Florida Senate - 2023 CS for SB 950
By the Committee on Community Affairs; and Senator Rodriguez
1 A bill to be entitled
2 An act relating to Resiliency Energy Environment
3 Florida programs; amending s. 163.08, F.S.; revising
4 legislative intent; defining and revising terms;
5 providing that a property owner may apply to a
6 Resiliency Energy Environment Florida (REEF) program
7 for funding to finance a qualifying improvement and
8 may enter into an assessment financing agreement with
9 a local government; providing that REEF program costs
10 may be collected as non-ad valorem assessments;
11 authorizing a local government to enter into an
12 agreement with a program administrator to administer a
13 REEF program on the local government’s behalf;
14 revising and specifying public recording requirements
15 for assessment financing agreements and notices of
16 lien; revising requirements that apply to local
17 governments or program administrators in determining
18 eligibility for assessment financing; revising
19 requirements for qualifying improvements; revising the
20 calculation of non-ad valorem assessment limits;
21 providing construction; specifying underwriting,
22 financing estimate, disclosure, and confirmation
23 requirements for program administrators relating to
24 residential real property; authorizing a residential
25 real property owner, under certain circumstances and
26 within a certain timeframe, to cancel an assessment
27 financing agreement without financial penalty;
28 specifying limitations on assessment financing
29 agreement terms for residential real property;
30 prohibiting certain financing terms for residential
31 real property; specifying requirements for, and
32 certain prohibited acts by, program administrators
33 relating to assessment financing agreements and
34 contractors for qualifying improvements to residential
35 real property; specifying additional annual reporting
36 requirements for program administrators; providing
37 construction and applicability; conforming provisions
38 to changes made by the act; providing an effective
41 Be It Enacted by the Legislature of the State of Florida:
43 Section 1. Subsection (16) of section 163.08, Florida
44 Statutes, is redesignated as subsection (32), a new subsection
45 (16) and subsections (17) through (31) are added to that
46 section, and subsections (1), (2), (4), and (6) though (14) are
47 amended, to read:
48 163.08 Supplemental authority for improvements to real
50 (1)(a) In chapter 2008-227, Laws of Florida, the
51 Legislature amended the energy goal of the state comprehensive
52 plan to provide, in part, that the state shall reduce its energy
53 requirements through enhanced conservation and efficiency
54 measures in all end-use sectors and reduce atmospheric carbon
55 dioxide by promoting an increased use of renewable energy
56 resources. That act also declared it the public policy of the
57 state to play a leading role in developing and instituting
58 energy management programs that promote energy conservation,
59 energy security, and the reduction of greenhouse gases. In
60 addition to establishing policies to promote the use of
61 renewable energy, the Legislature provided for a schedule of
62 increases in energy performance of buildings subject to the
63 Florida Energy Efficiency Code for Building Construction. In
64 chapter 2008-191, Laws of Florida, the Legislature adopted new
65 energy conservation and greenhouse gas reduction comprehensive
66 planning requirements for local governments. In the 2008 general
67 election, the voters of this state approved a constitutional
68 amendment authorizing the Legislature, by general law, to
69 prohibit consideration of any change or improvement made for the
70 purpose of improving a property’s resistance to wind damage or
71 the installation of a renewable energy source device in the
72 determination of the assessed value of residential real
74 (b) The Legislature finds that all energy-consuming-improved
75 properties that are not using energy conservation strategies
76 contribute to the burden affecting all improved property
77 resulting from fossil fuel energy production. Improved property
78 that has been retrofitted with energy-related qualifying
79 improvements receives the special benefit of alleviating the
80 property’s burden from energy consumption. All improved
81 properties not protected from wind damage by wind resistance
82 qualifying improvements contribute to the burden affecting all
83 improved property resulting from potential wind damage. Improved
84 property that has been retrofitted with wind resistance
85 qualifying improvements receives the special benefit of reducing
86 the property’s burden from potential wind damage. Further, the
87 installation and operation of qualifying improvements not only
88 benefit the affected properties for which the improvements are
89 made, but also assist in fulfilling the goals of the state’s
90 energy and hurricane mitigation policies. All properties that
91 are not using advanced technologies for wastewater removal
92 contribute to the water quality problems affecting this state,
93 particularly the coastal areas. Improved property that has been
94 retrofitted with an advanced onsite sewage treatment and
95 disposal system or has been converted to central sewerage
96 significantly benefits the quality of water that may enter
97 streams, lakes, rivers, aquifers, or coastal areas. All
98 properties that are not protected from harmful environmental
99 health hazards contribute to the environmental health burden
100 affecting this state. Property that has been improved to
101 mitigate against environmental health hazards benefits the
102 general environmental health of people within this state.
