Florida Senate - 2024 COMMITTEE AMENDMENT Bill No. SB 770 Ì673866TÎ673866 LEGISLATIVE ACTION Senate . House Comm: RCS . 01/24/2024 . . . . ————————————————————————————————————————————————————————————————— ————————————————————————————————————————————————————————————————— The Committee on Community Affairs (Martin) recommended the following: 1 Senate Substitute for Amendment (959872) (with title 2 amendment) 3 4 Delete everything after the enacting clause 5 and insert: 6 Section 1. Section 163.08, Florida Statutes, is amended to 7 read: 8 (Substantial rewording of section. See 9 s. 163.08, F.S., for present text.) 10 163.08 Definitions.—As used in ss. 163.081-163.087, the 11 term: 12 (1) “Commercial property” means real property other than 13 residential property. The term includes, but is not limited to, 14 a property zoned multifamily residential which is composed of 15 five or more dwelling units; a long-term care or assisted living 16 facility; real property owned by a nonprofit; government 17 commercial property; and real property used for commercial, 18 industrial, or agricultural purposes. 19 (2) “Government commercial property” means real property 20 owned by a local government and leased to a nongovernmental 21 lessee for commercial use. The term does not include residential 22 property. 23 (3) “Nongovernmental lessee” means a person or an entity 24 other than a local government which leases government commercial 25 property. 26 (4) “Program administrator” means a county, a municipality, 27 a dependent special district as defined in s. 189.012, or a 28 separate legal entity created pursuant to s. 163.01(7). 29 (5) “Property owner” means the owner or owners of record of 30 real property. The term includes real property held in trust for 31 the benefit of one or more individuals, in which case the 32 individual or individuals may be considered as the property 33 owner or owners, provided that the trustee provides written 34 consent. The term does not include persons renting, using, 35 living, or otherwise occupying real property, except for a 36 nongovernmental lessee. 37 (6) “Qualifying improvement” means the following permanent 38 improvements located on real property within the jurisdiction of 39 an authorized financing program: 40 (a) For improvements on residential property: 41 1. Repairing, replacing, or improving a central sewerage 42 system, converting an onsite sewage treatment and disposal 43 system to a central sewerage system, or, if no central sewerage 44 system is available, removing, repairing, replacing, or 45 improving an onsite sewage treatment and disposal system to an 46 advanced system or technology. 47 2. Repairing, replacing, or improving a roof, including 48 improvements that strengthen the roof deck attachment; create a 49 secondary water barrier to prevent water intrusion; install 50 wind-resistant shingles or gable-end bracing; or reinforce roof 51 to-wall connections. 52 3. Providing flood and water damage mitigation and 53 resiliency improvements, prioritizing repairs, replacement, or 54 improvements that qualify for reductions in flood insurance 55 premiums, including raising a structure above the base flood 56 elevation to reduce flood damage; constructing a flood diversion 57 apparatus, drainage gate, or seawall improvement, including 58 seawall repairs and seawall replacements; purchasing flood 59 damage-resistant building materials; or making electrical, 60 mechanical, plumbing, or other system improvements that reduce 61 flood damage. 62 4. Replacing windows or doors, including garage doors, with 63 energy-efficient windows or doors. 64 5. Installing energy-efficient heating, cooling, or 65 ventilation systems. 66 6. Replacing or installing insulation. 67 7. Replacing or installing energy-efficient water heaters. 68 8. Installing and affixing a permanent generator. 69 (b) For installing or constructing improvements on 70 commercial property: 71 1. Waste system improvements, which consists of repairing, 72 replacing, improving, or constructing a central sewerage system, 73 converting an onsite sewage treatment and disposal system to a 74 central sewerage system, or, if no central sewerage system is 75 available, removing, repairing, replacing, or improving an 76 onsite sewage treatment and disposal system to an advanced 77 system or technology. 78 2. Making resiliency improvements, which includes but is 79 not limited to: 80 a. Repairing, replacing, improving, or constructing a roof, 81 including improvements that strengthen the roof deck attachment; 82 b. Creating a secondary water barrier to prevent water 83 intrusion; 84 c. Installing wind-resistant shingles or gable-end bracing; 85 or 86 d. Reinforcing roof-to-wall connections. 87 e. Providing flood and water damage mitigation and 88 resiliency improvements, prioritizing repairs, replacement, or 89 improvements that qualify for reductions in flood insurance 90 premiums, including raising a structure above the base flood 91 elevation to reduce flood damage; creating or improving 92 stormwater and flood resiliency, including flood diversion 93 apparatus, drainage gates, or shoreline improvements; purchasing 94 flood-damage-resistant building materials; or making any other 95 improvements necessary to achieve a sustainable building rating 96 or compliance with a national model resiliency standard and any 97 improvements to a structure to achieve wind or flood insurance 98 rate reductions, including building elevation. 99 3. Energy conservation and efficiency improvements, which 100 are measures to reduce consumption through efficient use or 101 conservation of electricity, natural gas, propane, or other 102 formers of energy, including but not limited to, air sealing; 103 installation of insulation; installation of energy-efficient 104 heating, cooling, or ventilation systems; building modification 105 to increase the use of daylight; window replacement; windows; 106 energy controls or energy recovery systems; installation of 107 electric vehicle charging equipment; installation of efficient 108 lighting equipment; or any other improvements necessary to 109 achieve a sustainable building rating or compliance with a 110 national model green building code. 111 4. Renewable energy improvements, which is the installation 112 of any system in which the electrical, mechanical, or thermal 113 energy is produced from a method that uses solar, geothermal, 114 bioenergy, wind, or hydrogen. 115 5. Water conservation efficiency improvements, which are 116 measures to reduce consumption through efficient use or 117 conservation of water. 118 (7) “Qualifying improvement contractor” means a licensed or 119 registered contractor who has been registered to participate by 120 a program administrator pursuant to s. 163.083 to install or 121 otherwise perform work to make qualifying improvements on 122 residential property financed pursuant to a program authorized 123 under s. 163.081. 124 (8) “Residential property” means real property zoned as 125 residential or multifamily residential and composed of four or 126 fewer dwelling units. 127 Section 2. Section 163.081, Florida Statutes, is created to 128 read: 129 163.081 Financing qualifying improvements to residential 130 property.— 131 (1) RESIDENTIAL PROPERTY PROGRAM AUTHORIZATION.