SB 950 — Improvements to Real Property

revisingspecifying thelimitations seller’son disclosureassessment statementfinancing agreement terms for residential andreal commercialproperty; properties Page 3 of 34 CODING:

Page 1 of 22 CODING:

Florida Senate - 2023 CS for CS for SB 950 594-04316-23578-02924-23 2023950c22023950c1 offeredprohibiting certain financing terms for sale;residential real property;

prohibitingspecifying requirements for, and certain itemsprohibited inacts aby, program administrators relating to assessment financing agreementagreements and contractors for qualifying improvements to residential real property;

prohibitingspecifying aadditional localannual governmentreporting orrequirements for program administratoradministrators; from enrolling a qualifying improvement contractor that contracts with residential property owners to install qualifying improvements;

providing exceptions;construction and applicability;

prohibitingconforming aprovisions programto administratorchanges frommade beingby enrolledthe asact; a qualifying improvement contractor;

requiring the local government or program administrator to confirm certain information before disbursing funds financed under a residential program to a qualifying improvement contractor;

prohibiting a local government or program administrator from disclosing maximum financing amounts to certain persons;

requiring that, in communicating with residential property owners, the local government or program administrator comply with certain marketing and communications guidelines and prohibiting such entities from certain communication;

prohibiting a qualifying improvement contractor from advertising the availability of assessment financing agreements;

providing exceptions;

prohibiting a local government or program administrator from providing certain payments, fees, or kickbacks;

authorizing a local government or program administrator to provide information or services to a qualifying improvement contractor to facilitate certain installations;

authorizing a local government or program administrator to reimburse a qualifying improvement Page 4 of 34 CODING:

Words stricken are deletions;

words underlined are additions.

Florida Senate - 2023 CS for CS for SB 950 594-04316-23 2023950c2 contractor or third party for certain expenses;

prohibiting a local government or program administrator from providing certain information to a qualifying improvement contractor;

prohibiting a qualifying improvement contractor from providing certain prices for a qualifying improvement;

prohibiting a local government or program administrator from providing cash payment or anything of material value to a residential property owner explicitly on certain conditions;

authorizing a local government or program administrator to offer certain programs or promotions;

requiring each local government and program administrator to develop and implement certain policies and procedures;

requiring a local government that has authorized a residential program to post on its website a certain report;

specifying the requirements for such report;

providing applicability and construction;

SectionSubsection (16) of section 163.08, Florida Statutes, is amendedredesignated as subsection (32), a new subsection (16) and subsections (17) through (31) are added to that section, and subsections (1), (2), (4), and (6) though (14) are amended, to read:

163.08 Supplemental authority for improvements to real property.— (1)(a) In chapter 2008-227, Laws of Florida, the Legislature amended the energy goal of the state comprehensive plan to provide, in part, that the state shall reduce its energy Pagerequirements 5through enhanced conservation and efficiency measures in all end-use sectors and reduce atmospheric carbon dioxide by promoting an increased use of 34renewable CODING:energy resources.

That act also declared it the public policy of the state to play a leading role in developing and instituting energy management programs that promote energy conservation, Page 2 of 22 CODING:

Florida Senate - 2023 CS for CS for SB 950 594-04316-23578-02924-23 2023950c22023950c1 requirementsenergy throughsecurity, enhanced conservation and efficiencythe measuresreduction in all end-use sectors and reduce atmospheric carbon dioxide by promoting an increased use of renewablegreenhouse energygases. resources.

That act also declared it the public policy of the state to play a leading role in developing and instituting energy management programs that promote energy conservation, energy security, and the reduction of greenhouse gases.

(b) The Legislature finds that all energy-consuming-energy-consuming-improved improved properties that are not using energy conservation strategies contribute to the burden affecting all improved property resulting from fossil fuel energy production.

All improved properties not protected from wind damage by wind Pageresistance 6qualifying ofimprovements 34contribute CODING:to the burden affecting all improved property resulting from potential wind damage.

Improved property that has been retrofitted with wind resistance qualifying improvements receives the special benefit of reducing the property’s burden from potential wind damage.

Further, the installation and operation of qualifying improvements not only Page 3 of 22 CODING:

Florida Senate - 2023 CS for CS for SB 950 594-04316-23578-02924-23 2023950c22023950c1 resistancebenefit qualifyingthe improvementsaffected contributeproperties tofor which the burdenimprovements affectingare allmade, improvedbut propertyalso resultingassist fromin potentialfulfilling windthe damage.goals of the state’s energy and hurricane mitigation policies.

ImprovedAll commercialproperties property constructed or that hasare beennot retrofittedusing withadvanced resiliencytechnologies qualifyingfor improvementswastewater andremoval improvedcontribute residentialto propertythe retrofittedwater withquality windproblems resistanceaffecting qualifyingthis improvementsstate, receiveparticularly receives the specialcoastal benefitareas. of reducing the property’s burden from potential wind damage.

Further,Improved theproperty installationthat andhas operationbeen ofretrofitted qualifyingwith improvementsan notadvanced onlyonsite benefitsewage thetreatment affectedand propertiesdisposal forsystem whichor thehas improvementsbeen areconverted made,to butcentral alsosewerage assistsignificantly inbenefits fulfilling the goalsquality of thewater state’sthat energymay andenter hurricanestreams, mitigationlakes, policies.rivers, aquifers, or coastal areas.

ResidentialAll properties that doare not useprotected advancedfrom technologiesharmful forenvironmental wastewaterhealth removalhazards contribute to the waterenvironmental qualityhealth problemsburden affecting this state,state. particularly in coastal areas.

ImprovedProperty residential property that has been retrofittedimproved withto anmitigate advancedagainst onsiteenvironmental sewagehealth treatmenthazards and disposal system or has been converted to central sewerage significantly benefits the qualitygeneral ofenvironmental waterhealth thatof maypeople enterwithin streams,this lakes,state. rivers, aquifers, or coastal areas.

(d)(c) The Legislature determines that the actions authorized under this section, including, but not limited to, the financing of qualifying improvements through the execution of assessment financing agreements and the related imposition of voluntary assessmentsassessments, are reasonable and necessary to serve and achieve a Pagecompelling 7state interest and are necessary for the prosperity and welfare of 34the CODING:state and its property owners and inhabitants.

(2) As used in this section, the term:

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Florida Senate - 2023 CS for CS for SB 950 594-04316-23578-02924-23 2023950c22023950c1 compelling(a) state“Assessment interestfinancing andagreement” aremeans necessarythe forfinancing theagreement, prosperityunder anda welfareREEF ofprogram, thebetween statea local government and itsa property ownersowner andfor inhabitants.the acquisition or installation of qualifying improvements.

(2)(b) As“Financing usedagreement” inmeans thisan section,agreement, under a qualifying improvement program, between a local government and a property owner to finance the term:acquisition or installation of qualifying improvements through a non-ad valorem assessment.

