Florida Senate - 2022 SB 228
By Senator Rodriguez
39-00332A-22 2022228__
1 A bill to be entitled
2 An act relating to Resiliency Energy Environment
3 Florida programs; amending s. 163.08, F.S.; defining
4 terms; providing that a property owner may apply to a
5 Resiliency Energy Environment Florida (REEF) program
6 for funding to finance a qualifying improvement and
7 may enter into an assessment financing agreement with
8 a local government; providing that REEF program costs
9 may be collected as non-ad valorem assessments;
10 authorizing local governments to enter into agreements
11 with program administrators to administer REEF
12 programs; revising and specifying public recording
13 requirements for assessment financing agreements and
14 notices of lien; revising requirements that apply to
15 local governments or program administrators in
16 determining eligibility for assessment financing;
17 revising requirements for qualifying improvements;
18 revising and specifying limitations on non-ad valorem
19 assessments; providing construction; specifying
20 underwriting, financing estimate, disclosure, and
21 confirmation requirements for program administrators
22 relating to residential real property; authorizing a
23 residential real property owner, under certain
24 circumstances and within a certain timeframe, to
25 cancel an assessment financing agreement without
26 financial penalty; specifying limitations on
27 assessment financing agreement terms for residential
28 real property; prohibiting certain financing terms for
29 residential real property; specifying requirements
30 for, and certain prohibited acts by, program
31 administrators relating to assessment financing
32 agreements and contractors for qualifying improvements
33 to residential real property; specifying additional
34 annual reporting requirements for program
35 administrators; specifying requirements for, and
36 limitations on, assessment financing agreements
37 relating to government-leased property; providing
38 construction and applicability; conforming provisions
39 to changes made by the act; providing an effective
40 date.
41
42 Be It Enacted by the Legislature of the State of Florida:
43
44 Section 1. Present subsection (16) of section 163.08,
45 Florida Statutes, is redesignated as subsection (33), a new
46 subsection (16) and subsections (17) through (32) are added to
47 that section, and subsections (1), (2), (4), (6) through (10),
48 (12), (13), and (14) of that section are amended, to read:
49 163.08 Supplemental authority for improvements to real
50 property.—
51 (1)(a) In chapter 2008-227, Laws of Florida, the
52 Legislature amended the energy goal of the state comprehensive
53 plan to provide, in part, that the state shall reduce its energy
54 requirements through enhanced conservation and efficiency
55 measures in all end-use sectors and reduce atmospheric carbon
56 dioxide by promoting an increased use of renewable energy
57 resources. That act also declared it the public policy of the
58 state to play a leading role in developing and instituting
59 energy management programs that promote energy conservation,
60 energy security, and the reduction of greenhouse gases. In
61 addition to establishing policies to promote the use of
62 renewable energy, the Legislature provided for a schedule of
63 increases in energy performance of buildings subject to the
64 Florida Energy Efficiency Code for Building Construction. In
65 chapter 2008-191, Laws of Florida, the Legislature adopted new
66 energy conservation and greenhouse gas reduction comprehensive
67 planning requirements for local governments. In the 2008 general
68 election, the voters of this state approved a constitutional
69 amendment authorizing the Legislature, by general law, to
70 prohibit consideration of any change or improvement made for the
71 purpose of improving a property’s resistance to wind damage or
72 the installation of a renewable energy source device in the
73 determination of the assessed value of residential real
74 property.
75 (b) The Legislature finds that all energy-consuming
76 improved properties that are not using energy conservation
77 strategies contribute to the burden affecting all improved
78 property resulting from fossil fuel energy production. Improved
79 property that has been retrofitted with energy-related
80 qualifying improvements receives the special benefit of
81 alleviating the property’s burden from energy consumption. All
82 improved properties not protected from wind damage by wind
83 resistance qualifying improvements contribute to the burden
84 affecting all improved property resulting from potential wind
85 damage. Improved property that has been retrofitted with wind
86 resistance qualifying improvements receives the special benefit
87 of reducing the property’s burden from potential wind damage.
88 Further, the installation and operation of qualifying
89 improvements not only benefit the affected properties for which
90 the improvements are made, but also assist in fulfilling the
91 goals of the state’s energy and hurricane mitigation policies.
92 (c) In order to make qualifying improvements more
93 affordable and assist property owners who wish to undertake such
94 improvements, the Legislature finds that there is a compelling
95 state interest in enabling property owners to voluntarily
96 finance such improvements with local government assistance.
