ENROLLED 2024 Legislature CS for CS for SB 770, 2nd Engrossed 2024770er 1 2 An act relating to improvements to real property; 3 amending s. 163.08, F.S.; deleting provisions relating 4 to legislative findings and intent; defining terms and 5 revising definitions; creating s. 163.081, F.S.; 6 authorizing a program administrator to offer a program 7 for financing qualifying improvements for residential 8 property when authorized by a county or municipality; 9 requiring an authorized program administrator that 10 administers an authorized program to meet certain 11 requirements; authorizing a county or municipality to 12 enter into an interlocal agreement to implement a 13 program; authorizing a county or municipality to 14 deauthorize a program administrator through certain 15 measures; allowing a recorded financing agreement at 16 the time of deauthorization to continue, with an 17 exception; authorizing a program administrator to 18 contract with third-party administrators to implement 19 the program; authorizing a program administrator to 20 levy non-ad valorem assessments for a certain purpose; 21 providing for compensation for tax collectors for 22 actual costs incurred to collect non-ad valorem 23 assessments; authorizing a program administrator to 24 incur debt for the purpose of providing financing for 25 qualifying improvements; authorizing the owner of 26 record of the residential property to apply to the 27 program administrator to finance a qualifying 28 improvement; requiring the program administrator to 29 make certain findings before entering into a financing 30 agreement; requiring the program administrator to 31 ascertain certain financial information from the 32 property owner before entering into a financing 33 agreement; requiring certain documentation before the 34 financing agreement is approved and recorded; 35 requiring an advisement and notification for certain 36 qualifying improvements; requiring certain financing 37 agreement and contract provisions for change orders 38 under certain circumstances; prohibiting a financing 39 agreement from being entered into under certain 40 circumstances; requiring the program administrator to 41 provide certain information before a financing 42 agreement may be executed; requiring an oral, recorded 43 telephone call with the residential property owner to 44 confirm findings and disclosures before the approval 45 of a financing agreement; requiring the residential 46 property owner to provide written notice to the holder 47 or loan servicer of his or her intent to enter into a 48 financing agreement as well as other financial 49 information; requiring that proof of such notice be 50 provided to the program administrator; providing that 51 a certain acceleration provision in an agreement 52 between the residential property owner and mortgagor 53 or lienholder is unenforceable; providing that the 54 lienholder or loan servicer retains certain authority; 55 authorizing a residential property owner, under 56 certain circumstances and within a certain timeframe, 57 to cancel a financing agreement without financial 58 penalty; requiring recording of the financing 59 agreement in a specified timeframe; creating the 60 seller’s disclosure statements for properties offered 61 for sale which have assessments on them for qualifying 62 improvements; requiring the program administrator to 63 confirm that certain conditions are met before 64 disbursing final funds to a qualifying improvement 65 contractor for qualifying improvements on residential 66 property; requiring a program administrator to confirm 67 that the applicable work service has been completed or 68 the final permit for the qualifying improvement has 69 been closed and evidence of substantial completion of 70 construction or improvement has been issued; creating 71 s. 163.082, F.S.; authorizing a program administrator 72 to offer a program for financing qualifying 73 improvements for commercial property when authorized 74 by a county or municipality; requiring an authorized 75 program administrator that administers an authorized 76 program to meet certain requirements; authorizing a 77 county or municipality to enter into an interlocal 78 agreement to implement a program; authorizing a county 79 or municipality to deauthorize a program administrator 80 through certain measures; authorizing a recorded 81 financing agreement at the time of deauthorization to 82 continue, with an exception; authorizing a program 83 administrator to contract with third-party 84 administrators to implement the program; authorizing a 85 program administrator to levy non-ad valorem 86 assessments for a certain purpose; providing for 87 compensation for tax collectors for actual costs 88 incurred to collect non-ad valorem assessments; 89 authorizing a program administrator to incur debt for 90 the purpose of providing financing for qualifying 91 improvements; authorizing the owner of record of the 92 commercial property to apply to the program 93 administrator to finance a qualifying improvement; 94 requiring the program administrator to receive the 95 written consent of current holders or loan servicers 96 of certain mortgages encumbering or secured by 97 commercial property; requiring a program administrator 98 offering a program for financing qualifying 99 improvements to commercial property to certain 100 underwriting criteria; requiring the program 101 administrator to make certain findings before entering 102 into a financing agreement; requiring the program 103 administrator to ascertain certain financial 104 information from the property owner before entering 105 into a financing agreement; requiring the program 106 administrator to document and retain certain findings; 107 requiring certain financing agreement and contract 108 provisions for change orders under certain 109 circumstances; prohibiting a financing agreement from 110 being entered into under certain circumstances; 111 requiring the program administrator to provide certain 112 information before a financing agreement may be 113 executed; requiring any financing agreement executed 114 pursuant to this section be submitted for recording in 115 the public records of the county where the commercial 116 property is located in a specified timeframe; 117 requiring that the recorded agreement provide 118 constructive notice that the non-ad valorem assessment 119 levied on the property is a lien of equal dignity; 120 providing that a lien with a certain acceleration 121 provision is unenforceable; creating the seller’s 122 disclosure statements for properties offered for sale 123 which have assessments on them for qualifying 124 improvements; requiring the program administrator to 125 confirm that certain conditions are met before 126 disbursing final funds to a qualifying improvement 127 contractor for qualifying improvements on commercial 128 property; providing construction; creating s. 163.083, 129 F.S.; requiring a county or municipality to establish 130 or approve a process for the registration of a 131 qualifying improvement contractor to install 132 qualifying improvements; requiring certain conditions 133 for a qualifying improvement contractor to participate 134 in a program; prohibiting a third-party administrator 135 from registering as a qualifying improvement 136 contractor; requiring the program administrator to 137 monitor qualifying improvement contractors, enforce 138 certain penalties for a finding of violation, and post 139 certain information online; creating s. 163.084, F.S.; 140 authorizing the program administrator to contract with 141 entities to administer an authorized program; 142 providing certain requirements for a third-party 143 administrator; prohibiting a program administrator 144 from acting as a third-party administrator under 145 certain circumstances; providing an exception; 146 requiring the program administrator to include in its 147 contract with the third-party