(a)(c)(a) “Commercial“Local property”government” means reala propertycounty, nota definedmunicipality, as residential property which will be, or has been, improved by a qualifyingdependent improvement,special including,district butas notdefined limitedin to,s. the following:

189.012, or a separate legal entity created pursuant to s.

163.01(7).

(d) “Non-ad valorem assessment” or “assessment” has the same meaning as the term “non-ad valorem assessment” as defined in s.

197.3632(1)(d).

(e) “Nonresidential real property” means any property not defined as residential real property, including, but not limited to:

AAgricultural multifamilyreal residentialproperty. property composed of five or more dwelling units;

ACommercial commercial real property;property.

AnIndustrial industrialreal buildingproperty. or property;

AnOffice agriculturalreal property;property.

AMultifamily nonprofit-ownedresidential property;real property composed of five or more dwelling units.

6.(f) “Program administrator” means an entity, including, but not limited to, a for-profit or not-for-profit entity, with which a local government may contract to administer all or part of a qualifying improvement program under this section.

A(g)(b) long-term“Qualifying careimprovement” facility,means includinga program established under this section by a nursinglocal homegovernment, alone or anin assistedPage living5 facility;of 22 CODING:

or 7.

A government commercial property.

(b) “Facility” means any portion of a building, structure, or site improvement located on a site as defined in s.

202 of the 2020 Florida Building Code.

(c) “Government commercial property” means real property owned by a local government and leased to a nongovernmental lessee where the usage by the lessee meets the definition of commercial property.

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

189.012, or a separate legal entity created pursuant to s.

163.01(7).

(e) “Nongovernmental lessee” means a person or an entity other than a local government which leases government commercial Page 8 of 34 CODING:

Florida Senate - 2023 CS for CS for SB 950 594-04316-23578-02924-23 2023950c22023950c1 property.partnership with other local governments or a program administrator, to finance qualifying improvements on real property and includes any:

(f)1. “Program administrator” means an entity, including, but not limited to, a for-profit or not-for-profit entity, with which a local government has contracted to administer a qualifying improvement program.

(g) “Qualifying improvement contractor” means an independent contractor who has been enrolled under a qualifying improvement program to install or otherwise perform work on qualifying improvements financed through the program.

(h) “Qualifying improvement program” means a program established by a local government, alone or in partnership with other local governments or a program administrator, to finance qualifying improvements on residential or commercial real property.

(i)(b) “Qualifying improvements”:

improvement” 1.

For residential property, includes any:

a.1.

installation of energy-efficientenergy- efficient heating, cooling, or ventilation systems;

b.2.2.

Renewable energy improvement, which is the installation of any system in which the electrical, mechanical, Pageor 9thermal energy is produced from a method that uses one or more of 34the CODING:following fuels or energy sources:

Words stricken are deletions;

words underlined are additions.

Florida Senate - 2023 CS for CS for SB 950 594-04316-23 2023950c2 or thermal energy is produced from a method that uses one or more of the following fuels or energy sources:

c.3.3.

(I)a.a.

(II)b.b.

(III)c.c.

(IV)d.d.

(V)e.e.

(VI)f.f.

or (VII)g.g.

d.4.

Wastewater improvement, which includes, but is not limitedPage to:6 of 22 CODING:

(I) Removing, replacing, or improving an onsite sewage treatment and disposal system with a secondary or advanced onsite sewage treatment and disposal system or technology;

(II) Replacing or converting an onsite sewage treatment and disposal system to a central sewerage system or distributed sewerage system, including, but not limited to, installing a sewer lateral and anything necessary to connect the onsite sewage treatment and disposal system or the building’s plumbing to a central sewerage system or distributed sewerage system;

or (III) Any removal, repairs, or modifications made to an onsite sewage treatment and disposal system, including any repair, modification, or replacement of a system required under a local ordinance enacted pursuant to ss.

381.0065 and 381.00651.

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Florida Senate - 2023 CS for CS for SB 950 594-04316-23578-02924-23 2023950c22023950c1 e.limited to:

a.

The removal, replacement, or improvement of an onsite sewage treatment and disposal system with a secondary or advanced onsite sewage treatment and disposal system or technology;

b.

The replacement or conversion of an onsite sewage treatment and disposal system to a central sewerage system or distributed sewerage system, including, but not limited to, the installation of a sewer lateral and anything necessary to connect the onsite sewage treatment and disposal system or the building’s plumbing to a central sewerage system or distributed sewerage system;

or c.

Any removal, repairs, or modifications made to an onsite sewage treatment and disposal system, including any repair, modification, or replacement of a system required under a local ordinance enacted pursuant to ss.

381.0065 and 381.00651.

5.

(I) Raising a structure above the base flood elevation to reduce flood damage;

(II) A flood diversion apparatus or seawall improvement, which includes seawall repairs and seawall replacements;

(III) Flood-damage-resistant building materials;

(IV) Electrical, mechanical, plumbing, or other system improvements that reduce flood damage;

or (V) Other improvements that qualify for reductions in flood insurance premiums.

2.

For commercial property, includes any:

EnergyThe conservationraising andof efficiency improvement, which is a measurestructure toabove reduce consumption through conservation or a more efficient use of electricity, natural gas, propane, or other forms of energy on the property,base including,flood butelevation notto limitedreduce to,flood airdamage; sealing;

installation of insulation;

installation of energy- efficient heating, cooling, or ventilation systems;

building modifications to increase the use of daylight;

replacement of windows;

installation of energy controls or energy recovery systems;

installation of electric vehicle charging equipment;

installation of efficient lighting equipment;

or any other improvements necessary to achieve a sustainable building rating or compliance with a national model green building code.

RenewableA energyflood improvement,diversion whichapparatus isor thesea installationwall ofimprovement, any system in which theincludes electrical,seawall mechanical,repairs orand thermalseawall energyreplacements; is produced from a method that uses one or more of the following fuels or energy sources:

hydrogen, solar energy, Page 11 of 34 CODING:

Words stricken are deletions;

words underlined are additions.

Florida Senate - 2023 CS for CS for SB 950 594-04316-23 2023950c2 geothermal energy, bioenergy, or wind energy.

ResiliencyFlood-damage-resistant improvement,building whichmaterials; includes, but is not limited to:

(I)d. Improving the strength of the roof deck attachment;

(II)Electrical, Creatingmechanical, aplumbing, secondaryor waterother barriersystem toimprovements preventthat waterreduce intrusion;flood damage;

(III)or Installinge. wind-resistant shingles;

(IV)Other Installingimprovements gable-endthat bracing;qualify for reductions in flood insurance premiums.

(V)6. Reinforcing roof-to-wall connections;

(VI)Environmental Installinghealth stormimprovement, shutters;which is an Page 7 of 22 CODING:

(VII) Installing opening protections;

(VIII) Creating or improving stormwater and flood resiliency, including shoreline improvements;

or (IX) Making any other improvements necessary to achieve a sustainable building rating or compliance with a national model resiliency standard and any improvements to a structure to achieve wind or flood insurance rate reductions, including building elevation.