97 (d)(c) The Legislature determines that the actions
98 authorized under this section, including, but not limited to,
99 the financing of qualifying improvements through the execution
100 of assessment financing agreements and the related imposition of
101 voluntary assessments, are reasonable and necessary to serve and
102 achieve a compelling state interest and are necessary for the
103 prosperity and welfare of the state and its property owners and
104 inhabitants.
105 (2) As used in this section, the term:
106 (a) “Assessment financing agreement” means the financing
107 agreement under a REEF program between a local government and a
108 property owner for the acquisition or installation of qualifying
109 improvements.
110 (b) “Contractor” means an independent contractor who
111 contracts with a property owner to install qualifying
112 improvements on real property but who is not the owner of such
113 property.
114 (c) “Government-leased property” means real property owned
115 by a local government which has become subject to taxation due
116 to lease of the property to a nongovernmental lessee.
117 (d)(a) “Local government” means a county, a municipality, a
118 dependent special district as defined in s. 189.012, or a
119 separate legal entity created pursuant to s. 163.01(7).
120 (e) “Non-ad valorem assessment” or “assessment” has the
121 same meaning as the term “non-ad valorem assessment” as defined
122 in s. 197.3632(1).
123 (f) “Nongovernmental lessee” means a person or an entity,
124 other than a local government, which is the lessee of
125 government-leased property.
126 (g) “Nonresidential real property” means any property not
127 defined as residential real property and which will be or has
128 been improved by a qualifying improvement. The term includes,
129 but is not limited to, the following:
130 1. Multifamily residential property composed of five or
131 more dwelling units.
132 2. Office property.
133 3. Commercial real property.
134 4. Industrial property.
135 5. Agricultural property.
136 6. Government-leased property.
137 (h) “Program administrator” means an entity, including, but
138 not limited to, a for-profit or not-for-profit entity, with
139 which a local government contracts to administer a REEF program.
140 (i)(b) “Qualifying improvement” includes any:
141 1. Energy conservation and efficiency improvement, which is
142 a measure to reduce consumption through conservation or a more
143 efficient use of electricity, natural gas, propane, or other
144 forms of energy on the property, including, but not limited to,
145 air sealing; installation of insulation; installation of energy
146 efficient heating, cooling, or ventilation systems; building
147 modifications to increase the use of daylight; replacement of
148 windows; installation of energy controls or energy recovery
149 systems; installation of electric vehicle charging equipment;
150 and installation of efficient lighting equipment.
151 2. Renewable energy improvement, which is the installation
152 of any system in which the electrical, mechanical, or thermal
153 energy is produced from a method that uses one or more of the
154 following fuels or energy sources: hydrogen, solar energy,
155 geothermal energy, bioenergy, and wind energy.
156 3. Wind resistance improvement, which includes, but is not
157 limited to:
158 a. Improving the strength of the roof deck attachment;
159 b. Creating a secondary water barrier to prevent water
160 intrusion;
161 c. Installing wind-resistant shingles;
162 d. Installing gable-end bracing;
163 e. Reinforcing roof-to-wall connections;
164 f. Installing storm shutters; or
165 g. Installing opening protections.
166 (j) “Residential real property” means a residential real
167 property composed of four or fewer dwelling units which is or
168 will be improved by a qualifying improvement.
169 (k) “Resiliency Energy Environment Florida (REEF) program”
170 means a program established by a local government, alone or in
171 partnership with other local governments or a program
172 administrator, to finance qualifying improvements on
173 nonresidential real property or residential real property.
174 (4) Subject to local government ordinance or resolution, a
175 property owner may apply to the REEF program local government
176 for funding to finance a qualifying improvement and enter into
177 an assessment a financing agreement with the local government.
178 Costs incurred by the REEF program local government for such
179 purpose may be collected as a non-ad valorem assessment. A non
180 ad valorem assessment shall be collected pursuant to s. 197.3632
181 and, notwithstanding s. 197.3632(8)(a), shall not be subject to
182 discount for early payment. However, the notice and adoption
183 requirements of s. 197.3632(4) do not apply if this section is
184 used and complied with, and the intent resolution, publication
185 of notice, and mailed notices to the property appraiser, tax
186 collector, and Department of Revenue required by s.
187 197.3632(3)(a) may be provided on or before August 15 in
188 conjunction with any non-ad valorem assessment authorized by
189 this section, if the property appraiser, tax collector, and
190 local government agree.
