HB 101 — Improvements to Real Property

(b) "Contractor""Local government" means ana independentcounty, contractora whomunicipality, contracts with a propertydependent ownerspecial todistrict installas qualifyingdefined improvementsin ons. real property but who is not the owner of such property.

(c) "Government leased property" means real property owned by a local government that is subject to taxation due to the lease of the property to a nongovernmental lessee.

(d)(a) "Local government" means a county, a municipality, a dependent special district as defined in s.

(e)(c) "Non-ad"PACE valoremcontractor" assessment"means hasan theindependent samecontractor meaningwho asis inauthorized s.under this section to contract with a property owner to install qualifying improvements on real property and who is not the owner of such property.

197.3632(1).(d) "Program administrator" means a for-profit or not-for- profit entity which administers a qualifying improvement program on behalf and at the discretion of a local government.

(f)(e)(b) "Nongovernmental"Qualifying lessee"improvement" meansincludes aany: person or an entity other than a local government which leases government real property.

(g)1. "Nonresidential real property" means property not defined as residential real property that will be or has been Page 5of 24 CODING:

Energy conservation and efficiency improvement, which is a measure to reduce consumption through conservation or a more efficient use of electricity, natural gas, propane, or Page 5of 28 CODING:

hb0101-00hb0101-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB101CS/HB101 2022 improvedother byforms aof qualifyingenergy improvement,on the property, including, but not limited to, theair following:sealing;

1.

Agricultural property.

2.

Commercial real property.

3.

Government leased property.

4.

Industrial building or property.

5.

Multifamily residential property composed of five or more dwelling units.

(h) "Program administrator" means an entity, including, but not limited to, a for-profit or not-for-profit entity, with whom a local government may contract to administer a REEF program.

(i)(b) "Qualifying improvement" includes any:

1.

Energy conservation and efficiency improvement, which is a measure to reduce consumption through conservation or a more efficient use of electricity, natural gas, propane, or other forms of energy on the property, including, but not limited to, air sealing;

Renewable energy improvement, which is the installation Pageof 6ofany 24system CODING:in which the electrical, mechanical, or thermal energy is produced from a method that uses one or more of the following fuels or energy sources:

Words strickenare deletions;

words underlined are additions.

hb0101-00 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB101 2022 of any system in which the electrical, mechanical, or thermal energy is produced from a method that uses one or more of the following fuels or energy sources:

Wind resistance improvement, which includes,includes the products and installation for, but is not limited to:

(j)(f) "Residential"Qualifying realimprovement property"program" means a residentialprogram property of four or fewer dwelling units that willincludes bethe orfinancing hasand beenadministration improvedactivities byundertaken aPage qualifying6of improvement.28 CODING:

(k) "Resiliency Energy Environment Florida program" or "REEF program" means a program established under this section or s.

163.081 by a local government, alone or in partnership with other local governments or a program administrator, to finance qualifying improvements on nonresidential real property or residential real property.

(4) Subject to local government ordinance or resolution, a property owner may apply to the REEF program the local Page 7of 24 CODING:

hb0101-00hb0101-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB101CS/HB101 2022 governmentby fora fundinglocal togovernment financeor aprogram qualifyingadministrator improvementfor andproperty enterowners intoto anpurchase assessmentand ainstall financingqualifying agreementimprovements withon thea localbuilding government.or facility.

Costs(g) incurred"Residential byproperty" themeans REEFreal programproperty theupon localwhich governmentany forof suchthe purposefollowing mayis belocated: collected as a non-ad valorem assessment.

1.

One single-family residential unit or one multifamily structure containing one to four residential units;

or 2.

Single-family residential units such as condominiums, townhouses, timeshares, mobile homes, or houses in a subdivision that may be legally sold, leased, or otherwise conveyed on a unit-by-unit basis, regardless of whether the units are a part of a larger building or parcel containing more than four residential units.

(3) A local government may levy non-ad valorem assessments to fund qualifying improvements.

(4) Subject to local government ordinance or resolution, a property owner may apply to the local government for funding to finance a qualifying improvement and enter into a financing agreement with the local government.

Costs incurred by the local government for such purpose may be collected as a non-ad valorem assessment.

197.3632(8)(a), is shall not be subject to discount for early payment.

197.3632(4) do not apply if this section is used and complied with, and the intent resolution,Page publication7of of28 notice,CODING: and mailed notices to the property appraiser, tax collector, and Department of Revenue required by s.

197.3632(3)(a) may be provided on or before August 15 in conjunction with any non-ad valorem assessment authorized by this section, if the property appraiser, tax collector, and local government agree.

(6) A local government may enter into an agreement with a program administrator to administer the REEF program A qualifying improvement program may be administered by a for- profit entity or a not-for-profit organization on behalf of and at the discretion of the local government.

(7) A local government may incur debt for the purpose of providing financing for the such improvements, which debt is payable from revenues received from the improved properties property, or any other available revenue source authorized under this section or by law.

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hb0101-00hb0101-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB101CS/HB101 2022 (8)resolution, Apublication localof governmentnotice, mayand entermailed intonotices an assessment a financing agreement to financethe orproperty refinanceappraiser, atax qualifyingcollector, improvementand onlyDepartment with the record owner of theRevenue affectedrequired property.by s.

Any197.3632(3)(a) assessmentmay financingbe agreementprovided enteredon into pursuant to this section or abefore summaryAugust memorandum15 ofin suchconjunction agreementwith mustany shallnon-ad bevalorem submittedassessment forauthorized recordingby recordedthis insection, theif public records of the county within which the property isappraiser, locatedtax bycollector, theand sponsoring unit of local government withinagree. 5 days after execution of the agreement.

