Florida Senate - 2021                        COMMITTEE AMENDMENT
       Bill No. CS for SB 1208
       
       
       
       
       
       
                                Ì902216|Î902216                         
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                  Comm: RCS            .                                
                  03/18/2021           .                                
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       The Committee on Finance and Tax (Rodriguez) recommended the
       following:
       
    1         Senate Amendment (with title amendment)
    2  
    3         Delete everything after the enacting clause
    4  and insert:
    5         Section 1. Subsections (1), (2), (4), (6) through (10),
    6  (12), (13), and (14) of section 163.08, Florida Statutes, are
    7  amended, and subsections (17) through (27) are added to that
    8  section, to read:
    9         163.08 Supplemental authority for improvements to real
   10  property.—
   11         (1)(a) In chapter 2008-227, Laws of Florida, the
   12  Legislature amended the energy goal of the state comprehensive
   13  plan to provide, in part, that the state shall reduce its energy
   14  requirements through enhanced conservation and efficiency
   15  measures in all end-use sectors and reduce atmospheric carbon
   16  dioxide by promoting an increased use of renewable energy
   17  resources. That act also declared it the public policy of the
   18  state to play a leading role in developing and instituting
   19  energy management programs that promote energy conservation,
   20  energy security, and the reduction of greenhouse gases. In
   21  addition to establishing policies to promote the use of
   22  renewable energy, the Legislature provided for a schedule of
   23  increases in energy performance of buildings subject to the
   24  Florida Energy Efficiency Code for Building Construction. In
   25  chapter 2008-191, Laws of Florida, the Legislature adopted new
   26  energy conservation and greenhouse gas reduction comprehensive
   27  planning requirements for local governments. In the 2008 general
   28  election, the voters of this state approved a constitutional
   29  amendment authorizing the Legislature, by general law, to
   30  prohibit consideration of any change or improvement made for the
   31  purpose of improving a property’s resistance to wind damage or
   32  the installation of a renewable energy source device in the
   33  determination of the assessed value of residential real
   34  property.
   35         (b) The Legislature finds that all energy-consuming
   36  improved properties that are not using energy conservation
   37  strategies contribute to the burden affecting all improved
   38  property resulting from fossil fuel energy production. Improved
   39  property that has been retrofitted with energy-related
   40  qualifying improvements receives the special benefit of
   41  alleviating the property’s burden from energy consumption. All
   42  improved properties not protected from wind or flood damage by
   43  wind or flood resistant resistance qualifying improvements
   44  contribute to the burden affecting all improved property
   45  resulting from potential wind or flood damage. Improved property
   46  that has been retrofitted with wind or flood resistant
   47  resistance qualifying improvements receives the special benefit
   48  of reducing the property’s burden from potential wind or flood
   49  damage. Further, the installation and operation of qualifying
   50  improvements not only benefit the affected properties for which
   51  the improvements are made, but also assist in fulfilling the
   52  goals of the state’s energy and hurricane mitigation policies.
   53         (c)Properties that do not use secondary or advanced
   54  technologies for wastewater treatment and disposal contribute to
   55  the water quality problems affecting the state and particularly
   56  the coastal areas. Improved properties that have been
   57  retrofitted with secondary or advanced onsite wastewater
   58  treatment systems or have converted to central sewerage
   59  significantly benefit the quality of water that may enter
   60  streams, lakes, rivers, aquifers, canals, estuaries, or coastal
   61  areas. Properties that are not protected from harmful
   62  environmental health hazards contribute to the environmental
   63  health burdens affecting the state. Properties that have been
   64  improved to mitigate against or prevent environmental health
   65  hazards benefit the general environmental health of the people
   66  within this state.
   67         (d) In order to make qualifying improvements more
   68  affordable and assist property owners who wish to undertake such
   69  improvements, the Legislature finds that there is a compelling
   70  state interest in enabling property owners to voluntarily
   71  finance such improvements with local government assistance.
   72         (e)(c) The Legislature determines that the actions
   73  authorized under this section, including, but not limited to,
   74  the financing of qualifying improvements through the execution
   75  of assessment financing agreements and the related imposition of
   76  voluntary assessments are reasonable and necessary to serve and
   77  achieve a compelling state interest and are necessary for the
   78  prosperity and welfare of the state and its property owners and
   79  inhabitants.