191 (6) A local government may enter into an agreement with a
192 program administrator to administer a REEF program A qualifying
193 improvement program may be administered by a for-profit entity
194 or a not-for-profit organization on behalf of and at the
195 discretion of the local government.
196 (7) A local government may incur debt for the purpose of
197 providing financing for qualifying such improvements, which debt
198 is payable from revenues received from the improved property, or
199 from any other available revenue source authorized under this
200 section or by other law.
201 (8) A local government may enter into an assessment a
202 financing agreement to finance or refinance a qualifying
203 improvement only with the record owner of the affected property.
204 Any assessment financing agreement entered into pursuant to this
205 section or a summary memorandum of such agreement shall be
206 submitted for recording recorded in the public records of the
207 county within which the property is located by the sponsoring
208 unit of local government within 5 days after execution of the
209 agreement. The recorded agreement shall provide constructive
210 notice that the assessment to be levied on the property
211 constitutes a lien of equal dignity to county taxes and
212 assessments from the date of recordation. A notice of lien for
213 the full amount of the financing may be recorded in the public
214 records of the county where the property is located. Such lien
215 shall not be enforceable in a manner that results in the
216 acceleration of the remaining nondelinquent unpaid balance under
217 the assessment financing agreement.
218 (9) Before entering into an assessment a financing
219 agreement, the local government, or the program administrator
220 acting on its behalf, shall reasonably determine that:
221 (a) All property taxes and any other assessments levied on
222 the same bill as property taxes are current paid and have not
223 been delinquent for more than 30 days for the preceding 3 years
224 or the property owner’s period of ownership, whichever is less;
225 (b) that There are no involuntary liens greater than
226 $1,000, including, but not limited to, construction liens on the
227 property;
228 (c) that No notices of default or other evidence of
229 property-based debt delinquency have been recorded and not
230 released during the preceding 3 years or the property owner’s
231 period of ownership, whichever is less;
232 (d) The local government or program administrator has asked
233 the property owner whether any other assessments under this
234 section have been recorded or have been funded and not yet
235 recorded on the property. The failure of a property owner to
236 disclose information set forth in this paragraph does not
237 invalidate an assessment financing agreement or any obligation
238 thereunder, even if the total financed amount of the qualifying
239 improvements exceeds the amount that would otherwise be
240 authorized under paragraph (12)(a);
241 (e) and that The property owner is current on all mortgage
242 debt on the property; and
243 (f) If the property is residential real property, it is not
244 subject to an existing home equity conversion mortgage or
245 reverse mortgage product or is not currently a residential
246 property gifted to a homeowner by a nonprofit entity.
247 (10) Before final funding may be provided, a qualifying
248 improvement must shall be affixed or planned to be affixed to a
249 nonresidential real property or residential real building or
250 facility that is part of the property and constitutes shall
251 constitute an improvement to that property the building or
252 facility or a fixture attached to the building or facility. An
253 assessment financing agreement may between a local government
254 and a qualifying property owner may not cover qualifying wind
255 resistance improvements on nonresidential real property or
256 residential real property in buildings or facilities under new
257 construction or construction for which a certificate of
258 occupancy or similar evidence of substantial completion of new
259 construction or improvement has not been issued.
260 (12)(a) Without the consent of the holders or loan
261 servicers of any mortgage encumbering or otherwise secured by
262 the property, the total amount of any non-ad valorem assessment
263 for a property under this section may not exceed 20 percent of
264 the fair market just value of the real property as determined by
265 the county property appraiser. The combined mortgage-related
266 debt and total amount of any non-ad valorem assessments funded
267 under this section for residential real property may not exceed
268 100 percent of the fair market value of the residential real
269 property. However, the failure of a property owner to disclose
270 information set forth in paragraph (9)(d) does not invalidate an
271 assessment financing agreement or any obligation thereunder,
272 even if the total financed amount of the qualifying improvements
273 exceeds the amount that would otherwise be authorized under this
274 paragraph.
275 (b) Notwithstanding paragraph (a), a non-ad valorem
276 assessment for a qualifying improvement defined in subparagraph
277 (2)(i)1. (2)(b)1. or subparagraph (2)(i)2. which (2)(b)2. that
278 is supported by an energy audit is not subject to the limits in
279 this subsection if the audit demonstrates that the annual energy
280 savings from the qualified improvement equals or exceeds the
281 annual repayment amount of the non-ad valorem assessment.