— 132 (a) A program administrator may only offer a program for 133 financing qualifying improvements to residential property within 134 the jurisdiction of a county or municipality if the county or 135 municipality has authorized by ordinance or resolution the 136 program administrator to administer the program for financing 137 qualifying improvements to residential property. The authorized 138 program must, at a minimum, meet the requirements of this 139 section. Pursuant to this section or as otherwise provided by 140 law or pursuant to a county’s or municipality’s home rule power, 141 a county or municipality may enter into an interlocal agreement 142 providing for a partnership between one or more local 143 governments for the purpose of facilitating a program to finance 144 qualifying improvements to residential property located within 145 the jurisdiction of the local governments party to the 146 agreement. A program administrator may contract with one or more 147 third-party administrators to implement the program as provided 148 in s. 163.084. 149 (b) An authorized program administrator may levy non-ad 150 valorem assessments to facilitate repayment of financing 151 qualifying improvements. Costs incurred by the program 152 administrator for such purpose may be collected as a non-ad 153 valorem assessment. A non-ad valorem assessment shall be 154 collected pursuant to s. 197.3632 and, notwithstanding s. 155 197.3632(8)(a), shall not be subject to discount for early 156 payment. However, the notice and adoption requirements of s. 157 197.3632(4) do not apply if this section is used and complied 158 with, and the intent resolution, publication of notice, and 159 mailed notices to the property appraiser, tax collector, and 160 Department of Revenue required by s. 197.3632(3)(a) may be 161 provided on or before August 15 of each year in conjunction with 162 any non-ad valorem assessment authorized by this section, if the 163 property appraiser, tax collector, and program administrator 164 agree. 165 (c) A program administrator may incur debt for the purpose 166 of providing financing for qualifying improvements, which debt 167 is payable from revenues received from the improved property or 168 any other available revenue source authorized by law. 169 (2) APPLICATION.—The owner of record of the residential 170 property within the jurisdiction of an authorized program may 171 apply to the authorized program administrator to finance a 172 qualifying improvement. The program administrator may only enter 173 into a financing agreement with the property owner. 174 (3) FINANCING AGREEMENTS.— 175 (a) Before entering into a financing agreement, the program 176 administrator must review the residential property owner’s 177 public records derived from a commercially accepted source and 178 the property owner’s statements, records, and credit reports and 179 make each of the following findings: 180 1. There are sufficient resources to complete the project. 181 2. The total amount of any non-ad valorem assessment for a 182 residential property under this section does not exceed 20 183 percent of the just value of the property as determined by the 184 property appraiser. The total amount may exceed this limitation 185 upon written consent of the holders or loan servicers of any 186 mortgage encumbering or otherwise secured by the residential 187 property. 188 3. The combined mortgage-related debt and total amount of 189 any non-ad valorem assessments under the program for the 190 residential property does not exceed 97 percent of the just 191 value of the property as determined by the property appraiser. 192 4. The financing agreement does not utilize a negative 193 amortization schedule, a balloon payment, or prepayment fees or 194 fines other than nominal administrative costs. Capitalized 195 interest included in the original balance of the assessment 196 financing agreement does not constitute negative amortization. 197 5. All property taxes and any other assessments, including 198 non-ad valorem assessments, levied on the same bill as the 199 property taxes are current and have not been delinquent for the 200 preceding 3 years, or the property owner’s period of ownership, 201 whichever is less. 202 6. There are no outstanding fines or fees related to zoning 203 or code enforcement violations issued by a county or 204 municipality, unless the qualifying improvement will remedy the 205 zoning or code violation. 206 7. There are no involuntary liens, including, but not 207 limited to, construction liens on the residential property. 208 8. No notices of default or other evidence of property 209 based debt delinquency have been recorded and not released 210 during the preceding 3 years or the property owner’s period of 211 ownership, whichever is less. 212 9. The property owner is current on all mortgage debt on 213 the residential property. 214 10. The property owner has not been subject to a bankruptcy 215 proceeding within the last 5 years unless it was discharged or 216 dismissed more than 2 years before the date on which the 217 property owner applied for financing. 218 11. The residential property is not subject to an existing 219 home equity conversion mortgage or reverse mortgage product. 220 12. The term of the financing agreement does not exceed the 221 weighted average useful life of the qualified improvements to 222 which the greatest portion of funds disbursed under the 223 assessment contract is attributable, not to exceed 20 years. The 224 program administrator shall determine the useful life of a 225 qualifying improvement using established standards, including 226 certification criteria from government agencies or nationally 227 recognized standards and testing organizations. 228 13. The total estimated annual payment amount for all 229 financing agreements entered into under this section on the 230 residential property does not exceed 10 percent of the property 231 owner’s annual household income. Income must be confirmed using 232 reasonable evidence and not solely by a property owner’s 233 statement. 234 14. If the qualifying improvement is estimated to cost 235 $5,000 or more, the property owner has obtained estimates from 236 at least two unaffiliated, registered qualifying improvement 237 contractors for the qualifying improvement to be financed. 238 (b) Before entering into a financing agreement, the 239 property administrator must determine if there are any current 240 financing agreements on the residential property and if the 241 property owner has obtained or sought to obtain additional 242 qualifying improvements on the same property which have not yet 243 been recorded. The failure to disclose information related to 244 not yet recorded financing agreements does not invalidate a 245 financing agreement or any obligation thereunder, even if the 246 total financed amount of the qualifying improvement exceeds the 247 amount that would otherwise be authorized under this section. 248 The existence of a prior qualifying improvement non-ad valorem 249 assessment or a prior financing agreement is not evidence that 250 the financing agreement under consideration is affordable or 251 meets other program requirements. 252 (c) Findings satisfying paragraphs (a) and (b) must be 253 documented, including supporting evidence relied upon, and 254 provided to the property owner prior to a financing agreement 255 being approved and recorded. 