The(5) recordedPursuant agreementto shallthis providesection constructiveor noticeas thatotherwise theprovided assessmentby law or pursuant to bea leviedlocal ongovernment's thehome propertyrule constitutespower, a lienlocal ofgovernment equalmay dignityenter tointo countya taxespartnership andwith assessmentsone fromor more local governments for the datepurpose of recordation.providing and financing qualifying improvements.

(6) A noticequalifying ofimprovement lienprogram formay thebe fulladministered amountby ofa thefor-profit financingentity mayor bea recordednot-for-profit inorganization theon publicbehalf records of theand countyat inthe whichdiscretion of the propertylocal isgovernment. located.

Such(7) lienA islocal notgovernment enforceablemay inincur adebt mannerfor thatthe resultspurpose inof theproviding accelerationsuch ofimprovements, payable from revenues received from the remainingimproved nondelinquentproperty, unpaidor balanceany underother theavailable assessmentrevenue financingsource agreement.authorized by law.

(9)(8) BeforeA enteringlocal intogovernment anmay assessmententer into a financing agreement,agreement theonly localwith government or the programrecord administrator,owner asof applicable,the mustaffected shallproperty. reasonably determine that:

(a)Any Allfinancing propertyagreement taxesentered andinto anypursuant otherto assessmentsthis leviedsection onor thea samesummary billmemorandum asof propertysuch taxesagreement areshall currentbe paidrecorded andin havethe notpublic beenrecords delinquentof forthe morecounty thanwithin 30which daysthe forproperty is located by the precedingsponsoring 3unit yearsof orlocal thegovernment propertywithin owner's5 perioddays ofafter ownership,execution whicheverof isthe less;agreement.

(b)The thatrecorded Thereagreement areshall no involuntary liens greater than Page 9of8of 2428 CODING:

hb0101-00hb0101-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB101CS/HB101 2022 $1,000,provide including,constructive butnotice notthat limitedthe to,non-ad constructionvalorem liensassessment to be levied on the property;property constitutes a lien of equal dignity to county taxes and assessments from the date of recordation.

(c)(9) thatA Nofinancing noticesagreement ofmay defaultnot orbe otherused evidenceto fund ancillary work unless the scope of property-basedthe debtancillary delinquencywork haveis beendirectly recordedrelated to and notnecessary releasedfor during the precedinginstallation 3and yearssafe oroperation of a qualifying improvement and the propertycost owner'sof periodthe ancillary work does not exceed the cost of ownership,the whicheverindividual qualifying improvement to which it is less;directly related.

(d)(10)(9) TheBefore propertyentering ownerinto hasA beenfinancing askedagreement whetherfor anya otherqualifying assessmentsimprovement undermay thisnot sectionbe haveapproved beenunless, recordedthe local government or haveprogram beenadministrator, fundedas andapplicable, nothas yetshall recordedreasonably ondetermined thedetermine property.that:

The(a) failureAll of a property ownertaxes toand discloseany informationother setassessments forthlevied inon thisthe paragraphsame doesbill notas invalidateproperty antaxes assessmentare financingpaid agreementand orhave anynot obligationbeen thereunder,delinquent evenfor if the totalpreceding financed3 amountyears ofor the qualifyingproperty improvementsowner's exceedsperiod theof amountownership, thatwhichever wouldis otherwiseless; be authorized under paragraph (12)(a);

andthat (e)(b) thatThere Theare propertyno ownerinvoluntary isliens, currentincluding, onbut allnot mortgagelimited debtto, construction liens on the property;

andthat (f)(c) TheNo residentialnotices realof propertydefault isor notother subjectevidence toof anproperty- existingbased homedebt equitydelinquency conversionhave mortgagebeen orrecorded reverseduring mortgagethe productpreceding or3 isyears notor athe residential real property giftedowner's toperiod aof homeownerownership, forwhichever freeis byless; a not-for-profit entity.

Thisand paragraphthat does(d) notThe applyproperty toowner nonresidentialis realcurrent properties.on all mortgage debt on the property and has had no more than one late payment exceeding Page 9of 28 CODING:

(10) Before final funding may be provided, a qualifying improvement must shall be affixed, or be planned to be affixed, to a nonresidential or residential real building or facility that is part of the property and constitutes shall constitute an Page 10 of24 CODING:

hb0101-00hb0101-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB101CS/HB101 2022 improvement30 todays thatduring property the building12 ormonths facilityimmediately orpreceding a fixture attached to the buildingapplication ordate; facility.

An(e) assessmentThe financingholders agreement between a local government and a qualifying property owner may not cover qualifying wind-resistance improvements on new nonresidential or newloan residentialservicers realof propertiesany inmortgage buildingsencumbering or facilitiesotherwise undersecured newby constructionthe orproperty constructionhave forreceived whichthe awritten certificatenotice ofrequired occupancyby orsubsection similar(16); evidence of substantial completion of new construction or improvement has not been issued.

(12)(a)(f) WithoutAny theproperty consentowner ofwhose thereal holdersproperty ortaxes loanare servicerspaid ofthrough anyan mortgageescrow encumberingaccount orhas otherwisenotified secured by the property,holder of the totalescrow amountaccount ofthat anya non-ad valorem assessment forwill abe propertyimposed underupon this section may not exceed 20 percent of the fair market value just value of the real property aspursuant determinedto bythis thesection; county property appraiser.