282 (13) At least 30 days before entering into an assessment a
283 financing agreement, the property owner shall provide to the
284 holders or loan servicers of any existing mortgages encumbering
285 or otherwise secured by the property a notice of the owner’s
286 intent to enter into an assessment a financing agreement
287 together with the maximum principal amount to be financed and
288 the maximum annual assessment necessary to repay that amount. A
289 verified copy or other proof of such notice shall be provided to
290 the local government or program administrator. A provision in
291 any agreement between a mortgagee or other lienholder and a
292 property owner, or otherwise now or hereafter binding upon a
293 property owner, which allows for acceleration of payment of the
294 mortgage, note, or lien or other unilateral modification solely
295 as a result of entering into an assessment a financing agreement
296 as provided for in this section is not enforceable. This
297 subsection does not limit the authority of the holder or loan
298 servicer to increase the required monthly escrow by an amount
299 necessary to annually pay the annual qualifying improvement
300 assessment.
301 (14) At or before the time a seller purchaser executes a
302 contract for the sale and purchase of any property for which a
303 non-ad valorem assessment has been levied under this section and
304 has an unpaid balance due, the seller must shall give the
305 prospective purchaser a written disclosure statement in the
306 following form, which shall be set forth in the contract or in a
307 separate writing:
308
309 QUALIFYING IMPROVEMENTS FOR ENERGY EFFICIENCY,
310 RENEWABLE ENERGY, OR WIND RESISTANCE.—The property
311 being purchased is located within the jurisdiction of
312 a local government that has placed an assessment on
313 the property pursuant to s. 163.08, Florida Statutes.
314 The assessment is for a qualifying improvement to the
315 property relating to energy efficiency, renewable
316 energy, or wind resistance, and is not based on the
317 value of property. You are encouraged to contact the
318 county property appraiser’s office to learn more about
319 this and other assessments that may be provided by
320 law.
321
322 (16) Before final approval of an assessment financing
323 agreement for a qualifying improvement on a residential real
324 property, a program administrator shall reasonably determine
325 that the property owner has the ability to pay the estimated
326 annual assessment. To do so, the program administrator shall, at
327 a minimum, use the underwriting requirements in subsection (9),
328 confirm that the property owner is not in bankruptcy, and
329 determine that the total estimated annual payment amount for all
330 assessment financing agreements funded under this section on the
331 property does not exceed 10 percent of the property owner’s
332 annual household income. Income may be confirmed using
333 information gathered from reputable third parties that provide
334 reasonably reliable evidence of the property owner’s household
335 income. Income may not be confirmed solely by a property owner’s
336 statement. The failure of a property owner to disclose
337 information set forth in paragraph (9)(d) does not invalidate an
338 assessment financing agreement or any obligation thereunder,
339 even if the total estimated annual payment amount exceeds the
340 amount that would otherwise be authorized under this subsection.
341 (17) Prior to or contemporaneously with a property owner
342 signing an assessment financing agreement on a residential real
343 property, the program administrator shall provide a financing
344 estimate and disclosure to the residential real property owner
345 which includes all of the following:
346 (a) The total amount estimated to be funded, including the
347 cost of the qualifying improvements, program fees, and
348 capitalized interest, if any.
349 (b) The estimated annual assessment.
350 (c) The term of the assessment.
351 (d) The interest charged and estimated annual percentage
352 rate.
353 (e) A description of the qualifying improvement.
354 (f) A disclosure that if the property owner sells or
355 refinances the property, the property owner, as a condition of
356 the sale or the refinance, may be required by a mortgage lender
357 to pay off the full amount owed under each assessment financing
358 agreement.
359 (g) A disclosure that the assessment will be collected
360 along with the property owner’s property taxes and will result
361 in a lien on the property from the date the assessment financing
362 agreement is recorded.
363 (h) A disclosure that failure to pay the assessment may
364 result in penalties and fees, along with the issuance of a tax
365 certificate that could result in the property owner losing the
366 real property.
367 (18) Before a notice to proceed is issued on residential
368 real property, the program administrator shall conduct with the
369 residential real property owner or an authorized representative
370 an oral, recorded telephone call during which the program
371 administrator shall use plain language. The program
372 administrator shall ask the residential real property owner if
373 he or she would like to communicate primarily in a language
374 other than English. A program administrator may not leave a
375 voicemail to the residential real property owner to satisfy this
376 requirement. A program administrator, as part of such telephone
377 call, shall confirm all of the following with the residential
378 real property owner:
379 (a) That at least one residential real property owner has
380 access to a copy of the assessment financing agreement and
381 financing estimates and disclosures.
382 (b) The qualifying improvements being financed.