256 (d) A property owner and the program administrator may 257 agree to include in the financing agreement provisions for 258 allowing change orders necessary to complete the qualifying 259 improvement. Any financing agreement or contract for qualifying 260 improvements which includes such provisions must meet the 261 requirements of this paragraph. If a proposed change order on a 262 qualifying improvement will significantly increase the original 263 cost of the qualifying improvement or significantly expand the 264 scope of the qualifying improvement, before the change order may 265 be executed which would result in an increase in the amount 266 financed through the program administrator for the qualifying 267 improvement, the program administrator must notify the property 268 owner, provide an updated written disclosure form as described 269 in subsection (4) to the property owner, and obtain written 270 approval of the change from the property owner. 271 (e) A financing agreement may not be entered into if the 272 total cost of the qualifying improvement, including program fees 273 and interest, is less than $2,500. 274 (f) A financing agreement may not be entered into for 275 qualifying improvements in buildings or facilities under new 276 construction or construction for which a certificate of 277 occupancy or similar evidence of substantial completion of new 278 construction or improvement has not been issued. 279 (4) DISCLOSURES.— 280 (a) In addition to the requirements in subsection (3), a 281 financing agreement may not be approved unless the program 282 administrator first provides, including via electronic means, a 283 written financing estimate and disclosure to the property owner 284 which includes all of the following: 285 1. The estimated total amount to be financed, including the 286 total and itemized cost of the qualifying improvement, program 287 fees, and capitalized interest, if any; 288 2. The estimated annual non-ad valorem assessment; 289 3. The term of the financing agreement and the schedule for 290 the non-ad valorem assessments; 291 4. The interest charged and estimated annual percentage 292 rate; 293 5. A description of the qualifying improvement; 294 6. The total estimated annual costs that will be required 295 to be paid under the assessment contract, including program 296 fees; 297 7. The total estimated average monthly equivalent amount of 298 funds that would need to be saved in order to pay the annual 299 costs of the non-ad valorem assessment, including program fees; 300 8. The estimated due date of the first payment that 301 includes the non-ad valorem assessment; 302 9. A disclosure that the financing agreement may be 303 canceled within 5 business days after signing the financing 304 agreement without any financial penalty for doing so; 305 10. A disclosure that the property owner may repay any 306 remaining amount owed, at any time, without penalty or 307 imposition of additional prepayment fees or fines other than 308 nominal administrative costs; 309 11. A disclosure that if the property owner sells or 310 refinances the residential property, the property owner may be 311 required by a mortgage lender to pay off the full amount owed 312 under each financing agreement under this section; 313 12. A disclosure that the assessment will be collected 314 along with the property owner’s property taxes, and will result 315 in a lien on the property from the date the financing agreement 316 is recorded; 317 13. A disclosure that potential utility or insurance 318 savings are not guaranteed, and will not reduce the assessment 319 amount; and 320 14. A disclosure that failure to pay the assessment may 321 result in penalties, fees, including attorney fees, court costs, 322 and the issuance of a tax certificate that could result in the 323 property owner losing the property and a judgment against the 324 property owner, and may affect the property owner’s credit 325 rating. 326 (b) Prior to the financing agreement being approved, the 327 program administrator must conduct an oral, recorded telephone 328 call with the property owner during which the program 329 administrator must confirm each finding or disclosure required 330 in subsection (3) and this section. 331 (5) NOTICE TO LIENHOLDERS AND SERVICERS.—At least 30 days 332 before entering into a financing agreement, the property owner 333 must provide to the holders or loan servicers of any existing 334 mortgages encumbering or otherwise secured by the residential 335 property a written notice of the owner’s intent to enter into a 336 financing agreement together with the maximum amount to be 337 financed, including the amount of any fees and interest, and the 338 maximum annual assessment necessary to repay the total. A 339 verified copy or other proof of such notice must be provided to 340 the program administrator. A provision in any agreement between 341 a mortgagor or other lienholder and a property owner, or 342 otherwise now or hereafter binding upon a property owner, which 343 allows for acceleration of payment of the mortgage, note, or 344 lien or other unilateral modification solely as a result of 345 entering into a financing agreement as provided for in this 346 section is unenforceable. This subsection does not limit the 347 authority of the holder or loan servicer to increase the 348 required monthly escrow by an amount necessary to pay the annual 349 assessment. 350 (6) CANCELLATION.—A property owner may cancel a financing 351 agreement on a form established by the program administrator 352 within 5 business days after signing the financing agreement 353 without any financial penalty for doing so. 354 (7) RECORDING.—Any financing agreement approved and entered 355 into pursuant to this section, or a summary memorandum of such 356 agreement, shall be submitted for recording in the public 357 records of the county within which the residential property is 358 located by the program administrator within 10 business days 359 after execution of the agreement. The recorded agreement must 360 provide constructive notice that the non-ad valorem assessment 361 to be levied on the property constitutes a lien of equal dignity 362 to county taxes and assessments from the date of recordation. A 363 notice of lien for the full amount of the financing may be 364 recorded in the public records of the county where the property 365 is located. Such lien is not enforceable in a manner that 366 results in the acceleration of the remaining nondelinquent 367 unpaid balance under the assessment financing agreement. 368 (8) SALE OF RESIDENTIAL PROPERTY.—At or before the time a 369 seller executes a contract for the sale of any residential 370 property for which a non-ad valorem assessment has been levied 371 under this section and has an unpaid balance due, the seller 372 shall give the prospective purchaser a written disclosure 373 statement in the following form, which must be set forth in the 374 contract or in a separate writing: 375 376 QUALIFYING IMPROVEMENTS.—The property being purchased 377 is subject to an assessment on the property pursuant 378 to s. 163.081, Florida Statutes. The assessment is for 379 a qualifying improvement to the property and is not 380 based on the value of the property. You are encouraged 381 to contact the property appraiser’s office to learn 382 more about this and other assessments that may be 383 provided by law. 384 385 (9) DISBURSEMENTS.