103 (c) In order to make qualifying improvements more
104 affordable and assist property owners who wish to undertake such
105 improvements, the Legislature finds that there is a compelling
106 state interest in enabling property owners to voluntarily
107 finance such improvements with local government assistance.
(c) The Legislature determines that the actions
109 authorized under this section, including, but not limited to,
110 the financing of qualifying improvements through the execution
111 of assessment financing agreements and the related imposition of
112 voluntary assessments, are reasonable and necessary to serve and
113 achieve a compelling state interest and are necessary for the
114 prosperity and welfare of the state and its property owners and
116 (2) As used in this section, the term:
117 (a) “Assessment financing agreement” means the financing
118 agreement, under a REEF program, between a local government and
119 a property owner for the acquisition or installation of
120 qualifying improvements.
121 (b) “Financing agreement” means an agreement, under a
122 qualifying improvement program, between a local government and a
123 property owner to finance the acquisition or installation of
124 qualifying improvements through a non-ad valorem assessment.
125 (c) (a) “Local government” means a county, a municipality, a
126 dependent special district as defined in s. 189.012, or a
127 separate legal entity created pursuant to s. 163.01(7).
128 (d) “Non-ad valorem assessment” or “assessment” has the
129 same meaning as the term “non-ad valorem assessment” as defined
130 in s. 197.3632(1)(d).
131 (e) “Nonresidential real property” means any property not
132 defined as residential real property, including, but not limited
134 1. Agricultural real property.
135 2. Commercial real property.
136 3. Industrial real property.
137 4. Office real property.
138 5. Multifamily residential real property composed of five
139 or more dwelling units.
140 (f) “Program administrator” means an entity, including, but
141 not limited to, a for-profit or not-for-profit entity, with
142 which a local government may contract to administer all or part
143 of a qualifying improvement program under this section.
144 (g) (b) “Qualifying improvement” means a program established
145 under this section by a local government, alone or in
146 partnership with other local governments or a program
147 administrator, to finance qualifying improvements on real
148 property and includes any:
149 1. Energy conservation and efficiency improvement, which is
150 a measure to reduce consumption through conservation or a more
151 efficient use of electricity, natural gas, propane, or other
152 forms of energy on the property, including, but not limited to,
153 air sealing; installation of insulation; installation of energy
154 efficient heating, cooling, or ventilation systems; building
155 modifications to increase the use of daylight; replacement of
156 windows; installation of energy controls or energy recovery
157 systems; installation of electric vehicle charging equipment;
158 and installation of efficient lighting equipment.
159 2. Renewable energy improvement, which is the installation
160 of any system in which the electrical, mechanical, or thermal
161 energy is produced from a method that uses one or more of the
162 following fuels or energy sources: hydrogen, solar energy,
163 geothermal energy, bioenergy, and wind energy.
164 3. Wind resistance improvement, which includes, but is not
165 limited to:
166 a. Improving the strength of the roof deck attachment;
167 b. Creating a secondary water barrier to prevent water
169 c. Installing wind-resistant shingles;
170 d. Installing gable-end bracing;
171 e. Reinforcing roof-to-wall connections;
172 f. Installing storm shutters; or
173 g. Installing opening protections.
174 4. Wastewater improvement, which includes, but is not
175 limited to:
176 a. The removal, replacement, or improvement of an onsite
177 sewage treatment and disposal system with a secondary or
178 advanced onsite sewage treatment and disposal system or
180 b. The replacement or conversion of an onsite sewage
181 treatment and disposal system to a central sewerage system or
182 distributed sewerage system, including, but not limited to, the
183 installation of a sewer lateral and anything necessary to
184 connect the onsite sewage treatment and disposal system or the
185 building’s plumbing to a central sewerage system or distributed
186 sewerage system; or
187 c. Any removal, repairs, or modifications made to an onsite
188 sewage treatment and disposal system, including any repair,
189 modification, or replacement of a system required under a local
190 ordinance enacted pursuant to ss. 381.0065 and 381.00651.