administrator the right 148 to perform annual reviews of the administrator; 149 authorizing the program administrator to take certain 150 actions if the program administrator finds that the 151 third-party administrator has committed a violation of 152 its contract; authorizing a program administrator to 153 terminate an agreement with a third-party 154 administrator under certain circumstances; providing 155 for the continuation of certain financing agreements 156 after the termination or suspension of the third-party 157 administrator, with an exception; creating s. 163.085, 158 F.S.; requiring that, in communicating with the 159 property owner, the program administrator, qualifying 160 improvement contractor, or third-party administrator 161 comply with certain requirements; prohibiting the 162 program administrator or third-party administrator 163 from disclosing certain financing information to a 164 qualifying improvement contractor; prohibiting a 165 qualifying improvement contractor from making certain 166 advertisements or solicitations; providing exceptions; 167 prohibiting a program administrator or third-party 168 administrator from providing certain payments, fees, 169 or kickbacks to a qualifying improvement contractor; 170 prohibiting a program administrator or third-party 171 administrator from reimbursing a qualifying 172 improvement contractor for certain expenses; 173 prohibiting a qualifying improvement contractor from 174 providing different prices for a qualifying 175 improvement; requiring a contract between a property 176 owner and a qualifying improvement contractor to 177 include certain provisions; prohibiting a program 178 administrator, qualifying improvement contractor, or 179 third-party administrator from providing any cash 180 payment or anything of material value to a property 181 owner which is explicitly conditioned on a financing 182 agreement; providing exceptions; creating s. 163.086, 183 F.S.; prohibiting a recorded financing agreement from 184 being removed from attachment to a property under 185 certain circumstances; providing for the 186 unenforceability of a financing agreement under 187 certain circumstances; providing provisions for when a 188 qualifying improvement contractor initiates work on an 189 unenforceable contract; providing that a qualifying 190 improvement contractor may retrieve chattel or 191 fixtures delivered pursuant to an unenforceable 192 contract if certain conditions are met; providing that 193 an unenforceable contract will remain unenforceable 194 under certain circumstances; creating s. 163.087, 195 F.S.; requiring a program administrator authorized to 196 administer a program for financing a qualifying 197 improvement to post on its website an annual report; 198 specifying requirements for the report; requiring the 199 Auditor General to conduct an operational audit of 200 each program administrator; requiring the Auditor 201 General to adopt certain rules requiring certain 202 reporting from the program administrator; requiring 203 program administrators and, if applicable, third-party 204 administrators to post the report on its website; 205 providing that a contract, agreement, authorization, 206 or interlocal agreement entered into before a certain 207 date may continue without additional action by the 208 county or municipality; requiring that the program 209 administrator comply with the act and that any related 210 contracts, agreements, authorizations, or interlocal 211 agreements be amended to comply with the act; 212 providing an effective date. 213 214 Be It Enacted by the Legislature of the State of Florida: 215 216 Section 1. Section 163.08, Florida Statutes, is amended to 217 read: 218 (Substantial rewording of section. See 219 s. 163.08, F.S., for present text.) 220 163.08 Definitions.—As used in ss. 163.081-163.087, the 221 term: 222 (1) “Commercial property” means real property other than 223 residential property. The term includes, but is not limited to, 224 a property zoned multifamily residential which is composed of 225 five or more dwelling units; and real property used for 226 commercial, industrial, or agricultural purposes. 227 (2) “Program administrator” means a county, a municipality, 228 a dependent special district as defined in s. 189.012, or a 229 separate legal entity created pursuant to s. 163.01(7) which 230 directly operates a program for financing qualifying 231 improvements and is authorized pursuant to s. 163.081 or s. 232 163.082. 233 (3) “Property owner” means the owner or owners of record of 234 real property. The term includes real property held in trust for 235 the benefit of one or more individuals, in which case the 236 individual or individuals may be considered as the property 237 owner or owners, provided that the trustee provides written 238 consent. The term does not include persons renting, using, 239 living, or otherwise occupying real property. 240 (4) “Qualifying improvement” means the following permanent 241 improvements located on real property within the jurisdiction of 242 an authorized financing program: 243 (a) For improvements on residential property: 244 1. Repairing, replacing, or improving a central sewerage 245 system, converting an onsite sewage treatment and disposal 246 system to a central sewerage system, or, if no central sewerage 247 system is available, removing, repairing, replacing, or 248 improving an onsite sewage treatment and disposal system to an 249 advanced system or technology. 250 2. Repairing, replacing, or improving a roof, including 251 improvements that strengthen the roof deck attachment; create a 252 secondary water barrier to prevent water intrusion; install 253 wind-resistant shingles or gable-end bracing; or reinforce roof 254 to-wall connections. 255 3. Providing flood and water damage mitigation and 256 resiliency improvements, prioritizing repairs, replacement, or 257 improvements that qualify for reductions in flood insurance 258 premiums, including raising a structure above the base flood 259 elevation to reduce flood damage; constructing a flood diversion 260 apparatus, drainage gate, or seawall improvement, including 261 seawall repairs and seawall replacements; purchasing flood 262 damage-resistant building materials; or making electrical, 263 mechanical, plumbing, or other system improvements that reduce 264 flood damage. 265 4. Replacing windows or doors, including garage doors, with 266 energy-efficient, impact-resistant, wind-resistant, or hurricane 267 windows or doors or installing storm shutters. 268 5. Installing energy-efficient heating, cooling, or 269 ventilation systems. 270 6. Replacing or installing insulation. 271 7. Replacing or installing energy-efficient water heaters. 272 8. Installing and affixing a permanent generator. 273 9. Providing a renewable energy improvement, including the 274 installation of any system in which the electrical, mechanical, 275 or thermal energy is produced from a method that uses solar, 276 geothermal, bioenergy, wind, or hydrogen. 277 (b) For installing or constructing improvements on 278 commercial property: 279 1. Waste system improvements, which consists of repairing, 280 replacing, improving, or constructing a central sewerage system, 281 converting an onsite sewage treatment and disposal system to a 282 central sewerage system, or, if no central sewerage system is 283 available, removing, repairing, replacing, or improving an 284 onsite sewage treatment and disposal system to an advanced 285 system or technology. 