(j) “Residential property” means a residential real property composed of four or fewer dwelling units which has been or will be improved by a qualifying improvement.

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

(4) Subject to local government ordinance or resolution, a residential or commercial property owner may apply to the qualifying improvement program 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 Page 12 of 34 CODING:

Florida Senate - 2023 CS for CS for SB 950 594-04316-23578-02924-23 2023950c22023950c1 assessment.improvement or measure intended to mitigate harmful environmental health effects to property occupants, including, but not limited to, measures that do any of the following:

Aa. non-ad valorem assessment must shall be collected pursuant to s.

Mitigate the presence of lead, heavy metals, polyfluoroalkyl substance contamination, or other harmful contaminants in potable water systems, such as conversion of well water to municipal water systems, replacing lead water service lines, or installing water filters;

b.

Mitigate lead paint contamination in housing built before 1978;

or c.

Mitigate indoor air pollution or contaminants, such as particulate matter, viruses, bacteria, and mold.

(h) “Residential real property” means a residential real property composed of four or fewer dwelling units.

(i) “Resiliency Energy Environment Florida (REEF) program” means a program established 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 local government for funding to finance a qualifying improvement and enter into an assessment a financing agreement with the local government.

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

A non- ad valorem assessment shall be collected pursuant to s.

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

197.3632(4) do not apply if this section is usedPage and8 complied with, and the intent resolution, publication of notice,22 andCODING: mailed notices to the property appraiser, tax collector, and Department of Revenue required by s.

Words stricken are deletions;

words underlined are additions.

Florida Senate - 2023 CS for SB 950 578-02924-23 2023950c1 used and complied with, and the intent resolution, publication of notice, and mailed notices to the property appraiser, tax collector, and Department of Revenue required by s.

(5)(6) PursuantA tolocal thisgovernment sectionmay orenter asinto otherwisean providedagreement bywith lawa orprogram pursuantadministrator to administer a localREEF government’sprogram homeon rulebehalf power,of athe local government A qualifying improvement program may enterbe intoadministered by a partnershipfor-profit withentity one or morea localnot-for-profit governmentsorganization foron thebehalf purpose of providing and financingat qualifyingthe improvements.discretion of the local government.

(6)(7) A local government may incur debt for the purpose of providing financing for qualifying improvementsuch programimprovements, maywhich bedebt administeredis bypayable afrom for-profitrevenues entityreceived from the improved property, or afrom not-for-profitany organizationother onavailable behalfrevenue ofsource andauthorized atunder thethis discretionsection ofor theby localother government.law.

(7)(8) A local government may incurenter debtinto foran theassessment purposea of providing financing foragreement qualifyingto suchfinance improvements,or whichrefinance debta isqualifying payableimprovement fromonly revenueswith received from the improvedrecord property,owner orof anythe otheraffected availableproperty. revenue source authorized by law.

(8)(a)Any Aassessment localfinancing governmentagreement mayentered enter into pursuant to this section or a financingsummary agreementmemorandum toof financesuch oragreement refinanceshall abe qualifyingsubmitted improvementfor onlyrecording withrecorded in the recordpublic ownerrecords of the affectedcounty property.within which the property is located by the sponsoring unit of local government within 10 5 days after execution of the agreement.

ForThe governmentrecorded commercialagreement property,shall theprovide financingconstructive agreementnotice mustthat the assessment to be executedlevied byon the nongovernmentalproperty lesseeconstitutes witha thelien writtenof consentequal ofdignity theto governmentalcounty lessor.taxes and Page 9 of 22 CODING:

Evidence of such consent must be provided Page 13 of 34 CODING:

Florida Senate - 2023 CS for CS for SB 950 594-04316-23578-02924-23 2023950c22023950c1 toassessments from the localdate government.of recordation.

The financing agreement with the nongovernmental lessee must provide that the nongovernmental lessee is the only party obligated to pay the assessment.

(b) Any financing agreement entered into pursuant to this section or a summary memorandum of such agreement must shall be submitted for recording recorded in the public records of the county within which the property is located by the sponsoring unit of local government within 10 5 days after execution of the agreement.

The recorded agreement provides shall provide constructive notice that the non-ad valorem assessment to be levied on the property constitutes a lien of equal dignity to county taxes and assessments from the date of recordation.

(9)(a)(9) Before entering into Aan financingassessment agreement for a residentialfinancing propertyagreement, may not be approved unless, the local government, or the program administrator acting on its behalf, has shall reasonably determined determine that all of the following conditions haveare been met:

1.(a) All property taxes and any other assessments levied on the same bill as property taxes are current paid and have not been delinquent for more than 30 days for the preceding 3 years or the property owner’s period of ownership, whichever is less.;

All(b) propertythat taxesThere andare anyno otherinvoluntary assessmentsliens leviedgreater onthan the$1,000, sameincluding, billbut as property taxes are current paid and have not beenlimited delinquentto, forconstruction theliens precedingon 3 years or the propertyproperty.; owner’s period of ownership, whichever is less.;

(c) that 2.No notices of default or other evidence of property-based debt delinquency have been recorded and not released during the preceding 3 years or the property owner’s period of ownership, whichever is less.;

There(d) areThe nolocal involuntarygovernment liens,or including,program butadministrator nothas limitedasked to,the constructionproperty liensowner whether any other assessments under this section have been recorded or have been funded and not yet recorded on the property.;property.

The failure of a property owner to disclose information set forth in this paragraph does not invalidate an assessment financing agreement or any obligation thereunder, even if the total financed amount of the qualifying improvements exceeds the amount that 3.would otherwise be Page 10 of 22 CODING:

There are no notices of default or other evidence of Page 14 of 34 CODING:

Florida Senate - 2023 CS for CS for SB 950 594-04316-23578-02924-23 2023950c22023950c1 property-basedauthorized debtunder delinquencyparagraph which(12)(a). have been recorded during the preceding 3 years or the property owner’s period of ownership, whichever is less.;

(e) and that 4.The property owner is current on all mortgage debt on the property.

(f) The residential property owner is currentnot onsubject allto an existing home equity conversion mortgage debtor onreverse themortgage property.product.

5.This paragraph does not apply to nonresidential real property.

(g) The property owneris hasnot acknowledgedcurrently ina writingresidential theproperty disclosuregifted statementsto requireda homeowner for free by paragrapha (11)(b).nonprofit entity as may be disclosed by the property owner.

6.The failure of a property owner to disclose information set forth in this paragraph does not invalidate an assessment financing agreement or any obligation thereunder.

TheThis propertyparagraph isdoes withinnot theapply geographicto boundariesnonresidential ofreal theproperty. applicable qualifying improvement program.