191 5. Flood and water damage mitigation and resiliency
192 improvement, which includes, but is not limited to, projects and
193 installation for:
194 a. The raising of a structure above the base flood
195 elevation to reduce flood damage;
196 b. A flood diversion apparatus or sea wall improvement,
197 which includes seawall repairs and seawall replacements;
198 c. Flood-damage-resistant building materials;
199 d. Electrical, mechanical, plumbing, or other system
200 improvements that reduce flood damage; or
201 e. Other improvements that qualify for reductions in flood
202 insurance premiums.
203 6. Environmental health improvement, which is an
204 improvement or measure intended to mitigate harmful
205 environmental health effects to property occupants, including,
206 but not limited to, measures that do any of the following:
207 a. Mitigate the presence of lead, heavy metals,
208 polyfluoroalkyl substance contamination, or other harmful
209 contaminants in potable water systems, such as conversion of
210 well water to municipal water systems, replacing lead water
211 service lines, or installing water filters;
212 b. Mitigate lead paint contamination in housing built
213 before 1978; or
214 c. Mitigate indoor air pollution or contaminants, such as
215 particulate matter, viruses, bacteria, and mold.
216 (h) “Residential real property” means a residential real
217 property composed of four or fewer dwelling units.
218 (i) “Resiliency Energy Environment Florida (REEF) program”
219 means a program established by a local government, alone or in
220 partnership with other local governments or a program
221 administrator, to finance qualifying improvements on
222 nonresidential real property or residential real property.
223 (4) Subject to local government ordinance or resolution, a
224 property owner may apply to the REEF program local government
225 for funding to finance a qualifying improvement and enter into
226 an assessment a financing agreement with the local government.
227 Costs incurred by the REEF program local government for such
228 purpose may be collected as a non-ad valorem assessment. A non
229 ad valorem assessment shall be collected pursuant to s. 197.3632
230 and, notwithstanding s. 197.3632(8)(a), shall not be subject to
231 discount for early payment. However, the notice and adoption
232 requirements of s. 197.3632(4) do not apply if this section is
233 used and complied with, and the intent resolution, publication
234 of notice, and mailed notices to the property appraiser, tax
235 collector, and Department of Revenue required by s.
236 197.3632(3)(a) may be provided on or before August 15 in
237 conjunction with any non-ad valorem assessment authorized by
238 this section, if the property appraiser, tax collector, and
239 local government agree.
240 (6) A local government may enter into an agreement with a
241 program administrator to administer a REEF program on behalf of
242 the local government A qualifying improvement program may be
243 administered by a for-profit entity or a not-for-profit
244 organization on behalf of and at the discretion of the local
246 (7) A local government may incur debt for the purpose of
247 providing financing for qualifying such improvements, which debt
248 is payable from revenues received from the improved property , or
249 from any other available revenue source authorized under this
250 section or by other law.
251 (8) A local government may enter into an assessment a
252 financing agreement to finance or refinance a qualifying
253 improvement only with the record owner of the affected property.
254 Any assessment financing agreement entered into pursuant to this
255 section or a summary memorandum of such agreement shall be
256 submitted for recording recorded in the public records of the
257 county within which the property is located by the sponsoring
258 unit of local government within 10 5 days after execution of the
259 agreement. The recorded agreement shall provide constructive
260 notice that the assessment to be levied on the property
261 constitutes a lien of equal dignity to county taxes and
262 assessments from the date of recordation. A notice of lien for
263 the full amount of the financing may be recorded in the public
264 records of the county where the property is located. Such lien
265 is not enforceable in a manner that results in the acceleration
266 of the remaining nondelinquent unpaid balance under the
267 assessment financing agreement.
