CS for CS for SB 770                      Second Engrossed (ntc)
       
       
       
       
       
       
       
       
       2024770e2
       
    1                        A bill to be entitled                      
    2         An act relating to improvements to real property;
    3         amending s. 163.08, F.S.; deleting provisions relating
    4         to legislative findings and intent; defining terms and
    5         revising definitions; creating s. 163.081, F.S.;
    6         authorizing a program administrator to offer a program
    7         for financing qualifying improvements for residential
    8         property when authorized by a county or municipality;
    9         requiring an authorized program administrator that
   10         administers an authorized program to meet certain
   11         requirements; authorizing a county or municipality to
   12         enter into an interlocal agreement to implement a
   13         program; authorizing a county or municipality to
   14         deauthorize a program administrator through certain
   15         measures; allowing a recorded financing agreement at
   16         the time of deauthorization to continue, with an
   17         exception; authorizing a program administrator to
   18         contract with third-party administrators to implement
   19         the program; authorizing a program administrator to
   20         levy non-ad valorem assessments for a certain purpose;
   21         providing for compensation for tax collectors for
   22         actual costs incurred to collect non-ad valorem
   23         assessments; authorizing a program administrator to
   24         incur debt for the purpose of providing financing for
   25         qualifying improvements; authorizing the owner of
   26         record of the residential property to apply to the
   27         program administrator to finance a qualifying
   28         improvement; requiring the program administrator to
   29         make certain findings before entering into a financing
   30         agreement; requiring the program administrator to
   31         ascertain certain financial information from the
   32         property owner before entering into a financing
   33         agreement; requiring certain documentation before the
   34         financing agreement is approved and recorded;
   35         requiring an advisement and notification for certain
   36         qualifying improvements; requiring certain financing
   37         agreement and contract provisions for change orders
   38         under certain circumstances; prohibiting a financing
   39         agreement from being entered into under certain
   40         circumstances; requiring the program administrator to
   41         provide certain information before a financing
   42         agreement may be executed; requiring an oral, recorded
   43         telephone call with the residential property owner to
   44         confirm findings and disclosures before the approval
   45         of a financing agreement; requiring the residential
   46         property owner to provide written notice to the holder
   47         or loan servicer of his or her intent to enter into a
   48         financing agreement as well as other financial
   49         information; requiring that proof of such notice be
   50         provided to the program administrator; providing that
   51         a certain acceleration provision in an agreement
   52         between the residential property owner and mortgagor
   53         or lienholder is unenforceable; providing that the
   54         lienholder or loan servicer retains certain authority;
   55         authorizing a residential property owner, under
   56         certain circumstances and within a certain timeframe,
   57         to cancel a financing agreement without financial
   58         penalty; requiring recording of the financing
   59         agreement in a specified timeframe; creating the
   60         seller’s disclosure statements for properties offered
   61         for sale which have assessments on them for qualifying
   62         improvements; requiring the program administrator to
   63         confirm that certain conditions are met before
   64         disbursing final funds to a qualifying improvement
   65         contractor for qualifying improvements on residential
   66         property; requiring a program administrator to confirm
   67         that the applicable work service has been completed or
   68         the final permit for the qualifying improvement has
   69         been closed and evidence of substantial completion of
   70         construction or improvement has been issued; creating
   71         s. 163.082, F.S.; authorizing a program administrator
   72         to offer a program for financing qualifying
   73         improvements for commercial property when authorized
   74         by a county or municipality; requiring an authorized
   75         program administrator that administers an authorized
   76         program to meet certain requirements; authorizing a
   77         county or municipality to enter into an interlocal
   78         agreement to implement a program; authorizing a county
   79         or municipality to deauthorize a program administrator
   80         through certain measures; authorizing a recorded
   81         financing agreement at the time of deauthorization to
   82         continue, with an exception; authorizing a program
   83         administrator to contract with third-party
   84         administrators to implement the program; authorizing a
   85         program administrator to levy non-ad valorem
   86         assessments for a certain purpose; providing for
   87         compensation for tax collectors for actual costs
   88         incurred to collect non-ad valorem assessments;
   89         authorizing a program administrator to incur debt for
   90         the purpose of providing financing for qualifying
   91         improvements; authorizing the owner of record of the
   92         commercial property to apply to the program
   93         administrator to finance a qualifying improvement;
   94         requiring the program administrator to receive the
   95         written consent of current holders or loan servicers
   96         of certain mortgages encumbering or secured by
   97         commercial property; requiring a program administrator
   98         offering a program for financing qualifying
   99         improvements to commercial property to certain
  100         underwriting criteria; requiring the program
  101         administrator to make certain findings before entering
  102         into a financing agreement; requiring the program
  103         administrator to ascertain certain financial
  104         information from the property owner before entering
  105         into a financing agreement; requiring the program
  106         administrator to document and retain certain findings;
  107         requiring certain financing agreement and contract
  108         provisions for change orders under certain
  109         circumstances; prohibiting a financing agreement from
  110         being entered into under certain circumstances;
  111         requiring the program administrator to provide certain
  112         information before a financing agreement may be
  113         executed; requiring any financing agreement executed
  114         pursuant to this section be submitted for recording in
  115         the public records of the county where the commercial
  116         property is located in a specified timeframe;
  117         requiring that the recorded agreement provide
  118         constructive notice that the non-ad valorem assessment
  119         levied on the property is a lien of equal dignity;
  120         providing that a lien with a certain acceleration
  121         provision is unenforceable; creating the seller’s
  122         disclosure statements for properties offered for sale
  123         which have assessments on them for qualifying
  124         improvements; requiring the program administrator to
  125         confirm that certain conditions are met before
  126         disbursing final funds to a qualifying improvement
  127         contractor for qualifying improvements on commercial
  128         property; providing construction; creating s. 163.083,
  129         F.S.; requiring a county or municipality to establish
  130         or approve a process for the registration of a
  131         qualifying improvement contractor to install
  132         qualifying improvements; requiring certain conditions
  133         for a qualifying improvement contractor to participate
  134         in a program; prohibiting a third-party administrator
  135         from registering as a qualifying improvement
  136         contractor; requiring the program administrator to
  137         monitor qualifying improvement contractors, enforce
  138         certain penalties for a finding of violation, and post