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

TheAn termassessment financing agreement may between a local government and a qualifying property owner may not cover qualifying wind- resistance improvements on nonresidential real property under new construction or residential real property in buildings or facilities under new construction or construction for which a certificate of theoccupancy financingor agreementsimilar doesevidence of substantial completion of new construction or improvement has not exceed:been issued.

a.(11) Any work requiring a license under any applicable law to make a qualifying improvement shall be performed by a Page 11 of 22 CODING:

For a single qualifying improvement, the estimated useful life of the qualifying improvement.

b.

For multiple qualifying improvements, the lesser of:

(I) Thirty years;

or (II) The greater of either the weighted average estimated useful life of all qualifying improvements being financed or the estimated useful life of the qualifying improvements to which the greatest portion of funds is disbursed.

The local government or program administrator, as applicable, shall determine the useful life of a qualifying improvement using established third- party standards, including certification criteria from government agencies or nationally recognized standards and testing organizations.

8.

The property owner is not currently the subject to bankruptcy proceedings.

9.

The property is not subject to an existing home equity conversion mortgage or reverse mortgage product.

10.

The property is not a residential property gifted to a homeowner for free by a nonprofit entity as may be disclosed by Page 15 of 34 CODING:

Florida Senate - 2023 CS for CS for SB 950 594-04316-23578-02924-23 2023950c22023950c1 thecontractor propertyproperly owner.certified or registered pursuant to part I or part II of chapter 489, as applicable.

The(12)(a) failureWithout 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 ownerunder tothis disclosesection may not exceed 20 percent of the giftfair doesmarket notjust invalidatevalue aof financingthe agreementreal orproperty anyas obligationdetermined thereunder.by the county property appraiser.

11.The combined mortgage-related debt and total amount of any non-ad valorem assessments funded under this section for residential real property may not exceed 100 percent of the fair market value of the residential real property.

TheHowever, the failure of a property owner hasto obtaineddisclose estimatesinformation fromset atforth leastin twoparagraph unaffiliated,(9)(d) competitivedoes entities,not oneinvalidate ofan whichassessment isfinancing aagreement qualifyingor improvementany contractor,obligation forthereunder, even if the total financed amount of the qualifying improvementimprovements toexceeds the amount that would otherwise be financed.authorized under this paragraph.

12.For purposes of this paragraph, fair market value may be determined using reputable third parties.

The(b) localNotwithstanding governmentparagraph or(a), programa administrator,non-ad asvalorem applicable,assessment hasfor askeda if the property owner has obtained or sought to obtain additional qualifying improvementsimprovement ondefined thein samesubparagraph property(2)(g)1. which have not yet been recorded.

The(2)(b)1. failure of a property owner to disclose such information 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 paragraph (15)(a).

The existence of a prior qualifying improvement non-ad valorem assessment or asubparagraph prior(2)(g)2. financing agreement is not evidence that the financing agreement under consideration is affordable or meets other program requirements.

(b)which A(2)(b)2. financing agreement for a commercial property may not be approved unless the local government, or the program administrator acting on its behalf, has reasonably determined that all of the following conditions have been met:

1.that is supported 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.

All(13) At least 30 days before entering into an assessment a financing agreement, the property taxesowner andshall provide to the holders or loan servicers of any otherexisting assessmentsmortgages leviedencumbering onor theotherwise samesecured billby asthe property taxesa arenotice current.of the owner’s Page 12 of 22 CODING:

2.

There are no involuntary liens greater than $10,000, including, but not limited to, construction liens, on the property.

3.

No notices of default or other evidence of property- Page 16 of 34 CODING:

Florida Senate - 2023 CS for CS for SB 950 594-04316-23578-02924-23 2023950c22023950c1 basedintent debtto delinquencyenter haveinto beenan recordedassessment anda notfinancing releasedagreement duringtogether with the precedingmaximum 3principal yearsamount orto be financed and the propertymaximum owner’sannual periodassessment ofnecessary ownership,to whicheverrepay isthat less.amount.

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

TheA provision in any agreement between a mortgagee or other lienholder and a property ownerowner, isor currentotherwise onnow allor mortgagehereafter debtbinding onupon a property owner, which allows for acceleration of payment of the property.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.

(10)This Insubsection additiondoes tonot obtaininglimit the informationauthority inof subsection (9)(a), and before a local government or program administrator, as applicable, approves a qualifying improvement on residential property, the localholder government or programloan administratorservicer mustto useincrease information contained in the propertyrequired owner’smonthly application,escrow reasonablyby reliable third-party records, or an automatedamount verificationnecessary system to reasonablyannually determine whether the property owner has the ability to pay the annual non-ad valorem assessment for the qualifying improvement.improvement assessment.

The(14) localAt government or programbefore administrator,the astime applicable,a mustseller reviewpurchaser executes a contract for the sale and purchase of any property owner’sfor householdwhich income.a non-ad valorem assessment has been levied under this section and has an unpaid balance due, the seller must 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:

ToQUALIFYING doIMPROVEMENTS so,FOR theENERGY programEFFICIENCY, administratorRENEWABLE shall,ENERGY, atFLOOD aMITIGATION, minimum,ADVANCED useTECHNOLOGIES theFOR underwritingWASTEWATER requirementsREMOVAL, inOR subsectionENVIRONMENTAL (9),HEALTH confirmOR thatWIND theRESISTANCE.—The property ownerbeing purchased is notlocated inwithin bankruptcy, and determine that the totaljurisdiction estimatedof annuala paymentlocal amountgovernment forthat allhas financingplaced agreementsan fundedassessment under this section on the property doespursuant notto exceeds. 10 percent of the property owner’s annual household income.

In163.08, reviewingFlorida theStatutes. property owner’s ability to pay, the local government or program administrator, as applicable, when determining the household income:

(a)The MayPage include13 the income of any22 nonpropertyCODING: owners who reside on the property.

(b) May not consider the equity in the property which will secure the non-ad valorem assessment.

Page 17 of 34 CODING:

Florida Senate - 2023 CS for CSSB 950 578-02924-23 2023950c1 assessment is for SBa 950qualifying 594-04316-23improvement 2023950c2to (c)the Mayproperty confirmrelating incometo byenergy useefficiency, ofrenewable anyenergy, ofor wind resistance, and is not based on the following:value of property.

1.This agreement uses a program formerly referred to as Property Assessed Clean Energy, or PACE.

InformationYou orare incomeencouraged modelsto gatheredcontact fromthe andcounty preparedproperty byappraiser’s reputableoffice thirdto partieslearn whichmore provideabout reasonablythis reliableand evidenceother ofassessments thethat propertymay owner’sbe householdprovided income.by law.

2.(16)(a) Before final approval of an assessment financing agreement for a qualifying improvement on a residential real property, a program administrator shall reasonably determine that the property owner has the ability to pay the estimated annual assessment.

FederalTo do so, the program administrator shall, at a minimum, use the underwriting requirements in subsection (9), confirm that the property owner is not in bankruptcy, and statedetermine taxthat returns.the total estimated annual payment amount for all assessment financing agreements funded under this section on the property does not exceed 10 percent of the property owner’s annual household income.