   80         (2) As used in this section, the term:
   81         (a)“Assessment” means the non-ad valorem assessment
   82  securing the annual repayment of financing obtained by an owner
   83  of commercial real property or residential real property for a
   84  qualifying improvement under this chapter.
   85         (b)“Assessment financing agreement” means the financing
   86  agreement, under a REEF program, between a local government and
   87  a property owner for the acquisition or installation of
   88  qualifying improvements.
   89         (c)“Commercial real property” means any property not
   90  defined as a residential real property which will be or is
   91  improved by a qualifying improvement, including, but not limited
   92  to, the following:
   93         1.A multifamily residential property composed of five or
   94  more dwelling units.
   95         2.A commercial real property.
   96         3.An industrial building or property.
   97         4.An agricultural property.
   98         5.A government leased property.
   99         (d)“Contractor” means an independent contractor who
  100  contracts with a property owner to install qualifying
  101  improvements on real property and is not the owner of such
  102  property.
  103         (e)“Government leased property” means real property owned
  104  by any local government which has become subject to taxation due
  105  to lease of the property to a nongovernmental lessee.
  106         (f)(a) “Local government” means a county, a municipality, a
  107  dependent special district as defined in s. 189.012, or a
  108  separate legal entity created pursuant to s. 163.01(7).
  109         (g)“Nongovernmental lessee” means a person or entity other
  110  than a local government which is the lessee of government leased
  111  real property.
  112         (h)Program administrator” means an entity, including, but
  113  not limited to, for-profit or not-for-profit entities, with whom
  114  a local government contracts to administer a REEF program.
  115         (i)(b) “Qualifying improvement” includes any:
  116         1. Energy conservation and efficiency improvement, which is
  117  a measure to reduce consumption through conservation or a more
  118  efficient use of electricity, natural gas, propane, or other
  119  forms of energy on the property, including, but not limited to,
  120  air sealing; installation of insulation; installation of energy
  121  efficient heating, cooling, or ventilation systems; building
  122  modifications to increase the use of daylight; replacement of
  123  windows; installation of energy controls or energy recovery
  124  systems; installation of electric vehicle charging equipment;
  125  installation of battery storage systems; and installation of
  126  efficient lighting equipment.
  127         2. Renewable energy improvement, which is the installation
  128  of any system in which the electrical, mechanical, or thermal
  129  energy is produced from a method that uses one or more of the
  130  following fuels or energy sources: hydrogen, solar energy,
  131  geothermal energy, bioenergy, and wind energy.
  132         3. Wind, storm, and flood resistance improvement, which
  133  includes, but is not limited to:
  134         a. Improving the strength of the roof deck attachment.;
  135         b. Creating a secondary water barrier to prevent water
  136  intrusion.;
  137         c. Installing wind-resistant shingles.;
  138         d. Installing gable-end bracing.;
  139         e. Reinforcing roof-to-wall connections.;
  140         f. Installing storm shutters.; or
  141         g. Installing opening protections.
  142         h.Installing backup power or battery storage systems.
  143         4.Wastewater treatment improvement, which includes the
  144  removal, replacement, or improvement of an onsite sewage
  145  treatment and disposal system with a secondary or advanced
  146  onsite treatment and disposal system or technology or the
  147  replacement of an onsite sewage treatment and disposal system
  148  with a central sewage system. For purposes of this section, the
  149  term “wastewater treatment improvement” includes removal,
  150  repairs, or modifications made to an onsite sewage treatment and
  151  disposal system under s. 381.0065.
  152         5.Flood and water damage mitigation and resiliency
  153  improvement, which includes, but is not limited to, projects and
  154  installations:
  155         a.To raise a structure above the base flood elevation to
  156  reduce flood damage.
  157         b.To build or repair a flood diversion apparatus or
  158  seawall improvement, which includes, but is not limited to,
  159  seawall repairs, caps, and replacements; banks; berms; green
  160  grey infrastructure; upland stem walls; or other infrastructure
  161  that impedes tidal waters from flowing onto adjacent property or
  162  public rights-of-way.
  163         c.That use flood damage resistant building materials.
  164         d.That mitigate or eliminate the potential for microbial
  165  growth.
  166         e.That use electrical, mechanical, plumbing, or other
  167  system improvements to reduce flood damage.
