FL H0927

Substantially rewrites Florida's PACE (Property Assessed Clean Energy) program by amending s. 163.08 and creating new sections 163.081–163.087, establishing separate regulatory frameworks for financing qualifying improvements to residential and commercial properties through non-ad valorem assessments authorized by counties or municipalities, effective July 1, 2024.

Imposes extensive consumer protections for residential property owners, including requirements that total non-ad valorem assessments not exceed 20% of property value, annual payments not exceed 10% of household income, financing terms not exceed 20 years, a 3-business-day cancellation period without penalty, mandatory recorded oral disclosures, written notice to mortgage holders at least 5 days before execution, and prohibitions on negative amortization, balloon payments, and prepayment penalties.

Requires program administrators to verify property owner eligibility through credit reports and public records, confirming no delinquent taxes in the prior 3 years, no involuntary liens, no bankruptcy within 5 years, no reverse mortgages, current mortgage payments, and no outstanding code enforcement violations before entering a financing agreement.

Establishes oversight requirements including mandatory contractor registration with counties/municipalities, prohibitions on kickbacks and misleading advertising, restrictions on third-party administrators (who must be independent of the program administrator), annual reporting by program administrators, and operational audits by the Auditor General at least every 3 years with all programs evaluated by September 1, 2028.

Provides that financing agreements obtained fraudulently by program administrators, third-party administrators, or contractors are unenforceable and may be voided, requiring contractors to restore property at no cost to the owner and return all funds, while agreements fraudulently obtained by property owners remain attached to the property.