3.Income may be confirmed using information gathered from reputable third parties that provide reasonably reliable evidence of the property owner’s household income.

StatementsIncome preparedmay not be confirmed solely by a certifiedproperty publicowner’s accountant.statement.

4.(b) In the event that a court or tribunal determines, by clear and convincing evidence, that the program administrator’s determination of the property owner’s ability to pay was not objectively reasonable based on the information provided by the Page 14 of 22 CODING:

Bank statements.

5.

Credit reports.

6.

Retirement accounts.

7.

Social security statements.

8.

Trust documents.

9.

Any other reputable sources of financial information.

The local government or program administrator may consider statements by the property owner regarding the property owner’s income, but income may not be confirmed solely by a property owner’s statements.

(d) In the event that a court or tribunal determines, by clear and convincing evidence, that the program administrator’s determination of the property owner’s ability to pay was not objectively reasonable based on the information provided by the property owner, the yearly assessment payment must be reduced by an amount that is within the property owner’s ability to pay.

This paragraph does not require or authorize the administrator to reduce the amount owed on the assessment.

(e) The failure of a property owner to disclose information specified in subsection (9) does not invalidate a financing agreement or any obligation thereunder, even if the total estimated annual payment amount exceeds the amount that would Page 18 of 34 CODING:

Florida Senate - 2023 CS for CS for SB 950 594-04316-23578-02924-23 2023950c22023950c1 otherwiseproperty owner, the yearly assessment payment shall be authorizedreduced underin thisthe subsection.amount which is within the property owner’s ability to pay.

(11)This Eachparagraph localdoes governmentnot require or programauthorize the administrator thatto offersreduce athe qualifyingamount improvementowed programon forthe residentialassessment. properties shall:

(a)(c) DevelopThe failure of a writtenproperty disclosureowner form,to whichdisclose mayinformation beset presentedforth in electronicparagraph format,(9)(d) whichdoes mustnot beinvalidate providedan toassessment afinancing residentialagreement propertyor ownerany beforeobligation hethereunder, oreven sheif executes the financingtotal agreement,estimated andannual whichpayment containsamount exceeds the keyamount termsthat ofwould theotherwise agreement,be including:authorized under this subsection.

1.(17) Before or contemporaneously with a property owner signing an assessment financing agreement on a residential real property, the program administrator shall provide a financing estimate and disclosure to the residential real property owner which includes all of the following:

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

2.(b) The estimated annual assessment.

(c) The estimatedterm total financed amount, including the cost of the qualifyingassessment. improvement, ancillary work, program fees, and prepaid interest, if any;

3.(d) The interest charged and estimated annual percentage rate.

The(e) annualA non-addescription valoremof assessmentthe processqualifying andimprovement. estimated yearly payment schedule;

4.(f) A disclosure that if the property owner sells or refinances the property, the property owner, as a condition of the sale or the refinance, may be required by a mortgage lender to pay off the full amount owed under each assessment financing agreement.

The(g) estimatedA amountdisclosure ofthat the annualassessment non-adwill valorembe assessment;collected along with the property owner’s property taxes and will result Page 15 of 22 CODING:

5.

The term of the total financed amount;

6.

The interest rate for the financed amount;

7.

The estimated annual percentage rate;

8.

The total estimated annual costs that the residential property owner will be required to pay under the assessment contract, including program fees;

9.

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

and 10.

The estimated due date of the residential property owner’s first property tax payment that includes the non-ad Page 19 of 34 CODING:

Florida Senate - 2023 CS for CS for SB 950 594-04316-23578-02924-23 2023950c22023950c1 valoremin assessment.a lien on the property from the date the assessment financing agreement is recorded.

(b)(h) IncludeA thedisclosure followingthat statementsfailure verbatimto andpay in the followingassessment ordermay result in thepenalties writtenand disclosurefees, form,along eachwith the issuance of whicha musttax becertificate individuallythat acknowledgedcould result in writingthe byproperty owner losing the propertyreal owner:property.

1.(18) Before a notice to proceed is issued on residential real property, the program administrator shall conduct with the residential real property owner or an authorized representative an oral, recorded telephone call.

IThe UNDERSTANDprogram THATadministrator IFshall Iask SELLthe ORresidential REFINANCEreal THEproperty PROPERTY,owner Iif MAYhe BEor REQUIREDshe TOwould PAYlike OFFto THEcommunicate OUTSTANDINGprimarily FINANCEDin AMOUNTa ASlanguage Aother CONDITIONthan OFEnglish. THE SALE OR THE REFINANCE OF THE PROPERTY.

TheA previousprogram statementadministrator mustmay benot madeleave ina atvoicemail leaston 24–pointthe boldfacedresidential type.real property owner’s or authorized representative’s telephone to satisfy this requirement.

2.A program administrator, as part of such telephone call, shall confirm all of the following with the residential real property owner:

I(a) understandThat thatat theleast annualone non-adresidential valoremreal assessmentproperty willowner behas paidaccess whento propertya taxescopy areof paidthe andassessment willfinancing resultagreement inand afinancing lienestimates beingand placeddisclosures. on my property.

3.(b) The qualifying improvements being financed.

I(c) understandThe thattotal theestimated annual non-adcosts valoremthat assessmentthe willresidential bereal added to my property taxowner billwill andhave thatto if I pay myunder propertythe taxesassessment throughfinancing myagreement, mortgageincluding paymentapplicable usingfees. an escrow account, I must notify my mortgage lender.

4.(d) 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 assessment, including applicable fees.

I(e) understandThe thatestimated ifdue Idate failof to pay the annualresidential non-adreal valoremproperty assessment,Page I16 may incur penalties and fees and the local government could issue a tax certificate that might result in the loss of my22 property.CODING:

5.

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

6.

I understand that I have 5 days to cancel the financing agreement.

The 5-day right expires at midnight on the 5th business day after I sign the agreement.

7.

I understand that the local government, program administrator, or qualifying improvement contractor does not Page 20 of 34 CODING:

Florida Senate - 2023 CS for CS for SB 950 594-04316-23578-02924-23 2023950c22023950c1 provideowner’s taxfirst adviceproperty and that I should seek professional tax advicepayment ifthat Iincludes have questions regarding tax credits, tax deductibility, or other tax impacts of the qualifyingassessment improvementwill orbe thedue. assessment contract.

8.(f) The term of the assessment financing agreement.

I(g) understandThat payments for the assessment financing agreement will cause the residential real property owner’s annual property tax bill to increase, and that Ipayments cannotwill be assessedmade athrough penaltyan ifadditional Iannual prepayassessment on the outstandingproperty financedand amount.either will be paid directly to the county tax collector’s office as part of the total annual secured property tax bill or may be paid through the residential real property owner’s mortgage escrow account.