  168         f.That may qualify for reductions in flood insurance
  169  premiums or reduce repetitive loss such as those recognized by
  170  the National Flood Insurance Program, the Community Rating
  171  System, the Federal Emergency Management Agency, or other
  172  programs, including, but not limited to, those related to
  173  disaster recovery.
  174         6.Health and environmental hazards measure or improvement,
  175  which is a measure or an improvement intended to mitigate
  176  harmful health and environmental hazards to property occupants,
  177  including measures or improvements that mitigate or remove:
  178         a.The presence of lead, heavy metals, polyfluoroalkyl
  179  substance contamination, saltwater intrusion, or other harmful
  180  contaminants in potable water systems. Improvements may include
  181  conversion of well water to municipal water systems, replacement
  182  of lead water service lines, or installation of water filters.
  183         b.Asbestos.
  184         c.Lead paint contamination in housing built before 1978.
  185         d.Indoor air pollution or contaminants, including
  186  particulate matter, viruses, bacteria, and mold.
  187         7.Water conservation or efficiency improvement, which is a
  188  measure or improvement to reduce the usage of water or increase
  189  the efficiency of water usage.
  190         (j)“Residential real property” means a residential
  191  property of four or fewer dwelling units which is or will be
  192  improved by a qualifying improvement.
  193         (k)“Resiliency Energy Environment Florida (REEF) program”
  194  means a program established by a local government, alone or in
  195  partnership with other local governments or a program
  196  administrator, to finance qualifying improvements on commercial
  197  real property or residential real property.
  198         (4) Subject to local government ordinance or resolution, a
  199  property owner may apply to a REEF program the local government
  200  for funding to finance a qualifying improvement and enter into
  201  an assessment a financing agreement with the local government.
  202  Costs incurred by the REEF program local government for such
  203  purpose may be collected as a non-ad valorem assessment. A non
  204  ad valorem assessment shall be collected pursuant to s. 197.3632
  205  and, notwithstanding s. 197.3632(8)(a), is shall not be subject
  206  to a discount for early payment. However, the notice and
  207  adoption requirements of s. 197.3632(4) do not apply if this
  208  section is used and complied with, and the intent resolution,
  209  publication of notice, and mailed notices to the property
  210  appraiser, tax collector, and Department of Revenue required by
  211  s. 197.3632(3)(a) may be provided on or before August 15 in
  212  conjunction with any non-ad valorem assessment authorized by
  213  this section, if the property appraiser, tax collector, and
  214  local government agree.
  215         (6) A local government may enter into an agreement with a
  216  program administrator to administer a REEF program A qualifying
  217  improvement program may be administered by a for-profit entity
  218  or a not-for-profit organization on behalf of and at the
  219  discretion of the local government.
  220         (7) A local government may incur debt for the purpose of
  221  providing financing for the such improvements, which is payable
  222  from revenues received from the improved property, or any other
  223  available revenue source authorized by law.
  224         (8) A local government may enter into an assessment a
  225  financing agreement to finance or refinance a qualifying
  226  improvement only with the record owner of the affected property.
  227  Any assessment financing agreement entered into pursuant to this
  228  section or a summary memorandum of such agreement shall be
  229  submitted for recording recorded in the public records of the
  230  county within which the property is located by the sponsoring
  231  unit of local government within 5 days after execution of the
  232  agreement. The recorded agreement shall provide constructive
  233  notice that the assessment to be levied on the property
  234  constitutes a lien of equal dignity to county taxes and
  235  assessments from the date of recordation.
  236         (9) Before entering into an assessment a financing
  237  agreement, the local government or the program administrator
  238  acting on its behalf shall reasonably determine that:
  239         (a) All property taxes and any other assessments levied on
  240  the same bill as property taxes are current and have been paid
  241  and have not been delinquent for the preceding 3 years or the
  242  property owner’s period of ownership, whichever is less;
  243         (b)That There are no involuntary liens greater than
  244  $1,000, including, but not limited to, construction liens on the
  245  property;
  246         (c)That No notices of default or other evidence of
  247  property-based debt delinquency have been recorded and not
  248  released during the preceding 3 years or the property owner’s
  249  period of ownership, whichever is less;
  250         (d)The local government or program administrator has asked
  251  the property owner whether any other assessments have been
  252  recorded or that have been funded and not yet recorded on the
  253  property; and
  254         (e)That The property owner is current on all mortgage debt
  255  on the property.
