Florida Senate - 2023                                     SB 950
       By Senator Rodriguez
       40-00253A-23                                           2023950__
    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 a local government to enter into an
   11         agreement with a program administrator to administer a
   12         REEF program on the local government’s behalf;
   13         revising and specifying public recording requirements
   14         for assessment financing agreements and notices of
   15         lien; revising requirements that apply to local
   16         governments or program administrators in determining
   17         eligibility for assessment financing; revising
   18         requirements for qualifying improvements; revising the
   19         calculation of non-ad valorem assessment limits;
   20         providing construction; specifying underwriting,
   21         financing estimate, disclosure, and confirmation
   22         requirements for program administrators relating to
   23         residential real property; authorizing a residential
   24         real property owner, under certain circumstances and
   25         within a certain timeframe, to cancel an assessment
   26         financing agreement without financial penalty;
   27         specifying limitations on assessment financing
   28         agreement terms for residential real property;
   29         prohibiting certain financing terms for residential
   30         real property; specifying requirements for, and
   31         certain prohibited acts by, program administrators
   32         relating to assessment financing agreements and
   33         contractors for qualifying improvements to residential
   34         real property; specifying additional annual reporting
   35         requirements for program administrators; providing
   36         construction and applicability; conforming provisions
   37         to changes made by the act; providing an effective
   38         date.
   40  Be It Enacted by the Legislature of the State of Florida:
   42         Section 1. Subsection (16) of section 163.08, Florida
   43  Statutes, is redesignated as subsection (32), a new subsection
   44  (16) and subsections (17) through (31) are added to that
   45  section, and subsections (1), (2), (4), (6) through (10), and
   46  (12), (13), and (14) are amended, to read:
   47         163.08 Supplemental authority for improvements to real
   48  property.—
   49         (1)(a) In chapter 2008-227, Laws of Florida, the
   50  Legislature amended the energy goal of the state comprehensive
   51  plan to provide, in part, that the state shall reduce its energy
   52  requirements through enhanced conservation and efficiency
   53  measures in all end-use sectors and reduce atmospheric carbon
   54  dioxide by promoting an increased use of renewable energy
   55  resources. That act also declared it the public policy of the
   56  state to play a leading role in developing and instituting
   57  energy management programs that promote energy conservation,
   58  energy security, and the reduction of greenhouse gases. In
   59  addition to establishing policies to promote the use of
   60  renewable energy, the Legislature provided for a schedule of
   61  increases in energy performance of buildings subject to the
   62  Florida Energy Efficiency Code for Building Construction. In
   63  chapter 2008-191, Laws of Florida, the Legislature adopted new
   64  energy conservation and greenhouse gas reduction comprehensive
   65  planning requirements for local governments. In the 2008 general
   66  election, the voters of this state approved a constitutional
   67  amendment authorizing the Legislature, by general law, to
   68  prohibit consideration of any change or improvement made for the
   69  purpose of improving a property’s resistance to wind damage or
   70  the installation of a renewable energy source device in the
   71  determination of the assessed value of residential real
   72  property.
   73         (b) The Legislature finds that all energy-consuming
   74  improved properties that are not using energy conservation
   75  strategies contribute to the burden affecting all improved
   76  property resulting from fossil fuel energy production. Improved
   77  property that has been retrofitted with energy-related
   78  qualifying improvements receives the special benefit of
   79  alleviating the property’s burden from energy consumption. All
   80  improved properties not protected from wind damage by wind
   81  resistance qualifying improvements contribute to the burden
   82  affecting all improved property resulting from potential wind
   83  damage. Improved property that has been retrofitted with wind
   84  resistance qualifying improvements receives the special benefit
   85  of reducing the property’s burden from potential wind damage.
   86  Further, the installation and operation of qualifying
   87  improvements not only benefit the affected properties for which
   88  the improvements are made, but also assist in fulfilling the
   89  goals of the state’s energy and hurricane mitigation policies.
   90         (c) In order to make qualifying improvements more
   91  affordable and assist property owners who wish to undertake such
   92  improvements, the Legislature finds that there is a compelling
   93  state interest in enabling property owners to voluntarily
   94  finance such improvements with local government assistance.
   95         (d)(c) The Legislature determines that the actions
   96  authorized under this section, including, but not limited to,
   97  the financing of qualifying improvements through the execution
   98  of assessment financing agreements and the related imposition of
   99  voluntary assessments, are reasonable and necessary to serve and
  100  achieve a compelling state interest and are necessary for the
  101  prosperity and welfare of the state and its property owners and
  102  inhabitants.