  139         certain information online; creating s. 163.084, F.S.;
  140         authorizing the program administrator to contract with
  141         entities to administer an authorized program;
  142         providing certain requirements for a third-party
  143         administrator; prohibiting a program administrator
  144         from acting as a third-party administrator under
  145         certain circumstances; providing an exception;
  146         requiring the program administrator to include in its
  147         contract with the third-party administrator the right
  148         to perform annual reviews of the administrator;
  149         authorizing the program administrator to take certain
  150         actions if the program administrator finds that the
  151         third-party administrator has committed a violation of
  152         its contract; authorizing a program administrator to
  153         terminate an agreement with a third-party
  154         administrator under certain circumstances; providing
  155         for the continuation of certain financing agreements
  156         after the termination or suspension of the third-party
  157         administrator, with an exception; creating s. 163.085,
  158         F.S.; requiring that, in communicating with the
  159         property owner, the program administrator, qualifying
  160         improvement contractor, or third-party administrator
  161         comply with certain requirements; prohibiting the
  162         program administrator or third-party administrator
  163         from disclosing certain financing information to a
  164         qualifying improvement contractor; prohibiting a
  165         qualifying improvement contractor from making certain
  166         advertisements or solicitations; providing exceptions;
  167         prohibiting a program administrator or third-party
  168         administrator from providing certain payments, fees,
  169         or kickbacks to a qualifying improvement contractor;
  170         prohibiting a program administrator or third-party
  171         administrator from reimbursing a qualifying
  172         improvement contractor for certain expenses;
  173         prohibiting a qualifying improvement contractor from
  174         providing different prices for a qualifying
  175         improvement; requiring a contract between a property
  176         owner and a qualifying improvement contractor to
  177         include certain provisions; prohibiting a program
  178         administrator, qualifying improvement contractor, or
  179         third-party administrator from providing any cash
  180         payment or anything of material value to a property
  181         owner which is explicitly conditioned on a financing
  182         agreement; providing exceptions; creating s. 163.086,
  183         F.S.; prohibiting a recorded financing agreement from
  184         being removed from attachment to a property under
  185         certain circumstances; providing for the
  186         unenforceability of a financing agreement under
  187         certain circumstances; providing provisions for when a
  188         qualifying improvement contractor initiates work on an
  189         unenforceable contract; providing that a qualifying
  190         improvement contractor may retrieve chattel or
  191         fixtures delivered pursuant to an unenforceable
  192         contract if certain conditions are met; providing that
  193         an unenforceable contract will remain unenforceable
  194         under certain circumstances; creating s. 163.087,
  195         F.S.; requiring a program administrator authorized to
  196         administer a program for financing a qualifying
  197         improvement to post on its website an annual report;
  198         specifying requirements for the report; requiring the
  199         Auditor General to conduct an operational audit of
  200         each program administrator; requiring the Auditor
  201         General to adopt certain rules requiring certain
  202         reporting from the program administrator; requiring
  203         program administrators and, if applicable, third-party
  204         administrators to post the report on its website;
  205         providing that a contract, agreement, authorization,
  206         or interlocal agreement entered into before a certain
  207         date may continue without additional action by the
  208         county or municipality; requiring that the program
  209         administrator comply with the act and that any related
  210         contracts, agreements, authorizations, or interlocal
  211         agreements be amended to comply with the act;
  212         providing an effective date.
  213          
  214  Be It Enacted by the Legislature of the State of Florida:
  215  
  216         Section 1. Section 163.08, Florida Statutes, is amended to
  217  read:
  218         (Substantial rewording of section. See
  219         s. 163.08, F.S., for present text.)
  220         163.08 Definitions.—As used in ss. 163.081-163.087, the
  221  term:
  222         (1) “Commercial property” means real property other than
  223  residential property. The term includes, but is not limited to,
  224  a property zoned multifamily residential which is composed of
  225  five or more dwelling units; and real property used for
  226  commercial, industrial, or agricultural purposes.
  227         (2) “Program administrator” means a county, a municipality,
  228  a dependent special district as defined in s. 189.012, or a
  229  separate legal entity created pursuant to s. 163.01(7) which
  230  directly operates a program for financing qualifying
  231  improvements and is authorized pursuant to s. 163.081 or s.
  232  163.082.
  233         (3)“Property owner” means the owner or owners of record of
  234  real property. The term includes real property held in trust for
  235  the benefit of one or more individuals, in which case the
  236  individual or individuals may be considered as the property
  237  owner or owners, provided that the trustee provides written
  238  consent. The term does not include persons renting, using,
  239  living, or otherwise occupying real property.
  240         (4) “Qualifying improvement” means the following permanent
  241  improvements located on real property within the jurisdiction of
  242  an authorized financing program:
  243         (a) For improvements on residential property:
  244         1. Repairing, replacing, or improving a central sewerage
  245  system, converting an onsite sewage treatment and disposal
  246  system to a central sewerage system, or, if no central sewerage
  247  system is available, removing, repairing, replacing, or
  248  improving an onsite sewage treatment and disposal system to an
  249  advanced system or technology.
  250         2. Repairing, replacing, or improving a roof, including
  251  improvements that strengthen the roof deck attachment; create a
  252  secondary water barrier to prevent water intrusion; install
  253  wind-resistant shingles or gable-end bracing; or reinforce roof
  254  to-wall connections.
  255         3.Providing flood and water damage mitigation and
  256  resiliency improvements, prioritizing repairs, replacement, or
  257  improvements that qualify for reductions in flood insurance
  258  premiums, including raising a structure above the base flood
  259  elevation to reduce flood damage; constructing a flood diversion
  260  apparatus, drainage gate, or seawall improvement, including
  261  seawall repairs and seawall replacements; purchasing flood
  262  damage-resistant building materials; or making electrical,
  263  mechanical, plumbing, or other system improvements that reduce
  264  flood damage.
  265         4. Replacing windows or doors, including garage doors, with
  266  energy-efficient, impact-resistant, wind-resistant, or hurricane
  267  windows or doors or installing storm shutters.
  268         5. Installing energy-efficient heating, cooling, or
  269  ventilation systems.
  270         6. Replacing or installing insulation.
  271         7. Replacing or installing energy-efficient water heaters.
  272         8. Installing and affixing a permanent generator.
  273         9. Providing a renewable energy improvement, including the
  274  installation of any system in which the electrical, mechanical,
  275  or thermal energy is produced from a method that uses solar,
  276  geothermal, bioenergy, wind, or hydrogen.
  277         (b) For installing or constructing improvements on
  278  commercial property:
  279         1. Waste system improvements, which consists of repairing,
  280  replacing, improving, or constructing a central sewerage system,
  281  converting an onsite sewage treatment and disposal system to a
  282  central sewerage system, or, if no central sewerage system is
  283  available, removing, repairing, replacing, or improving an
  284  onsite sewage treatment and disposal system to an advanced
  285  system or technology.