268 (9) Before entering into an assessment a financing
269 agreement, the local government, or the program administrator
270 acting on its behalf, shall reasonably determine that all of the
271 following conditions are met:
272 (a) All property taxes and any other assessments levied on
273 the same bill as property taxes are current paid and have not
274 been delinquent for more than 30 days for the preceding 3 years
275 or the property owner’s period of ownership, whichever is less. ;
276 (b) that There are no involuntary liens greater than
277 $1,000, including, but not limited to, construction liens on the
278 property. ;
279 (c) that No notices of default or other evidence of
280 property-based debt delinquency have been recorded and not
281 released during the preceding 3 years or the property owner’s
282 period of ownership, whichever is less. ;
283 (d) The local government or program administrator has asked
284 the property owner whether any other assessments under this
285 section have been recorded or have been funded and not yet
286 recorded on the property. The failure of a property owner to
287 disclose information set forth in this paragraph does not
288 invalidate an assessment financing agreement or any obligation
289 thereunder, even if the total financed amount of the qualifying
290 improvements exceeds the amount that would otherwise be
291 authorized under paragraph (12)(a).
292 (e) and that The property owner is current on all mortgage
293 debt on the property.
294 (f) The residential property is not subject to an existing
295 home equity conversion mortgage or reverse mortgage product.
296 This paragraph does not apply to nonresidential real property.
297 (g) The property is not currently a residential property
298 gifted to a homeowner for free by a nonprofit entity as may be
299 disclosed by the property owner. The failure of a property owner
300 to disclose information set forth in this paragraph does not
301 invalidate an assessment financing agreement or any obligation
302 thereunder. This paragraph does not apply to nonresidential real
304 (10) Before final funding may be provided, a qualifying
305 improvement must shall be affixed or planned to be affixed to a
306 nonresidential real property or residential real building or
307 facility that is part of the property and constitutes shall
308 constitute an improvement to that property the building or
309 facility or a fixture attached to the building or facility. An
310 assessment financing agreement may between a local government
311 and a qualifying property owner may not cover qualifying wind
312 resistance improvements on nonresidential real property under
313 new construction or residential real property in buildings or
314 facilities under new construction or construction for which a
315 certificate of occupancy or similar evidence of substantial
316 completion of new construction or improvement has not been
318 (11) Any work requiring a license under any applicable law
319 to make a qualifying improvement shall be performed by a
320 contractor properly certified or registered pursuant to part I
321 or part II of chapter 489, as applicable.
322 (12)(a) Without the consent of the holders or loan
323 servicers of any mortgage encumbering or otherwise secured by
324 the property, the total amount of any non-ad valorem assessment
325 for a property under this section may not exceed 20 percent of
326 the fair market just value of the real property as determined by
327 the county property appraiser. The combined mortgage-related
328 debt and total amount of any non-ad valorem assessments funded
329 under this section for residential real property may not exceed
330 100 percent of the fair market value of the residential real
331 property. However, the failure of a property owner to disclose
332 information set forth in paragraph (9)(d) does not invalidate an
333 assessment financing agreement or any obligation thereunder,
334 even if the total financed amount of the qualifying improvements
335 exceeds the amount that would otherwise be authorized under this
336 paragraph. For purposes of this paragraph, fair market value may
337 be determined using reputable third parties.
338 (b) Notwithstanding paragraph (a), a non-ad valorem
339 assessment for a qualifying improvement defined in subparagraph
340 (2)(g)1. (2)(b)1. or subparagraph (2)(g)2. which (2)(b)2. that
341 is supported by an energy audit is not subject to the limits in
342 this subsection if the audit demonstrates that the annual energy
343 savings from the qualified improvement equals or exceeds the
344 annual repayment amount of the non-ad valorem assessment.
345 (13) At least 30 days before entering into an assessment a
346 financing agreement, the property owner shall provide to the
347 holders or loan servicers of any existing mortgages encumbering
348 or otherwise secured by the property a notice of the owner’s
349 intent to enter into an assessment a financing agreement
350 together with the maximum principal amount to be financed and
351 the maximum annual assessment necessary to repay that amount. A
352 verified copy or other proof of such notice shall be provided to
353 the local government. A provision in any agreement between a
354 mortgagee or other lienholder and a property owner, or otherwise
355 now or hereafter binding upon a property owner, which allows for
356 acceleration of payment of the mortgage, note, or lien or other
357 unilateral modification solely as a result of entering into an
358 assessment a financing agreement as provided for in this section
359 is not enforceable. This subsection does not limit the authority
360 of the holder or loan servicer to increase the required monthly
361 escrow by an amount necessary to annually pay the annual
362 qualifying improvement assessment.