  103         (2) As used in this section, the term:
  104         (a)“Assessment financing agreement” means the financing
  105  agreement, under a REEF program, between a local government and
  106  a property owner for the acquisition or installation of
  107  qualifying improvements.
  108         (b)(a) “Local government” means a county, a municipality, a
  109  dependent special district as defined in s. 189.012, or a
  110  separate legal entity created pursuant to s. 163.01(7).
  111         (c)“Non-ad valorem assessment” or “assessment” has the
  112  same meaning as the term “non-ad valorem assessment” as defined
  113  in s. 197.3632(1)(d).
  114         (d)“Nonresidential real property” means any property not
  115  defined as residential real property and which will be or has
  116  been improved by a qualifying improvement. The term includes
  117  multifamily residential property composed of five or more
  118  dwelling units.
  119         (e)“Program administrator” means an entity, including, but
  120  not limited to, a for-profit or not-for-profit entity, with
  121  which a local government may contract to administer a REEF
  122  program.
  123         (f)(b) “Qualifying improvement” includes any:
  124         1. Energy conservation and efficiency improvement, which is
  125  a measure to reduce consumption through conservation or a more
  126  efficient use of electricity, natural gas, propane, or other
  127  forms of energy on the property, including, but not limited to,
  128  air sealing; installation of insulation; installation of energy
  129  efficient heating, cooling, or ventilation systems; building
  130  modifications to increase the use of daylight; replacement of
  131  windows; installation of energy controls or energy recovery
  132  systems; installation of electric vehicle charging equipment;
  133  and installation of efficient lighting equipment.
  134         2. Renewable energy improvement, which is the installation
  135  of any system in which the electrical, mechanical, or thermal
  136  energy is produced from a method that uses one or more of the
  137  following fuels or energy sources: hydrogen, solar energy,
  138  geothermal energy, bioenergy, and wind energy.
  139         3. Wind resistance improvement, which includes, but is not
  140  limited to:
  141         a. Improving the strength of the roof deck attachment;
  142         b. Creating a secondary water barrier to prevent water
  143  intrusion;
  144         c. Installing wind-resistant shingles;
  145         d. Installing gable-end bracing;
  146         e. Reinforcing roof-to-wall connections;
  147         f. Installing storm shutters; or
  148         g. Installing opening protections.
  149         (g)“Residential real property” means a residential real
  150  property composed of four or fewer dwelling units which has been
  151  or will be improved by a qualifying improvement.
  152         (h)“Resiliency Energy Environment Florida (REEF) program”
  153  means a program established by a local government, alone or in
  154  partnership with other local governments or a program
  155  administrator, to finance qualifying improvements on
  156  nonresidential real property or residential real property.
  157         (4) Subject to local government ordinance or resolution, a
  158  property owner may apply to the REEF program local government
  159  for funding to finance a qualifying improvement and enter into
  160  an assessment a financing agreement with the local government.
  161  Costs incurred by the REEF program local government for such
  162  purpose may be collected as a non-ad valorem assessment. A non
  163  ad valorem assessment shall be collected pursuant to s. 197.3632
  164  and, notwithstanding s. 197.3632(8)(a), shall not be subject to
  165  discount for early payment. However, the notice and adoption
  166  requirements of s. 197.3632(4) do not apply if this section is
  167  used and complied with, and the intent resolution, publication
  168  of notice, and mailed notices to the property appraiser, tax
  169  collector, and Department of Revenue required by s.
  170  197.3632(3)(a) may be provided on or before August 15 in
  171  conjunction with any non-ad valorem assessment authorized by
  172  this section, if the property appraiser, tax collector, and
  173  local government agree.
  174         (6) A local government may enter into an agreement with a
  175  program administrator to administer a REEF program on behalf of
  176  the local government A qualifying improvement program may be
  177  administered by a for-profit entity or a not-for-profit
  178  organization on behalf of and at the discretion of the local
  179  government.
  180         (7) A local government may incur debt for the purpose of
  181  providing financing for qualifying such improvements, which debt
  182  is payable from revenues received from the improved property, or
  183  from any other available revenue source authorized under this
  184  section or by other law.
  185         (8) A local government may enter into an assessment a
  186  financing agreement to finance or refinance a qualifying
  187  improvement only with the record owner of the affected property.