286 2. Making resiliency improvements, which includes but is 287 not limited to: 288 a. Repairing, replacing, improving, or constructing a roof, 289 including improvements that strengthen the roof deck attachment; 290 b. Creating a secondary water barrier to prevent water 291 intrusion; 292 c. Installing wind-resistant shingles or gable-end bracing; 293 d. Reinforcing roof-to-wall connections; or 294 e. Providing flood and water damage mitigation and 295 resiliency improvements, prioritizing repairs, replacement, or 296 improvements that qualify for reductions in flood insurance 297 premiums, including raising a structure above the base flood 298 elevation to reduce flood damage; creating or improving 299 stormwater and flood resiliency, including flood diversion 300 apparatus, drainage gates, or shoreline improvements; purchasing 301 flood-damage-resistant building materials; or making any other 302 improvements necessary to achieve a sustainable building rating 303 or compliance with a national model resiliency standard and any 304 improvements to a structure to achieve wind or flood insurance 305 rate reductions, including building elevation. 306 3. Energy conservation and efficiency improvements, which 307 are measures to reduce consumption through efficient use or 308 conservation of electricity, natural gas, propane, or other 309 forms of energy, including but not limited to, air sealing; 310 installation of insulation; installation of energy-efficient 311 heating, cooling, or ventilation systems; building modification 312 to increase the use of daylight; window replacement; windows; 313 energy controls or energy recovery systems; installation of 314 electric vehicle charging equipment; installation of efficient 315 lighting equipment; or any other improvements necessary to 316 achieve a sustainable building rating or compliance with a 317 national model green building code. 318 4. Renewable energy improvements, including the 319 installation of any system in which the electrical, mechanical, 320 or thermal energy is produced from a method that uses solar, 321 geothermal, bioenergy, wind, or hydrogen. 322 5. Water conservation efficiency improvements, which are 323 measures to reduce consumption through efficient use or 324 conservation of water. 325 (5) “Qualifying improvement contractor” means a licensed or 326 registered contractor who has been registered to participate by 327 a program administrator pursuant to s. 163.083 to install or 328 otherwise perform work to make qualifying improvements on 329 residential property financed pursuant to a program authorized 330 under s. 163.081. 331 (6) “Residential property” means real property zoned as 332 residential or multifamily residential and composed of four or 333 fewer dwelling units. 334 (7) “Third-party administrator” means an entity under 335 contract with a program administrator pursuant to s. 163.084. 336 Section 2. Section 163.081, Florida Statutes, is created to 337 read: 338 163.081 Financing qualifying improvements to residential 339 property.— 340 (1) RESIDENTIAL PROPERTY PROGRAM AUTHORIZATION.— 341 (a) A program administrator may only offer a program for 342 financing qualifying improvements to residential property within 343 the jurisdiction of a county or municipality if the county or 344 municipality has authorized by ordinance or resolution the 345 program administrator to administer the program for financing 346 qualifying improvements to residential property. The authorized 347 program must, at a minimum, meet the requirements of this 348 section. 349 (b) Pursuant to this section or as otherwise provided by 350 law or pursuant to a county’s or municipality’s home rule power, 351 a county or municipality may enter into an interlocal agreement 352 providing for a partnership between one or more counties or 353 municipalities for the purpose of facilitating a program to 354 finance qualifying improvements to residential property located 355 within the jurisdiction of the counties or municipalities that 356 are party to the agreement. 357 (c) A county or municipality may deauthorize a program 358 administrator through repeal of the ordinance or resolution 359 adopted pursuant to paragraph (a) or other action. Any recorded 360 financing agreements at the time of deauthorization shall 361 continue, except any financing agreement for which the 362 provisions of s. 163.086 apply. 363 (d) An authorized program administrator may contract with 364 one or more third-party administrators to implement the program 365 as provided in s. 163.084. 366 (e) An authorized program administrator may levy non-ad 367 valorem assessments to facilitate repayment of financing 368 qualifying improvements. Costs incurred by the program 369 administrator for such purpose may be collected as a non-ad 370 valorem assessment. A non-ad valorem assessment shall be 371 collected pursuant to s. 197.3632 and, notwithstanding s. 372 197.3632(8)(a), shall not be subject to discount for early 373 payment. However, the notice and adoption requirements of s. 374 197.3632(4) do not apply if this section is used and complied 375 with, and the intent resolution, publication of notice, and 376 mailed notices to the property appraiser, tax collector, and 377 Department of Revenue required by s. 197.3632(3)(a) may be 378 provided on or before August 15 of each year in conjunction with 379 any non-ad valorem assessment authorized by this section, if the 380 property appraiser, tax collector, and program administrator 381 agree. The program administrator shall only compensate the tax 382 collector for the actual cost of collecting non-ad valorem 383 assessments, not to exceed 2 percent of the amount collected and 384 remitted. 385 (f) A program administrator may incur debt for the purpose 386 of providing financing for qualifying improvements, which debt 387 is payable from revenues received from the improved property or 388 any other available revenue source authorized by law. 389 (2) APPLICATION.—The owner of record of the residential 390 property within the jurisdiction of an authorized program may 391 apply to the authorized program administrator to finance a 392 qualifying improvement. The program administrator may only enter 393 into a financing agreement with the property owner. 394 (3) FINANCING AGREEMENTS.— 395 (a) Before entering into a financing agreement, the program 396 administrator must make each of the following findings based on 397 a review of public records derived from a commercially accepted 398 source and the property owner’s statements, records, and credit 399 reports: 400 1. There are sufficient resources to complete the project. 401 2. The total amount of any non-ad valorem assessment for a 402 residential property under this section does not exceed 20 403 percent of the just value of the property as determined by the 404 property appraiser. The total amount may exceed this limitation 405 upon written consent of the holders or loan servicers of any 406 mortgage encumbering or otherwise secured by the residential 407 property. 408 3. The financing agreement does not utilize a negative 409 amortization schedule, a balloon payment, or prepayment fees or 410 fines other than nominal administrative costs. Capitalized 411 interest included in the original balance of the assessment 412 financing agreement does not constitute negative amortization. 413 4. All property taxes and any other assessments, including 414 non-ad valorem assessments, levied on the same bill as the 415 property taxes are current and have not been delinquent for the 416 preceding 3 years, or the property owner’s period of ownership, 417 whichever is less. 418 5. There are no outstanding fines or fees related to zoning 419 or code enforcement violations issued by a county or 420 municipality, unless the qualifying improvement will remedy the 421 zoning or code violation. 422 6. There are no involuntary liens, including, but not 423 limited to, construction liens on the residential property. 424 7. No notices of default or other evidence of property 425 based debt delinquency have been recorded and not released 426 during the preceding 3 years or the property owner’s period of 427 ownership, whichever is less. 428 8. The property owner is current on all mortgage debt on 429 the residential property. 