(g) The combinedterm mortgage-related debt and total amount of anythe non-adfinancing valoremagreement assessmentsdoes funded under this section for residential real property may not exceed 100 percent of the fairestimated marketuseful valuelife of the residentialqualifying realimprovement. property.

The failurelocal ofgovernment a property owner to disclose information set forth in paragraph (9)(d) does not invalidate an assessment financing agreement or anyprogram obligationadministrator, thereunderas evenapplicable, ifshall determine the totaluseful financedlife amountusing ofestablished thethird-party qualifyingstandards, improvementsincluding exceedscertification thecriteria amountfrom thatgovernment wouldagencies otherwiseor benationally authorizedrecognized understandards thisand paragraph.testing organizations;

(b)(h) NotwithstandingThe paragraphproperty (a),owner ahas non-adacknowledged valoremin Pagewriting 11the of24disclosure CODING:statements required by paragraph (12)(b);

(i) For residential properties, the property owner has not been subject to a bankruptcy proceeding within the last 7 years unless it was discharged or dismissed more than 2 years before the date on which the property owner applied for funding as set forth in subsection (4);

(j) For residential properties, the property owner is current on nonmortgage debt excluding medical debt and has had Page 10 of28 CODING:

hb0101-00hb0101-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB101CS/HB101 2022 assessmentno more than one late payment exceeding 30 days during the 12 months immediately preceding the date that the property owner applied for afunding qualifyingas improvementset definedforth in subparagraphsubsection (2)(i)1.(4);

(2)(b)1.(k) The property is within the geographic boundaries of the applicable qualifying improvement program;

and (l) The local government or subparagraphprogram (2)(i)2.administrator, as applicable, has asked if the property owner has obtained or sought to obtain additional qualifying improvements on the same property that have not yet been recorded.

(2)(b)2.The failure of a property owner to disclose information set forth in this subsection does not invalidate a financing agreement or any obligation thereunder, even if the total financed amount of the qualifying improvement exceeds the amount that would otherwise be authorized under subsection (15).

thatThe isexistence supportedof bya anprior energyqualifying auditimprovement isnon-ad notvalorem subjectassessment toor thea limitsprior infinancing thisagreement subsectionis ifnot theevidence audit demonstrates that the annualfinancing energyagreement savingsunder fromconsideration theis qualifiedaffordable improvement equals or exceedsmeets theother annualprogram repaymentrequirements. amount of the non-ad valorem assessment.

(13)(11) AtIn leastaddition 30to daysobtaining before entering into an assessment a financing agreement, the propertyinformation ownerin shallsubsection provide(10), toand thebefore holdersa orlocal loangovernment servicers of any existing mortgages encumbering or otherwiseprogram securedadministrator, byas theapplicable, propertyapproves a noticequalifying ofimprovement theon owner'sresidential intentproperty, tohe enteror intoshe anmust assessmentuse ainformation financingcontained agreementin together with the maximumproperty principalowner's amountapplication, toreasonably bereliable financedthird-party andrecords, theor maximuman annualautomated assessmentverification necessaryPage to11 repayof28 thatCODING: amount.

A verified copy or other proof of such notice shall be provided to the local government or program administrator.

A provision in any agreement between a mortgagee or other lienholder and a property owner, or otherwise now or hereafter binding upon a property owner, which allows for acceleration of payment of the mortgage, note, or lien or other unilateral modification solely as a result of entering into an assessment a financing agreement as provided for in this section is not enforceable.

This subsection does not limit the authority of the holder or loan servicer to increase the required monthly escrow by an amount necessary to annually pay the annual qualifying improvement assessment.

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hb0101-00hb0101-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB101CS/HB101 2022 (14)system Atto orreasonably beforedetermine thewhether time a seller purchaser executes a contract for the sale and purchase of any property forowner which a non-ad valorem assessment has been levied under this section and has an unpaid balance due, the sellerability mustto shallpay give the prospectiveannual purchasernon-ad avalorem writtenassessment disclosurefor statement in the followingqualifying form,improvement. which shall be set forth in the contract or in a separate writing:

QUALIFYINGThe IMPROVEMENTSlocal FORgovernment ENERGYor EFFICIENCY,program RENEWABLEadministrator, ENERGY,as ORapplicable, WINDmust RESISTANCE.—Thereview property being purchased is located within the jurisdictionproperty ofowner's ahousehold localincome, governmenthousing thatexpenses, hasassets, placedand another assessmentdebt onobligations. the property pursuant to s.

163.08,If Floridathe Statutes.local government or program administrator, as applicable, uses an automated verification system, it must be a system that can verify the property owner's income, is not based on predictive or estimation methodologies, and has been determined sufficient for such verification purposes by a federal mortgage lending authority or regulator.

TheIn assessmentreviewing is for a qualifying improvement to the property relatingowner's ability to energypay, efficiency,the renewablelocal energy,government or windprogram resistance,administrator, andas isapplicable: not based on the value of property.

You(a) areWhen encourageddetermining tothe contacthousehold income, may include the countyincome propertyof appraiser'sany officeproperty toowner learnaged more18 aboutyears thisold andor otherolder assessmentswhose thatname mayis beon providedthe byproperty law.title.

(18)If Notwithstandinga anyperson's provisionincome ofis thisconsidered, sectionthat orperson's s.debt obligations must also be considered.

163.081(b) toMay not consider the contrary,equity in the followingproperty appliesthat towill governmentsecure leasedthe property:non-ad valorem assessment.

(a)(c) TheShall assessmentdetermine financingthe agreementproperty mustowner's bedebt executedobligations by:using reasonably reliable third-party records, including, at a minimum, one consumer credit report from an agency that meets the requirements of 15 U.S.C.