  188  Any assessment financing agreement entered into pursuant to this
  189  section or a summary memorandum of such agreement shall be
  190  submitted for recording recorded in the public records of the
  191  county within which the property is located by the sponsoring
  192  unit of local government within 5 days after execution of the
  193  agreement. The recorded agreement shall provide constructive
  194  notice that the assessment to be levied on the property
  195  constitutes a lien of equal dignity to county taxes and
  196  assessments from the date of recordation. A notice of lien for
  197  the full amount of the financing may be recorded in the public
  198  records of the county where the property is located. Such lien
  199  shall not be enforceable in a manner that results in the
  200  acceleration of the remaining nondelinquent unpaid balance under
  201  the assessment financing agreement.
  202         (9) Before entering into an assessment a financing
  203  agreement, the local government, or the program administrator
  204  acting on its behalf, shall reasonably determine that all of the
  205  following conditions are met:
  206         (a) All property taxes and any other assessments levied on
  207  the same bill as property taxes are current paid and have not
  208  been delinquent for more than 30 days for the preceding 3 years
  209  or the property owner’s period of ownership, whichever is less.;
  210         (b)that There are no involuntary liens greater than
  211  $1,000, including, but not limited to, construction liens on the
  212  property.;
  213         (c)that No notices of default or other evidence of
  214  property-based debt delinquency have been recorded and not
  215  released during the preceding 3 years or the property owner’s
  216  period of ownership, whichever is less.;
  217         (d)The local government or program administrator has asked
  218  the property owner whether any other assessments under this
  219  section have been recorded or have been funded and not yet
  220  recorded on the property. The failure of a property owner to
  221  disclose information set forth in this paragraph does not
  222  invalidate an assessment financing agreement or any obligation
  223  thereunder, even if the total financed amount of the qualifying
  224  improvements exceeds the amount that would otherwise be
  225  authorized under paragraph (12)(a).
  226         (e)and that The property owner is current on all mortgage
  227  debt on the property.
  228         (f)The residential property is not subject to an existing
  229  home equity conversion mortgage or reverse mortgage product.
  230  This paragraph does not apply to nonresidential real property.
  231         (g)The property is not currently a residential property
  232  gifted to a homeowner for free by a nonprofit entity as may be
  233  disclosed by the property owner. The failure of a property owner
  234  to disclose information set forth in this paragraph does not
  235  invalidate an assessment financing agreement or any obligation
  236  thereunder. This paragraph does not apply to nonresidential real
  237  property.
  238         (10) Before final funding may be provided, a qualifying
  239  improvement must shall be affixed or planned to be affixed to a
  240  nonresidential real property or residential real building or
  241  facility that is part of the property and constitutes shall
  242  constitute an improvement to that property the building or
  243  facility or a fixture attached to the building or facility. An
  244  assessment financing agreement may between a local government
  245  and a qualifying property owner may not cover qualifying wind
  246  resistance improvements on nonresidential real property under
  247  new construction or residential real property in buildings or
  248  facilities under new construction or construction for which a
  249  certificate of occupancy or similar evidence of substantial
  250  completion of new construction or improvement has not been
  251  issued.
  252         (12)(a) Without the consent of the holders or loan
  253  servicers of any mortgage encumbering or otherwise secured by
  254  the property, the total amount of any non-ad valorem assessment
  255  for a property under this section may not exceed 20 percent of
  256  the fair market just value of the real property as determined by
  257  the county property appraiser. The combined mortgage-related
  258  debt and total amount of any non-ad valorem assessments funded
  259  under this section for residential real property may not exceed
  260  100 percent of the fair market value of the residential real
  261  property. However, the failure of a property owner to disclose
  262  information set forth in paragraph (9)(d) does not invalidate an
  263  assessment financing agreement or any obligation thereunder,
  264  even if the total financed amount of the qualifying improvements
  265  exceeds the amount that would otherwise be authorized under this
  266  paragraph. For purposes of this paragraph, fair market value may
  267  be determined using reputable third parties.
  268         (b) Notwithstanding paragraph (a), a non-ad valorem
  269  assessment for a qualifying improvement defined in subparagraph
  270  (2)(f)1. (2)(b)1. or subparagraph (2)(f)2. which (2)(b)2. that
  271  is supported by an energy audit is not subject to the limits in
  272  this subsection if the audit demonstrates that the annual energy
  273  savings from the qualified improvement equals or exceeds the
  274  annual repayment amount of the non-ad valorem assessment.