  256         (10) Before final funding, a qualifying improvement must
  257  shall be affixed or plan to be affixed to a commercial or
  258  residential real building or facility that is part of the
  259  property and shall constitute an improvement to that property
  260  the building or facility or a fixture attached to the building
  261  or facility. An assessment financing agreement An agreement
  262  between a local government and a qualifying property owner may
  263  not cover qualifying wind-resistance improvements on commercial
  264  or residential real properties in buildings or facilities under
  265  new construction or construction for which a certificate of
  266  occupancy or similar evidence of substantial completion of new
  267  construction or improvement has not been issued.
  268         (12)(a) Without the consent of the holders or loan
  269  servicers of any mortgage encumbering or otherwise secured by
  270  the property, the total amount of any non-ad valorem assessment
  271  for a property under this section may not exceed 20 percent of
  272  the just value of the property as determined by the county
  273  property appraiser.
  274         (b) Notwithstanding paragraph (a), a non-ad valorem
  275  assessment for a qualifying improvement defined in subparagraph
  276  (2)(i)1. (2)(b)1. or subparagraph (2)(i)2. (2)(b)2. that is
  277  supported by an energy audit is not subject to the limits in
  278  this subsection if the audit demonstrates that the annual energy
  279  savings from the qualified improvement equals or exceeds the
  280  annual repayment amount of the non-ad valorem assessment.
  281         (13) At least 30 days before entering into an assessment a
  282  financing agreement, the property owner shall provide to the
  283  holders or loan servicers of any existing mortgages encumbering
  284  or otherwise secured by the property a notice of the owner’s
  285  intent to enter into an assessment a financing agreement
  286  together with the maximum principal amount to be financed and
  287  the maximum annual assessment necessary to repay that amount. A
  288  verified copy or other proof of such notice shall be provided to
  289  the local government. A provision in any agreement between a
  290  mortgagee or other lienholder and a property owner, or otherwise
  291  now or hereafter binding upon a property owner, which allows for
  292  acceleration of payment of the mortgage, note, or lien or other
  293  unilateral modification solely as a result of entering into an
  294  assessment a financing agreement as provided for in this section
  295  is not enforceable. This subsection does not limit the authority
  296  of the holder or loan servicer to increase the required monthly
  297  escrow by an amount necessary to annually pay the annual
  298  qualifying improvement assessment.
  299         (14) At or before the time a purchaser executes a contract
  300  for the sale and purchase of any property for which a non-ad
  301  valorem assessment has been levied under this section and has an
  302  unpaid balance due, the seller must shall give the prospective
  303  purchaser a written disclosure statement in the following form,
  304  which shall be set forth in the contract or in a separate
  305  writing:
  306  
  307         QUALIFYING IMPROVEMENTS FOR ENERGY EFFICIENCY,
  308         RENEWABLE ENERGY, FLOOD MITIGATION, OR WIND OR STORM
  309         RESILIENCE, ADVANCED TECHNOLOGIES FOR WASTEWATER
  310         TREATMENT, ENVIRONMENTAL HEALTH, OR WATER CONSERVATION
  311         RESISTANCE.—The property being purchased is located
  312         within the jurisdiction of a local government that has
  313         placed an assessment on the property pursuant to s.
  314         163.08, Florida Statutes. The assessment is for a
  315         qualifying improvement to the property relating to
  316         energy efficiency, renewable energy, flood mitigation,
  317         or wind or storm resilience, advanced technologies for
  318         wastewater treatment, environmental health, or water
  319         conservation resistance, and is not based on the value
  320         of property. You are encouraged to contact the county
  321         property appraiser’s office to learn more about this
  322         and other assessments that may be provided by law.
  323  
  324         (17)Before entering into an assessment financing agreement
  325  for a qualifying improvement on a residential real property, a
  326  program administrator must reasonably determine that the
  327  property owner has an ability to pay the estimated annual
  328  assessment based, at a minimum, on the following:
  329         (a)For property owners seeking financing where the total
  330  estimated annual payment amount of all assessments authorized
  331  under this section on the property is $4,800 or less, or the
  332  equivalent of $400 per month, the program administrator, at a
  333  minimum, must use the underwriting requirements in subsection
  334  (9) and confirm the property owner is not currently in
  335  bankruptcy in determining whether the property owner has a
  336  reasonable ability to pay the assessment. A program
  337  administrator shall annually recalculate the $4,800 limit to
  338  account for the rate of inflation established by the United
  339  States Bureau of Labor Statistics’ Consumer Price Index for All
  340  Urban Consumers (CPI-U), using the prior year 12-month average
  341  of the CPI-U, at an appropriate time following the release of
  342  the December CPI-U data from that prior year.