1.s.

The1681a(p). local government and the nongovernmental lessee;

orDebt Pageobligations 13to of24be CODING:reviewed include:

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hb0101-00hb0101-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB101CS/HB101 2022 2.1.

OnlySecured theand nongovernmentalunsecured lesseedebt. but with the written consent of the local government.

Evidence2. of consent shall be provided to the program administrator or REEF program.

(b)Housing Theexpenses. assessment financing agreement must provide that the nongovernmental lessee is the only party obligated to pay the assessment.

(c)The Alocal delinquentgovernment assessmentor program administrator, as applicable, shall bemake enforceda inreasonable estimate of the mannerbasic providedhousing expenses based on the number of persons in ss.the household.

196.199(8)3. and 197.432(10).

(d)Stated Thealimony recorded assessment financing agreement or achild summarysupport memorandumobligations. of such recorded agreement must provide constructive notice that the assessment to be levied on the property is subject to enforcement in the manner provided in ss.

196.199(8)(d) Shall determine whether the property owner has sufficient income to pay the annual non-ad valorem assessment and 197.432(10).that he or she has sufficient residual income to meet his or her household living expenses.

(e)(12) ForEach purposeslocal ofgovernment subsectionsor (9)program andadministrator (13)that only,offers referencesa toqualifying theimprovement propertyprogram ownermust: are deemed to refer to the nongovernmental lessee and references to the period of ownership are deemed to refer to the period during which the nongovernmental lessee leased the property from the local government.

(f)(a) TheDevelop terma ofwritten disclosure form that must be provided to the assessmentproperty owner before he or she executes the financing agreement onand governmentwhich leasedcontains propertythe maykey notterms exceed:of the agreement, including:

ThirtyA years;description of the qualifying improvement;

The remainingtotal termfinanced ofamount, including the leasecost onof the governmentqualifying leasedimprovement, property;ancillary work, installation, program fees, and prepaid interest, if any;

or 3.

The weightedannual averagenon-ad estimatedvalorem usefulassessment lifeprocess ofand allannual Pagepayment 14schedule; of24 CODING:

4.

The amount of the annual non-ad valorem assessment;

5.

The term of the total financed amount;

6.

The interest rate for the financed amount;

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hb0101-00hb0101-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB101CS/HB101 2022 qualifying7. improvements being financed or the estimated useful life of the qualifying improvements to which the greatest portion of funds are disbursed.

SectionThe 2.annual percentage rate;

Section8. 163.081, Florida Statutes, is created to read:

163.081The Additionaltotal requirementsestimated forannual programcosts administratorsthat forthe qualifying improvements on residential real property.—property (1)(a)owner Inwill additionhave to pay under the requirementsassessment incontract, s.including applicable fees;

163.08,9. a program administrator must comply with this section when administering a REEF program for qualifying improvements on residential real property.

(b)The Thistotal sectionestimated doesaverage notmonthly applyequivalent toamount of funds the residential real property:property owner would have to save in order to pay the annual costs of the non-ad valorem assessment, including applicable fees;

and 10.

The estimated due date of the residential real property owner's first property tax payment that includes the non-ad valorem assessment.

(b) Include the following statements in the written disclosure form, using the same order as listed in this paragraph, each of which must be individually acknowledged in writing by the property owner:

Residential"I realUNDERSTAND propertyTHAT ownedIF byI aSELL localOR government.REFINANCE THE PROPERTY, I MAY BE REQUIRED TO PAY OFF THE OUTSTANDING FINANCED AMOUNT AS A CONDITION OF THE SALE OR THE REFINANCE OF THE PROPERTY." The previous statement must be made in at least 24-point boldfaced type.

To"I residentialunderstand realthat the annual non-ad valorem assessment will be paid when property iftaxes theare programpaid administratorand reasonablywill determinesresult that:in a lien being placed on my property." Page 14 of28 CODING:

a.

The residential real property is owned by a business entity that owns more than four residential real properties;

and b.

The business entity's managing member, partner, or beneficial owner does not reside in the residential real property.

(2) Before final approval of the assessment financing agreement for a qualifying improvement on a residential real property, the program administrator must reasonably determine that the property owner has the ability to pay the estimated Page 15 of24 CODING:

hb0101-00hb0101-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB101CS/HB101 2022 annual3. assessment.

To"I dounderstand so,that the programannual administratornon-ad must,valorem atassessment awill minimum,be useadded theto underwritingmy requirementsproperty intax s.bill, and if I pay my property taxes through my mortgage payment using an escrow account, I must notify my mortgage lender." 4.

163.08(9)"I tounderstand confirm that theif propertyI ownerfail is not in bankruptcy and to determinepay that the totalannual estimatednon-ad annualvalorem paymentassessment, amountI formay allincur assessmentpenalties financingand agreementsfees, fundedand underthe thislocal sectiongovernment oncould theissue propertya dotax notcertificate exceedwhich 10might percentresult ofin the propertyloss owner'sof annualmy householdproperty." income.5.

Annual"I householdunderstand incomethat mayany bepotential confirmedutility usingor informationinsurance gatheredsavings fromare reputablenot thirdguaranteed partiesand thatwill providenot reasonablyreduce reliablethe evidenceannual ofnon-ad thevalorem propertyassessment owner'sor annualtotal householdassessment income.amount." 6.

Annual"I householdunderstand incomethat mayI nothave be3 confirmeddays solelyto fromcancel athe propertyfinancing owner'sagreement. statement.

The failure3-day right expires at midnight of athe propertythird ownerbusiness today discloseafter informationI setsign forththe inagreement." s.7.