  286         2. Making resiliency improvements, which includes but is
  287  not limited to:
  288         a. Repairing, replacing, improving, or constructing a roof,
  289  including improvements that strengthen the roof deck attachment;
  290         b. Creating a secondary water barrier to prevent water
  291  intrusion;
  292         c. Installing wind-resistant shingles or gable-end bracing;
  293         d. Reinforcing roof-to-wall connections; or
  294         e.Providing flood and water damage mitigation and
  295  resiliency improvements, prioritizing repairs, replacement, or
  296  improvements that qualify for reductions in flood insurance
  297  premiums, including raising a structure above the base flood
  298  elevation to reduce flood damage; creating or improving
  299  stormwater and flood resiliency, including flood diversion
  300  apparatus, drainage gates, or shoreline improvements; purchasing
  301  flood-damage-resistant building materials; or making any other
  302  improvements necessary to achieve a sustainable building rating
  303  or compliance with a national model resiliency standard and any
  304  improvements to a structure to achieve wind or flood insurance
  305  rate reductions, including building elevation.
  306         3. Energy conservation and efficiency improvements, which
  307  are measures to reduce consumption through efficient use or
  308  conservation of electricity, natural gas, propane, or other
  309  forms of energy, including but not limited to, air sealing;
  310  installation of insulation; installation of energy-efficient
  311  heating, cooling, or ventilation systems; building modification
  312  to increase the use of daylight; window replacement; windows;
  313  energy controls or energy recovery systems; installation of
  314  electric vehicle charging equipment; installation of efficient
  315  lighting equipment; or any other improvements necessary to
  316  achieve a sustainable building rating or compliance with a
  317  national model green building code.
  318         4. Renewable energy improvements, including the
  319  installation of any system in which the electrical, mechanical,
  320  or thermal energy is produced from a method that uses solar,
  321  geothermal, bioenergy, wind, or hydrogen.
  322         5. Water conservation efficiency improvements, which are
  323  measures to reduce consumption through efficient use or
  324  conservation of water.
  325         (5) “Qualifying improvement contractor” means a licensed or
  326  registered contractor who has been registered to participate by
  327  a program administrator pursuant to s. 163.083 to install or
  328  otherwise perform work to make qualifying improvements on
  329  residential property financed pursuant to a program authorized
  330  under s. 163.081.
  331         (6) “Residential property” means real property zoned as
  332  residential or multifamily residential and composed of four or
  333  fewer dwelling units.
  334         (7) “Third-party administrator” means an entity under
  335  contract with a program administrator pursuant to s. 163.084.
  336         Section 2. Section 163.081, Florida Statutes, is created to
  337  read:
  338         163.081Financing qualifying improvements to residential
  339  property.—
  340         (1) RESIDENTIAL PROPERTY PROGRAM AUTHORIZATION.—
  341         (a) A program administrator may only offer a program for
  342  financing qualifying improvements to residential property within
  343  the jurisdiction of a county or municipality if the county or
  344  municipality has authorized by ordinance or resolution the
  345  program administrator to administer the program for financing
  346  qualifying improvements to residential property. The authorized
  347  program must, at a minimum, meet the requirements of this
  348  section.
  349         (b) Pursuant to this section or as otherwise provided by
  350  law or pursuant to a county’s or municipality’s home rule power,
  351  a county or municipality may enter into an interlocal agreement
  352  providing for a partnership between one or more counties or
  353  municipalities for the purpose of facilitating a program to
  354  finance qualifying improvements to residential property located
  355  within the jurisdiction of the counties or municipalities that
  356  are party to the agreement.
  357         (c) A county or municipality may deauthorize a program
  358  administrator through repeal of the ordinance or resolution
  359  adopted pursuant to paragraph (a) or other action. Any recorded
  360  financing agreements at the time of deauthorization shall
  361  continue, except any financing agreement for which the
  362  provisions of s. 163.086 apply.
  363         (d) An authorized program administrator may contract with
  364  one or more third-party administrators to implement the program
  365  as provided in s. 163.084.
  366         (e) An authorized program administrator may levy non-ad
  367  valorem assessments to facilitate repayment of financing
  368  qualifying improvements. Costs incurred by the program
  369  administrator for such purpose may be collected as a non-ad
  370  valorem assessment. A non-ad valorem assessment shall be
  371  collected pursuant to s. 197.3632 and, notwithstanding s.
  372  197.3632(8)(a), shall not be subject to discount for early
  373  payment. However, the notice and adoption requirements of s.
  374  197.3632(4) do not apply if this section is used and complied
  375  with, and the intent resolution, publication of notice, and
  376  mailed notices to the property appraiser, tax collector, and
  377  Department of Revenue required by s. 197.3632(3)(a) may be
  378  provided on or before August 15 of each year in conjunction with
  379  any non-ad valorem assessment authorized by this section, if the
  380  property appraiser, tax collector, and program administrator
  381  agree. The program administrator shall only compensate the tax
  382  collector for the actual cost of collecting non-ad valorem
  383  assessments, not to exceed 2 percent of the amount collected and
  384  remitted.
  385         (f) A program administrator may incur debt for the purpose
  386  of providing financing for qualifying improvements, which debt
  387  is payable from revenues received from the improved property or
  388  any other available revenue source authorized by law.
  389         (2) APPLICATION.—The owner of record of the residential
  390  property within the jurisdiction of an authorized program may
  391  apply to the authorized program administrator to finance a
  392  qualifying improvement. The program administrator may only enter
  393  into a financing agreement with the property owner.
  394         (3) FINANCING AGREEMENTS.—
  395         (a) Before entering into a financing agreement, the program
  396  administrator must make each of the following findings based on
  397  a review of public records derived from a commercially accepted
  398  source and the property owner’s statements, records, and credit
  399  reports:
  400         1. There are sufficient resources to complete the project.
  401         2.The total amount of any non-ad valorem assessment for a
  402  residential property under this section does not exceed 20
  403  percent of the just value of the property as determined by the
  404  property appraiser. The total amount may exceed this limitation
  405  upon written consent of the holders or loan servicers of any
  406  mortgage encumbering or otherwise secured by the residential
  407  property.
  408         3. The financing agreement does not utilize a negative
  409  amortization schedule, a balloon payment, or prepayment fees or
  410  fines other than nominal administrative costs. Capitalized
  411  interest included in the original balance of the assessment
  412  financing agreement does not constitute negative amortization.
  413         4. All property taxes and any other assessments, including
  414  non-ad valorem assessments, levied on the same bill as the
  415  property taxes are current and have not been delinquent for the
  416  preceding 3 years, or the property owner’s period of ownership,
  417  whichever is less.
  418         5. There are no outstanding fines or fees related to zoning
  419  or code enforcement violations issued by a county or
  420  municipality, unless the qualifying improvement will remedy the
  421  zoning or code violation.
  422         6. There are no involuntary liens, including, but not
  423  limited to, construction liens on the residential property.
  424         7. No notices of default or other evidence of property
  425  based debt delinquency have been recorded and not released
  426  during the preceding 3 years or the property owner’s period of
  427  ownership, whichever is less.