430 9. The property owner has not been subject to a bankruptcy 431 proceeding within the last 5 years unless it was discharged or 432 dismissed more than 2 years before the date on which the 433 property owner applied for financing. 434 10. The residential property is not subject to an existing 435 home equity conversion mortgage or reverse mortgage product. 436 11. The term of the financing agreement does not exceed the 437 weighted average useful life of the qualified improvements to 438 which the greatest portion of funds disbursed under the 439 assessment contract is attributable, not to exceed 20 years. The 440 program administrator shall determine the useful life of a 441 qualifying improvement using established standards, including 442 certification criteria from government agencies or nationally 443 recognized standards and testing organizations. 444 12. The total estimated annual payment amount for all 445 financing agreements entered into under this section on the 446 residential property does not exceed 10 percent of the property 447 owner’s annual household income. Income must be confirmed using 448 reasonable evidence and not solely by a property owner’s 449 statement. 450 13. If the qualifying improvement is for the conversion of 451 an onsite sewage treatment and disposal system to a central 452 sewerage system, the property owner has utilized all available 453 local government funding for such conversions and is unable to 454 obtain financing for the improvement on more favorable terms 455 through a local government program designed to support such 456 conversions. 457 (b) Before entering into a financing agreement, the program 458 administrator must determine if there are any current financing 459 agreements on the residential property and if the property owner 460 has obtained or sought to obtain additional qualifying 461 improvements on the same property which have not yet been 462 recorded. The existence of a prior qualifying improvement non-ad 463 valorem assessment or a prior financing agreement is not 464 evidence that the financing agreement under consideration is 465 affordable or meets other program requirements. 466 (c) Findings satisfying paragraphs (a) and (b) must be 467 documented, including supporting evidence relied upon, and 468 provided to the property owner prior to a financing agreement 469 being approved and recorded. The program administrator must 470 retain the documentation for the duration of the financing 471 agreement. 472 (d) If the qualifying improvement is estimated to cost 473 $10,000 or more, before entering into a financing agreement the 474 program administrator must advise the property owner in writing 475 that the best practice is to obtain estimates from more than one 476 unaffiliated, registered qualifying improvement contractor for 477 the qualifying improvement and notify the property owner in 478 writing of the advertising and solicitation requirements of s. 479 163.085. 480 (e) A property owner and the program administrator may 481 agree to include in the financing agreement provisions for 482 allowing change orders necessary to complete the qualifying 483 improvement. Any financing agreement or contract for qualifying 484 improvements which includes such provisions must meet the 485 requirements of this paragraph. If a proposed change order on a 486 qualifying improvement will increase the original cost of the 487 qualifying improvement by 20 percent or more or will expand the 488 scope of the qualifying improvement by more than 20 percent, 489 before the change order may be executed which would result in an 490 increase in the amount financed through the program 491 administrator for the qualifying improvement, the program 492 administrator must notify the property owner, provide an updated 493 written disclosure form as described in subsection (4) to the 494 property owner, and obtain written approval of the change from 495 the property owner. 496 (f) A financing agreement may not be entered into if the 497 total cost of the qualifying improvement, including program fees 498 and interest, is less than $2,500. 499 (g) A financing agreement may not be entered into for 500 qualifying improvements in buildings or facilities under new 501 construction or construction for which a certificate of 502 occupancy or similar evidence of substantial completion of new 503 construction or improvement has not been issued. 504 (4) DISCLOSURES.— 505 (a) In addition to the requirements imposed in subsection 506 (3), a financing agreement may not be executed unless the 507 program administrator first provides, including via electronic 508 means, a written financing estimate and disclosure to the 509 property owner which includes all of the following, each of 510 which must be individually acknowledged in writing by the 511 property owner: 512 1. The estimated total amount to be financed, including the 513 total and itemized cost of the qualifying improvement, program 514 fees, and capitalized interest; 515 2. The estimated annual non-ad valorem assessment; 516 3. The term of the financing agreement and the schedule for 517 the non-ad valorem assessments; 518 4. The interest charged and estimated annual percentage 519 rate; 520 5. A description of the qualifying improvement; 521 6. The total estimated annual costs that will be required 522 to be paid under the assessment contract, including program 523 fees; 524 7. The total estimated average monthly equivalent amount of 525 funds that would need to be saved in order to pay the annual 526 costs of the non-ad valorem assessment, including program fees; 527 8. The estimated due date of the first payment that 528 includes the non-ad valorem assessment; 529 9. A disclosure that the financing agreement may be 530 canceled within 3 business days after signing the financing 531 agreement without any financial penalty for doing so; 532 10. A disclosure that the property owner may repay any 533 remaining amount owed, at any time, without penalty or 534 imposition of additional prepayment fees or fines other than 535 nominal administrative costs; 536 11. A disclosure that if the property owner sells or 537 refinances the residential property, the property owner may be 538 required by a mortgage lender to pay off the full amount owed 539 under each financing agreement under this section; 540 12. A disclosure that the assessment will be collected 541 along with the property owner’s property taxes, and will result 542 in a lien on the property from the date the financing agreement 543 is recorded; 544 13. A disclosure that potential utility or insurance 545 savings are not guaranteed, and will not reduce the assessment 546 amount; and 547 14. A disclosure that failure to pay the assessment may 548 result in penalties, fees, including attorney fees, court costs, 549 and the issuance of a tax certificate that could result in the 550 property owner losing the property and a judgment against the 551 property owner, and may affect the property owner’s credit 552 rating. 553 (b) Prior to the financing agreement being approved, the 554 program administrator must conduct an oral, recorded telephone 555 call with the property owner during which the program 556 administrator must confirm each finding or disclosure required 557 in subsection (3) and this section. 558 (5) NOTICE TO LIENHOLDERS AND SERVICERS.—At least 5 559 business days before entering into a financing agreement, the 560 property owner must provide to the holders or loan servicers of 561 any existing mortgages encumbering or otherwise secured by the 562 residential property a written notice of the owner’s intent to 563 enter into a financing agreement together with the maximum 564 amount to be financed, including the amount of any fees and 565 interest, and the maximum annual assessment necessary to repay 566 the total. A verified copy or other proof of such notice must be 567 provided to the program administrator. A provision in any 568 agreement between a mortgagor or other lienholder and a property 569 owner, or otherwise now or hereafter binding upon a property 570 owner, which allows for acceleration of payment of the mortgage, 571 note, or lien or other unilateral modification solely as a 572 result of entering into a financing agreement as provided for in 573 this section is unenforceable. This subsection does not limit 574 the authority of the holder or loan servicer to increase the 575 required monthly escrow by an amount necessary to pay the annual 576 assessment. 