163.08(9)(d)"I doesunderstand notthat invalidatethe anlocal assessmentgovernment, financingprogram agreementadministrator, or anyPACE obligationcontractor thereunder,do evennot ifprovide thetax totaladvice estimatedand annualthat paymentI amountshould exceedsseek theprofessional amounttax thatadvice wouldif otherwiseI behave authorizedquestions underregarding thistax sectioncredits, tax deductibility, or s.other tax impacts of the qualifying improvement or the assessment contract.

163.08.8.

(3)"I Beforeunderstand orthat contemporaneouslyI withcannot be assessed a propertypenalty ownerif signingI anprepay assessmentthe financingoutstanding agreementfinanced onamount." (c) Provide a residentialprinted realcancellation property,form to the programproperty administratorowner mustno providelater athan financingthe estimatedate andon disclosurewhich tothe property owner signs the residentialfinancing realagreement which allows the property owner whichto includescancel allthe ofcontract, within the following:3-day period specified in Page 15 of28 CODING:

(a) The total amount estimated to be funded, including the cost of the qualifying improvements, program fees, and capitalized interest, if any.

(b) The estimated annual non-ad valorem assessment.

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hb0101-00hb0101-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB101CS/HB101 2022 (c)subparagraph The(b)6. term of the non-ad valorem assessment.

(d) TheConduct, interestwith chargedat andleast one residential real property owner or an authorized representative, an oral, recorded telephone call during which time the estimatedlocal annualgovernment percentageor rate.program administrator, as applicable, must use plain language.

(e)The Alocal descriptiongovernment ofor program administrator, as applicable, must ask the qualifyingresidential improvement.real property owner or authorized representative if he or she would like to communicate primarily in a language other than English and, if so, must conduct the call in the owner's or representative's preferred language.

(f) A disclosurelocal thatgovernment if the property owner sells or refinancesprogram theadministrator, property,as theapplicable, propertymay owner,not asleave a conditionvoicemail offor the saleresidential orreal theproperty refinance,owner mayor beauthorized requiredrepresentative by a mortgage lender to paysatisfy offthis therequirement. full amount owed under each assessment financing agreement.

(g)The Aowner disclosureor thatrepresentative themust non-adprovide valoremwritten assessmentacknowledgement willthat be collected along with the propertyoral owner'sconfirmation propertywas taxesgiven. and will result in a lien on the property beginning on the date the assessment financing agreement is recorded.

(h) A disclosurelocal thatgovernment failureor toprogram payadministrator, theas non-adapplicable, valoremas assessmentpart mayof resultthis intelephone penaltiescall, andmust feesconfirm along with the issuanceresidential ofreal a tax certificate that could result in the property owner losingor theauthorized realrepresentative: property.

(4)(a) Before a notice to proceed is issued on residential real property, the program administrator must conduct, with a residential real property owner or an authorized representative, an oral, recorded telephone call during which time the program administrator:

MustThat askat theleast one residential real property owner ifhas heaccess orto shea wouldcopy likeof tothe communicateassessment primarilycontract inand afinancing languageestimates otherand thandisclosures. English.

Page 17 of24 CODING:

Words strickenare deletions;

words underlined are additions.

hb0101-00 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB101 2022 2.

May not leave a voicemail for the residential real property owner to satisfy subparagraph 1.

(b) During the telephone call, the program administrator must confirm all of the following with the residential real property owner:

1.

That at least one residential real property owner has access to a copy of the assessment financing agreement and financing estimates and disclosures.

The qualifying improvementsimprovement that areis being financed.

The total estimated annual costs that the residential real property owner will have to pay under the assessment financingcontract, agreement, including applicable fees.

4.Page 16 of28 CODING:

TheWords totalstrickenare estimateddeletions; average monthly equivalent amount of funds the residential real property owner would have to save in order to pay the annual costs of the assessment, including applicable fees.

words underlined are additions.

hb0101-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/HB101 2022 4.

The total estimated average monthly equivalent amount of funds the residential real property owner would have to save in order to pay the annual costs of the non-ad valorem assessment, including applicable fees.

The estimated due date of the residential real property owner's first property tax payment that includes the assessmentnon-ad willvalorem beassessment. due.

The term of the assessment financingcontract. agreement.

That payments for the assessment financingcontract agreement will cause the residential real property owner's annual tax bill to increase and that payments will be made through an additional annual non-ad valorem assessment on the property and will be paid either directly to the county tax collector's office as part of the total annual Pagesecured 18property of24tax CODING:bill or may be paid through the residential real property owner's mortgage escrow account.

Words strickenare deletions;

words underlined are additions.

hb0101-00 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB101 2022 secured property tax bill or may be paid through the residential real property owner's mortgage escrow account.

That the qualifying residential real property owner has disclosed whether the property has received or is seeking additional non-ad valorem assessments fundedand underhas thisdisclosed sectionall other assessments or s.special taxes that are or will be placed on the property.

163.08 and has disclosed all other assessments funded under this section or s.

163.08 that are or are about to be placed on the property.

That the property will be subject to a lien during the term of the assessment financingcontract agreement and that the obligations under the agreementcontract may be required to be paid in full before the residential real property owner sells or refinances the property.Page 17 of28 CODING:

Words strickenare deletions;

words underlined are additions.

hb0101-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/HB101 2022 property.

That any potential utility or insurance savings are not guaranteed and will not reduce the annual non-ad valorem assessment or total assessment amount.