—Before disbursing final funds to a 386 qualifying improvement contractor for a qualifying improvement 387 on residential property, the program administrator shall confirm 388 that the applicable work or service has been completed or, as 389 applicable, that the final permit for the qualifying improvement 390 has been closed with all permit requirements satisfied or a 391 certificate of occupancy or similar evidence of substantial 392 completion of construction or improvement has been issued. 393 (10) CONSTRUCTION.—This section is additional and 394 supplemental to county and municipal home rule authority and not 395 in derogation of such authority or a limitation upon such 396 authority. 397 Section 3. Section 163.082, Florida Statutes, is created to 398 read: 399 163.082 Financing qualifying improvements to commercial 400 property.— 401 (1) COMMERCIAL PROPERTY PROGRAM AUTHORIZATION.— 402 (a) A program administrator may only offer a program for 403 financing qualifying improvements to commercial property within 404 the jurisdiction of a county or municipality if the county or 405 municipality has authorized by ordinance or resolution the 406 program administrator to administer the program for financing 407 qualifying improvements. The authorized program must, at a 408 minimum, meet the requirements of this section. Pursuant to this 409 section or as otherwise provided by law or pursuant to a 410 county’s or municipality’s home rule power, a county or 411 municipality may enter into an interlocal agreement providing 412 for a partnership between one or more local governments for the 413 purpose of facilitating a program for financing qualifying 414 improvements to commercial property located within the 415 jurisdiction of the local governments party to the agreement. A 416 program administrator may contract with one or more third-party 417 administrators to implement the program as provided in s. 418 163.084. 419 (b) An authorized program administrator may levy non-ad 420 valorem assessments to facilitate repayment of financing or 421 refinancing qualifying improvements. Costs incurred by the 422 program administrator for such purpose may be collected as a 423 non-ad valorem assessment. A non-ad valorem assessment shall be 424 collected pursuant to s. 197.3632 and, notwithstanding s. 425 197.3632(8)(a), is not subject to discount for early payment. 426 However, the notice and adoption requirements of s. 197.3632(4) 427 do not apply if this section is used and complied with, and the 428 intent resolution, publication of notice, and mailed notices to 429 the property appraiser, tax collector, and Department of Revenue 430 required by s. 197.3632(3)(a) may be provided on or before 431 August 15 of each year in conjunction with any non-ad valorem 432 assessment authorized by this section, if the property 433 appraiser, tax collector, and program administrator agree. 434 (c) A program administrator may incur debt for the purpose 435 of providing financing for qualifying improvements, which debt 436 is payable from revenues received from the improved property or 437 any other available revenue source authorized by law. 438 (2) APPLICATION.—The owner of record of the commercial 439 property within the jurisdiction of the authorized program may 440 apply to the program administrator to finance a qualifying 441 improvement and enter into a financing agreement with the 442 program administrator to make such improvement. The program 443 administrator may only enter into a financing agreement with a 444 property owner. However, a nongovernmental lessee may apply to 445 finance a qualifying improvement if the nongovernmental lessee 446 provides the program administrator with written consent of the 447 government lessor. Any financing agreement with the 448 nongovernmental lessee must provide that the nongovernmental 449 lessee is the only party obligated to pay the assessment. 450 (3) FINANCING AGREEMENTS.— 451 (a) Before entering into a financing agreement, the program 452 administrator must make each of the following findings based on 453 a review of public records derived from a commercially accepted 454 source and the statements, records, and credit reports of the 455 commercial property owner or nongovernmental lessee: 456 1. There are sufficient resources to complete the project. 457 2. The total amount of any non-ad valorem assessment for a 458 commercial property under this section does not exceed 20 459 percent of the just value of the property as determined by the 460 property appraiser. The total amount may exceed this limitation 461 upon written consent of the holders or loan servicers of any 462 mortgage encumbering or otherwise secured by the commercial 463 property. 464 3. The combined mortgage-related debt and total amount of 465 any non-ad valorem assessments under the program for the 466 commercial property does not exceed 97 percent of the just value 467 of the property as determined by the property appraiser. 468 4. All property taxes and any other assessments, including 469 non-ad valorem assessments, levied on the same bill as the 470 property taxes are current. 471 5. There are no involuntary liens greater than $5,000, 472 including, but not limited to, construction liens on the 473 commercial property. 474 6. No notices of default or other evidence of property 475 based debt delinquency have been recorded and not been released 476 during the preceding 3 years or the property owner’s period of 477 ownership, whichever is less. 478 7. The property owner is current on all mortgage debt on 479 the commercial property. 480 8. The term of the financing agreement does not exceed the 481 weighted average useful life of the qualified improvements to 482 which the greatest portion of funds disbursed under the 483 assessment contract is attributable, not to exceed 30 years. The 484 program administrator shall determine the useful life of a 485 qualifying improvement using established standards, including 486 certification criteria from government agencies or nationally 487 recognized standards and testing organizations. 488 9. The property owner or nongovernmental lessee is not 489 currently the subject of a bankruptcy proceeding. 490 (b) Before entering into a financing agreement, the program 491 administrator shall determine if there are any current financing 492 agreements on the commercial property and whether the property 493 owner or nongovernmental lessee has obtained or sought to obtain 494 additional qualifying improvements on the same property which 495 have not yet been recorded. The failure to disclose information 496 related to not yet recorded financing agreements does not 497 invalidate a financing agreement or any obligation thereunder, 498 even if the total financed amount of the qualifying improvement 499 exceeds the amount that would otherwise be authorized under this 500 section. The existence of a prior qualifying improvement non-ad 501 valorem assessment or a prior financing agreement is not 502 evidence that the financing agreement under consideration is 503 affordable or meets other program requirements. 504 (c) Findings satisfying paragraphs (a) and (b) must be 505 documented, including supporting evidence relied upon, and 506 provided to the property owner or nongovernmental lessee prior 507 to a financing agreement being approved and recorded. 