577 (6) CANCELLATION.—A property owner may cancel a financing 578 agreement on a form established by the program administrator 579 within 3 business days after signing the financing agreement 580 without any financial penalty for doing so. 581 (7) RECORDING.—Any financing agreement executed pursuant to 582 this section, or a summary memorandum of such agreement, shall 583 be submitted for recording in the public records of the county 584 within which the residential property is located by the program 585 administrator within 10 business days after execution of the 586 agreement and the 3-day cancellation period. The recorded 587 agreement must provide constructive notice that the non-ad 588 valorem assessment to be levied on the property constitutes a 589 lien of equal dignity to county taxes and assessments from the 590 date of recordation. A notice of lien for the full amount of the 591 financing may be recorded in the public records of the county 592 where the property is located. Such lien is not enforceable in a 593 manner that results in the acceleration of the remaining 594 nondelinquent unpaid balance under the assessment financing 595 agreement. 596 (8) SALE OF RESIDENTIAL PROPERTY.—At or before the time a 597 seller executes a contract for the sale of any residential 598 property for which a non-ad valorem assessment has been levied 599 under this section and has an unpaid balance due, the seller 600 shall give the prospective purchaser a written disclosure 601 statement in the following form, which must be set forth in the 602 contract or in a separate writing: 603 604 QUALIFYING IMPROVEMENTS.—The property being purchased 605 is subject to an assessment on the property pursuant 606 to s. 163.081, Florida Statutes. The assessment is for 607 a qualifying improvement to the property and is not 608 based on the value of the property. You are encouraged 609 to contact the property appraiser’s office to learn 610 more about this and other assessments that may be 611 provided by law. 612 613 (9) DISBURSEMENTS.—Before disbursing final funds to a 614 qualifying improvement contractor for a qualifying improvement 615 on residential property, the program administrator shall confirm 616 that the applicable work or service has been completed or, as 617 applicable, that the final permit for the qualifying improvement 618 has been closed with all permit requirements satisfied or a 619 certificate of occupancy or similar evidence of substantial 620 completion of construction or improvement has been issued. 621 (10) CONSTRUCTION.—This section is additional and 622 supplemental to county and municipal home rule authority and not 623 in derogation of such authority or a limitation upon such 624 authority. 625 Section 3. Section 163.082, Florida Statutes, is created to 626 read: 627 163.082 Financing qualifying improvements to commercial 628 property.— 629 (1) COMMERCIAL PROPERTY PROGRAM AUTHORIZATION.— 630 (a) A program administrator may only offer a program for 631 financing qualifying improvements to commercial property within 632 the jurisdiction of a county or municipality if the county or 633 municipality has authorized by ordinance or resolution the 634 program administrator to administer the program for financing 635 qualifying improvements to commercial property. The authorized 636 program must, at a minimum, meet the requirements of this 637 section. 638 (b) Pursuant to this section or as otherwise provided by 639 law or pursuant to a county’s or municipality’s home rule power, 640 a county or municipality may enter into an interlocal agreement 641 providing for a partnership between one or more counties or 642 municipalities for the purpose of facilitating a program for 643 financing qualifying improvements to commercial property located 644 within the jurisdiction of the counties or municipalities that 645 are party to the agreement. 646 (c) A county or municipality may deauthorize a program 647 administrator through repeal of the ordinance or resolution 648 adopted pursuant to paragraph (a) or other action. Any recorded 649 financing agreements at the time of deauthorization shall 650 continue, except any financing agreement for which the 651 provisions of s. 163.086 apply. 652 (d) A program administrator may contract with one or more 653 third-party administrators to implement the program as provided 654 in s. 163.084. 655 (e) An authorized program administrator may levy non-ad 656 valorem assessments to facilitate repayment of financing or 657 refinancing qualifying improvements. Costs incurred by the 658 program administrator for such purpose may be collected as a 659 non-ad valorem assessment. A non-ad valorem assessment shall be 660 collected pursuant to s. 197.3632 and, notwithstanding s. 661 197.3632(8)(a), is not subject to discount for early payment. 662 However, the notice and adoption requirements of s. 197.3632(4) 663 do not apply if this section is used and complied with, and the 664 intent resolution, publication of notice, and mailed notices to 665 the property appraiser, tax collector, and Department of Revenue 666 required by s. 197.3632(3)(a) may be provided on or before 667 August 15 of each year in conjunction with any non-ad valorem 668 assessment authorized by this section, if the property 669 appraiser, tax collector, and program administrator agree. The 670 program administrator shall only compensate the tax collector 671 for the actual cost of collecting non-ad valorem assessments, 672 not to exceed 2 percent of the amount collected and remitted. 673 (f) A program administrator may incur debt for the purpose 674 of providing financing for qualifying improvements, which debt 675 is payable from revenues received from the improved property or 676 any other available revenue source authorized by law. 677 (2) APPLICATION.—The owner of record of the commercial 678 property within the jurisdiction of the authorized program may 679 apply to the program administrator to finance a qualifying 680 improvement and enter into a financing agreement with the 681 program administrator to make such improvement. The program 682 administrator may only enter into a financing agreement with a 683 property owner. 684 (3) CONSENT OF LIENHOLDERS AND SERVICERS.—The program 685 administrator must receive the written consent of the current 686 holders or loan servicers of any mortgage that encumbers or is 687 otherwise secured by the commercial property or that will 688 otherwise be secured by the property before a financing 689 agreement may be executed. 690 (4) FINANCING AGREEMENTS.— 691 (a) A program administrator offering a program for 692 financing qualifying improvements to commercial property must 693 maintain underwriting criteria sufficient to determine the 694 financial feasibility of entering into a financing agreement. To 695 enter into a financing agreement, the program administrator 696 must, at a minimum, make each of the following findings based on 697 a review of public records derived from a commercially accepted 698 source and the statements, records, and credit reports of the 699 commercial property owner: 700 1. There are sufficient resources to complete the project. 701 2. All property taxes and any other assessments, including 702 non-ad valorem assessments, levied on the same bill as the 703 property taxes are current. 704 3. There are no involuntary liens greater than $5,000, 705 including, but not limited to, construction liens on the 706 commercial property. 