383 (c) The total estimated annual costs that the residential
384 real property owner will have to pay under the assessment
385 financing agreement, including applicable fees.
386 (d) The total estimated average monthly equivalent amount
387 of funds the residential real property owner would have to save
388 in order to pay the annual costs of the assessment, including
389 applicable fees.
390 (e) The estimated date the residential real property
391 owner’s first property tax payment that includes the assessment
392 will be due.
393 (f) The term of the assessment financing agreement.
394 (g) That payments for the assessment financing agreement
395 will cause the residential real property owner’s annual property
396 tax bill to increase, and that payments will be made through an
397 additional annual assessment on the property and either will be
398 paid directly to the county tax collector’s office as part of
399 the total annual secured property tax bill or may be paid
400 through the residential real property owner’s mortgage escrow
401 account.
402 (h) That the residential real property owner has disclosed
403 whether the property has received, or the owner is seeking,
404 additional assessments funded under this section and that the
405 owner has disclosed all other assessments funded under this
406 section which are or are about to be placed on the property.
407 (i) That the property will be subject to a lien during the
408 term of the assessment financing agreement and that the
409 obligations under the agreement may be required to be paid in
410 full before the residential real property owner sells or
411 refinances the property.
412 (j) That any potential utility or insurance savings are not
413 guaranteed and will not reduce the assessment or total
414 assessment amount.
415 (k) That the program administrator does not provide tax
416 advice, and the residential real property owner should seek
417 professional tax advice if he or she has questions regarding tax
418 credits, tax deductibility, or other tax impacts of the
419 qualifying improvement or the assessment financing agreement.
420 (19) A residential real property owner may cancel an
421 assessment financing agreement within 3 business days after
422 signing the assessment financing agreement without any financial
423 penalty for doing so.
424 (20) The term of an assessment financing agreement on
425 residential real property may not exceed:
426 (a) Thirty years; or
427 (b) Either the weighted average estimated useful life of
428 all qualifying improvements being financed or the estimated
429 useful life of the qualifying improvements to which the greatest
430 portion of funds is disbursed.
431 (21) An assessment financing agreement authorized under
432 this section on residential real property may not include any of
433 the following financing terms:
434 (a) A negative amortization schedule.
435 (b) A balloon payment.
436 (c) Prepayment fees, other than nominal administrative
437 costs.
438 (22) For residential real property, a program
439 administrator:
440 (a) May not enroll a contractor who contracts with
441 residential real property owners to install qualifying
442 improvements unless:
443 1. The program administrator makes a reasonable effort to
444 determine that the contractor maintains in good standing an
445 appropriate license from the state, if applicable, as well as
446 any other permit, license, or registration required for engaging
447 in business in the jurisdiction in which he or she operates and
448 that the contractor maintains all state-required bond and
449 insurance coverage; and
450 2. The program administrator obtains the contractor’s
451 written agreement that the contractor will act in accordance
452 with all applicable laws, including applicable advertising and
453 marketing laws and regulations.
454 (b) Shall maintain a process to enroll new contractors
455 which includes reasonable review of the following for each
456 contractor:
457 1. Relevant work or project history.
458 2. Financial and reputational background checks.
459 3. A criminal background check. A program administrator may
460 rely on a background check conducted by the Construction
461 Industry Licensing Board within the Department of Business and
462 Professional Regulation to comply with this requirement.
463 4. Status on the Better Business Bureau online platform or
464 another online platform that tracks contractor reviews.
465 (23)(a) Before disbursing funds to a contractor for a
466 qualifying improvement on residential real property, a program
467 administrator must first confirm that the applicable work or
468 service has been completed, either through a written
469 certification from the property owner, a recorded telephone call
470 with the property owner, review of geo-stamped and time-stamped
471 photographs, review of a final permit, or a site inspection
472 through third-party means.
473 (b) A program administrator may not disclose to a
474 contractor or to a third party engaged in soliciting an
475 assessment financing agreement the maximum financing amount for
476 which a residential real property owner is eligible.
477 (24) A program administrator shall comply with the
478 following marketing and communications guidelines when
479 communicating with residential real property owners:
480 (a) A program administrator may not represent:
481 1. That the REEF program or assessment financing is a
482 government assistance program;
483 2. That qualifying improvements are free or that assessment
484 financing is a free program; or
485 3. That the financing of a qualifying improvement using the
486 REEF program does not require the property owner to repay the
487 financial obligation.