  428         8. The property owner is current on all mortgage debt on
  429  the residential property.
  430         9. The property owner has not been subject to a bankruptcy
  431  proceeding within the last 5 years unless it was discharged or
  432  dismissed more than 2 years before the date on which the
  433  property owner applied for financing.
  434         10. The residential property is not subject to an existing
  435  home equity conversion mortgage or reverse mortgage product.
  436         11. The term of the financing agreement does not exceed the
  437  weighted average useful life of the qualified improvements to
  438  which the greatest portion of funds disbursed under the
  439  assessment contract is attributable, not to exceed 20 years. The
  440  program administrator shall determine the useful life of a
  441  qualifying improvement using established standards, including
  442  certification criteria from government agencies or nationally
  443  recognized standards and testing organizations.
  444         12. The total estimated annual payment amount for all
  445  financing agreements entered into under this section on the
  446  residential property does not exceed 10 percent of the property
  447  owner’s annual household income. Income must be confirmed using
  448  reasonable evidence and not solely by a property owner’s
  449  statement.
  450         13. If the qualifying improvement is for the conversion of
  451  an onsite sewage treatment and disposal system to a central
  452  sewerage system, the property owner has utilized all available
  453  local government funding for such conversions and is unable to
  454  obtain financing for the improvement on more favorable terms
  455  through a local government program designed to support such
  456  conversions.
  457         (b) Before entering into a financing agreement, the program
  458  administrator must determine if there are any current financing
  459  agreements on the residential property and if the property owner
  460  has obtained or sought to obtain additional qualifying
  461  improvements on the same property which have not yet been
  462  recorded. The existence of a prior qualifying improvement non-ad
  463  valorem assessment or a prior financing agreement is not
  464  evidence that the financing agreement under consideration is
  465  affordable or meets other program requirements.
  466         (c) Findings satisfying paragraphs (a) and (b) must be
  467  documented, including supporting evidence relied upon, and
  468  provided to the property owner prior to a financing agreement
  469  being approved and recorded. The program administrator must
  470  retain the documentation for the duration of the financing
  471  agreement.
  472         (d) If the qualifying improvement is estimated to cost
  473  $10,000 or more, before entering into a financing agreement the
  474  program administrator must advise the property owner in writing
  475  that the best practice is to obtain estimates from more than one
  476  unaffiliated, registered qualifying improvement contractor for
  477  the qualifying improvement and notify the property owner in
  478  writing of the advertising and solicitation requirements of s.
  479  163.085.
  480         (e) A property owner and the program administrator may
  481  agree to include in the financing agreement provisions for
  482  allowing change orders necessary to complete the qualifying
  483  improvement. Any financing agreement or contract for qualifying
  484  improvements which includes such provisions must meet the
  485  requirements of this paragraph. If a proposed change order on a
  486  qualifying improvement will increase the original cost of the
  487  qualifying improvement by 20 percent or more or will expand the
  488  scope of the qualifying improvement by more than 20 percent,
  489  before the change order may be executed which would result in an
  490  increase in the amount financed through the program
  491  administrator for the qualifying improvement, the program
  492  administrator must notify the property owner, provide an updated
  493  written disclosure form as described in subsection (4) to the
  494  property owner, and obtain written approval of the change from
  495  the property owner.
  496         (f) A financing agreement may not be entered into if the
  497  total cost of the qualifying improvement, including program fees
  498  and interest, is less than $2,500.
  499         (g) A financing agreement may not be entered into for
  500  qualifying improvements in buildings or facilities under new
  501  construction or construction for which a certificate of
  502  occupancy or similar evidence of substantial completion of new
  503  construction or improvement has not been issued.
  504         (4) DISCLOSURES.—
  505         (a) In addition to the requirements imposed in subsection
  506  (3), a financing agreement may not be executed unless the
  507  program administrator first provides, including via electronic
  508  means, a written financing estimate and disclosure to the
  509  property owner which includes all of the following, each of
  510  which must be individually acknowledged in writing by the
  511  property owner:
  512         1. The estimated total amount to be financed, including the
  513  total and itemized cost of the qualifying improvement, program
  514  fees, and capitalized interest;
  515         2. The estimated annual non-ad valorem assessment;
  516         3. The term of the financing agreement and the schedule for
  517  the non-ad valorem assessments;
  518         4. The interest charged and estimated annual percentage
  519  rate;
  520         5. A description of the qualifying improvement;
  521         6. The total estimated annual costs that will be required
  522  to be paid under the assessment contract, including program
  523  fees;
  524         7. The total estimated average monthly equivalent amount of
  525  funds that would need to be saved in order to pay the annual
  526  costs of the non-ad valorem assessment, including program fees;
  527         8. The estimated due date of the first payment that
  528  includes the non-ad valorem assessment;
  529         9. A disclosure that the financing agreement may be
  530  canceled within 3 business days after signing the financing
  531  agreement without any financial penalty for doing so;
  532         10. A disclosure that the property owner may repay any
  533  remaining amount owed, at any time, without penalty or
  534  imposition of additional prepayment fees or fines other than
  535  nominal administrative costs;
  536         11. A disclosure that if the property owner sells or
  537  refinances the residential property, the property owner may be
  538  required by a mortgage lender to pay off the full amount owed
  539  under each financing agreement under this section;
  540         12. A disclosure that the assessment will be collected
  541  along with the property owner’s property taxes, and will result
  542  in a lien on the property from the date the financing agreement
  543  is recorded;
  544         13. A disclosure that potential utility or insurance
  545  savings are not guaranteed, and will not reduce the assessment
  546  amount; and
  547         14. A disclosure that failure to pay the assessment may
  548  result in penalties, fees, including attorney fees, court costs,
  549  and the issuance of a tax certificate that could result in the
  550  property owner losing the property and a judgment against the
  551  property owner, and may affect the property owner’s credit
  552  rating.
  553         (b) Prior to the financing agreement being approved, the
  554  program administrator must conduct an oral, recorded telephone
  555  call with the property owner during which the program
  556  administrator must confirm each finding or disclosure required
  557  in subsection (3) and this section.
  558         (5) NOTICE TO LIENHOLDERS AND SERVICERS.—At least 5
  559  business days before entering into a financing agreement, the
  560  property owner must provide to the holders or loan servicers of
  561  any existing mortgages encumbering or otherwise secured by the
  562  residential property a written notice of the owner’s intent to
  563  enter into a financing agreement together with the maximum
  564  amount to be financed, including the amount of any fees and
  565  interest, and the maximum annual assessment necessary to repay
  566  the total. A verified copy or other proof of such notice must be
  567  provided to the program administrator. A provision in any
  568  agreement between a mortgagor or other lienholder and a property
  569  owner, or otherwise now or hereafter binding upon a property
  570  owner, which allows for acceleration of payment of the mortgage,
  571  note, or lien or other unilateral modification solely as a
  572  result of entering into a financing agreement as provided for in
  573  this section is unenforceable. This subsection does not limit
  574  the authority of the holder or loan servicer to increase the
  575  required monthly escrow by an amount necessary to pay the annual
  576  assessment.