707 4. No notices of default or other evidence of property 708 based debt delinquency have been recorded and not been released 709 during the preceding 3 years or the property owner’s period of 710 ownership, whichever is less. 711 5. The property owner is current on all mortgage debt on 712 the commercial property. 713 6. The term of the financing agreement does not exceed the 714 weighted average useful life of the qualified improvements to 715 which the greatest portion of funds disbursed under the 716 assessment contract is attributable, not to exceed 30 years. The 717 program administrator shall determine the useful life of a 718 qualifying improvement using established standards, including 719 certification criteria from government agencies or nationally 720 recognized standards and testing organizations. 721 7. The property owner is not currently the subject of a 722 bankruptcy proceeding. 723 (b) Before entering into a financing agreement, the program 724 administrator shall determine if there are any current financing 725 agreements on the commercial property and whether the property 726 owner has obtained or sought to obtain additional qualifying 727 improvements on the same property which have not yet been 728 recorded. The existence of a prior qualifying improvement non-ad 729 valorem assessment or a prior financing agreement is not 730 evidence that the financing agreement under consideration is 731 affordable or meets other program requirements. 732 (c) The program administrator shall document and retain 733 findings satisfying paragraphs (a) and (b), including supporting 734 evidence relied upon, which were made prior to the financing 735 agreement being approved and recorded, for the duration of the 736 financing agreement. 737 (d) A property owner and the program administrator may 738 agree to include in the financing agreement provisions for 739 allowing change orders necessary to complete the qualifying 740 improvement. Any financing agreement or contract for qualifying 741 improvements which includes such provisions must meet the 742 requirements of this paragraph. If a proposed change order on a 743 qualifying improvement will increase the original cost of the 744 qualifying improvement by 20 percent or more or will expand the 745 scope of the qualifying improvement by 20 percent or more, 746 before the change order may be executed which would result in an 747 increase in the amount financed through the program 748 administrator for the qualifying improvement, the program 749 administrator must notify the property owner, provide an updated 750 written disclosure form as described in subsection (5) to the 751 property owner, and obtain written approval of the change from 752 the property owner. 753 (e) A financing agreement may not be entered into if the 754 total cost of the qualifying improvement, including program fees 755 and interest, is less than $2,500. 756 (5) DISCLOSURES.—In addition to the requirements imposed in 757 subsection (4), a financing agreement may not be executed unless 758 the program administrator provides, whether on a separate 759 document or included with other disclosures or forms, a 760 financing estimate and disclosure to the property owner which 761 includes all of the following: 762 (a) The estimated total amount to be financed, including 763 the total and itemized cost of the qualifying improvement, 764 program fees, and capitalized interest; 765 (b) The estimated annual non-ad valorem assessment; 766 (c) The term of the financing agreement and the schedule 767 for the non-ad valorem assessments; 768 (d) The interest charged and estimated annual percentage 769 rate; 770 (e) A description of the qualifying improvement; 771 (f) The total estimated annual costs that will be required 772 to be paid under the assessment contract, including program 773 fees; 774 (g) The estimated due date of the first payment that 775 includes the non-ad valorem assessment; and 776 (h) A disclosure of any prepayment penalties, fees, or 777 fines as set forth in the financing agreement. 778 (6) RECORDING.—Any financing agreement executed pursuant to 779 this section or a summary memorandum of such agreement must be 780 submitted for recording in the public records of the county 781 within which the commercial property is located by the program 782 administrator within 10 business days after execution of the 783 agreement. The recorded agreement must provide constructive 784 notice that the non-ad valorem assessment to be levied on the 785 property constitutes a lien of equal dignity to county taxes and 786 assessments from the date of recordation. A notice of lien for 787 the full amount of the financing may be recorded in the public 788 records of the county where the property is located. Such lien 789 is not enforceable in a manner that results in the acceleration 790 of the remaining nondelinquent unpaid balance under the 791 assessment financing agreement. 792 (7) SALE OF COMMERCIAL PROPERTY.—At or before the time a 793 seller executes a contract for the sale of any commercial 794 property for which a non-ad valorem assessment has been levied 795 under this section and has an unpaid balance due, the seller 796 shall give the prospective purchaser a written disclosure 797 statement in the following form, which must be set forth in the 798 contract or in a separate writing: 799 800 QUALIFYING IMPROVEMENTS.—The property being purchased 801 is subject to an assessment on the property pursuant 802 to s. 163.082, Florida Statutes. The assessment is for 803 a qualifying improvement to the property and is not 804 based on the value of the property. You are encouraged 805 to contact the property appraiser’s office to learn 806 more about this and other assessments that may be 807 provided for by law. 808 809 (8) COMPLETION CERTIFICATE.—Upon disbursement of all 810 financing and completion of installation of qualifying 811 improvements financed, the program administrator shall retain a 812 certificate that the qualifying improvements have been installed 813 and are in good working order. 814 (9) CONSTRUCTION.—This section is additional and 815 supplemental to county and municipal home rule authority and not 816 in derogation of such authority or a limitation upon such 817 authority. 818 Section 4. Section 163.083, Florida Statutes, is created to 819 read: 820 163.083 Qualifying improvement contractors.— 821 (1) A county or municipality shall establish a process, or 822 approve a process established by a program administrator, to 823 register contractors for participation in a program authorized 824 by a county or municipality pursuant to s. 163.081. A qualifying 825 improvement contractor may only perform such work that the 826 contractor is appropriately licensed, registered, and permitted 827 to conduct. At the time of application to participate and during 828 participation in the program, contractors must: 829 (a) Hold all necessary licenses or registrations for the 830 work to be performed which are in good standing. Good standing 831 includes no outstanding complaints with the state or local 832 government which issues such licenses or registrations. 833 (b) Comply with all applicable federal, state, and local 834 laws and regulations, including obtaining and maintaining any 835 other permits, licenses, or registrations required for engaging 836 in business in the jurisdiction in which it operates and 837 maintaining all state-required bond and insurance coverage. 838 (c) File with the program administrator a written statement 839 in a form approved by the county or municipality that the 840 contractor will comply with applicable laws and rules and 841 qualifying improvement program policies and procedures, 842 including those on advertising and marketing. 843 (2) A third-party administrator or a program administrator, 844 either directly or through an affiliate, may not be registered 845 as a qualifying improvement contractor. 