(c)(h) ProvideThat athe printedresidential orreal electronicproperty cancellationowner formhas todisclosed whether the residential property has received, or the owner nois laterseeking, thanadditional theassessments datefunded thatunder thethis propertysection ownerand signsthat the financingowner agreement,has whichdisclosed allowsall theother propertyassessments ownerfunded tounder cancelthis thesection contractwhich withinare theor 5-dayare periodabout specifiedto inbe subparagraphplaced (b)6.on the property.

(d)(i) BeforeThat athe notice to proceed is issued, conduct, with at least one residential property ownerwill orbe ansubject individualto whoa islien notduring affiliatedthe orterm associatedof with the localassessment government,financing programagreement administrator,and orthat qualifyingthe improvementobligations contractorunder andthe whoagreement ismay legallybe authorizedrequired to actbe onpaid behalfin offull before the propertyresidential owner,real anproperty oral,owner recordedsells telephoneor call,refinances during which the localproperty. government or program administrator must use plain language.

The(j) localThat governmentany orpotential programutility administrator,or asinsurance applicable,savings shallare asknot theguaranteed residentialand propertywill ownernot orreduce authorizedthe representativeassessment if he or shetotal wouldassessment likeamount. to communicate primarily in a language other than English.

A(k) localThat governmentthe or program administrator,administrator asdoes applicable, may not leaveprovide atax voicemailadvice, forand the residential real property owner should seek professional tax advice if he or authorizedshe representativehas toquestions satisfyregarding thistax requirement.credits, tax deductibility, or other tax impacts of the qualifying improvement or the assessment financing agreement.

APage local17 government or program administrator, as applicable, as part of this22 telephoneCODING: call, must confirm with the residential property owner or authorized representative:

1.

That at least one residential property owner has access to a copy of the financing agreement and financing estimates and Page 21 of 34 CODING:

Florida Senate - 2023 CS for CS for SB 950 594-04316-23578-02924-23 2023950c22023950c1 disclosures.(19) A residential real property owner may cancel an assessment financing agreement within 3 business days after signing the assessment financing agreement without any financial penalty from the program administrator for doing so.

2.(20) The term of an assessment financing agreement on residential real property may not exceed the lesser of:

The(a) qualifyingThirty improvementyears; that is being financed.

3.or (b) The greater of either the weighted average estimated useful life of all qualifying improvements being financed or the estimated useful life of the qualifying improvements to which the greatest portion of funds is disbursed.

The(21) totalAn estimatedassessment annualfinancing costsagreement thatauthorized theunder residentialthis propertysection owneron willresidential havereal toproperty paymay undernot theinclude financingany agreement,of includingthe programfollowing fees.financing terms:

4.

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

5.

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

6.

The term of the financing agreement.

7.

That payments for the financing agreement will cause the residential 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 secured property tax bill or may be paid through the residential property owner’s mortgage escrow account.

8.

That the qualifying residential property owner has disclosed whether the property has received or is seeking additional non-ad valorem assessments and has disclosed all other assessments or special taxes that are or are projected to be placed on the property.

9.

That the property will be subject to a lien during the term of the financing agreement and that the obligations under the agreement may be required to be paid in full before the residential property owner sells or refinances the property.

Page 22 of 34 CODING:

Words stricken are deletions;

words underlined are additions.

Florida Senate - 2023 CS for CS for SB 950 594-04316-23 2023950c2 10.

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

11.

That the local government, program administrator, or qualifying improvement contractor does not provide tax advice and that the residential 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 financing agreement.

(12)(a) A residential property owner may cancel a financing agreement within 5 business days after signing the financing agreement without being assessed a financial penalty by the local government or program administrator, as applicable.

(b) A contract to sell or install a qualifying improvement that is related to an application for financing in a qualifying improvement program for a residential property is unenforceable, and a qualifying improvement contractor may not begin work under such a contract, if the property owner applied for, accepted, and canceled a qualifying improvement financing agreement within the 5-business-day right-to-cancel period set forth in paragraph (a).

(c) If a qualifying improvement contractor has initiated work on a residential property under a contract deemed unenforceable under this subsection, the qualifying improvement contractor:

1.

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.

Page 23 of 34 CODING:

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words underlined are additions.

Florida Senate - 2023 CS for CS for SB 950 594-04316-23 2023950c2 3.

Must immediately return any money, property, and other consideration given by the property owner.

If the property owner provided any property and the qualifying improvement contractor does not or cannot return it, the qualifying improvement contractor must immediately return the fair market value of the property or its value as designated in the contract, whichever is greater.

(d) If the qualifying improvement contractor has delivered chattel or fixtures to the residential property pursuant to a contract deemed unenforceable under this subsection, the qualifying improvement contractor has 90 days after the date on which the contract was executed to retrieve the chattel or fixtures, provided that:

1.

The qualifying improvement contractor has fulfilled the requirements of subparagraphs (c)2.

and 3.

2.

The chattel and fixtures can be removed at the qualifying improvement contractor’s expense without damaging the property owner’s property.

(e) If a qualifying improvement contractor fails to comply with this subsection, the residential property owner may retain any chattel or fixtures provided pursuant to a contract deemed unenforceable under this subsection.

(f) A contract that is otherwise unenforceable under this subsection remains enforceable if the residential property owner waives his or her right to cancel the contract or cancels the financing agreement under paragraph (b) but allows the qualifying improvement contractor to proceed with the installation of the qualifying improvement.

(13) To constitute an improvement to a building or Page 24 of 34 CODING:

Words stricken are deletions;

words underlined are additions.

Florida Senate - 2023 CS for CS for SB 950 594-04316-23 2023950c2 facility, a qualifying improvement must shall be affixed to a building or facility that is part of the property and shall constitute an improvement to the building or facility or a fixture attached to the building or facility.

(a) A financing an agreement between a local government and a residential 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.

(b) A financing agreement may be executed for qualifying improvements in the construction of a commercial property before a certificate of occupancy or similar evidence of substantial completion of new construction or improvement is issued.

Progress payments, or payments made before completion, are allowed for commercial properties, provided that the property owner subsequently provides, upon request for a final progress payment disbursement, written verification to the local government confirming that the qualifying improvements are completed and operating as intended.

A financing agreement with a commercial property owner may 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 law to make a qualifying improvement must shall be performed by a contractor properly certified or registered pursuant to part I or part II of chapter 489.

Page 25 of 34 CODING:

Words stricken are deletions;

words underlined are additions.

Florida Senate - 2023 CS for CS for SB 950 594-04316-23 2023950c2 (15)(12)(a) Without the consent of the holders or loan servicers of any mortgage encumbering or otherwise secured by the residential property:, 1.

The total amount of any non-ad valorem assessment for a residential 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.

2.

The combined mortgage-related debt and total amount of any non-ad valorem assessments funded under this section for residential property may not exceed 97 percent of the fair market value of the residential property.