  343         (b)For property owners seeking financing where the total
  344  estimated annual payment amount of all assessments authorized
  345  under this section on the property is greater than $4,800, or
  346  the equivalent of $400 per month, the program administrator, at
  347  a minimum, must use the underwriting requirements in subsection
  348  (9), to confirm that the property owner is not in bankruptcy and
  349  determine that the total estimated annual payment amount for all
  350  the assessment financing agreements authorized under this
  351  section on the property does not exceed 10 percent of the
  352  property owner’s annual household income. Income may be
  353  confirmed using information gathered from reputable third
  354  parties that provide reasonably reliable evidence of the
  355  property owner’s household income. Income may not be confirmed
  356  solely from a property owner’s statement. A program
  357  administrator shall annually recalculate the $4,800 limit to
  358  account for the rate of inflation established by the United
  359  States Bureau of Labor Statistics’ Consumer Price Index for All
  360  Urban Consumers (CPI-U), using the prior year 12-month average
  361  of the CPI-U, at an appropriate time following the release of
  362  the December CPI-U data from that prior year.
  363         (18)Before an assessment financing agreement is entered
  364  into for a qualifying improvement on a residential real
  365  property, the program administrator must:
  366         (a)Provide a financing estimate and disclosure to the
  367  residential real property owner which includes all of the
  368  following:
  369         1.The total amount estimated to be funded, including the
  370  cost of the qualifying improvements, program fees, and
  371  capitalized interest, if any.
  372         2.The estimated annual assessment.
  373         3.The term of the assessment.
  374         4.The fixed interest charged and estimated annual
  375  percentage rate.
  376         5.A description of the qualifying improvement.
  377         6.A disclosure that if the property owner sells or
  378  refinances the property, the property owner, as a condition of
  379  the sale or the refinance, may be required by a mortgage lender
  380  to pay off the full amount owed under each assessment financing
  381  agreement.
  382         7.A disclosure that the assessment will be collected along
  383  with the property owner’s property taxes and will result in a
  384  lien on the property from the date the assessment financing
  385  agreement is executed.
  386         8.A disclosure that failure to pay the assessment may
  387  result in penalties and fees, along with the issuance of a tax
  388  certificate that could result in the property owner losing the
  389  real property.
  390         (b)Conduct, with a residential real property owner or an
  391  authorized representative, an oral, recorded telephone call
  392  during which time the program administrator must use plain
  393  language. The program administrator must ask the residential
  394  real property owner if he or she would like to communicate
  395  primarily in a language other than English. A program
  396  administrator may not leave a voicemail to the residential real
  397  property owner to satisfy this requirement. A program
  398  administrator, as part of such telephone call, must confirm all
  399  of the following with the residential real property owner:
  400         1.That at least one residential real property owner has
  401  access to a copy of the assessment financing agreement and
  402  financing estimates and disclosures.
  403         2.The qualifying improvement that is being financed.
  404         3.The total estimated annual costs that the residential
  405  real property owner will have to pay under the assessment
  406  financing agreement, including applicable fees.
  407         4.The total estimated average monthly equivalent amount of
  408  funds the residential real property owner would have to save in
  409  order to pay the annual costs of the assessment, including
  410  applicable fees.
  411         5.The estimated date the residential real property owner’s
  412  first property tax payment that includes the assessment will be
  413  due.
  414         6.The term of the assessment financing agreement.
  415         7.That payments for the assessment financing agreement
  416  will cause the residential real property owner’s annual tax bill
  417  to increase and that payments will be made through an additional
  418  annual assessment on the property and will be paid either
  419  directly to the county tax collector’s office as part of the
  420  total annual secured property tax bill or may be paid through
  421  the residential real property owner’s mortgage escrow account.
  422         8.That the qualifying residential property owner has
  423  disclosed whether the property has received or is seeking
  424  additional assessments authorized under this section and has
  425  disclosed all other assessments or special taxes that are or are
  426  about to be placed on the property.