  577         (6) CANCELLATION.—A property owner may cancel a financing
  578  agreement on a form established by the program administrator
  579  within 3 business days after signing the financing agreement
  580  without any financial penalty for doing so.
  581         (7) RECORDING.—Any financing agreement executed pursuant to
  582  this section, or a summary memorandum of such agreement, shall
  583  be submitted for recording in the public records of the county
  584  within which the residential property is located by the program
  585  administrator within 10 business days after execution of the
  586  agreement and the 3-day cancellation period. The recorded
  587  agreement must provide constructive notice that the non-ad
  588  valorem assessment to be levied on the property constitutes a
  589  lien of equal dignity to county taxes and assessments from the
  590  date of recordation. A notice of lien for the full amount of the
  591  financing may be recorded in the public records of the county
  592  where the property is located. Such lien is not enforceable in a
  593  manner that results in the acceleration of the remaining
  594  nondelinquent unpaid balance under the assessment financing
  595  agreement.
  596         (8) SALE OF RESIDENTIAL PROPERTY.—At or before the time a
  597  seller executes a contract for the sale of any residential
  598  property for which a non-ad valorem assessment has been levied
  599  under this section and has an unpaid balance due, the seller
  600  shall give the prospective purchaser a written disclosure
  601  statement in the following form, which must be set forth in the
  602  contract or in a separate writing:
  603  
  604         QUALIFYING IMPROVEMENTS.—The property being purchased
  605         is subject to an assessment on the property pursuant
  606         to s. 163.081, Florida Statutes. The assessment is for
  607         a qualifying improvement to the property and is not
  608         based on the value of the property. You are encouraged
  609         to contact the property appraiser’s office to learn
  610         more about this and other assessments that may be
  611         provided by law.
  612  
  613         (9) DISBURSEMENTS.—Before disbursing final funds to a
  614  qualifying improvement contractor for a qualifying improvement
  615  on residential property, the program administrator shall confirm
  616  that the applicable work or service has been completed or, as
  617  applicable, that the final permit for the qualifying improvement
  618  has been closed with all permit requirements satisfied or a
  619  certificate of occupancy or similar evidence of substantial
  620  completion of construction or improvement has been issued.
  621         (10) CONSTRUCTION.—This section is additional and
  622  supplemental to county and municipal home rule authority and not
  623  in derogation of such authority or a limitation upon such
  624  authority.
  625         Section 3. Section 163.082, Florida Statutes, is created to
  626  read:
  627         163.082 Financing qualifying improvements to commercial
  628  property.—
  629         (1) COMMERCIAL PROPERTY PROGRAM AUTHORIZATION.—
  630         (a) A program administrator may only offer a program for
  631  financing qualifying improvements to commercial property within
  632  the jurisdiction of a county or municipality if the county or
  633  municipality has authorized by ordinance or resolution the
  634  program administrator to administer the program for financing
  635  qualifying improvements to commercial property. The authorized
  636  program must, at a minimum, meet the requirements of this
  637  section.
  638         (b) Pursuant to this section or as otherwise provided by
  639  law or pursuant to a county’s or municipality’s home rule power,
  640  a county or municipality may enter into an interlocal agreement
  641  providing for a partnership between one or more counties or
  642  municipalities for the purpose of facilitating a program for
  643  financing qualifying improvements to commercial property located
  644  within the jurisdiction of the counties or municipalities that
  645  are party to the agreement.
  646         (c) A county or municipality may deauthorize a program
  647  administrator through repeal of the ordinance or resolution
  648  adopted pursuant to paragraph (a) or other action. Any recorded
  649  financing agreements at the time of deauthorization shall
  650  continue, except any financing agreement for which the
  651  provisions of s. 163.086 apply.
  652         (d) A program administrator may contract with one or more
  653  third-party administrators to implement the program as provided
  654  in s. 163.084.
  655         (e) An authorized program administrator may levy non-ad
  656  valorem assessments to facilitate repayment of financing or
  657  refinancing qualifying improvements. Costs incurred by the
  658  program administrator for such purpose may be collected as a
  659  non-ad valorem assessment. A non-ad valorem assessment shall be
  660  collected pursuant to s. 197.3632 and, notwithstanding s.
  661  197.3632(8)(a), is not subject to discount for early payment.
  662  However, the notice and adoption requirements of s. 197.3632(4)
  663  do not apply if this section is used and complied with, and the
  664  intent resolution, publication of notice, and mailed notices to
  665  the property appraiser, tax collector, and Department of Revenue
  666  required by s. 197.3632(3)(a) may be provided on or before
  667  August 15 of each year in conjunction with any non-ad valorem
  668  assessment authorized by this section, if the property
  669  appraiser, tax collector, and program administrator agree. The
  670  program administrator shall only compensate the tax collector
  671  for the actual cost of collecting non-ad valorem assessments,
  672  not to exceed 2 percent of the amount collected and remitted.
  673         (f) A program administrator may incur debt for the purpose
  674  of providing financing for qualifying improvements, which debt
  675  is payable from revenues received from the improved property or
  676  any other available revenue source authorized by law.
  677         (2) APPLICATION.—The owner of record of the commercial
  678  property within the jurisdiction of the authorized program may
  679  apply to the program administrator to finance a qualifying
  680  improvement and enter into a financing agreement with the
  681  program administrator to make such improvement. The program
  682  administrator may only enter into a financing agreement with a
  683  property owner.
  684         (3) CONSENT OF LIENHOLDERS AND SERVICERS.—The program
  685  administrator must receive the written consent of the current
  686  holders or loan servicers of any mortgage that encumbers or is
  687  otherwise secured by the commercial property or that will
  688  otherwise be secured by the property before a financing
  689  agreement may be executed.
  690         (4) FINANCING AGREEMENTS.—
  691         (a) A program administrator offering a program for
  692  financing qualifying improvements to commercial property must
  693  maintain underwriting criteria sufficient to determine the
  694  financial feasibility of entering into a financing agreement. To
  695  enter into a financing agreement, the program administrator
  696  must, at a minimum, make each of the following findings based on
  697  a review of public records derived from a commercially accepted
  698  source and the statements, records, and credit reports of the
  699  commercial property owner:
  700         1. There are sufficient resources to complete the project.
  701         2. All property taxes and any other assessments, including
  702  non-ad valorem assessments, levied on the same bill as the
  703  property taxes are current.
  704         3. There are no involuntary liens greater than $5,000,
  705  including, but not limited to, construction liens on the
  706  commercial property.
