House Bill 7179 is a new law in Florida that allows local governments to help property owners pay for energy-efficient and hurricane-resistant improvements. This means that if you want to make your home or business more energy-efficient or install things like solar panels or hurricane shutters, the government can give you the money upfront to cover the costs. This is a voluntary program, so you have to apply for it, and it’s open to all types of properties, not just residential ones. The government is investing in the property and will have a guaranteed way to get their money back if needed. They will have a special type of payment and a legal agreement that will give them first priority to get paid if the property is foreclosed. Before HB 7179, local governments didn’t have clear permission to assess properties for improvements. However, they have the power to do so under the Florida Constitution if it benefits the properties being assessed. To pass the “special benefits test,” the assessed property must derive a special benefit from the improvement and the assessment must be fair among all the properties receiving the benefit.
In order to make sure that the assessments are allowed under Florida law, the legislature specified that properties improved with energy-related improvements and wind-resistant improvements would receive a special benefit and increase in value. Studies have shown that reducing energy costs and protecting against wind damage can increase property value. As long as the assessments are fairly spread out among property owners, it seems that assessments under HB 7179 would pass the “special benefits test” and be valid under Florida law. HB 7179 gives local governments the option to finance improvements using debt or third-party vendors. It also allows partnerships between local governments to help smaller ones attract financing. The program can be administered by for-profit or not-for-profit entities, or the financial institution lending the money. There could be challenges in creating a successful PACE program, and each program will have its own unique issues to address. The first challenge in starting a PACE program is finding enough people who want funding for improvements. This will help local governments get low interest rates for the financing. The second challenge is that older homes may not be able to handle renewable energy devices, like solar panels, because of their old electrical systems and roofs. The third challenge is that banks might not like it if a property owner wants to join the program. Even though the law says they don’t need the bank’s permission, it could still cause problems. PACE is a program in Florida that helps property owners make energy-efficient upgrades to their homes or businesses. It can lower energy costs and reduce vulnerability to storms. The program also creates jobs in the construction industry. It’s a good step toward “green” initiatives in the state. This article discusses the importance of energy efficiency in homes and its impact on property values. It also mentions the need for windstorm mitigation reports to reduce insurance costs. The authors are Chad S. Friedman and MacAdam J. Glinn. The article was published in several magazines and is reprinted with permission. It was submitted on behalf of a legal organization.
Source: https://www.floridabar.org/the-florida-bar-journal/florida-is-keeping-pace-house-bill-7179/
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