  275         (13) At least 30 days before entering into an assessment a
  276  financing agreement, the property owner shall provide to the
  277  holders or loan servicers of any existing mortgages encumbering
  278  or otherwise secured by the property a notice of the owner’s
  279  intent to enter into an assessment a financing agreement
  280  together with the maximum principal amount to be financed and
  281  the maximum annual assessment necessary to repay that amount. A
  282  verified copy or other proof of such notice shall be provided to
  283  the local government. A provision in any agreement between a
  284  mortgagee or other lienholder and a property owner, or otherwise
  285  now or hereafter binding upon a property owner, which allows for
  286  acceleration of payment of the mortgage, note, or lien or other
  287  unilateral modification solely as a result of entering into an
  288  assessment a financing agreement as provided for in this section
  289  is not enforceable. This subsection does not limit the authority
  290  of the holder or loan servicer to increase the required monthly
  291  escrow by an amount necessary to annually pay the annual
  292  qualifying improvement assessment.
  293         (14) At or before the time a seller purchaser executes a
  294  contract for the sale and purchase of any property for which a
  295  non-ad valorem assessment has been levied under this section and
  296  has an unpaid balance due, the seller must shall give the
  297  prospective purchaser a written disclosure statement in the
  298  following form, which shall be set forth in the contract or in a
  299  separate writing:
  302         RENEWABLE ENERGY, OR WIND RESISTANCE.—The property
  303         being purchased is located within the jurisdiction of
  304         a local government that has placed an assessment on
  305         the property pursuant to s. 163.08, Florida Statutes.
  306         The assessment is for a qualifying improvement to the
  307         property relating to energy efficiency, renewable
  308         energy, or wind resistance, and is not based on the
  309         value of property. You are encouraged to contact the
  310         county property appraiser’s office to learn more about
  311         this and other assessments that may be provided by
  312         law.
  314         (16)Before final approval of an assessment financing
  315  agreement for a qualifying improvement on a residential real
  316  property, a program administrator shall reasonably determine
  317  that the property owner has the ability to pay the estimated
  318  annual assessment. To do so, the program administrator shall, at
  319  a minimum, use the underwriting requirements in subsection (9),
  320  confirm that the property owner is not in bankruptcy, and
  321  determine that the total estimated annual payment amount for all
  322  assessment financing agreements funded under this section on the
  323  property does not exceed 10 percent of the property owner’s
  324  annual household income. Income may be confirmed using
  325  information gathered from reputable third parties that provide
  326  reasonably reliable evidence of the property owner’s household
  327  income. Income may not be confirmed solely by a property owner’s
  328  statement. The failure of a property owner to disclose
  329  information set forth in paragraph (9)(d) does not invalidate an
  330  assessment financing agreement or any obligation thereunder,
  331  even if the total estimated annual payment amount exceeds the
  332  amount that would otherwise be authorized under this subsection.
  333         (17)Before or contemporaneously with a property owner
  334  signing an assessment financing agreement on a residential real
  335  property, the program administrator shall provide a financing
  336  estimate and disclosure to the residential real property owner
  337  which includes all of the following:
  338         (a)The total amount estimated to be funded, including the
  339  cost of the qualifying improvements, program fees, and
  340  capitalized interest, if any.
  341         (b)The estimated annual assessment.
  342         (c)The term of the assessment.
  343         (d)The interest charged and estimated annual percentage
  344  rate.
  345         (e)A description of the qualifying improvement.
  346         (f)A disclosure that if the property owner sells or
  347  refinances the property, the property owner, as a condition of
  348  the sale or the refinance, may be required by a mortgage lender
  349  to pay off the full amount owed under each assessment financing
  350  agreement.
  351         (g)A disclosure that the assessment will be collected
  352  along with the property owner’s property taxes and will result
  353  in a lien on the property from the date the assessment financing
  354  agreement is recorded.
  355         (h)A disclosure that failure to pay the assessment may
  356  result in penalties and fees, along with the issuance of a tax
  357  certificate that could result in the property owner losing the
  358  real property.
  359         (18)Before a notice to proceed is issued on residential
  360  real property, the program administrator shall conduct with the
  361  residential real property owner or an authorized representative
  362  an oral, recorded telephone call. The program administrator
  363  shall ask the residential real property owner if he or she would
  364  like to communicate primarily in a language other than English.
