| 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; providing collection requirements; |
| 12 | authorizing local governments to partner with other local |
| 13 | governments to provide and finance certain improvements; |
| 14 | authorizing a qualifying improvement program to be |
| 15 | administered by a for-profit entity or not-for-profit |
| 16 | organization under certain circumstances; authorizing a |
| 17 | local government to incur debt payable from revenues |
| 18 | received from the improved property; providing a financing |
| 19 | restriction for local governments; requiring a financial |
| 20 | agreement to be recorded in a county's public records |
| 21 | within 5 days after execution of the agreement; specifying |
| 22 | responsibilities for local governments before entering |
| 23 | into financing agreements; requiring qualifying |
| 24 | improvements to be affixed to a building or facility on |
| 25 | the property and be performed by a properly certified or |
| 26 | registered contractor; excluding certain projects from |
| 27 | financing agreement coverage; limiting the amount of the |
| 28 | non-ad valorem assessment to a percentage of the just |
| 29 | value of the property; providing exceptions; specifying |
| 30 | information provision requirements for property owners |
| 31 | before entering into financing agreements; prohibiting |
| 32 | acceleration of a mortgage under certain circumstances; |
| 33 | providing assessment disclosure requirements; 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 | are reasonable and necessary to serve and achieve a compelling |
| 93 | state interest and are necessary for the prosperity and welfare |
| 94 | of the state and its property owners and inhabitants. |
| 95 | (2) As used in this section, the term: |
| 96 | (a) "Local government" means a county or municipality. |
| 97 | (b) "Qualifying improvement" includes any: |
| 98 | 1. "Energy conservation and efficiency improvement," which |
| 99 | means a measure to reduce consumption, through conservation or |
| 100 | more efficient use, of electricity, natural gas, propane, or |
| 101 | other forms of energy on the property, including, but not |
| 102 | limited to, air sealing; installation of insulation; |
| 103 | installation of energy-efficient heating, cooling, or |
| 104 | ventilation systems; building modifications to increase the use |
| 105 | of daylight; replacement of windows; installation of energy |
| 106 | controls or energy recovery systems; installation of electric |
| 107 | vehicle charging equipment; and installation of efficient |
| 108 | lighting equipment. |
| 109 | 2. "Renewable energy improvement," which means the |
| 110 | installation of any system whose electrical, mechanical, or |
| 111 | thermal energy is produced from a method that uses one or more |
| 112 | of the following fuels or energy sources: hydrogen, solar |
| 113 | energy, geothermal energy, bioenergy, and wind energy. |
| 114 | 3. "Wind resistance improvement," which includes, but is |
| 115 | not limited to: |
| 116 | a. Improving the strength of the roof deck attachment; |
| 117 | b. Creating a secondary water barrier to prevent water |
| 118 | intrusion; |
| 119 | c. Installing wind-resistant shingles; |
| 120 | d. Installing gable-end bracing; |
| 121 | e. Reinforcing roof-to-wall connections; |
| 122 | f. Installing storm shutters; or |
| 123 | g. Installing opening protections. |
| 124 | (3) A local government may levy non-ad valorem assessments |
| 125 | to fund qualifying improvements. |
| 126 | (4) Subject to local government ordinance or resolution, a |
| 127 | property owner may apply to the local government for funding to |
| 128 | finance a qualifying improvement and enter into a financing |
| 129 | agreement with the local government. Costs incurred by the local |
| 130 | government for such purpose may be collected as a non-ad valorem |
| 131 | assessment. A non-ad valorem assessment shall be collected |
| 132 | pursuant to s. 197.3632. However, the notice and adoption |
| 133 | requirements of s. 197.3632(4) do not apply if this section is |
| 134 | used and complied with, and the initial resolution, publication |
| 135 | of notice, and mailed notices to the property appraiser, tax |
| 136 | collector, and Department of Revenue required by s. |
| 137 | 197.3632(3)(a) may be provided on or before August 15 in |
| 138 | conjunction with any non-ad valorem assessment authorized by |
| 139 | this section, if the property appraiser, tax collector, and |
| 140 | local government agree. |
| 141 | (5) Pursuant to this chapter or as otherwise provided by |
| 142 | law or pursuant to a local government's home rule power, a local |
| 143 | government may partner with one or more local governments for |
| 144 | the purpose of providing and financing qualifying improvements. |
| 145 | (6) A qualifying improvement program may be administered |
| 146 | by a for-profit entity or a not-for-profit organization on |
| 147 | behalf of and at the discretion of the local government. |
| 148 | (7) A local government may incur debt for the purpose of |
| 149 | providing such improvements, payable from revenues received from |
| 150 | the improved property, or any other available revenue source |
| 151 | authorized by law. |
| 152 | (8) A local government may enter into a financing |
| 153 | agreement only with the record owner of the affected property. |
| 154 | Any financing agreement entered into pursuant to this section or |