508 (d) A property owner or nongovernmental lessee and the 509 program administrator may agree to include in the financing 510 agreement provisions for allowing change orders necessary to 511 complete the qualifying improvement. Any financing agreement or 512 contract for qualifying improvements which includes such 513 provisions must meet the requirements of this paragraph. If a 514 proposed change order on a qualifying improvement will 515 significantly increase the original cost of the qualifying 516 improvement or significantly expand the scope of the qualifying 517 improvement, before the change order may be executed which would 518 result in an increase in the amount financed through the program 519 administrator for the qualifying improvement, the program 520 administrator must notify the property owner or nongovernmental 521 lessee, provide an updated written disclosure form as described 522 in subsection (4) to the property owner or nongovernmental 523 lessee, and obtain written approval of the change from the 524 property owner or nongovernmental lessee. 525 (e) A financing agreement may not be entered into if the 526 total cost of the qualifying improvement, including program fees 527 and interest, is less than $2,500. 528 (4) DISCLOSURES.—In addition to the requirements in 529 subsection (3), a financing agreement may not be approved unless 530 the program administrator provides, whether on a separate 531 document or included with other disclosures or forms, a 532 financing estimate and disclosure to the property owner or 533 nongovernmental lessee which includes all of the following: 534 (a) The estimated total amount to be financed, including 535 the total and itemized cost of the qualifying improvement, 536 program fees, and capitalized interest, if any; 537 (b) The estimated annual non-ad valorem assessment; 538 (c) The term of the financing agreement and the schedule 539 for the non-ad valorem assessments; 540 (d) The interest charged and estimated annual percentage 541 rate; 542 (e) A description of the qualifying improvement; 543 (f) The total estimated annual costs that will be required 544 to be paid under the assessment contract, including program 545 fees; 546 (g) The total estimated average monthly equivalent amount 547 of funds that would need to be saved in order to pay the annual 548 costs of the non-ad valorem assessment, including program fees; 549 (h) The estimated due date of the first payment that 550 includes the non-ad valorem assessment; and 551 (i) A disclosure that the property owner or nongovernmental 552 lessee may repay any remaining amount owed, at any time, without 553 penalty or imposition of additional prepayment fees or fines 554 other than nominal administrative costs. 555 (5) CONSENT OF LIENHOLDERS AND SERVICERS.—Before entering 556 into a financing agreement with a property owner, the program 557 administrator must have received the written consent of the 558 current holders or loan servicers of any mortgage that encumbers 559 or is otherwise secured by the commercial property or that will 560 otherwise be secured by the property at the time the financing 561 agreement is executed. 562 (6) RECORDING.—Any financing agreement approved and entered 563 into pursuant to this section or a summary memorandum of such 564 agreement must be submitted for recording in the public records 565 of the county within which the commercial property is located by 566 the program administrator within 10 business days after 567 execution of the agreement. The recorded agreement must provide 568 constructive notice that the non-ad valorem assessment to be 569 levied on the property constitutes a lien of equal dignity to 570 county taxes and assessments from the date of recordation. A 571 notice of lien for the full amount of the financing may be 572 recorded in the public records of the county where the property 573 is located. Such lien is not enforceable in a manner that 574 results in the acceleration of the remaining nondelinquent 575 unpaid balance under the assessment financing agreement. 576 (7) SALE OF COMMERCIAL PROPERTY.—At or before the time a 577 seller executes a contract for the sale of any commercial 578 property for which a non-ad valorem assessment has been levied 579 under this section and has an unpaid balance due, the seller 580 shall give the prospective purchaser a written disclosure 581 statement in the following form, which must be set forth in the 582 contract or in a separate writing: 583 584 QUALIFYING IMPROVEMENTS.—The property being purchased 585 is subject to an assessment on the property pursuant 586 to s. 163.082, Florida Statutes. The assessment is for 587 a qualifying improvement to the property and is not 588 based on the value of the property. You are encouraged 589 to contact the property appraiser’s office to learn 590 more about this and other assessments that may be 591 provided for by law. 592 593 (8) COMPLETION CERTIFICATE.—Upon disbursement of all 594 financing and completion of installation of qualifying 595 improvements financed, the program administrator shall file with 596 the applicable county or municipality a certificate that the 597 qualifying improvements have been installed and are in good 598 working order. 599 (9) CONSTRUCTION.—This section is additional and 600 supplemental to county and municipal home rule authority and not 601 in derogation of such authority or a limitation upon such 602 authority. 603 Section 4. Section 163.083, Florida Statutes, is created to 604 read: 605 163.083 Qualifying improvement contractors.— 606 (1) A county or municipality shall establish a process, or 607 approve a process established by a program administrator, to 608 register contractors for participation in a program authorized 609 by a county or municipality pursuant to s. 163.081. A qualifying 610 improvement contractor may only perform such work that the 611 contractor is appropriately licensed, registered, and permitted 612 to conduct. At the time of application to participate and during 613 participation in the program, contractors must: 614 (a) Hold all necessary licenses or registrations for the 615 work to be performed which are in good standing. Good standing 616 includes no outstanding complaints with the state or local 617 government which issues such licenses or registrations. 618 (b) Comply with all applicable federal, state, and local 619 laws and regulations, including obtaining and maintaining any 620 other permits, licenses, or registrations required for engaging 621 in business in the jurisdiction in which it operates and 622 maintaining all state-required bond and insurance coverage. 623 (c) File with the program administrator a written statement 624 in a form approved by the county or municipality that the 625 contractor will comply with applicable laws and rules and 626 qualifying improvement program policies and procedures, 627 including those on advertising and marketing. 628 (2) A third-party administrator or a program administrator, 629 either directly or through an affiliate, may not be registered 630 as a qualifying improvement contractor. 631 (3) A program administrator shall establish and maintain: 632 (a) A process to monitor qualifying improvement contractors 633 for performance and compliance with requirements of the program 634 and must conduct regular reviews of qualifying improvement 635 contractors to confirm that each qualifying improvement 636 contractor is in good standing. 637 (b) Procedures for notice and imposition of penalties upon 638 a finding of violation, which may consist of placement of the 639 qualifying improvement contractor in a probationary status that 640 places conditions for continued participation, payment of fines 641 or sanctions, suspension, or termination from participation in 642 the program. 