That the local government, program administratoradministrator, or PACE contractor does not provide tax advice and that the residential real property owner should seek professional tax advice if he or she has questions regarding tax credits, tax deductibility, or other tax impacts of the qualifying improvement or the assessment financingcontract. agreement.

(5)(e) The residentiallocal realgovernment propertyor ownerprogram mayadministrator cancelshall thedevelop assessmentadditional financingprocedures agreementunder withinthis 3subsection businessto daysaddress afterthe signingneeds theand assessmentconcerns financingof agreementelderly withoutpersons anyThe financialproperty penaltyowner foris doingcurrent so.on all mortgage debt on the property.

(6)(13)(10) TheA termqualifying improvement shall be affixed or connected to a building or facility that is part of the property and shall constitute an assessmentimprovement financingto agreementthe onbuilding Pageor 19facility of24or CODING:a fixture attached to the building or facility.

An agreement between a local government and a qualifying property owner may not cover wind-resistance improvements in buildings or facilities under new construction or construction for which a certificate of occupancy or similar evidence of substantial completion of new construction or improvement has not been issued.

(14)(11) Any work requiring a license under any applicable Page 18 of28 CODING:

hb0101-00hb0101-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB101CS/HB101 2022 residentiallaw realto propertymake mayor notinstall exceed:a qualifying improvement shall be performed by a contractor properly certified or registered pursuant to part I or part II of chapter 489.

(a)(15)(12)(a) ThirtyWithout years;the consent of the holders or loan servicers of any mortgage encumbering or otherwise secured by the property, The total amount of any non-ad valorem assessment for a property under this section may not exceed 20 percent of the fair market just value of the property as determined by the county property appraiser.

orIn (b)addition, Thethe weightedtotal averageof estimatedany usefulnon-ad lifevalorem ofassessments allplus qualifyingany improvementsmortgage-related beingdebt financedon or the estimatedproperty usefulmay lifenot ofexceed the97 qualifyingpercent improvementsof to which the greatestfair portionmarket value of fundsthe areproperty. disbursed.

(7)The Anfair assessmentmarket financingvalue agreementof authorizedthe underproperty thisshall sectionbe orderived s.using any methodology commonly used in the real estate finance industry.

163.08(b) onNotwithstanding residentialparagraph real(a), propertya maynon-ad notvalorem includeassessment anyfor ofa thequalifying following:improvement defined in subparagraph (2)(b)1.

(a)or Asubparagraph negative(2)(b)2. amortization schedule.

(b)that Ais balloonsupported payment.by an energy audit is not subject to the limits in this subsection if the audit demonstrates that the annual energy savings from the qualified improvement equals or exceeds the annual repayment amount of the non-ad valorem assessment.

(c)(16)(13) PrepaymentAt fees,least other30 thandays nominalbefore administrativeentering costs.into a financing agreement, the property owner shall provide to the holders or loan servicers of any existing mortgages encumbering or otherwise secured by the property a written notice of the Page 19 of28 CODING:

(8) For residential real property, a program administrator:

(a) May not enroll a contractor who contracts with residential real property owners to install qualifying improvements unless the program administrator:

1.

Makes a reasonable effort to review that the contractor maintains in good standing an appropriate license from the state, if applicable, as well as any other permits, licenses, or registrations required for engaging in business in the jurisdiction in which he or she operates and that the contractor maintains all state-required bond and insurance coverage.

2.

Obtains the contractor's written agreement that the Page 20 of24 CODING:

hb0101-00hb0101-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB101CS/HB101 2022 contractorowner's willintent actto inenter accordanceinto a financing agreement together with allthe applicablemaximum lawsprincipal amount to be financed and rules,the includingmaximum applicableannual advertisingassessment andnecessary marketingto lawsrepay andthat rules.amount.

(b)A Mustverified maintaincopy aor processother toproof enrollof newsuch contractorsnotice thatshall includesbe reasonableprovided reviewto of the followinglocal forgovernment eachor contractor:program administrator, as applicable.

A provision in any agreement between the a mortgagee or other lienholder and a property owner, or otherwise now or hereafter binding upon a property owner, which allows for acceleration of payment of the mortgage, note, or lien or other unilateral modification solely as a result of entering into a financing agreement as provided for in this section is not enforceable.

This subsection does not limit the authority of the holder or loan servicer to increase the required monthly escrow by an amount necessary to annually pay the qualifying improvement assessment.

(17)(14) At or before the time a purchaser executes a contract for the sale and purchase of any property for which a non-ad valorem assessment has been levied under this section and has an unpaid balance due, the seller shall give the prospective purchaser a written disclosure statement in the following form, which shall be set forth in the contract or in a separate writing:

QUALIFYING IMPROVEMENTS FOR ENERGY EFFICIENCY, RENEWABLE ENERGY, OR WIND RESISTANCE.—The property being purchased is located Page 20 of28 CODING:

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words underlined are additions.

hb0101-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/HB101 2022 within the jurisdiction of a local government that has placed an non-ad valorem assessment on the property pursuant to s.

163.08, Florida Statutes.

The non-ad valorem assessment is for a qualifying improvement to the property relating to energy efficiency, renewable energy, or wind resistance, and is not based on the value of property.

You are encouraged to contact the county property appraiser's office to learn more about this and other assessments that may be provided by law.

(18)(15) A provision in any agreement between a local government and a public or private power or energy provider or other utility provider is not enforceable to limit or prohibit any local government from exercising its authority under this section.

(19)(16) This section is additional and supplemental to county and municipal home rule authority and not in derogation of such authority or a limitation upon such authority.