488 (b) A program administrator may not make any representation
489 as to the tax deductibility of an assessment authorized under
490 this section. A program administrator or contractor may
491 encourage a property owner to seek the advice of a tax
492 professional regarding tax matters related to assessments.
493 (25) A contractor should not present a higher price for a
494 qualifying improvement on residential real property financed by
495 an assessment financing agreement than the contractor would
496 otherwise reasonably present if the qualifying improvement was
497 not being financed through an assessment financing agreement.
498 (26) A program administrator shall use appropriate
499 methodologies or technologies to identify and verify the
500 identity of the residential real property owners who execute an
501 assessment financing agreement.
502 (27) A program administrator may not provide a contractor
503 with any payment, fee, or kickback in exchange for referring
504 assessment financing business relating to a specific assessment
505 financing agreement.
506 (28) A program administrator shall develop and implement
507 policies and procedures for responding, tracking, and timely
508 helping to resolve questions and property owner complaints as
509 soon as reasonably practicable.
510 (29) A program administrator shall maintain a process for
511 monitoring contractors that contract with residential real
512 property owners to install qualifying improvements with regard
513 to performance and compliance with program policies and shall
514 implement policies for suspending and terminating contractors
515 based on violations of program policies or unscrupulous
516 behavior. A program administrator shall maintain a policy for
517 determining the conditions on which a contractor may be
518 reinstated to the program.
519 (30) A program administrator shall provide, at a reasonable
520 time following the end of the prior calendar year, an annual
521 report to the dependent special district as defined in s.
522 189.012 or a separate legal entity created pursuant to s.
523 163.01(7) which it has contracted with to administer a REEF
524 program and shall include information and data related to the
525 following:
526 (a) The total number of property owner complaints received
527 which are associated with project funding in the report year.
528 (b) Of the total number of complaints received associated
529 with project funding in the report year:
530 1. The number and percentage of complaints that relate to
531 the assessment financing.
532 2. The number and percentage of complaints that relate to a
533 contractor or the workmanship of a contractor and are not
534 related to assessment financing.
535 3. The number and percentage of complaints that relate to
536 both a contractor and the assessment financing.
537 4. The number and percentage of complaints identified in
538 subparagraphs 1., 2., and 3. which were resolved and the number
539 and percentage of complaints that were not resolved.
540 (c) The percentage of complaints in subparagraphs (b)1.,
541 2., and 3. expressed as a total of all projects funded in the
542 report year.
543 (31) Notwithstanding any provision of this section to the
544 contrary, the following applies to government-leased property:
545 (a) The assessment financing agreement must be executed by
546 either:
547 1. The local government and the nongovernmental lessee; or
548 2. Solely by the nongovernmental lessee but with the
549 written consent of the local government. Evidence of such
550 consent must be provided to the program administrator or REEF
551 program.
552 (b) The assessment financing agreement must provide that
553 the nongovernmental lessee is the only party obligated to pay
554 the assessment.
555 (c) A delinquent assessment must be enforced in the manner
556 provided in ss. 196.199(8) and 197.432(10).
557 (d) The recorded assessment financing agreement, or a
558 summary memorandum of such recorded agreement, must provide
559 constructive notice that the assessment to be levied on the
560 property is subject to enforcement in the manner provided in ss.
561 196.199(8) and 197.432(10).
562 (e) For purposes of subsections (9) and (13) only,
563 references to the property owner are deemed to refer to the
564 nongovernmental lessee and references to the period of ownership
565 are deemed to refer to the period that the nongovernmental
566 lessee has been leasing the property from the local government.
567 (f) The term of the assessment financing agreement on
568 government-leased property may not exceed:
569 1. Thirty years;
570 2. The remaining term of the lease on the government-leased
571 property; or
572 3. Either the weighted average estimated useful life of all
573 qualifying improvements being financed or the estimated useful
574 life of the qualifying improvements to which the greatest
575 portion of funds is disbursed.
576 (32)(a) Subsections (16) through (30) do not apply to
577 residential real property if the program administrator
578 reasonably determines that:
579 1. The residential real property is owned by a business
580 entity that owns more than four residential real properties; and
581 2. The business entity’s managing member, partner, or
582 beneficial owner does not reside in the residential real
583 property.
584 (b) Subsections (16) through (30) apply to a program
585 administrator only when administering a REEF program for
586 qualifying improvements on residential real property.
587 Subsections (16) through (30) do not apply with respect to a
588 local government or to nonresidential real property.
589 Section 2. This act shall take effect July 1, 2022.