The failure of a property owner to disclose information set forth in paragraph (9)(a) does not invalidate a financing agreement or any obligation thereunder, even if the total financed amount of the qualifying improvements exceeds the amount that would otherwise be authorized under this paragraph.

For purposes of this paragraph, fair market value may be determined using third party valuations based on reputable methodologies.

(b) Before entering into a financing agreement with the owner of a commercial property, the local government or program administrator, as applicable, must be in receipt of the written consent of the current holders or loan servicers of any mortgage that encumbers or is otherwise secured by the property or that will otherwise be secured by the property at the time the financing agreement is executed by the local government or program administrator Notwithstanding paragraph (a), a non-ad valorem assessment for a qualifying improvement defined in Page 26 of 34 CODING:

Words stricken are deletions;

words underlined are additions.

Florida Senate - 2023 CS for CS for SB 950 594-04316-23 2023950c2 subparagraph (2)(b)1.

or subparagraph (2)(b)2.

that is supported 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.

(16)(13) At least 30 days before entering 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 owner’s intent to enter into a financing agreement together with the maximum principal amount to be financed and the maximum annual assessment necessary to repay that amount.

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

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 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.

(17)(14) At or before the time a seller 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 must shall give the prospective purchaser a written disclosure statement in either Page 27 of 34 CODING:

Words stricken are deletions;

words underlined are additions.

Florida Senate - 2023 CS for CS for SB 950 594-04316-23 2023950c2 of the following forms form, which must shall be set forth in the contract or in a separate writing.

(a) For a residential property:

QUALIFYING IMPROVEMENTS FOR ENERGY EFFICIENCY, RENEWABLE ENERGY, ADVANCED TECHNOLOGIES FOR WASTEWATER REMOVAL, OR WIND RESISTANCE.—The property being purchased is located within the jurisdiction of a local government that has placed an assessment on the property pursuant to s.

163.08, Florida Statutes.

The assessment is for a qualifying improvement to the property relating to energy efficiency, renewable energy, advanced technologies for wastewater removal, 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.

(b) For a commercial property:

QUALIFYING IMPROVEMENTS FOR ENERGY EFFICIENCY, RENEWABLE ENERGY, OR RESILIENCY.—The property being purchased is located within the jurisdiction of a local government that has placed an assessment on the property pursuant to s.

163.08, Florida Statutes.

The assessment is for a qualifying improvement to the property relating to energy efficiency, renewable energy, or resiliency, and is not based on the value of property.

You are encouraged to contact the county Page 28 of 34 CODING:

Words stricken are deletions;

words underlined are additions.

Florida Senate - 2023 CS for CS for SB 950 594-04316-23 2023950c2 property appraiser’s office to learn more about this and other assessments that may be provided by law.

(18) A financing agreement authorized under this section on residential property may not include any of the following:

Capitalized interest included in the original balance of the assessment financing agreement does not constitute negative amortization.

(19)(22) For residential real property, a local government or program administrator:

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

The localprogram governmentadministrator ormakes programa administrator,reasonable aseffort applicable,to determinesreview that the qualifying improvement contractor maintains in good standing an appropriate license from the state, if applicable, as well as any other permits,permit, licenses,license, or registrationsregistration required for engaging inPage its18 businessof in22 theCODING: jurisdiction in which it operates and maintains all state-required bond and insurance coverage.

2.

The local government or program administrator, as applicable, obtains the qualifying improvement contractor’s written agreement that the qualifying improvement contractor will comply with all applicable laws, including applicable advertising and marketing laws and regulations and the requirements of this section.

Page 29 of 34 CODING:

Florida Senate - 2023 CS for CS for SB 950 594-04316-23578-02924-23 2023950c22023950c1 (b)in Mustbusiness maintainin athe processjurisdiction toin enrollwhich newhe qualifyingor improvementshe contractorsoperates whichand includesthat reasonablethe reviewcontractor ofmaintains theall followingstate-required forbond eachand contractor:insurance coverage;

and 2.

The program administrator obtains the contractor’s written agreement that the contractor will act in accordance with all applicable laws, including applicable advertising and marketing laws and regulations.

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

Financial and reputational background checks,checks. including a criminal background check.

TheA contractor’scriminal statusbackground oncheck. the Better Business Bureau platform or other online platform that tracks contractor reviews.

(c)4. Must establish and maintain a process for monitoring qualifying improvement contractors with regard to performance and compliance with program policies and must implement policies for suspending, reinstating, and terminating qualifying improvement contractors based on violations of program policies or unscrupulous behavior.

AStatus programon administrator,the eitherBetter directlyBusiness orBureau throughonline anplatform affiliate,or mayanother notonline beplatform enrolledthat astracks acontractor qualifyingreviews. improvement contractor.

(20)(a)(c) BeforeA disbursingprogram finaladministrator fundsmay topay aor qualifyingreimburse improvementcontractors contractor for aany qualifyingexpense improvementallowable onunder residential property, the local government or program administrator, as applicable, must confirm that the applicable workstate orlaw serviceand hasnot beenotherwise completedprohibited orunder thatthis thesection, finalincluding, permitbut fornot thelimited qualifyingto, improvementmarketing, hastraining, beenand closedpromotions. with all permit requirements satisfied.

(b)(d) A localprogram governmentadministrator may not disclose to a contractor or programto administrator,a asthird applicable,party mayengaged notin disclosesoliciting a financing agreement the maximum financing amount for which a residential real property owner is eligibleeligible. to a qualifying Page 30 of 34 CODING:

(23) Before disbursing funds to a contractor for a qualifying improvement on residential real property, a program administrator must first confirm that the applicable work or service has been completed through any of the following:

(a) A written certification from the property owner;

(b) A recorded telephone call with the property owner;

Page 19 of 22 CODING:

Florida Senate - 2023 CS for CS for SB 950 594-04316-23578-02924-23 2023950c22023950c1 improvement(c) contractorA orreview toof ageotagged thirdand partytime-stamped engagedphotographs; in soliciting financing agreements financed pursuant to this section.

(21)(d) WhenA communicatingreview withof residential property owners, a localfinal governmentpermit; or program administrator must comply with the following marketing and communication guidelines and may not:

(a)or Suggest(e) orA imply:site inspection through third-party means.

(24) A program administrator shall comply with the following marketing and communications guidelines when communicating with residential real property owners:

(a) A program administrator may not represent:

That athe non-adREEF valoremprogram or assessment authorizedfinancing under this section is a government assistance program;

That qualifying improvements are free or provided at no cost, or that theassessment financing relatedis to a non-ad valorem assessment authorized under this section is free orprogram; provided at no cost;

That the financing of a qualifying improvement using the programREEF authorizedprogram pursuant to this section does not require the property owner to repay the financial obligation.

(b) MakeA program administrator may not make any representation as to the tax deductibility of aan non-ad valorem assessment onauthorized residentialunder property.this section.