643 (c) An easily accessible page on its website that provides 644 information on the status of registered qualifying improvement 645 contractors, including any imposed penalties, and the names of 646 any qualifying improvement contractors currently on probationary 647 status or that are suspended or terminated from participation in 648 the program. 649 Section 5. Section 163.084, Florida Statutes, is created to 650 read: 651 163.084 Third-party administrator for financing qualifying 652 improvements programs.— 653 (1)(a) A program administrator may contract with one or 654 more entities to administer a program authorized by a county or 655 municipality pursuant to s. 163.081 or s. 163.082 on behalf of 656 and at the discretion of the program administrator. 657 (b) The third-party administrator must be independent of 658 the program administrator and have no conflicts of interest 659 between managers or owners of the third-party administrator and 660 program administrator managers, owners, officials, or employees 661 with oversight over the contract. The contract must provide for 662 the entity to administer the program according to the 663 requirements of s. 163.081 or s. 163.082 and the ordinance or 664 resolution adopted by the county or municipality authorizing the 665 program. However, only the program administrator may levy or 666 administer non-ad valorem assessments. 667 (2) A program administrator may not contract with a third 668 party administrator that, within the last 3 years, has been 669 prohibited from serving as a third-party administrator for 670 another program administrator for program or contract violations 671 or has been found by a court of competent jurisdiction to have 672 violated state or federal laws related to the administration of 673 ss. 163.081-163.086 or a similar program in another 674 jurisdiction. 675 (3) The program administrator must include in any contract 676 with the third-party administrator the right to perform annual 677 reviews of the administrator to confirm compliance with ss. 678 163.081-163.086, the ordinance or resolution adopted by the 679 county or municipality, and the contract with the program 680 administrator. If the program administrator finds that the 681 third-party administrator has committed a violation of ss. 682 163.081-163.086, the adopted ordinance or resolution, or the 683 contract with the program administrator, the program 684 administrator shall provide the third-party administrator with 685 notice of the violation and may, as set forth in the adopted 686 ordinance or resolution or the contract with the third-party 687 administrator: 688 (a) Place the third-party administrator in a probationary 689 status that places conditions for continued operations. 690 (b) Impose any fines or sanctions. 691 (c) Suspend the activity of the third-party administrator 692 for a period of time. 693 (d) Terminate the agreement with the third-party 694 administrator. 695 (4) A program administrator may terminate the agreement 696 with a third-party administrator, as set forth by the county or 697 municipality in its adopted ordinance or resolution or the 698 contract with the third-party administrator, if the program 699 administrator makes a finding that: 700 (a) The third-party administrator has violated the contract 701 with the program administrator. The contract may set forth 702 substantial violations that may result in contract termination 703 and other violations that may provide for a period of time for 704 correction before the contract may be terminated. 705 (b) The third-party administrator, or an officer, a 706 director, a manager or a managing member, or a control person of 707 the third-party administrator, has been found by a court of 708 competent jurisdiction to have violated state or federal laws 709 related to the administration a program authorized of the 710 provisions of ss. 163.081-163.086 or a similar program in 711 another jurisdiction within the last 5 years. 712 (c) Any officer, director, manager or managing member, or 713 control person of the third-party administrator has been 714 convicted of, or has entered a plea of guilty or nolo contendere 715 to, regardless of whether adjudication has been withheld, a 716 crime related to administration of a program authorized of the 717 provisions of ss. 163.081-163.086 or a similar program in 718 another jurisdiction within the last 10 years. 719 (d) An annual performance review reveals a substantial 720 violation or a pattern of violations by the third-party 721 administrator. 722 (5) Any recorded financing agreements at the time of 723 termination or suspension by the program administrator shall 724 continue. 725 Section 6. Section 163.085, Florida Statutes, is created to 726 read: 727 163.085 Advertisement and solicitation for financing 728 qualifying improvements programs under s. 163.081 or s. 729 163.082.— 730 (1) When communicating with a property owner or a 731 nongovernmental lessee, a program administrator, qualifying 732 improvement contractor, or third-party administrator may not: 733 (a) Suggest or imply: 734 1. That a non-ad valorem assessment authorized under s. 735 163.081 or s. 163.082 is a government assistance program; 736 2. That qualifying improvements are free or provided at no 737 cost, or that the financing related to a non-ad valorem 738 assessment authorized under s. 163.081 or s. 163.082 is free or 739 provided at no cost; or 740 3. That the financing of a qualifying improvement using the 741 program authorized pursuant to s. 163.081 or s. 163.082 does not 742 require repayment of the financial obligation. 743 (b) Make any representation as to the tax deductibility of 744 a non-ad valorem assessment. A program administrator, qualifying 745 improvement contractor, or third-party administrator may 746 encourage a property owner or nongovernmental lessee to seek the 747 advice of a tax professional regarding tax matters related to 748 assessments. 749 (2) A program administrator or third-party administrator 750 may not provide to a qualifying improvement contractor any 751 information that discloses the amount of financing for which a 752 property owner or nongovernmental lessee is eligible for 753 qualifying improvements or the amount of equity in a residential 754 property or commercial property. 755 (3) A qualifying improvement contractor may not advertise 756 the availability of financing agreements for, or solicit program 757 participation on behalf of, the program administrator unless the 758 contractor is registered by the program administrator to 759 participate in the program and is in good standing with the 760 program administrator. 761 (4) A program administrator or third-party administrator 762 may not provide any payment, fee, or kickback to a qualifying 763 improvement contractor for referring property owners or 764 nongovernmental lessees to the program administrator or third 765 party administrator. However, a program administrator or third 766 party administrator may provide information to a qualifying 767 improvement contractor to facilitate the installation of a 768 qualifying improvement for a property owner or nongovernmental 769 lessee. 770 (5) A program administrator or third-party administrator 771 may reimburse a qualifying improvement contractor for its 772 expenses in advertising and marketing campaigns and materials. 