846 (3) A program administrator shall establish and maintain: 847 (a) A process to monitor qualifying improvement contractors 848 for performance and compliance with requirements of the program 849 and must conduct regular reviews of qualifying improvement 850 contractors to confirm that each qualifying improvement 851 contractor is in good standing. 852 (b) Procedures for notice and imposition of penalties upon 853 a finding of violation, which may consist of placement of the 854 qualifying improvement contractor in a probationary status that 855 places conditions for continued participation, suspension, or 856 termination from participation in the program. 857 (c) An easily accessible page on its website that provides 858 information on the status of registered qualifying improvement 859 contractors, including any imposed penalties, and the names of 860 any qualifying improvement contractors currently on probationary 861 status or that are suspended or terminated from participation in 862 the program. 863 Section 5. Section 163.084, Florida Statutes, is created to 864 read: 865 163.084 Third-party administrator for financing qualifying 866 improvements programs.— 867 (1)(a) A program administrator may contract with one or 868 more third-party administrators to administer a program 869 authorized by a county or municipality pursuant to s. 163.081 or 870 s. 163.082 on behalf of and at the discretion of the program 871 administrator. 872 (b) The third-party administrator must be independent of 873 the program administrator and have no conflicts of interest 874 between managers or owners of the third-party administrator and 875 program administrator managers, owners, officials, or employees 876 with oversight over the contract. A program administrator, 877 either directly or through an affiliate, may not act as a third 878 party administrator for itself or for another program 879 administrator. However, this paragraph does not apply to a 880 third-party administrator created by an entity authorized in law 881 pursuant to s. 288.9604. 882 (c) The contract must provide for the entity to administer 883 the program according to the requirements of s. 163.081 or s. 884 163.082 and the ordinance or resolution adopted by the county or 885 municipality authorizing the program. However, only the program 886 administrator may levy or administer non-ad valorem assessments. 887 (2) A program administrator may not contract with a third 888 party administrator that, within the last 3 years, has been: 889 (a) Prohibited, after notice and a hearing, from serving as 890 a third-party administrator for another program administrator 891 for program or contract violations in this state; or 892 (b) Found by a court of competent jurisdiction to have 893 substantially violated state or federal laws related to the 894 administration of ss. 163.081-163.086 or a similar program in 895 another jurisdiction. 896 (3) The program administrator must include in any contract 897 with the third-party administrator the right to perform annual 898 reviews of the administrator to confirm compliance with ss. 899 163.081-163.086, the ordinance or resolution adopted by the 900 county or municipality, and the contract with the program 901 administrator. If the program administrator finds that the 902 third-party administrator has committed a violation of ss. 903 163.081-163.086, the adopted ordinance or resolution, or the 904 contract with the program administrator, the program 905 administrator shall provide the third-party administrator with 906 notice of the violation and may, as set forth in the adopted 907 ordinance or resolution or the contract with the third-party 908 administrator: 909 (a) Place the third-party administrator in a probationary 910 status that places conditions for continued operations. 911 (b) Impose any fines or sanctions. 912 (c) Suspend the activity of the third-party administrator 913 for a period of time. 914 (d) Terminate the agreement with the third-party 915 administrator. 916 (4) A program administrator may terminate the agreement 917 with a third-party administrator, as set forth by the county or 918 municipality in its adopted ordinance or resolution or the 919 contract with the third-party administrator, if the program 920 administrator makes a finding that: 921 (a) The third-party administrator has violated the contract 922 with the program administrator. The contract may set forth 923 substantial violations that may result in contract termination 924 and other violations that may provide for a period of time for 925 correction before the contract may be terminated. 926 (b) The third-party administrator, or an officer, a 927 director, a manager or a managing member, or a control person of 928 the third-party administrator, has been found by a court of 929 competent jurisdiction to have violated state or federal laws 930 related to the administration of a program authorized of the 931 provisions of ss. 163.081-163.086 or a similar program in 932 another jurisdiction within the last 5 years. 933 (c) Any officer, director, manager or managing member, or 934 control person of the third-party administrator has been 935 convicted of, or has entered a plea of guilty or nolo contendere 936 to, regardless of whether adjudication has been withheld, a 937 crime related to administration of a program authorized of the 938 provisions of ss. 163.081-163.086 or a similar program in 939 another jurisdiction within the last 10 years. 940 (d) An annual performance review reveals a substantial 941 violation or a pattern of violations by the third-party 942 administrator. 943 (5) Any recorded financing agreements at the time of 944 termination or suspension by the program administrator shall 945 continue, except any financing agreement for which the 946 provisions of s. 163.086 apply. 947 Section 6. Section 163.085, Florida Statutes, is created to 948 read: 949 163.085 Advertisement and solicitation for financing 950 qualifying improvements programs under s. 163.081 or s. 951 163.082.— 952 (1) When communicating with a property owner, a program 953 administrator, qualifying improvement contractor, or third-party 954 administrator may not: 955 (a) Suggest or imply: 956 1. That a non-ad valorem assessment authorized under s. 957 163.081 or s. 163.082 is a government assistance program; 958 2. That qualifying improvements are free or provided at no 959 cost, or that the financing related to a non-ad valorem 960 assessment authorized under s. 163.081 or s. 163.082 is free or 961 provided at no cost; or 962 3. That the financing of a qualifying improvement using the 963 program authorized pursuant to s. 163.081 or s. 163.082 does not 964 require repayment of the financial obligation. 965 (b) Make any representation as to the tax deductibility of 966 a non-ad valorem assessment. A program administrator, qualifying 967 improvement contractor, or third-party administrator may 968 encourage a property owner to seek the advice of a tax 969 professional regarding tax matters related to assessments. 970 (2) A program administrator or third-party administrator 971 may not provide to a qualifying improvement contractor any 972 information that discloses the amount of financing for which a 973 property owner is eligible for qualifying improvements or the 974 amount of equity in a residential property or commercial 975 property. 976 (3) A qualifying improvement contractor may not advertise 977 the availability of financing agreements for, or solicit program 978 participation on behalf of, the program administrator unless the 979 contractor is registered by the program administrator to 980 participate in the program and is in good standing with the 981 program administrator. 