363 (14) At or before the time a seller purchaser executes a
364 contract for the sale and purchase of any property for which a
365 non-ad valorem assessment has been levied under this section and
366 has an unpaid balance due, the seller must shall give the
367 prospective purchaser a written disclosure statement in the
368 following form, which shall be set forth in the contract or in a
369 separate writing:
371 QUALIFYING IMPROVEMENTS FOR ENERGY EFFICIENCY,
372 RENEWABLE ENERGY, FLOOD MITIGATION, ADVANCED
373 TECHNOLOGIES FOR WASTEWATER REMOVAL, OR ENVIRONMENTAL
374 HEALTH OR WIND RESISTANCE.—The property being
375 purchased is located within the jurisdiction of a
376 local government that has placed an assessment on the
377 property pursuant to s. 163.08, Florida Statutes. The
378 assessment is for a qualifying improvement to the
379 property relating to energy efficiency, renewable
380 energy, or wind resistance, and is not based on the
381 value of property. This agreement uses a program
382 formerly referred to as Property Assessed Clean
383 Energy, or PACE. You are encouraged to contact the
384 county property appraiser’s office to learn more about
385 this and other assessments that may be provided by
388 (16)(a) Before final approval of an assessment financing
389 agreement for a qualifying improvement on a residential real
390 property, a program administrator shall reasonably determine
391 that the property owner has the ability to pay the estimated
392 annual assessment. To do so, the program administrator shall, at
393 a minimum, use the underwriting requirements in subsection (9),
394 confirm that the property owner is not in bankruptcy, and
395 determine that the total estimated annual payment amount for all
396 assessment financing agreements funded under this section on the
397 property does not exceed 10 percent of the property owner’s
398 annual household income. Income may be confirmed using
399 information gathered from reputable third parties that provide
400 reasonably reliable evidence of the property owner’s household
401 income. Income may not be confirmed solely by a property owner’s
403 (b) In the event that a court or tribunal determines, by
404 clear and convincing evidence, that the program administrator’s
405 determination of the property owner’s ability to pay was not
406 objectively reasonable based on the information provided by the
407 property owner, the yearly assessment payment shall be reduced
408 in the amount which is within the property owner’s ability to
409 pay. This paragraph does not require or authorize the
410 administrator to reduce the amount owed on the assessment.
411 (c) The failure of a property owner to disclose information
412 set forth in paragraph (9)(d) does not invalidate an assessment
413 financing agreement or any obligation thereunder, even if the
414 total estimated annual payment amount exceeds the amount that
415 would otherwise be authorized under this subsection.
416 (17) Before or contemporaneously with a property owner
417 signing an assessment financing agreement on a residential real
418 property, the program administrator shall provide a financing
419 estimate and disclosure to the residential real property owner
420 which includes all of the following:
421 (a) The total amount estimated to be funded, including the
422 cost of the qualifying improvements, program fees, and
423 capitalized interest, if any.
424 (b) The estimated annual assessment.
425 (c) The term of the assessment.
426 (d) The interest charged and estimated annual percentage
428 (e) A description of the qualifying improvement.
429 (f) A disclosure that if the property owner sells or
430 refinances the property, the property owner, as a condition of
431 the sale or the refinance, may be required by a mortgage lender
432 to pay off the full amount owed under each assessment financing
434 (g) A disclosure that the assessment will be collected
435 along with the property owner’s property taxes and will result
436 in a lien on the property from the date the assessment financing
437 agreement is recorded.
438 (h) A disclosure that failure to pay the assessment may
439 result in penalties and fees, along with the issuance of a tax
440 certificate that could result in the property owner losing the
441 real property.