  707         4. No notices of default or other evidence of property
  708  based debt delinquency have been recorded and not been released
  709  during the preceding 3 years or the property owner’s period of
  710  ownership, whichever is less.
  711         5. The property owner is current on all mortgage debt on
  712  the commercial property.
  713         6. The term of the financing agreement does not exceed the
  714  weighted average useful life of the qualified improvements to
  715  which the greatest portion of funds disbursed under the
  716  assessment contract is attributable, not to exceed 30 years. The
  717  program administrator shall determine the useful life of a
  718  qualifying improvement using established standards, including
  719  certification criteria from government agencies or nationally
  720  recognized standards and testing organizations.
  721         7. The property owner is not currently the subject of a
  722  bankruptcy proceeding.
  723         (b) Before entering into a financing agreement, the program
  724  administrator shall determine if there are any current financing
  725  agreements on the commercial property and whether the property
  726  owner has obtained or sought to obtain additional qualifying
  727  improvements on the same property which have not yet been
  728  recorded. The existence of a prior qualifying improvement non-ad
  729  valorem assessment or a prior financing agreement is not
  730  evidence that the financing agreement under consideration is
  731  affordable or meets other program requirements.
  732         (c) The program administrator shall document and retain
  733  findings satisfying paragraphs (a) and (b), including supporting
  734  evidence relied upon, which were made prior to the financing
  735  agreement being approved and recorded, for the duration of the
  736  financing agreement.
  737         (d) A property owner and the program administrator may
  738  agree to include in the financing agreement provisions for
  739  allowing change orders necessary to complete the qualifying
  740  improvement. Any financing agreement or contract for qualifying
  741  improvements which includes such provisions must meet the
  742  requirements of this paragraph. If a proposed change order on a
  743  qualifying improvement will increase the original cost of the
  744  qualifying improvement by 20 percent or more or will expand the
  745  scope of the qualifying improvement by 20 percent or more,
  746  before the change order may be executed which would result in an
  747  increase in the amount financed through the program
  748  administrator for the qualifying improvement, the program
  749  administrator must notify the property owner, provide an updated
  750  written disclosure form as described in subsection (5) to the
  751  property owner, and obtain written approval of the change from
  752  the property owner.
  753         (e) A financing agreement may not be entered into if the
  754  total cost of the qualifying improvement, including program fees
  755  and interest, is less than $2,500.
  756         (5) DISCLOSURES.—In addition to the requirements imposed in
  757  subsection (4), a financing agreement may not be executed unless
  758  the program administrator provides, whether on a separate
  759  document or included with other disclosures or forms, a
  760  financing estimate and disclosure to the property owner which
  761  includes all of the following:
  762         (a) The estimated total amount to be financed, including
  763  the total and itemized cost of the qualifying improvement,
  764  program fees, and capitalized interest;
  765         (b) The estimated annual non-ad valorem assessment;
  766         (c) The term of the financing agreement and the schedule
  767  for the non-ad valorem assessments;
  768         (d) The interest charged and estimated annual percentage
  769  rate;
  770         (e) A description of the qualifying improvement;
  771         (f) The total estimated annual costs that will be required
  772  to be paid under the assessment contract, including program
  773  fees;
  774         (g) The estimated due date of the first payment that
  775  includes the non-ad valorem assessment; and
  776         (h) A disclosure of any prepayment penalties, fees, or
  777  fines as set forth in the financing agreement.
  778         (6) RECORDING.—Any financing agreement executed pursuant to
  779  this section or a summary memorandum of such agreement must be
  780  submitted for recording in the public records of the county
  781  within which the commercial property is located by the program
  782  administrator within 10 business days after execution of the
  783  agreement. The recorded agreement must provide constructive
  784  notice that the non-ad valorem assessment to be levied on the
  785  property constitutes a lien of equal dignity to county taxes and
  786  assessments from the date of recordation. A notice of lien for
  787  the full amount of the financing may be recorded in the public
  788  records of the county where the property is located. Such lien
  789  is not enforceable in a manner that results in the acceleration
  790  of the remaining nondelinquent unpaid balance under the
  791  assessment financing agreement.
  792         (7) SALE OF COMMERCIAL PROPERTY.—At or before the time a
  793  seller executes a contract for the sale of any commercial
  794  property for which a non-ad valorem assessment has been levied
  795  under this section and has an unpaid balance due, the seller
  796  shall give the prospective purchaser a written disclosure
  797  statement in the following form, which must be set forth in the
  798  contract or in a separate writing:
  799  
  800         QUALIFYING IMPROVEMENTS.—The property being purchased
  801         is subject to an assessment on the property pursuant
  802         to s. 163.082, Florida Statutes. The assessment is for
  803         a qualifying improvement to the property and is not
  804         based on the value of the property. You are encouraged
  805         to contact the property appraiser’s office to learn
  806         more about this and other assessments that may be
  807         provided for by law.
  808  
  809         (8) COMPLETION CERTIFICATE.—Upon disbursement of all
  810  financing and completion of installation of qualifying
  811  improvements financed, the program administrator shall retain a
  812  certificate that the qualifying improvements have been installed
  813  and are in good working order.
  814         (9) CONSTRUCTION.—This section is additional and
  815  supplemental to county and municipal home rule authority and not
  816  in derogation of such authority or a limitation upon such
  817  authority.
  818         Section 4. Section 163.083, Florida Statutes, is created to
  819  read:
  820         163.083 Qualifying improvement contractors.—
  821         (1) A county or municipality shall establish a process, or
  822  approve a process established by a program administrator, to
  823  register contractors for participation in a program authorized
  824  by a county or municipality pursuant to s. 163.081. A qualifying
  825  improvement contractor may only perform such work that the
  826  contractor is appropriately licensed, registered, and permitted
  827  to conduct. At the time of application to participate and during
  828  participation in the program, contractors must:
  829         (a) Hold all necessary licenses or registrations for the
  830  work to be performed which are in good standing. Good standing
  831  includes no outstanding complaints with the state or local
  832  government which issues such licenses or registrations.
  833         (b) Comply with all applicable federal, state, and local
  834  laws and regulations, including obtaining and maintaining any
  835  other permits, licenses, or registrations required for engaging
  836  in business in the jurisdiction in which it operates and
  837  maintaining all state-required bond and insurance coverage.
  838         (c) File with the program administrator a written statement
  839  in a form approved by the county or municipality that the
  840  contractor will comply with applicable laws and rules and
  841  qualifying improvement program policies and procedures,
  842  including those on advertising and marketing.
  843         (2) A third-party administrator or a program administrator,
  844  either directly or through an affiliate, may not be registered
  845  as a qualifying improvement contractor.