A local government, program administrator,administrator or qualifying improvement contractor, or a third party engaged in marketing on behalf of such entities, may encourage a property owner to seek the advice of a tax professional regarding tax matters related to assessments.

(22)(a)(25) A contractor may not present a higher price for a qualifying improvement contractoron mayresidential notreal advertiseproperty thefinanced availabilityby ofan assessment financing agreementsagreement for,than orthe solicitcontractor propertywould ownersotherwise onreasonably behalfpresent of,if the localqualifying governmentimprovement orwas programnot administratorbeing unless:financed through an assessment financing agreement.

1.(26) A program administrator shall use appropriate methodologies or technologies to identify and verify the identity of the residential real property owner who executes an assessment financing agreement.

The(27) qualifyingA improvementprogram contractoradministrator maintainsmay thenot appropriateprovide registrationa orcontractor certification from the Construction Industry Licensing Board or any other permit, license, or Page 3120 of 3422 CODING:

Florida Senate - 2023 CS for CS for SB 950 594-04316-23578-02924-23 2023950c22023950c1 registrationwith requiredany topayment, conductfee, businessor kickback in theexchange jurisdictionfor inreferring whichassessment itfinancing operates,business andrelating providesto proofa ofspecific havingassessment thefinancing requiredagreement bondon andresidential insurancereal coverageproperty. amounts.

2.(28) A program administrator shall develop and implement policies and procedures for responding to, tracking, and helping to resolve questions and property owner complaints as soon as reasonably practicable.

The(29) localA government or program administrator,administrator asshall applicable,maintain obtainsa theprocess qualifyingfor improvementmonitoring contractor’senrolled writtencontractors agreement that thecontract qualifyingwith improvementresidential contractorreal orproperty thirdowners partyto willinstall complyqualifying improvements with applicableregard lawsto andperformance rules and qualifyingcompliance improvementwith program policies and procedures,shall includingimplement thosepolicies onfor advertisingsuspending and marketing.terminating enrolled contractors based on violations of program policies or unscrupulous behavior.

(b) A local government or program administrator mayshall notmaintain provide any payment, fee, or kickback to a qualifyingpolicy improvement contractor for referringdetermining financingthe businessconditions relatingon towhich a specificcontractor financingmay agreementbe onreinstated ato residentialthe property.program.

However,(30) aA localprogram governmentadministrator orshall programprovide, administratorat maya providereasonable informationtime orfollowing servicesthe toend aof qualifyingthe improvementprior contractorcalendar toyear, facilitatean theannual installationreport ofto athe qualifyingdependent improvementspecial fordistrict aas propertydefined owner.in s.

(c)189.012 A local government or program administrator may reimburse a qualifyingseparate improvementlegal contractorentity orcreated thirdpursuant partyto fors. its expenses in advertising and marketing campaigns and materials.

(d)163.01(7) Awhich localit governmenthas orcontracted programwith administrator may not provide to administer a qualifyingREEF improvementprogram contractorand anyshall include information thatand disclosesdata therelated amountto of funds for which a property owner is eligible for qualifying improvements or the amountfollowing: of equity in a property.

(e)(a) ForThe residentialtotal properties,number aof qualifyingproperty improvementowner contractorcomplaints mayreceived notwhich provideare aassociated differentwith priceproject forfunding ain qualifying improvement financed under this section than the pricereport thatyear. the Page 32 of 34 CODING:

(b) Of the total number of property owner complaints received which are associated with project funding in the report year:

1.

The number and percentage of complaints that relate to Page 21 of 22 CODING:

Florida Senate - 2023 CS for CS for SB 950 594-04316-23578-02924-23 2023950c22023950c1 qualifying improvement contractor would otherwise reasonably provide if the qualifying improvement was not being financed through an assessment financingfinancing. agreement.

(f)2. A local government or program administrator may not provide any direct cash payment or other thing of material value to a residential property owner explicitly conditioned upon the property owner entering into a financing agreement.

However,The anumber localand governmentpercentage orof programcomplaints administrator may offer programs or promotions that providerelate reducedto feesa contractor or interest rates if the reducedworkmanship feesof ora interestcontractor rates are reflected in the financing agreements and are not providedrelated to theassessment propertyfinancing. owners as cash consideration.

(23)3. Each local government and program administrator must develop and implement policies and procedures for responding to, tracking, and resolving questions and complaints about its qualifying improvement program.

(24)The Eachnumber localand governmentpercentage thatof hascomplaints authorizedthat arelate qualifyingto improvementboth programa shallcontractor postand on its website an annual report for the periodassessment endingfinancing. December 31 each year containing the following information:

(a)4. The number of qualifying improvements funded.

(b) The aggregate,number average, and medianpercentage dollar amounts of annualcomplaints non-adreceived valorempursuant assessmentsto andsubparagraphs the1., total2., numberand of3. non-ad valorem assessments that funded qualifying improvements.

(c)which Thewere percentage,resolved number, and dollarthe valuenumber ofand non-adpercentage valoremof assessmentscomplaints thatreceived fundedpursuant qualifyingto improvements,subparagraphs aggregated1., by2., theand following3. category types:

energywhich efficiency,were renewablenot energy,resolved. wind resistance, residential property wastewater, commercial property resiliency, and other commercial Page 33 of 34 CODING:

Words(c) strickenThe arepercentage deletions;of property owner complaints received pursuant to subparagraphs (b)1., 2., and 3.

wordsexpressed underlinedas area additions.total of all projects funded in the report year.

Florida(31)(a) SenateSubsections -(16) 2023through CS(30) fordo CSnot forapply SBto 950residential 594-04316-23real 2023950c2 property qualifyingif improvements.the program administrator reasonably determines that:

(d)1. 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)The Aresidential summaryreal ofproperty allis reportedowned complaints received by thea localbusiness governmententity andthat itsowns programmore administratorsthan relatedfour toresidential authorizedreal qualifyingproperties; improvements programs, including the resolution of each complaint.

(f)and The2. estimated number of jobs created.

(g) The numberbusiness andentity’s percentagemanaging ofmember, homeownerspartner, 60or yearsbeneficial ofowner agedoes ornot olderreside participating in athe qualifyingresidential improvementreal program.property.

This(b) reportSubsections must(16) bethrough posted(30) noapply laterto thana Aprilprogram 1administrator ofonly thewhen yearadministering followinga theREEF calendarprogram yearfor coveredqualifying byimprovements theon report.residential real property.

(25)(15)Subsections A(16) provisionthrough in(30) anydo agreementnot betweenapply awith localrespect governmentto and a publiclocal orgovernment, privateto powerresidential orproperty energyowned providerby ora otherlocal utilitygovernment, provideror is not enforceable to limitnonresidential orreal prohibitproperty. any local government from exercising its authority under this section.

(26)(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.

(27) This section is prospective only and does not affect or amend any existing non-ad valorem assessment or any existing interlocal agreement between local governments.

This act shall take effect JanuaryJuly 1, 2024.2023.

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