442 (18) Before a notice to proceed is issued on residential
443 real property, the program administrator shall conduct with the
444 residential real property owner or an authorized representative
445 an oral, recorded telephone call. The program administrator
446 shall ask the residential real property owner if he or she would
447 like to communicate primarily in a language other than English.
448 A program administrator may not leave a voicemail on the
449 residential real property owner’s or authorized representative’s
450 telephone to satisfy this requirement. A program administrator,
451 as part of such telephone call, shall confirm all of the
452 following with the residential real property owner:
453 (a) That at least one residential real property owner has
454 access to a copy of the assessment financing agreement and
455 financing estimates and disclosures.
456 (b) The qualifying improvements being financed.
457 (c) The total estimated annual costs that the residential
458 real property owner will have to pay under the assessment
459 financing agreement, including applicable fees.
460 (d) The total estimated average monthly equivalent amount
461 of funds the residential real property owner would have to save
462 in order to pay the annual costs of the assessment, including
463 applicable fees.
464 (e) The estimated due date of the residential real property
465 owner’s first property tax payment that includes the assessment
466 will be due.
467 (f) The term of the assessment financing agreement.
468 (g) That payments for the assessment financing agreement
469 will cause the residential real property owner’s annual property
470 tax bill to increase, and that payments will be made through an
471 additional annual assessment on the property and either will be
472 paid directly to the county tax collector’s office as part of
473 the total annual secured property tax bill or may be paid
474 through the residential real property owner’s mortgage escrow
476 (h) That the residential real property owner has disclosed
477 whether the property has received, or the owner is seeking,
478 additional assessments funded under this section and that the
479 owner has disclosed all other assessments funded under this
480 section which are or are about to be placed on the property.
481 (i) That the property will be subject to a lien during the
482 term of the assessment financing agreement and that the
483 obligations under the agreement may be required to be paid in
484 full before the residential real property owner sells or
485 refinances the property.
486 (j) That any potential utility or insurance savings are not
487 guaranteed and will not reduce the assessment or total
488 assessment amount.
489 (k) That the program administrator does not provide tax
490 advice, and the residential real property owner should seek
491 professional tax advice if he or she has questions regarding tax
492 credits, tax deductibility, or other tax impacts of the
493 qualifying improvement or the assessment financing agreement.
494 (19) A residential real property owner may cancel an
495 assessment financing agreement within 3 business days after
496 signing the assessment financing agreement without any financial
497 penalty from the program administrator for doing so.
498 (20) The term of an assessment financing agreement on
499 residential real property may not exceed the lesser of:
500 (a) Thirty years; or
501 (b) The greater of either the weighted average estimated
502 useful life of all qualifying improvements being financed or the
503 estimated useful life of the qualifying improvements to which
504 the greatest portion of funds is disbursed.
505 (21) An assessment financing agreement authorized under
506 this section on residential real property may not include any of
507 the following financing terms:
508 (a) A negative amortization schedule. Capitalized interest
509 included in the original balance of the assessment financing
510 agreement does not constitute negative amortization.
511 (b) A balloon payment.
512 (c) Prepayment fees, other than nominal administrative
514 (22) For residential real property, a program
516 (a) May not enroll a contractor who contracts with
517 residential real property owners to install qualifying
518 improvements unless:
519 1. The program administrator makes a reasonable effort to
520 review that the contractor maintains in good standing an
521 appropriate license from the state, if applicable, as well as
522 any other permit, license, or registration required for engaging
523 in business in the jurisdiction in which he or she operates and
524 that the contractor maintains all state-required bond and
525 insurance coverage; and
526 2. The program administrator obtains the contractor’s
527 written agreement that the contractor will act in accordance
528 with all applicable laws, including applicable advertising and
529 marketing laws and regulations.
530 (b) Shall maintain a process to enroll new contractors
531 which includes reasonable review of the following for each
533 1. Relevant work or project history.
534 2. Financial and reputational background checks.
535 3. A criminal background check.
536 4. Status on the Better Business Bureau online platform or
537 another online platform that tracks contractor reviews.
538 (c) A program administrator may pay or reimburse
539 contractors for any expense allowable under applicable state law
540 and not otherwise prohibited under this section, including, but
541 not limited to, marketing, training, and promotions.