  846         (3) A program administrator shall establish and maintain:
  847         (a) A process to monitor qualifying improvement contractors
  848  for performance and compliance with requirements of the program
  849  and must conduct regular reviews of qualifying improvement
  850  contractors to confirm that each qualifying improvement
  851  contractor is in good standing.
  852         (b) Procedures for notice and imposition of penalties upon
  853  a finding of violation, which may consist of placement of the
  854  qualifying improvement contractor in a probationary status that
  855  places conditions for continued participation, suspension, or
  856  termination from participation in the program.
  857         (c) An easily accessible page on its website that provides
  858  information on the status of registered qualifying improvement
  859  contractors, including any imposed penalties, and the names of
  860  any qualifying improvement contractors currently on probationary
  861  status or that are suspended or terminated from participation in
  862  the program.
  863         Section 5. Section 163.084, Florida Statutes, is created to
  864  read:
  865         163.084 Third-party administrator for financing qualifying
  866  improvements programs.—
  867         (1)(a) A program administrator may contract with one or
  868  more third-party administrators to administer a program
  869  authorized by a county or municipality pursuant to s. 163.081 or
  870  s. 163.082 on behalf of and at the discretion of the program
  871  administrator.
  872         (b) The third-party administrator must be independent of
  873  the program administrator and have no conflicts of interest
  874  between managers or owners of the third-party administrator and
  875  program administrator managers, owners, officials, or employees
  876  with oversight over the contract. A program administrator,
  877  either directly or through an affiliate, may not act as a third
  878  party administrator for itself or for another program
  879  administrator. However, this paragraph does not apply to a
  880  third-party administrator created by an entity authorized in law
  881  pursuant to s. 288.9604.
  882         (c) The contract must provide for the entity to administer
  883  the program according to the requirements of s. 163.081 or s.
  884  163.082 and the ordinance or resolution adopted by the county or
  885  municipality authorizing the program. However, only the program
  886  administrator may levy or administer non-ad valorem assessments.
  887         (2) A program administrator may not contract with a third
  888  party administrator that, within the last 3 years, has been:
  889         (a) Prohibited, after notice and a hearing, from serving as
  890  a third-party administrator for another program administrator
  891  for program or contract violations in this state; or
  892         (b) Found by a court of competent jurisdiction to have
  893  substantially violated state or federal laws related to the
  894  administration of ss. 163.081-163.086 or a similar program in
  895  another jurisdiction.
  896         (3) The program administrator must include in any contract
  897  with the third-party administrator the right to perform annual
  898  reviews of the administrator to confirm compliance with ss.
  899  163.081-163.086, the ordinance or resolution adopted by the
  900  county or municipality, and the contract with the program
  901  administrator. If the program administrator finds that the
  902  third-party administrator has committed a violation of ss.
  903  163.081-163.086, the adopted ordinance or resolution, or the
  904  contract with the program administrator, the program
  905  administrator shall provide the third-party administrator with
  906  notice of the violation and may, as set forth in the adopted
  907  ordinance or resolution or the contract with the third-party
  908  administrator:
  909         (a) Place the third-party administrator in a probationary
  910  status that places conditions for continued operations.
  911         (b) Impose any fines or sanctions.
  912         (c) Suspend the activity of the third-party administrator
  913  for a period of time.
  914         (d) Terminate the agreement with the third-party
  915  administrator.
  916         (4) A program administrator may terminate the agreement
  917  with a third-party administrator, as set forth by the county or
  918  municipality in its adopted ordinance or resolution or the
  919  contract with the third-party administrator, if the program
  920  administrator makes a finding that:
  921         (a) The third-party administrator has violated the contract
  922  with the program administrator. The contract may set forth
  923  substantial violations that may result in contract termination
  924  and other violations that may provide for a period of time for
  925  correction before the contract may be terminated.
  926         (b) The third-party administrator, or an officer, a
  927  director, a manager or a managing member, or a control person of
  928  the third-party administrator, has been found by a court of
  929  competent jurisdiction to have violated state or federal laws
  930  related to the administration of a program authorized of the
  931  provisions of ss. 163.081-163.086 or a similar program in
  932  another jurisdiction within the last 5 years.
  933         (c) Any officer, director, manager or managing member, or
  934  control person of the third-party administrator has been
  935  convicted of, or has entered a plea of guilty or nolo contendere
  936  to, regardless of whether adjudication has been withheld, a
  937  crime related to administration of a program authorized of the
  938  provisions of ss. 163.081-163.086 or a similar program in
  939  another jurisdiction within the last 10 years.
  940         (d) An annual performance review reveals a substantial
  941  violation or a pattern of violations by the third-party
  942  administrator.
  943         (5) Any recorded financing agreements at the time of
  944  termination or suspension by the program administrator shall
  945  continue, except any financing agreement for which the
  946  provisions of s. 163.086 apply.
  947         Section 6. Section 163.085, Florida Statutes, is created to
  948  read:
  949         163.085 Advertisement and solicitation for financing
  950  qualifying improvements programs under s. 163.081 or s.
  951  163.082.—
  952         (1) When communicating with a property owner, a program
  953  administrator, qualifying improvement contractor, or third-party
  954  administrator may not:
  955         (a) Suggest or imply:
  956         1. That a non-ad valorem assessment authorized under s.
  957  163.081 or s. 163.082 is a government assistance program;
  958         2. That qualifying improvements are free or provided at no
  959  cost, or that the financing related to a non-ad valorem
  960  assessment authorized under s. 163.081 or s. 163.082 is free or
  961  provided at no cost; or
  962         3. That the financing of a qualifying improvement using the
  963  program authorized pursuant to s. 163.081 or s. 163.082 does not
  964  require repayment of the financial obligation.
  965         (b) Make any representation as to the tax deductibility of
  966  a non-ad valorem assessment. A program administrator, qualifying
  967  improvement contractor, or third-party administrator may
  968  encourage a property owner to seek the advice of a tax
  969  professional regarding tax matters related to assessments.
  970         (2) A program administrator or third-party administrator
  971  may not provide to a qualifying improvement contractor any
  972  information that discloses the amount of financing for which a
  973  property owner is eligible for qualifying improvements or the
  974  amount of equity in a residential property or commercial
  975  property.
  976         (3) A qualifying improvement contractor may not advertise
  977  the availability of financing agreements for, or solicit program
  978  participation on behalf of, the program administrator unless the
  979  contractor is registered by the program administrator to
  980  participate in the program and is in good standing with the
  981  program administrator.
  982         (4) A program administrator or third-party administrator
  983  may not provide any payment, fee, or kickback to a qualifying
  984  improvement contractor for referring property owners to the
  985  program administrator or third-party administrator. However, a
  986  program administrator or third-party administrator may provide
  987  information to a qualifying improvement contractor to facilitate
  988  the installation of a qualifying improvement for a property
  989  owner.