  427         9.That the property will be subject to a lien during the
  428  term of the assessment financing agreement and that the
  429  obligations under the agreement may be required to be paid in
  430  full before the residential real property owner sells or
  431  refinances the property.
  432         10.That any potential utility or insurance savings are not
  433  guaranteed and will not reduce the assessment or total
  434  assessment amount.
  435         11.That the program administrator or contractor do not
  436  provide tax advice and that the residential real property owner
  437  should seek professional tax advice if he or she has questions
  438  regarding tax credits, tax deductibility, or other tax impacts
  439  of the qualifying improvement or the assessment financing
  440  agreement.
  441         (19)The residential real property owner may cancel the
  442  assessment financing agreement within 3 business days after
  443  signing the assessment financing agreement without any financial
  444  penalty for doing so.
  445         (20)The term of an assessment financing agreement on
  446  residential real property may not exceed:
  447         (a)The estimated useful life of the qualifying improvement
  448  being installed if one improvement is being financed; or
  449         (b)Either the weighted average estimated useful life of
  450  all qualifying improvements being financed or the estimated
  451  useful life of the qualifying improvements to which the greatest
  452  portion of funds are disbursed if multiple qualifying
  453  improvements are being financed.
  454  
  455  A financing term on residential real property may not exceed 30
  456  years.
  457         (21) A program administrator may not offer assessment
  458  financing on any residential real property if the financing
  459  includes any of the following:
  460         (a) A negative amortization schedule;
  461         (b) A balloon payment; or
  462         (c) Prepayment fees, other than nominal administrative
  463  costs.
  464         (22) For residential real property, a program
  465  administrator:
  466         (a) May not enroll a contractor who offers assessment
  467  financing on residential real property unless:
  468         1. The program administrator makes a reasonable effort to
  469  review that the contractor maintains in good standing an
  470  appropriate license from the state, if applicable, as well as
  471  any other permits, licenses, or registrations required for
  472  engaging in business in the jurisdiction in which it operates
  473  and that the contractor maintains all state required bond and
  474  insurance coverage.
  475         2. The program administrator obtains the contractor’s
  476  written agreement that the contractor will act in accordance
  477  with all applicable laws, including applicable advertising and
  478  marketing laws and regulations.
  479         (b) Must maintain a process to enroll new contractors which
  480  includes reasonable review of the following for each contractor:
  481         1. Relevant work or project history.
  482         2. Financial and reputational background checks.
  483         3. Criminal background check. A program administrator may
  484  rely on a background check conducted by the Florida Department
  485  of Business and Professional Regulation Construction Industry
  486  Licensing Board to comply with this requirement.
  487         4. Status on Better Business Bureau or other online
  488  platforms that track contractor reviews.
  489         (23)(a) Before disbursing funds to a contractor for a
  490  qualifying improvement on residential real property, a program
  491  administrator must first confirm the applicable work or service
  492  has been completed, either through written certification from
  493  the property owner, a recorded telephone call with the property
  494  owner, or a site inspection through third-party means.
  495         (b) A program administrator may not disclose to a
  496  contractor or to a third party engaged in soliciting an
  497  assessment financing agreement the maximum financing amount for
  498  which a residential real property owner is eligible.
  499         (24) Each program administrator and contractor must comply
  500  with the following marketing and communications guidelines when
  501  communicating with residential real property owners:
  502         (a) A program administrator or contractor may not suggest
  503  or imply:
  504         1. That a REEF program or assessment financing is a
  505  government assistance program;
  506         2. That qualifying improvements are free or that assessment
  507  financing is a free program; or
  508         3. That the financing of a qualifying improvement using the
  509  REEF program does not require the property owner to repay the
  510  financial obligation.
  511         (b) A program administrator or contractor may not make any
  512  representation as to the tax deductibility of an assessment
  513  authorized under this section on residential real property. A
  514  program administrator or contractor may encourage a property
  515  owner to seek the advice of a tax professional regarding tax
  516  matters related to assessments.
  517         (25) A contractor should not present a higher price for a
  518  qualifying improvement on residential real property financed by
  519  assessment financing agreement than the contractor would
  520  otherwise reasonably present if the qualifying improvement were
  521  not being financed through a PACE assessment contract.
