SB 54 — AN ACT TO AMEND TITLE 29 OF THE DELAWARE CODE RELATING TO THE DELAWARE VOLUNTARY CLEAN ENERGY FINANCING PROGRAM BASED ON PROPERTY ASSESSMENTS (D-PACE) OR OTHER LOCAL ASSESSMENT STATUTE.

Summary

This bill makes certain technical amendments to the Delaware Voluntary Clean Energy Financing Program Based on Property Assessments (D-PACE) Act. The amendments are based upon comments received from New Castle County and the lending community. The bill clarifies the interplay between the Act and existing tax and foreclosure sale statutes and that the lien for the energy improvements will remain with the property following a tax monition sale and mortgage foreclosure. It also clarifies the authority of the Sustainable Energy Utility and third party capital providers to enforce the lien for delinquent assessments for clean energy improvements.

Bill Text

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This bill clarifies and amends the Delaware Voluntary Clean Energy Financing Program by detailing the treatment of liens and foreclosure processes related to D-PACE assessments.

• 29 Del. C. § 8061

  The SEU and third-party capital providers shall not have the authority to pursue a foreclosure of benefit assessment liens by the monition method established pursuant to 9 Del. C. § 8721 et seq. but shall have the authority to pursue a foreclosure of benefit assessment liens by attachment methods pursuant to 9 Del. C. § 8771 et seq. and 9 Del. C. § 8741 et seq. → The SEU and third-party capital providers shall not have the authority to pursue a foreclosure of benefit assessment liens by the monition method established pursuant to 9 Del. C. § 8721 et seq. but shall have the authority to pursue a foreclosure of benefit assessment liens by attachment methods pursuant to 9 Del. C. § 8771 et seq. and 9 Del. C. § 8741 et seq.

  This change clarifies the methods by which benefit assessment liens can be foreclosed.

• 29 Del. C. § 8061

  The provisions above with respect to not extinguishing subordinate mortgage liens shall not apply in the case of a sale by monition method brought by a tax collecting authority, regardless of whether D-PACE assessments are collected at such sale. → The provisions above with respect to not extinguishing subordinate mortgage liens shall not apply in the case of a sale by monition method brought by a tax collecting authority, regardless of whether D-PACE assessments are collected at such sale.

  This change specifies the treatment of subordinate mortgage liens in relation to sales by monition method.

• 29 Del. C. § 8061

  Notwithstanding the foregoing or any other provision of law including without limitation the provisions regarding the discharge of liens contained in 9 Del. C. § 8761 and 9 Del. C. § 8773, in any event a tax sale or other foreclosure sale brought by the SEU or a third-party capital provider with respect to D-PACE assessments shall not have the effect of extinguishing any subordinate mortgage liens against the qualifying commercial real property. → Notwithstanding the foregoing or any other provision of law including without limitation the provisions regarding the discharge of liens contained in 9 Del. C. § 8761 and 9 Del. C. § 8773, in any event a tax sale or other foreclosure sale brought by the SEU or a third-party capital provider with respect to D-PACE assessments shall not have the effect of extinguishing any subordinate mortgage liens against the qualifying commercial real property.

  This change reinforces that subordinate mortgage liens remain unaffected by foreclosure sales related to D-PACE assessments.

• 29 Del. C. § 8061

  The tax collecting authority in a monition sale may collect in such sale, in addition to taxes, D-PACE assessments but to the extent only of the DPACE assessments, penalties, and fees currently due or in arrears. → The tax collecting authority in a monition sale may collect in such sale, in addition to taxes, D-PACE assessments but to the extent only of the DPACE assessments, penalties, and fees currently due or in arrears.

  This change clarifies the authority of tax collecting authorities regarding the collection of D-PACE assessments during monition sales.

Action History

1. July 30, 2021

   Signed by Governor

2. April 29, 2021

   Passed By House. Votes: 41 YES

3. April 23, 2021

   Suspension of Rules in House

4. March 17, 2021

   Reported Out of Committee (Natural Resources) in House with 4 Favorable, 7 On Its Merits

5. March 12, 2021

   Assigned to Natural Resources Committee in House

6. March 11, 2021

   Passed By Senate. Votes: 16 YES 5 NO

7. March 11, 2021

   Reported Out of Committee (Environment & Energy) in Senate with 2 Favorable, 4 On Its Merits

8. January 26, 2021

   Introduced and Assigned to Environment & Energy Committee in Senate

Sponsors

• Trey Paradee · Primary
• William Bush · Primary
• Stephanie L. Hansen · Cosponsor
• David P. Sokola · Cosponsor
• John "Jack" Walsh · Cosponsor
• Nnamdi O. Chukwuocha · Cosponsor
• Michael Ramone · Cosponsor
• Gerald L. Brady · Cosponsor
• Bruce C. Ennis · Cosponsor

Votes

Subjects