  990         (5) A program administrator or third-party administrator
  991  may not reimburse a qualifying improvement contractor for its
  992  expenses in advertising and marketing campaigns and materials.
  993         (6) A qualifying improvement contractor may not provide a
  994  different price for a qualifying improvement financed under s.
  995  163.081 than the price that the qualifying improvement
  996  contractor would otherwise provide if the qualifying improvement
  997  was not being financed through a financing agreement. Any
  998  contract between a property owner and a qualifying improvement
  999  contractor must clearly state all pricing and cost provisions,
 1000  including any process for change orders which meet the
 1001  requirements of s. 163.081(3)(d).
 1002         (7) A program administrator, qualifying improvement
 1003  contractor, or third-party administrator may not provide any
 1004  direct cash payment or other thing of material value to a
 1005  property owner which is explicitly conditioned upon the property
 1006  owner entering into a financing agreement. However, a program
 1007  administrator or third-party administrator may offer programs or
 1008  promotions on a nondiscriminatory basis that provide reduced
 1009  fees or interest rates if the reduced fees or interest rates are
 1010  reflected in the financing agreements and are not provided to
 1011  the property owner as cash consideration.
 1012         Section 7. Section 163.086, Florida Statutes, is created to
 1013  read:
 1014         163.086 Unenforceable financing agreements for qualifying
 1015  improvements programs under s. 163.081 or s. 163.082;
 1016  attachment; fraud.—
 1017         (1) A recorded financing agreement may not be removed from
 1018  attachment to a residential property or commercial property if
 1019  the property owner fraudulently obtained funding pursuant to s.
 1020  163.081 or s. 163.082.
 1021         (2) A financing agreement may not be enforced, and a
 1022  recorded financing agreement may be removed from attachment to a
 1023  residential property or commercial property and deemed null and
 1024  void, if:
 1025         (a) The property owner applied for, accepted, and canceled
 1026  a financing agreement within the 3-business-day period pursuant
 1027  to s. 163.081(6). A qualifying improvement contractor may not
 1028  begin work under a canceled contract.
 1029         (b) A person other than the property owner obtained the
 1030  recorded financing agreement. The court may enter an order which
 1031  holds that person or persons personally liable for the debt.
 1032         (c) The program administrator, third-party administrator,
 1033  or qualifying improvement contractor approved or obtained
 1034  funding through fraudulent means and in violation of ss.
 1035  163.081-163.085, or this section for qualifying improvements on
 1036  the residential property or commercial property.
 1037         (3) If a qualifying improvement contractor has initiated
 1038  work on residential property or commercial property under a
 1039  contract deemed unenforceable under this section, the qualifying
 1040  improvement contractor:
 1041         (a) May not receive compensation for that work under the
 1042  financing agreement.
 1043         (b) Must restore the residential property or commercial
 1044  property to its original condition at no cost to the property
 1045  owner.
 1046         (c) Must immediately return any funds, property, and other
 1047  consideration given by the property owner. If the property owner
 1048  provided any property and the qualifying improvement contractor
 1049  does not or cannot return it, the qualifying improvement
 1050  contractor must immediately return the fair market value of the
 1051  property or its value as designated in the contract, whichever
 1052  is greater.
 1053         (4) If the qualifying improvement contractor has delivered
 1054  chattel or fixtures to residential property or commercial
 1055  property pursuant to a contract deemed unenforceable under this
 1056  section, the qualifying improvement contractor has 90 days after
 1057  the date on which the contract was executed to retrieve the
 1058  chattel or fixtures, provided that:
 1059         (a) The qualifying improvement contractor has fulfilled the
 1060  requirements of paragraphs (3)(a) and (b).
 1061         (b) The chattel and fixtures can be removed at the
 1062  qualifying improvement contractor’s expense without damaging the
 1063  residential property or commercial property.
 1064         (5) If a qualifying improvement contractor fails to comply
 1065  with this section, the property owner may retain any chattel or
 1066  fixtures provided pursuant to a contract deemed unenforceable
 1067  under this section.
 1068         (6) A contract that is otherwise unenforceable under this
 1069  section remains enforceable if the property owner waives his or
 1070  her right to cancel the contract or cancels the financing
 1071  agreement pursuant to s. 163.081(6) but allows the qualifying
 1072  improvement contractor to proceed with the installation of the
 1073  qualifying improvement.
 1074         Section 8. Section 163.087, Florida Statutes, is created to
 1075  read:
 1076         163.087Reporting for financing qualifying improvements
 1077  programs under s. 163.081 or s. 163.082.—
 1078         (1) Each program administrator that is authorized to
 1079  administer a program for financing qualifying improvements to
 1080  residential property or commercial property under s. 163.081 or
 1081  s. 163.082 shall post on its website an annual report within 45
 1082  days after the end of its fiscal year containing the following
 1083  information from the previous year for each program authorized
 1084  under s. 163.081 or s. 163.082:
 1085         (a)The number and types of qualifying improvements funded.
 1086         (b)The aggregate, average, and median dollar amounts of
 1087  annual non-ad valorem assessments and the total number of non-ad
 1088  valorem assessments collected pursuant to financing agreements
 1089  for qualifying improvements.
 1090         (c) The total number of defaulted non-ad valorem
 1091  assessments, including the total defaulted amount, the number
 1092  and dates of missed payments, and the total number of parcels in
 1093  default and the length of time in default.
 1094         (d)A summary of all reported complaints received by the
 1095  program administrator related to the program, including the
 1096  names of the third-party administrator, if applicable, and
 1097  qualifying improvement contractors and the resolution of each
 1098  complaint.
 1099         (2) The Auditor General must conduct an operational audit
 1100  of each program administrator authorized under s. 163.081 or s.
 1101  163.082, including any third-party administrators, for
 1102  compliance with the provisions of ss. 163.08-163.086 and any
 1103  adopted ordinance at least once every 3 years. The Auditor
 1104  General may stagger evaluations; however, every program must be
 1105  evaluated at least once by September 1, 2028. The Auditor
 1106  General shall adopt rules pursuant to s. 218.39 requiring each
 1107  program administrator to report whether it offers a program
 1108  authorized pursuant to s. 163.081 or s. 163.082, and other
 1109  pertinent information. Each program administrator and, if
 1110  applicable, third-party administrator, must post the most recent
 1111  report on its website.
 1112         Section 9. A current contract, agreement, authorization, or
 1113  interlocal agreement between a county or municipality and a
 1114  program administrator entered into before July 1, 2024, shall
 1115  continue without additional action by the county or
 1116  municipality. However, the program administrator must comply
 1117  with this act, and any contract, agreement, authorization, or
 1118  interlocal agreement must be amended to comply with this act.
 1119         Section 10. This act shall take effect July 1, 2024.