AZ HB2196

Establishes a Commercial Property Assessed Capital Expenditure (C-PACE) financing program allowing cities, towns, and counties to authorize privately-financed improvements on commercial, industrial, agricultural, and multifamily residential property through special assessments.

Property owners voluntarily enter into special assessment agreements with local governments to repay capital providers for qualifying improvements, with special assessment liens recorded on the property that have priority over all liens except general property taxes and prior special assessments.

Local program authorities bill and collect special assessment installments or may delegate collection to capital providers; delinquent installments can be enforced through a foreclosure process by capital providers after one year of delinquency.

Qualifying improvements must be permanent affixed critical capital expenditure improvements with a weighted average useful life of ten or more years; application fees capped at $500 and administrative fees not to exceed the lesser of one percent of principal or $50,000.

Establishes delinquent installment procedures including property sale at public auction with redemption rights within twelve months, and requires notice to property owners, lien claimants, and other interested parties before sale.