AZ HB2742

Establishes a Community and Property Assessed Clean Energy (C-PACE) program allowing municipalities and counties to finance energy efficiency, water conservation, renewable energy, and resiliency improvements on qualifying properties through special assessments.

Property owners voluntarily enter into special assessment agreements with local governments, which then assign the assessments to private capital providers who finance the improvements directly.

Special assessment liens are recorded on the property and have priority superior to all liens except general property taxes and prior special assessments; liens run with the land and survive foreclosure and bankruptcy.

Allows counties to designate the treasurer to collect special assessment installments using general tax collection procedures, with the treasurer retaining actual collection expenses and interest/penalties on delinquent amounts.

Permits capital providers to enforce delinquent special assessments through property sale procedures under existing law, with proceeds remitted to the capital provider after local government recovers reasonable enforcement costs.