  365  A program administrator may not leave a voicemail on the
  366  residential real property owner’s or authorized representative’s
  367  telephone to satisfy this requirement. A program administrator,
  368  as part of such telephone call, shall confirm all of the
  369  following with the residential real property owner:
  370         (a)That at least one residential real property owner has
  371  access to a copy of the assessment financing agreement and
  372  financing estimates and disclosures.
  373         (b)The qualifying improvements being financed.
  374         (c)The total estimated annual costs that the residential
  375  real property owner will have to pay under the assessment
  376  financing agreement, including applicable fees.
  377         (d)The total estimated average monthly equivalent amount
  378  of funds the residential real property owner would have to save
  379  in order to pay the annual costs of the assessment, including
  380  applicable fees.
  381         (e)The estimated date the residential real property
  382  owner’s first property tax payment that includes the assessment
  383  will be due.
  384         (f)The term of the assessment financing agreement.
  385         (g)That payments for the assessment financing agreement
  386  will cause the residential real property owner’s annual property
  387  tax bill to increase, and that payments will be made through an
  388  additional annual assessment on the property and either will be
  389  paid directly to the county tax collector’s office as part of
  390  the total annual secured property tax bill or may be paid
  391  through the residential real property owner’s mortgage escrow
  392  account.
  393         (h)That the residential real property owner has disclosed
  394  whether the property has received, or the owner is seeking,
  395  additional assessments funded under this section and that the
  396  owner has disclosed all other assessments funded under this
  397  section which are or are about to be placed on the property.
  398         (i)That the property will be subject to a lien during the
  399  term of the assessment financing agreement and that the
  400  obligations under the agreement may be required to be paid in
  401  full before the residential real property owner sells or
  402  refinances the property.
  403         (j)That any potential utility or insurance savings are not
  404  guaranteed and will not reduce the assessment or total
  405  assessment amount.
  406         (k)That the program administrator does not provide tax
  407  advice, and the residential real property owner should seek
  408  professional tax advice if he or she has questions regarding tax
  409  credits, tax deductibility, or other tax impacts of the
  410  qualifying improvement or the assessment financing agreement.
  411         (19)A residential real property owner may cancel an
  412  assessment financing agreement within 3 business days after
  413  signing the assessment financing agreement without any financial
  414  penalty from the program administrator for doing so.
  415         (20)The term of an assessment financing agreement on
  416  residential real property may not exceed the lesser of:
  417         (a)Thirty years; or
  418         (b)The greater of either the weighted average estimated
  419  useful life of all qualifying improvements being financed or the
  420  estimated useful life of the qualifying improvements to which
  421  the greatest portion of funds is disbursed.
  422         (21)An assessment financing agreement authorized under
  423  this section on residential real property may not include any of
  424  the following financing terms:
  425         (a)A negative amortization schedule. Capitalized interest
  426  included in the original balance of the assessment financing
  427  agreement does not constitute negative amortization.
  428         (b)A balloon payment.
  429         (c)Prepayment fees, other than nominal administrative
  430  costs.
  431         (22)For residential real property, a program
  432  administrator:
  433         (a)May not enroll a contractor who contracts with
  434  residential real property owners to install qualifying
  435  improvements unless:
  436         1.The program administrator makes a reasonable effort to
  437  review that the contractor maintains in good standing an
  438  appropriate license from the state, if applicable, as well as
  439  any other permit, license, or registration required for engaging
  440  in business in the jurisdiction in which he or she operates and
  441  that the contractor maintains all state-required bond and
  442  insurance coverage; and
  443         2.The program administrator obtains the contractor’s
  444  written agreement that the contractor will act in accordance
  445  with all applicable laws, including applicable advertising and
  446  marketing laws and regulations.
  447         (b)Shall maintain a process to enroll new contractors
  448  which includes reasonable review of the following for each
  449  contractor:
  450         1.Relevant work or project history.
  451         2.Financial and reputational background checks.
  452         3.A criminal background check.
  453         4.Status on the Better Business Bureau online platform or
  454  another online platform that tracks contractor reviews.
  455         (c)A program administrator may pay or reimburse
  456  contractors for any expense allowable under applicable state law
  457  and not otherwise prohibited under this section, including, but
  458  not limited to, marketing, training, and promotions.