  522         (26)Notwithstanding any provisions to the contrary
  523  contained in this section, the following applies to government
  524  leased property:
  525         (a)The assessment financing agreement shall be executed by
  526  either:
  527         1.Both the local government and the nongovernmental
  528  lessee; or
  529         2.Solely by the nongovernmental lessee but with the
  530  written consent of the local government that must provide
  531  evidence of such consent to the program administrator or REEF
  532  program.
  533         (b)The assessment financing agreement must provide that
  534  the nongovernmental lessee is the only party obligated to pay
  535  the assessment.
  536         (c)A delinquent assessment shall be enforced in the manner
  537  provided in s. 196.199(8).
  538         (d)The recorded assessment financing agreement or a
  539  summary memorandum of such recorded agreement shall provide
  540  constructive notice that the assessment to be levied on the
  541  property is subject to enforcement in the manner provided in ss.
  542  197.432(10) and 196.199(8).
  543         (e)For purposes of subsections (9) and (13) only,
  544  references to the property owner shall be deemed to refer to the
  545  nongovernmental lessee, and references to the period of
  546  ownership shall be deemed to refer to the period that the
  547  nongovernmental lessee has been leasing the property from the
  548  local government.
  549         (f) The term of the assessment financing agreement on
  550  government leased property may not exceed the lesser of:
  551         1. The useful life of the qualifying improvement being
  552  financed if one improvement is being financed, or, either the
  553  weighted average estimated useful life of all qualifying
  554  improvements being financed or the estimated useful life of the
  555  qualifying improvements to which the greatest portion of funds
  556  are disbursed if multiple qualifying improvements are being
  557  financed;
  558         2. The remaining term of the lease on the government leased
  559  property; or
  560         3. Thirty years.
  561         (27)Residential real property is exempt from subsections
  562  (17) through (25) if:
  563         (a)The residential real property is owned by a business
  564  entity that owns more than one residential real property; and
  565         (b)The business entity’s managing member, partner, or
  566  beneficial owner does not reside in the residential real
  567  property.
  568         Section 2. This act shall take effect July 1, 2021.
  569  
  570  ================= T I T L E  A M E N D M E N T ================
  571  And the title is amended as follows:
  572         Delete everything before the enacting clause
  573  and insert:
  574                        A bill to be entitled                      
  575         An act relating to the Resiliency Energy Environment
  576         Florida (REEF) program; amending s. 163.08, F.S.;
  577         revising legislative findings; defining and redefining
  578         terms; specifying that a property owner may apply to a
  579         REEF program for certain purposes; providing that
  580         costs incurred by the REEF program may be collected as
  581         a non-ad valorem assessment; authorizing a local
  582         government to enter into agreements with program
  583         administrators and to incur debt; authorizing a local
  584         government to enter into an assessment financing
  585         agreement only with the record owner of the affected
  586         property; revising the items a local government or a
  587         program administrator must reasonably determine before
  588         entering into an assessment financing agreement;
  589         requiring a qualifying improvement to be affixed or
  590         plan to be affixed to specified properties before
  591         final funding; authorizing an assessment financing
  592         agreement to cover qualifying improvements on real
  593         properties under new construction; revising the
  594         written disclosure statement required to be given by
  595         sellers to prospective purchasers when executing a
  596         contract for the sale and purchase of certain
  597         properties; requiring a program administrator to make
  598         specified determinations about a property owner’s
  599         ability to pay the annual assessment; specifying
  600         information a program administrator must provide to
  601         the residential real property owner or an authorized
  602         representative before entering into an assessment
  603         financing agreement; specifying a timeframe within
  604         which a residential real property owner may cancel an
  605         assessment financing agreement; prohibiting the term
  606         of an assessment financing agreement from exceeding
  607         specified timeframes; prohibiting a program
  608         administrator from offering specified types of
  609         financing for residential real properties; prohibiting
  610         a program administrator from enrolling certain
  611         contractors unless certain conditions are met;
  612         providing requirements that must be met before a
  613         program administrator may disburse funds; specifying
  614         marketing and communications guidelines that program
  615         administrators and contractors must comply with when
  616         communicating with residential real property owners;
  617         prohibiting a contractor from engaging in certain
  618         practices regarding pricing of qualifying improvements
  619         on residential real properties; specifying
  620         requirements for government leased property; providing
  621         exemptions for residential real property that meets
  622         certain conditions; providing an effective date.