(20) A local government or program administrator, as applicable, may not offer financing for a qualifying improvement authorized pursuant to this section on any residential real property that includes any of the following:

(a) A negative amortization schedule;

(b) A balloon payment;

or (c) Prepayment fees, other than nominal administrative costs.

(21) For residential real property, a local government or Page 21 of28 CODING:

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words underlined are additions.

hb0101-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/HB101 2022 program administrator, as applicable:

(a) May not enroll a PACE contractor who offers financing on residential real property unless:

The local government or program administrator, as applicable, determines that the PACE contractor maintains in good standing an appropriate license from the state, if applicable, as well as any other permits, licenses, or registrations required for engaging in its business in the jurisdiction in which it operates and maintains all state- required bond and insurance coverage.

2.

A local government or program administrator, as applicable, obtains the PACE contractor's written agreement that the PACE contractor will comply with all applicable laws, including applicable advertising and marketing laws and regulations and the requirements of subsection (23).

(b) Must maintain a process to enroll new PACE contractors that includes reasonable review of the following for each contractor:

1.

AThe criminalcontractor's backgroundstatus check.on the Better Business Bureau platform or other online platforms that track contractor reviews.

A(22)(a) programBefore administratordisbursing mayfunds relyto on a criminalPACE backgroundcontractor checkfor conducteda byqualifying theimprovement Constructionon Industryresidential Licensingreal Boardproperty, within the Departmentlocal ofPage Business22 andof28 ProfessionalCODING: Regulation to comply with this requirement.

4.

Rating with the Better Business Bureau or other online platform that tracks contractor reviews.

(9)(a) Before disbursing funds to a contractor for a qualifying improvement on residential real property, a program administrator must confirm that the relevant work or service has been completed, either through a written certification from the property owner, a recorded telephone call with the property owner, review of time-stamped photographs, review of a final permit, or a site inspection through a third party.

(b) A program administrator may not disclose to a contractor or to a third party engaged in soliciting an assessment financing agreement the maximum financing amount for which a residential real property owner is eligible.

Page 21 of24 CODING:

hb0101-00hb0101-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB101CS/HB101 2022 (10)government Whenor communicatingprogram administrator, as applicable, must first confirm that the applicable work or service has been completed and the local government has determined the work complies with residentialapplicable realcodes propertyand owners,standards, aincluding, programbut administratornot maylimited not:to, the Florida Building Code and the Florida Fire Prevention Code.

(a)(b) RepresentA that:local government or program administrator, as applicable, may not disclose the maximum financing amount for which a residential real property owner is eligible to a PACE contractor or to a third party engaged in soliciting assessment contracts financed pursuant to this section.

(23) When communicating with residential real property owners, a local government, program administrator, or PACE contractor, or a third party engaged in marketing on behalf of these entities, must comply with the following marketing and communications guidelines and may not:

(a) Suggest or imply:

TheThat REEFa programnon-ad orvalorem assessment financingauthorized under this section is a government assistance program;

QualifyingThat qualifying improvements are free or assessmentprovided at no cost or that the financing isrelated to a non-ad valorem assessment authorized under this section is free program;or provided at no cost;

TheThat the financing of a qualifying improvement using the REEF program authorized pursuant to this section does not require the property owner to repay the financial obligation.

(b)Page Make23 anyof28 representationCODING: as to the tax deductibility of a non-ad valorem assessment authorized under this section or s.

163.08.

A program administrator may encourage a property owner to seek the advice of a tax professional regarding tax matters related to such assessments.

(11) A contractor may not present a higher price for a qualifying improvement on residential real property financed by an assessment financing agreement than the contractor would otherwise reasonably present if the qualifying improvement was not being financed through an assessment financing agreement.

(12) A program administrator shall use appropriate methodologies or technologies to identify and verify the identity of the residential real property owners who execute an assessment financing agreement.

(13) A program administrator may not provide a contractor Page 22 of24 CODING:

hb0101-00hb0101-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB101CS/HB101 2022 with(b) Make any payment,representation fee,as orto kickbackthe intax exchangedeductibility forof referringa assessmentnon-ad financingvalorem businessassessment relatingon toresidential areal specificproperty. assessment financing agreement.

(14) A local government, program administratoradministrator, mustor developPACE andcontractor, implementor policiesa andthird proceduresparty forengaged respondingin to,marketing tracking,on andbehalf helpingof resolvethese questionsentities, andmay encourage a property owner complaintsto asseek soonthe asadvice reasonablyof practicable.a tax professional regarding tax matters related to assessments.

(15)(24)(a) A programcontract administratorto mustsell maintainor install a processqualifying forimprovement monitoringthat contractorsis whorelated contractto withan residentialapplication realfor propertyfinancing ownersin toa install qualifying improvementsimprovement with regard to performance and compliance with program policiesfor anda shallresidential implementproperty policiesis forunenforceable, suspending and terminatinga contractorsPACE basedcontractor onmay violationsnot ofbegin programwork policiesunder orsuch unscrupulousa behavior.contract if:

A1. program administrator shall maintain a policy for determining the conditions upon which a contractor may be reinstated to the REEF program.

(16)The Aproperty programowner administratorwould shallnot providehave anentered annualinto reportthe tocontract eachbut dependentfor specialthe districtbelief asthat definedthe inqualifying s.improvement or its installation would be paid under the financing agreement;

189.012 or separate2. legal entity created pursuant to s.

163.01(7)The thatproperty itowner hasapplied beenfor, contractedaccepted, toand administercanceled a qualifying improvement financing agreement within the REEF3-day programright-to-cancel authorizedperiod underset thisforth section.in subparagraph (12)(b)6.