542 (d) A program administrator may not disclose to a
543 contractor or to a third party engaged in soliciting a financing
544 agreement the maximum financing amount for which a residential
545 real property owner is eligible.
546 (23) Before disbursing funds to a contractor for a
547 qualifying improvement on residential real property, a program
548 administrator must first confirm that the applicable work or
549 service has been completed through any of the following:
550 (a) A written certification from the property owner;
551 (b) A recorded telephone call with the property owner;
552 (c) A review of geotagged and time-stamped photographs;
553 (d) A review of a final permit; or
554 (e) A site inspection through third-party means.
555 (24) A program administrator shall comply with the
556 following marketing and communications guidelines when
557 communicating with residential real property owners:
558 (a) A program administrator may not represent:
559 1. That the REEF program or assessment financing is a
560 government assistance program;
561 2. That qualifying improvements are free or that assessment
562 financing is a free program; or
563 3. That the financing of a qualifying improvement using the
564 REEF program does not require the property owner to repay the
565 financial obligation.
566 (b) A program administrator may not make any representation
567 as to the tax deductibility of an assessment authorized under
568 this section. A program administrator may encourage a property
569 owner to seek the advice of a tax professional regarding tax
570 matters related to assessments.
571 (25) A contractor may not present a higher price for a
572 qualifying improvement on residential real property financed by
573 an assessment financing agreement than the contractor would
574 otherwise reasonably present if the qualifying improvement was
575 not being financed through an assessment financing agreement.
576 (26) A program administrator shall use appropriate
577 methodologies or technologies to identify and verify the
578 identity of the residential real property owner who executes an
579 assessment financing agreement.
580 (27) A program administrator may not provide a contractor
581 with any payment, fee, or kickback in exchange for referring
582 assessment financing business relating to a specific assessment
583 financing agreement on residential real property.
584 (28) A program administrator shall develop and implement
585 policies and procedures for responding to, tracking, and helping
586 to resolve questions and property owner complaints as soon as
587 reasonably practicable.
588 (29) A program administrator shall maintain a process for
589 monitoring enrolled contractors that contract with residential
590 real property owners to install qualifying improvements with
591 regard to performance and compliance with program policies and
592 shall implement policies for suspending and terminating enrolled
593 contractors based on violations of program policies or
594 unscrupulous behavior. A program administrator shall maintain a
595 policy for determining the conditions on which a contractor may
596 be reinstated to the program.
597 (30) A program administrator shall provide, at a reasonable
598 time following the end of the prior calendar year, an annual
599 report to the dependent special district as defined in s.
600 189.012 or a separate legal entity created pursuant to s.
601 163.01(7) which it has contracted with to administer a REEF
602 program and shall include information and data related to the
604 (a) The total number of property owner complaints received
605 which are associated with project funding in the report year.
606 (b) Of the total number of property owner complaints
607 received which are associated with project funding in the report
609 1. The number and percentage of complaints that relate to
610 the assessment financing.
611 2. The number and percentage of complaints that relate to a
612 contractor or the workmanship of a contractor and are not
613 related to assessment financing.
614 3. The number and percentage of complaints that relate to
615 both a contractor and the assessment financing.
616 4. The number and percentage of complaints received
617 pursuant to subparagraphs 1., 2., and 3. which were resolved and
618 the number and percentage of complaints received pursuant to
619 subparagraphs 1., 2., and 3. which were not resolved.
620 (c) The percentage of property owner complaints received
621 pursuant to subparagraphs (b)1., 2., and 3. expressed as a total
622 of all projects funded in the report year.
623 (31)(a) Subsections (16) through (30) do not apply to
624 residential real property if the program administrator
625 reasonably determines that:
626 1. The residential real property is owned by a business
627 entity that owns more than four residential real properties; and
628 2. The business entity’s managing member, partner, or
629 beneficial owner does not reside in the residential real
631 (b) Subsections (16) through (30) apply to a program
632 administrator only when administering a REEF program for
633 qualifying improvements on residential real property.
634 Subsections (16) through (30) do not apply with respect to a
635 local government, to residential property owned by a local
636 government, or to nonresidential real property.
637 Section 2. This act shall take effect July 1, 2023.