| 155 | a summary memorandum of such agreement shall be recorded in the |
| 156 | public records of the county within which the property is |
| 157 | located by the sponsoring unit of local government within 5 days |
| 158 | after execution of the agreement. The recorded agreement shall |
| 159 | provide constructive notice that the assessment to be levied on |
| 160 | the property constitutes a lien of equal dignity to county taxes |
| 161 | and assessments from the date of recordation. |
| 162 | (9) Before entering into a financing agreement, the local |
| 163 | government shall reasonably determine that all property taxes |
| 164 | and any other assessments levied on the same bill as property |
| 165 | taxes are paid and have not been delinquent for the preceding 3 |
| 166 | years or the property owner's period of ownership, whichever is |
| 167 | less; that there are no involuntary liens, including, but not |
| 168 | limited to, construction liens on the property; that no notices |
| 169 | of default or other evidence of property-based debt delinquency |
| 170 | have been recorded during the preceding 3 years or the property |
| 171 | owner's period of ownership, whichever is less; and that the |
| 172 | property owner is current on all mortgage debt on the property. |
| 173 | (10) A qualifying improvement shall be affixed to a |
| 174 | building or facility that is part of the property and shall |
| 175 | constitute an improvement to the building or facility or a |
| 176 | fixture attached to the building or facility. An agreement |
| 177 | between a local government and a qualifying property owner may |
| 178 | not cover wind-resistance improvements in buildings or |
| 179 | facilities under new construction or construction for which a |
| 180 | certificate of occupancy or similar evidence of substantial |
| 181 | completion of new construction or improvement has not been |
| 182 | issued. |
| 183 | (11) Any work requiring a license under any applicable law |
| 184 | to make a qualifying improvement shall be performed by a |
| 185 | contractor properly certified or registered pursuant to part I |
| 186 | or part II of chapter 489. |
| 187 | (12)(a) Without the consent of the holders or loan |
| 188 | servicers of any mortgage encumbering or otherwise secured by |
| 189 | the property, the total amount of any non-ad valorem assessment |
| 190 | for a property under this section may not exceed 20 percent of |
| 191 | the just value of the property as determined by the county |
| 192 | property appraiser. |
| 193 | (b) Notwithstanding paragraph (a), a non-ad valorem |
| 194 | assessment for a qualifying improvement defined in subparagraph |
| 195 | (2)(b)1. or subparagraph (2)(b)2. that is supported by an energy |
| 196 | audit is not subject to the limits in this subsection if the |
| 197 | audit demonstrates that the annual energy savings from the |
| 198 | qualified improvement equals or exceeds the annual repayment |
| 199 | amount of the non-ad valorem assessment. |
| 200 | (13) At least 30 days before entering into a financing |
| 201 | agreement, the property owner shall provide to the holders or |
| 202 | loan servicers of any existing mortgages encumbering or |
| 203 | otherwise secured by the property a notice of the owner's intent |
| 204 | to enter into a financing agreement together with the maximum |
| 205 | principal amount to be financed and the maximum annual |
| 206 | assessment necessary to repay that amount. A verified copy or |
| 207 | other proof of such notice shall be provided to the local |
| 208 | government. A provision in any agreement between a mortgagee or |
| 209 | other lienholder and a property owner, or otherwise now or |
| 210 | hereafter binding upon a property owner, which allows for |
| 211 | acceleration of payment of the mortgage, note, or lien or other |
| 212 | unilateral modification solely as a result of entering into a |
| 213 | financing agreement as provided for in this section is not |
| 214 | enforceable. This subsection does not limit the authority of the |
| 215 | holder or loan servicer to increase the required monthly escrow |
| 216 | by an amount necessary to annually pay the qualifying |
| 217 | improvement assessment. |
| 218 | (14) Each contract for the initial sale of a parcel of |
| 219 | real property for which a non-ad valorem assessment has been |
| 220 | imposed under the authority of this section within the local |
| 221 | government shall include, immediately prior to the space |
| 222 | reserved in the contract for the signature of the purchaser, the |
| 223 | following disclosure statement in boldfaced and conspicuous type |
| 224 | that is larger than the type in the remaining text of the |
| 225 | contract: "THE ...(name of local government)... HAS IMPOSED A |
| 226 | NON-AD VALOREM ASSESSMENT ON THIS PROPERTY. THIS ASSESSMENT IS |
| 227 | IN ADDITION TO OTHER LOCAL GOVERNMENTAL ASSESSMENTS AND ALL |
| 228 | OTHER ASSESSMENTS PROVIDED FOR BY LAW." |
| 229 | (15) A provision in any agreement between a local |
| 230 | government and a public or private power or energy provider or |
| 231 | other utility provider is not enforceable to limit or prohibit |
| 232 | any local government from exercising its authority under this |
| 233 | section. |
| 234 | (16) This section is additional and supplemental to county |
| 235 | and municipal home rule authority and not in derogation of such |
| 236 | authority or a limitation upon such authority. |
| 237 | Section 2. This act shall take effect upon becoming a law. |