The(b) annualIf report shall be provided at a reasonablePACE timecontractor followinghas theinitiated endwork ofon thea priorresidential calendarproperty yearunder andan shallunenforceable includecontract informationas anddetermined dataunder relatedparagraph to(a), the following:PACE contractor:

(a)1. The total number of property owner complaints received Page 23 of24 CODING:

May not receive compensation for that work under the financing agreement.

2.

Must restore the property to its original condition at no cost to the property owner.

3.

Must immediately return any money, property, and other Page 24 of28 CODING:

hb0101-00hb0101-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB101CS/HB101 2022 thatconsideration aregiven associatedby with project funding in the reportproperty year.owner.

(b)If Of the totalproperty numberowner ofprovided any property ownerand complaintsthe receivedPACE thatcontractor aredoes associatednot withor projectcannot fundingreturn it, the PACE contractor shall immediately return the fair market value of the property or its value as designated in the reportcontract, year:whichever is greater.

(c) If the PACE contractor has delivered chattel or fixtures to the residential property pursuant to an unenforceable contract, the PACE contractor shall have 90 days from the date on which the contract was executed to retrieve the chattel or fixtures, provided that:

The numberPACE andcontractor percentagehas offulfilled complaintsthe thatrequirements relateof tosubparagraphs the(b)2. assessment financing.

and 3.

The numberchattel and percentagefixtures ofcan complaintsbe thatremoved relateat to a contractor or the workmanshipPACE ofcontractor's aexpense contractorwithout butdamaging dothe notproperty relateowner's toproperty assessmentand financing.practically returned.

3.(d) The residential property owner may retain any chattel or fixtures provided pursuant to an unenforceable contract if a PACE contractor fails to comply with this subsection.

The(e) numberA andcontract percentagewhich ofis complaintsotherwise thatunenforceable relateunder this subsection remains enforceable if the residential property owner waives his or her right to acancel the contract, allows the PACE contractor to proceed with the installation of the qualifying improvement, and assessmentcancels financing.the financing agreement.

4.(25)(a) A PACE contractor or third party may not advertise the availability of financing agreements or solicit property Page 25 of28 CODING:

TheWords numberstrickenare anddeletions; percentage of complaints under subparagraphs 1., 2., and 3.

thatwords wereunderlined resolvedare andadditions. the number and percentage of complaints that were not resolved.

(c)hb0101-01-c1 TheF percentageL ofO propertyR ownerI complaintsD underA subparagraphsH (b)1.,O 2.,U andS 3.E O F R E P R E S E N T A T I V E S CS/HB101 2022 owners on behalf of the local government or program administrator unless:

expressed1. as a total of all projects funded in the report year.

SectionThe 3.PACE contractor or third party maintains the appropriate registration or certification from the Construction Industry Licensing Board or any other permit, license, or registration required to conduct business in the jurisdiction in which it operates and provides proof of having the required bond and insurance coverage amounts.

2.

The local government or program administrator, as applicable, obtains the PACE contractor's or third party's written agreement that the PACE contractor or third party will meet applicable laws and rules and qualifying improvement program policies and procedures, including those on advertising and marketing.

(b) A local government or program administrator may not provide any direct or indirect cash payment or thing of material value to a PACE contractor or third party in excess of the actual price charged by that PACE contractor for the sale and installation of the qualifying improvements that are financed by a financing agreement.

However, a program administrator may provide information or services to a PACE contractor to facilitate the installation of a qualifying improvement for a property owner.

(c) A local government or program administrator may not reimburse a PACE contractor or third party for its expenses in Page 26 of28 CODING:

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words underlined are additions.

hb0101-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/HB101 2022 advertising and marketing campaigns and materials.

A local government or program administrator, as applicable, and a PACE contractor may share expenses in connection with joint advertising and marketing campaigns and materials if the expenses are shared on a commercially reasonable basis.

(d) A local government or program administrator may not provide to a PACE contractor engaged in soliciting financing agreements on its behalf any information that discloses the amount of funds for which a property owner is eligible for qualifying improvements or the amount of equity in a property.

(e) For residential properties, a PACE contractor may not provide a different price for a qualifying improvement financed under this section than the PACE contractor would provide if the property owner paid for the improvement in cash.

(f) A program administrator may not provide any direct cash payment or other thing of material value to a property owner explicitly conditioned upon the property owner entering into a financing agreement.

However, a program administrator may offer programs or promotions that provide reduced fees or interest rates if the reduced fees or interest rates are reflected in the financing agreements and are not provided to the property owners as cash consideration.

(26) Each local government that has authorized a qualifying improvement program shall post on its website an annual report for the period ending December 31 each year Page 27 of28 CODING:

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words underlined are additions.

hb0101-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/HB101 2022 containing the following information:

(a) The number of qualifying improvements funded.

(b) The aggregate, average, and median dollar amounts of annual non-ad valorem assessments and the total number of non-ad valorem assessments that funded qualifying improvements.

(c) The percentage, number, and dollar value of non-ad valorem assessments that funded qualifying improvements, aggregated by the category types consisting of energy efficiency, renewable energy, and wind resistance.

(d) The number of defaulted non-ad valorem assessments, including the total number and defaulted amount, the number and dates of missed payments, the total number of parcels defaulted and the years in default, and the percentage of defaults by total assessments.

(e) A summary of all reported violations of this section, including the resolution of each.

(f) Estimated number of jobs created.

(g) The number and percentage of homeowners 60 years of age or older participating in a qualifying improvement program.

This report shall be posted no later than April 1 of the year following the calendar year covered by the report.

Section 2.

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