported by an energy audit is not subject to |
199 | the limits in this subsection if the audit demonstrates that the |
200 | annual energy savings from the qualified improvement equals or |
201 | exceeds the annual repayment amount of the non-ad valorem |
202 | assessment or municipal or county lien. |
203 | (c) A local government may adopt alternate parameters to |
204 | those specified in this subsection to conform to local needs and |
205 | conditions after a public hearing and the finding of the need |
206 | for such changes due to local needs and conditions. |
207 | (13) At least 30 days before entering into a financing |
208 | agreement, the property owner shall provide to the holders or |
209 | loan servicers of any existing mortgages encumbering or |
210 | otherwise secured by the property a notice of the owner's intent |
211 | to enter into a financing agreement together with the maximum |
212 | principal amount to be financed and the maximum annual |
213 | assessment necessary to repay that amount. A provision in any |
214 | agreement between a mortgagee or other lienholder and a property |
215 | owner, or otherwise now or hereafter binding upon a property |
216 | owner, which allows for acceleration of payment of the mortgage, |
217 | note, or lien or other unilateral modification solely as a |
218 | result of entering into a financing agreement as provided for in |
219 | this section is not enforceable. This subsection does not limit |
220 | the authority of the holder or loan servicer to increase the |
221 | required monthly escrow by an amount necessary to annually pay |
222 | the qualifying improvement assessment. |
223 | (14) A provision in any agreement between a local |
224 | government and a public or private power or energy provider or |
225 | other utility provider is not enforceable to limit or prohibit |
226 | any local government from exercising its authority under this |
227 | section. |
228 | (15) This section is additional and supplemental to county |
229 | and municipal home rule authority and not in derogation of such |
230 | authority or a limitation upon such authority. |
231 | Section 2. This act shall take effect upon becoming a law. |