982 (4) A program administrator or third-party administrator 983 may not provide any payment, fee, or kickback to a qualifying 984 improvement contractor for referring property owners to the 985 program administrator or third-party administrator. However, a 986 program administrator or third-party administrator may provide 987 information to a qualifying improvement contractor to facilitate 988 the installation of a qualifying improvement for a property 989 owner. 990 (5) A program administrator or third-party administrator 991 may not reimburse a qualifying improvement contractor for its 992 expenses in advertising and marketing campaigns and materials. 993 (6) A qualifying improvement contractor may not provide a 994 different price for a qualifying improvement financed under s. 995 163.081 than the price that the qualifying improvement 996 contractor would otherwise provide if the qualifying improvement 997 was not being financed through a financing agreement. Any 998 contract between a property owner and a qualifying improvement 999 contractor must clearly state all pricing and cost provisions, 1000 including any process for change orders which meet the 1001 requirements of s. 163.081(3)(d). 1002 (7) A program administrator, qualifying improvement 1003 contractor, or third-party administrator may not provide any 1004 direct cash payment or other thing of material value to a 1005 property owner which is explicitly conditioned upon the property 1006 owner entering into a financing agreement. However, a program 1007 administrator or third-party administrator may offer programs or 1008 promotions on a nondiscriminatory basis that provide reduced 1009 fees or interest rates if the reduced fees or interest rates are 1010 reflected in the financing agreements and are not provided to 1011 the property owner as cash consideration. 1012 Section 7. Section 163.086, Florida Statutes, is created to 1013 read: 1014 163.086 Unenforceable financing agreements for qualifying 1015 improvements programs under s. 163.081 or s. 163.082; 1016 attachment; fraud.— 1017 (1) A recorded financing agreement may not be removed from 1018 attachment to a residential property or commercial property if 1019 the property owner fraudulently obtained funding pursuant to s. 1020 163.081 or s. 163.082. 1021 (2) A financing agreement may not be enforced, and a 1022 recorded financing agreement may be removed from attachment to a 1023 residential property or commercial property and deemed null and 1024 void, if: 1025 (a) The property owner applied for, accepted, and canceled 1026 a financing agreement within the 3-business-day period pursuant 1027 to s. 163.081(6). A qualifying improvement contractor may not 1028 begin work under a canceled contract. 1029 (b) A person other than the property owner obtained the 1030 recorded financing agreement. The court may enter an order which 1031 holds that person or persons personally liable for the debt. 1032 (c) The program administrator, third-party administrator, 1033 or qualifying improvement contractor approved or obtained 1034 funding through fraudulent means and in violation of ss. 1035 163.081-163.085, or this section for qualifying improvements on 1036 the residential property or commercial property. 1037 (3) If a qualifying improvement contractor has initiated 1038 work on residential property or commercial property under a 1039 contract deemed unenforceable under this section, the qualifying 1040 improvement contractor: 1041 (a) May not receive compensation for that work under the 1042 financing agreement. 1043 (b) Must restore the residential property or commercial 1044 property to its original condition at no cost to the property 1045 owner. 1046 (c) Must immediately return any funds, property, and other 1047 consideration given by the property owner. If the property owner 1048 provided any property and the qualifying improvement contractor 1049 does not or cannot return it, the qualifying improvement 1050 contractor must immediately return the fair market value of the 1051 property or its value as designated in the contract, whichever 1052 is greater. 1053 (4) If the qualifying improvement contractor has delivered 1054 chattel or fixtures to residential property or commercial 1055 property pursuant to a contract deemed unenforceable under this 1056 section, the qualifying improvement contractor has 90 days after 1057 the date on which the contract was executed to retrieve the 1058 chattel or fixtures, provided that: 1059 (a) The qualifying improvement contractor has fulfilled the 1060 requirements of paragraphs (3)(a) and (b). 1061 (b) The chattel and fixtures can be removed at the 1062 qualifying improvement contractor’s expense without damaging the 1063 residential property or commercial property. 1064 (5) If a qualifying improvement contractor fails to comply 1065 with this section, the property owner may retain any chattel or 1066 fixtures provided pursuant to a contract deemed unenforceable 1067 under this section. 1068 (6) A contract that is otherwise unenforceable under this 1069 section remains enforceable if the property owner waives his or 1070 her right to cancel the contract or cancels the financing 1071 agreement pursuant to s. 163.081(6) but allows the qualifying 1072 improvement contractor to proceed with the installation of the 1073 qualifying improvement. 1074 Section 8. Section 163.087, Florida Statutes, is created to 1075 read: 1076 163.087 Reporting for financing qualifying improvements 1077 programs under s. 163.081 or s. 163.082.— 1078 (1) Each program administrator that is authorized to 1079 administer a program for financing qualifying improvements to 1080 residential property or commercial property under s. 163.081 or 1081 s. 163.082 shall post on its website an annual report within 45 1082 days after the end of its fiscal year containing the following 1083 information from the previous year for each program authorized 1084 under s. 163.081 or s. 163.082: 1085 (a) The number and types of qualifying improvements funded. 1086 (b) The aggregate, average, and median dollar amounts of 1087 annual non-ad valorem assessments and the total number of non-ad 1088 valorem assessments collected pursuant to financing agreements 1089 for qualifying improvements. 1090 (c) The total number of defaulted non-ad valorem 1091 assessments, including the total defaulted amount, the number 1092 and dates of missed payments, and the total number of parcels in 1093 default and the length of time in default. 1094 (d) A summary of all reported complaints received by the 1095 program administrator related to the program, including the 1096 names of the third-party administrator, if applicable, and 1097 qualifying improvement contractors and the resolution of each 1098 complaint. 1099 (2) The Auditor General must conduct an operational audit 1100 of each program administrator authorized under s. 163.081 or s. 1101 163.082, including any third-party administrators, for 1102 compliance with the provisions of ss. 163.08-163.086 and any 1103 adopted ordinance at least once every 3 years. The Auditor 1104 General may stagger evaluations; however, every program must be 1105 evaluated at least once by September 1, 2028. The Auditor 1106 General shall adopt rules pursuant to s. 218.39 requiring each 1107 program administrator to report whether it offers a program 1108 authorized pursuant to s. 163.081 or s. 163.082, and other 1109 pertinent information. Each program administrator and, if 1110 applicable, third-party administrator, must post the most recent 1111 report on its website. 1112 Section 9. A current contract, agreement, authorization, or 1113 interlocal agreement between a county or municipality and a 1114 program administrator entered into before July 1, 2024, shall 1115 continue without additional action by the county or 1116 municipality. However, the program administrator must comply 1117 with this act, and any contract, agreement, authorization, or 1118 interlocal agreement must be amended to comply with this act. 1119 Section 10. This act shall take effect July 1, 2024.