  459         (23)(a)Before disbursing funds to a contractor for a
  460  qualifying improvement on residential real property, a program
  461  administrator must first confirm that the applicable work or
  462  service has been completed through any of the following:
  463         1.A written certification from the property owner;
  464         2.A recorded telephone call with the property owner;
  465         3.A review of geotagged and time-stamped photographs;
  466         4.A review of a final permit; or
  467         5.A site inspection through third-party means.
  468         (b)A program administrator may not disclose to a
  469  contractor or to a third party engaged in soliciting an
  470  assessment financing agreement the maximum financing amount for
  471  which a residential real property owner is eligible.
  472         (24)A program administrator shall comply with the
  473  following marketing and communications guidelines when
  474  communicating with residential real property owners:
  475         (a)A program administrator may not represent:
  476         1.That the REEF program or assessment financing is a
  477  government assistance program;
  478         2.That qualifying improvements are free or that assessment
  479  financing is a free program; or
  480         3.That the financing of a qualifying improvement using the
  481  REEF program does not require the property owner to repay the
  482  financial obligation.
  483         (b)A program administrator may not make any representation
  484  as to the tax deductibility of an assessment authorized under
  485  this section. A program administrator may encourage a property
  486  owner to seek the advice of a tax professional regarding tax
  487  matters related to assessments.
  488         (25)A contractor may not present a higher price for a
  489  qualifying improvement on residential real property financed by
  490  an assessment financing agreement than the contractor would
  491  otherwise reasonably present if the qualifying improvement was
  492  not being financed through an assessment financing agreement.
  493         (26)A program administrator shall use appropriate
  494  methodologies or technologies to identify and verify the
  495  identity of the residential real property owner who executes an
  496  assessment financing agreement.
  497         (27)A program administrator may not provide a contractor
  498  with any payment, fee, or kickback in exchange for referring
  499  assessment financing business relating to a specific assessment
  500  financing agreement on residential real property.
  501         (28)A program administrator shall develop and implement
  502  policies and procedures for responding to, tracking, and helping
  503  to resolve questions and property owner complaints as soon as
  504  reasonably practicable.
  505         (29)A program administrator shall maintain a process for
  506  monitoring enrolled contractors that contract with residential
  507  real property owners to install qualifying improvements with
  508  regard to performance and compliance with program policies and
  509  shall implement policies for suspending and terminating enrolled
  510  contractors based on violations of program policies or
  511  unscrupulous behavior. A program administrator shall maintain a
  512  policy for determining the conditions on which a contractor may
  513  be reinstated to the program.
  514         (30)A program administrator shall provide, at a reasonable
  515  time following the end of the prior calendar year, an annual
  516  report to the dependent special district as defined in s.
  517  189.012 or a separate legal entity created pursuant to s.
  518  163.01(7) which it has contracted with to administer a REEF
  519  program and shall include information and data related to the
  520  following:
  521         (a)The total number of property owner complaints received
  522  which are associated with project funding in the report year.
  523         (b)Of the total number of property owner complaints
  524  received which are associated with project funding in the report
  525  year:
  526         1.The number and percentage of complaints that relate to
  527  the assessment financing.
  528         2.The number and percentage of complaints that relate to a
  529  contractor or the workmanship of a contractor and are not
  530  related to assessment financing.
  531         3.The number and percentage of complaints that relate to
  532  both a contractor and the assessment financing.
  533         4.The number and percentage of complaints received
  534  pursuant to subparagraphs 1., 2., and 3. which were resolved and
  535  the number and percentage of complaints received pursuant to
  536  subparagraphs 1., 2., and 3. which were not resolved.
  537         (c)The percentage of property owner complaints received
  538  pursuant to subparagraphs (b)1., 2., and 3. expressed as a total
  539  of all projects funded in the report year.
  540         (31)(a)Subsections (16) through (30) do not apply to
  541  residential real property if the program administrator
  542  reasonably determines that:
  543         1.The residential real property is owned by a business
  544  entity that owns more than four residential real properties; and
  545         2.The business entity’s managing member, partner, or
  546  beneficial owner does not reside in the residential real
  547  property.
  548         (b)Subsections (16) through (30) apply to a program
  549  administrator only when administering a REEF program for
  550  qualifying improvements on residential real property.
  551  Subsections (16) through (30) do not apply with respect to a
  552  local government, to residential property owned by a local
  553  government, or to nonresidential real property.
  554         Section 2. This act shall take effect July 1, 2023.