773 (6) A qualifying improvement contractor may not provide a 774 different price for a qualifying improvement financed under s. 775 163.081 than the price that the qualifying improvement 776 contractor would otherwise provide if the qualifying improvement 777 was not being financed through a financing agreement. Any 778 contract between a property owner or nongovernmental lessee and 779 a qualifying improvement contractor must clearly state all 780 pricing and cost provisions, including any process for change 781 orders which meet the requirements of s. 163.081(3)(d). 782 (7) A program administrator, qualifying improvement 783 contractor, or third-party administrator may not provide any 784 direct cash payment or other thing of material value to a 785 property owner or nongovernmental lessee which is explicitly 786 conditioned upon the property owner or nongovernmental lessee 787 entering into a financing agreement. However, a program 788 administrator or third-party administrator may offer programs or 789 promotions that provide reduced fees or interest rates if the 790 reduced fees or interest rates are reflected in the financing 791 agreements and are not provided to the property owner or 792 nongovernmental lessee as cash consideration. 793 Section 7. Section 163.086, Florida Statutes, is created to 794 read: 795 163.086 Unenforceable financing agreements for qualifying 796 improvements programs under s. 163.081 or s. 163.082; 797 attachment; fraud.— 798 (1) A recorded financing agreement may not be removed from 799 attachment to a residential property or commercial property if 800 the property owner or nongovernmental lessee fraudulently 801 obtained funding pursuant to s. 163.081 or s. 163.082. 802 (2) A financing agreement may not be enforced, and a 803 recorded financing agreement may be removed from attachment to a 804 residential property or commercial property and deemed null and 805 void, if: 806 (a) The property owner or nongovernmental lessee applied 807 for, accepted, and canceled a financing agreement within the 5 808 business-day period pursuant to s. 163.081(6). A qualifying 809 improvement contractor may not begin work under a canceled 810 contract. 811 (b) A person other than the property owner or 812 nongovernmental lessee obtained the recorded financing 813 agreement. The court may enter an order which holds that person 814 or persons personally liable for the debt. 815 (c) The program administrator, third-party administrator, 816 or qualifying improvement contractor approved or obtained 817 funding through fraudulent means and in violation of s. 163.081, 818 s. 163.082, s. 163.083, s. 163.084, s. 163.085, or this section 819 for qualifying improvements on the residential property or 820 commercial property. 821 (3) If a qualifying improvement contractor has initiated 822 work on residential property or commercial property under a 823 contract deemed unenforceable under this section, the qualifying 824 improvement contractor: 825 (a) May not receive compensation for that work under the 826 financing agreement. 827 (b) Must restore the residential property or commercial 828 property to its original condition at no cost to the property 829 owner or nongovernmental lessee. 830 (c) Must immediately return any funds, property, and other 831 consideration given by the property owner or nongovernmental 832 lessee. If the property owner or nongovernmental lessee provided 833 any property and the qualifying improvement contractor does not 834 or cannot return it, the qualifying improvement contractor must 835 immediately return the fair market value of the property or its 836 value as designated in the contract, whichever is greater. 837 (4) If the qualifying improvement contractor has delivered 838 chattel or fixtures to residential property or commercial 839 property pursuant to a contract deemed unenforceable under this 840 section, the qualifying improvement contractor has 90 days after 841 the date on which the contract was executed to retrieve the 842 chattel or fixtures, provided that: 843 (a) The qualifying improvement contractor has fulfilled the 844 requirements of paragraphs (3)(a) and (b). 845 (b) The chattel and fixtures can be removed at the 846 qualifying improvement contractor’s expense without damaging the 847 residential property or commercial property. 848 (5) If a qualifying improvement contractor fails to comply 849 with this section, the property owner or nongovernmental lessee 850 may retain any chattel or fixtures provided pursuant to a 851 contract deemed unenforceable under this section. 852 (6) A contract that is otherwise unenforceable under this 853 section remains enforceable if the property owner or 854 nongovernmental lessee waives his or her right to cancel the 855 contract or cancels the financing agreement pursuant to s. 856 163.081(6) or s. 163.082(6) but allows the qualifying 857 improvement contractor to proceed with the installation of the 858 qualifying improvement. 859 Section 8. Section 163.087, Florida Statutes, is created to 860 read: 861 163.087 Reporting for financing qualifying improvements 862 programs under s. 163.081 or s. 163.082.— 863 (1) Each program administrator that is authorized to 864 administer a program for financing qualifying improvements to 865 residential property or commercial property under s. 163.081 or 866 s. 163.082 shall post on its website an annual report within 45 867 days after the end of its fiscal year containing the following 868 information from the previous year for each program authorized 869 under s. 163.081 or s. 163.082: 870 (a) The number and types of qualifying improvements funded. 871 (b) The aggregate, average, and median dollar amounts of 872 annual non-ad valorem assessments and the total number of non-ad 873 valorem assessments collected pursuant to financing agreements 874 for qualifying improvements. 875 (c) The total number of defaulted non-ad valorem 876 assessments, including the total defaulted amount, the number 877 and dates of missed payments, and the total number of parcels in 878 default and the length of time in default. 879 (d) A summary of all reported complaints received by the 880 program administrator related to the program, including the 881 names of the third-party administrator, if applicable, and 882 qualifying improvement contractors and the resolution of each 883 complaint. 884 (2) The Auditor General must conduct an operational audit 885 of each program authorized under s. 163.081 or s. 163.082, 886 including any third-party administrators, for compliance with 887 the provisions of ss. 163.08-163.086 and any adopted ordinance 888 at least once every 24 months. The Auditor General may stagger 889 evaluations such that a portion of all programs are evaluated in 890 1 year; however, every program must be evaluated at least once 891 by September 1, 2027. Each program administrator, and third 892 party administrator if applicable, must post the most recent 893 report on its website. 894 Section 9. This act shall take effect July 1, 2024. 