HB 624 Summary

• Establishes the Commercial Property Assessed Capital Expenditure (C-PACE) Act allowing local governments to voluntarily implement programs providing long-term, low-cost financing for qualifying improvements on agricultural, commercial, industrial, and multifamily residential properties (5+ units).

• Authorizes local governments to impose voluntary special assessments on property to repay C-PACE financing, with assessments requiring written contracts between property owner and local government plus written consent from mortgage holders.

• Defines eligible improvements including energy efficiency, renewable energy, water conservation, lead reduction, and resilience projects; imposes debt-to-value limits of 90% total debt and assessment caps of 35% (new construction) or 25% (retrofits) of fair market value.

• Creates C-PACE liens recorded as first-priority liens against property (junior only to property taxes) that run with the land and cannot be eliminated by other foreclosures; prohibits acceleration of mortgages solely due to C-PACE participation.

• Prohibits local governments from conditioning permits or compelling property owners to enter C-PACE agreements and explicitly prohibits use of public funds or full faith and credit to support C-PACE programs.

• Effective July 1, 2024.