BILL SUMMARY DETAILS

Florida League of Cities

Improvements to Real Property (Martin)

SB 770 (Martin) revises requirements relating to the Property Assessed Clean Energy (PACE) program. It defines “commercial property,” “facility,” “government commercial property,” nongovernmental lessee,” program administrator,” “qualifying improvement contractor,” “qualifying improvement program,” “qualifying improvement” and “residential property” for purposes of the PACE program. The bill authorizes local governments to enter financing agreements with property owners to finance or refinance qualifying improvements and requires such agreements to meet specified conditions. The definition of “qualifying improvement” is expanded to include wastewater improvements relating to repair, replacement or conversion of a septic tank system, and flood and water damage mitigation and resiliency improvements. The bill defines “qualifying improvements” for commercial properties. It revises and specifies public recording requirements for assessment financing agreements and notices of lien. It authorizes local governments to include in any contracts with program administrators provisions for performing annual reviews to confirm compliance. The bill prohibits liens relating to PACE improvements from being enforced in a manner that accelerates the remaining nondelinquent unpaid balance. It imposes numerous new consumer protection requirements on the approval of PACE financing agreements, including requirements that a local government or program administrator determine whether a property owner has the ability to pay the assessment, requirements for disclosures to property owners, requirements for obtaining the consent of certain mortgage holders or loan servicers, requirements for monitoring compliance by qualifying improvement contractors and requirements for annual reporting by local governments. (O’Hara)