895 896 ================= T I T L E A M E N D M E N T ================ 897 And the title is amended as follows: 898 Delete everything before the enacting clause 899 and insert: 900 A bill to be entitled 901 An act relating to improvements to real property; 902 amending s. 163.08, F.S.; deleting provisions relating 903 to legislative findings and intent; defining terms and 904 revising definitions; creating ss. 163.081 and 905 163.082, F.S.; allowing a program administrator to 906 offer a program for financing qualifying improvements 907 for residential or commercial property when authorized 908 by a county or municipality; requiring an authorized 909 program administrator that administers an authorized 910 program to meet certain requirements; authorizing a 911 county or municipality to enter into an interlocal 912 agreement to implement a program; authorizing a 913 program administrator to contract with third-party 914 administrators to implement the program; authorizing a 915 program administrator to levy non-ad valorem 916 assessments for a certain purpose; authorizing a 917 program administrator to incur debt for the purpose of 918 providing financing for qualifying improvements; 919 authorizing the owner of the residential property or 920 commercial property or certain nongovernmental lessees 921 to apply to the program administrator to finance a 922 qualifying improvement; requiring the program 923 administrator to make certain findings before entering 924 into a financing agreement; requiring the program 925 administrator to ascertain certain financial 926 information from the property owner or nongovernmental 927 lessee before entering into a financing agreement; 928 requiring certain documentation; requiring certain 929 financing agreement and contract provisions for change 930 orders if the property owner or nongovernmental lessee 931 and program administrator agree to allow change orders 932 to complete a qualifying improvement; prohibiting a 933 financing agreement from being entered into under 934 certain circumstances; requiring the program 935 administrator to provide certain information before a 936 financing agreement may be approved; requiring an 937 oral, recorded telephone call with the residential 938 property owner to confirm findings and disclosures 939 before the approval of a financing agreement; 940 requiring the residential property owner to provide 941 written notice to the holder or loan servicer of his 942 or her intent to enter into a financing agreement as 943 well as other financial information; requiring that 944 proof of such notice be provided to the program 945 administrator; providing that a certain acceleration 946 provision in an agreement between the residential 947 property owner and mortgagor or lienholder is 948 unenforceable; providing that the lienholder or loan 949 servicer retains certain authority; requiring the 950 program administrator to receive the written consent 951 of certain lienholders on commercial property; 952 authorizing a residential property owner, under 953 certain circumstances and within a certain timeframe, 954 to cancel a financing agreement without financial 955 penalty; requiring recording of the financing 956 agreement in a specified timeframe; creating the 957 seller’s disclosure statements for properties offered 958 for sale which have assessments on them for qualifying 959 improvements; requiring the program administrator to 960 confirm that certain conditions are met before 961 disbursing final funds to a qualifying improvement 962 contractor for qualifying improvements on residential 963 property; requiring a program administrator to submit 964 a certain certificate to a county or municipality upon 965 final disbursement and completion of qualifying 966 improvements; creating s. 163.083, F.S.; requiring a 967 county or municipality to establish or approve a 968 process for the registration of a qualifying 969 improvement contractor to install qualifying 970 improvements; requiring certain conditions for a 971 qualifying improvement contractor to participate in a 972 program; prohibiting a third-party administrator from 973 registration as a qualifying improvement contractor; 974 requiring the program administrator to monitor 975 qualifying improvement contractors, enforce certain 976 penalties for a finding of violation, and post certain 977 information online; creating s. 163.084, F.S.; 978 authorizing the program administrator to contract with 979 entities to administer an authorized program; 980 providing certain requirements for a third-party 981 administrator; prohibiting a program administrator 982 from contracting with a third-party administrator 983 under certain circumstances; requiring the program 984 administrator to include in its contract with the 985 third-party administrator the right to perform annual 986 reviews of the administrator; authorizing the program 987 administrator to take certain actions if the program 988 administrator finds that the third-party administrator 989 has committed a violation of its contract; authorizing 990 a program administrator to terminate an agreement with 991 a third-party administrator under certain 992 circumstances; providing for the continuation of 993 certain financing agreements after the termination or 994 suspension of the third-party administrator; creating 995 s. 163.085, F.S.; requiring that, in communicating 996 with the property owner or nongovernmental lessee, the 997 program administrator, qualifying improvement 998 contractor, or third-party administrator comply with 999 certain requirements; prohibiting the program 1000 administrator or third-party administrator from 1001 disclosing certain financing information to a 1002 qualifying improvement contractor; prohibiting a 1003 qualifying improvement contractor from making certain 1004 advertisements or solicitations; providing exceptions; 1005 prohibiting a program administrator or third-party 1006 administrator from providing certain payments, fees, 1007 or kickbacks to a qualifying improvement contractor; 1008 authorizing a program administrator or third-party 1009 administrator to reimburse a qualifying improvement 1010 contractor for certain expenses; prohibiting a 1011 qualifying improvement contractor from providing 1012 different prices for a qualifying improvement; 1013 requiring a contract between a property owner or 1014 nongovernmental lessee and a qualifying improvement 1015 contractor to include certain provisions; prohibiting 1016 a program administrator, third-party administrator, or 1017 qualifying improvement contractor from providing any 1018 cash payment or anything of material value to a 1019 property owner or nongovernmental lessee which is 1020 explicitly conditioned on a financing agreement; 1021 creating s. 163.086, F.S.; prohibiting a recorded 1022 financing agreement from being removed from attachment 1023 to a property under certain circumstances; providing 1024 for the unenforceability of a financing agreement 1025 under certain circumstances; providing provisions for 1026 when a qualifying improvement contractor initiates 1027 work on an unenforceable contract; providing that a 1028 qualifying improvement contractor may retrieve chattel 1029 or fixtures delivered pursuant to an unenforceable 1030 contract if certain conditions are met; providing that 1031 an unenforceable contract will remain unenforceable 1032 under certain circumstances; creating s. 163.087, 1033 F.S.; requiring a program administrator authorized to 1034 administer a program for financing a qualifying 1035 improvement to post on its website an annual report; 1036 specifying requirements for the report; requiring the 1037 auditor general to conduct an operational audit of 1038 each authorized program; providing an effective date.