Bill Summary for S 493 (2017-2018)
|View NCGA Bill Details||2017-2018 Session|
AN ACT AUTHORIZING CITIES AND COUNTIES TO PARTICIPATE IN COMMERCIAL PROPERTY ASSESSED CAPITAL EXPENDITURES (C-PACE) TO ALLOW PROPERTY OWNERS TO VOLUNTARILY AGREE TO ASSESSMENTS TO FINANCE UPGRADES OR IMPROVEMENTS TO THEIR REAL PROPERTY.Intro. by Tucker, Gunn.
|View: All Summaries for Bill||Tracking:|
Enacts new GS Chapter 160A, Article 10B (Commercial Property Assessed Capital Expenditures), as follows.
Defines nine terms as they are used in the Article, including commercial property assessed capital expenditure(C-PACE), meaning the financing of building and property upgrades and improvements through property tax assessments.
Authorizes local government units to establish a C-PACE program to promote, encourage, and facilitate building and property upgrades or improvements within their jurisdictions. Provides for joint C-PACE programs between two or more governing bodies. Provides for governing bodies or C-PACE districts to contract with a nonprofit, not-for-profit, public university, or private third party to administer the C-PACE program.
Specifies six types of building and property that are eligible for C-PACE financing, including commercial buildings and multifamily residential buildings with five or more units. Provides that property in a C-PACE district does not have to be contiguous. Allows for the governing body of a local government unit that creates a C-PACE district to add the property of any owner who voluntarily executes a written agreement consenting to their inclusion in the district and participation in the C-PACE program, to remove the property of any owner who has satisfied their property tax assessment obligations under the C-PACE program, and to delegate to the C-PACE program administration the authority to add new properties to the C-PACE district as long as the property qualifies. Directs the governing body to include a provision in the C-PACE district guidelines that requires the owner of qualifying real property to be informed that it is recommended that a licensed third party reviews the property, as described, before obtaining C-PACE financing. Requires an agreement between the C-PACE district and the owner of qualifying real property to specify the building and property upgrades to be completed and the contractor responsible for the upgrades, and requires information from the third-party survey, if completed, to be included in the agreement. Provides that documentation of completion of upgrades or improvements must be publicly available. Requires qualifying real property to be current on property tax and assessment payments, and not be encumbered by involuntary liens, default judgments, or judgments. Directs the governing body to require the implementation of minimum building and property owner protection guidelines.
Specifies which building upgrades and improvements qualify for C-PACE financing. Provides that upgrades must improve the health and safety, energy efficiency, renewable energy on-site generation or storage, water conservation, durability, or resiliency to weather and disaster damages of new or existing buildings or properties. Does not authorize only aesthetic or design improvements. Lists 19 eligible upgrades and improvements. Provides that the upgrades and improvements must be permanently affixed to the property or building, and may not be removed if the ownership of the property or building changes.
Requires property owners to provide documentation that any historical or architectural review boards with jurisdiction over the qualifying real property have approved the requested building or property upgrades or improvements. Requires written permission from any secured mortgage holder before the property owner may participate in the C-PACE program. Provides that property is ineligible if the property is currently in foreclosure or has current involuntary liens, defaults, or judgments. Provides that C-PACE financiers may impose minimum requirements on property owners to demonstrate their ability to pay.
Requires C-PACE program administrators to establish and manage contractor registration, and to develop quality assurance guidelines. Requires property owners to select contractors for C-PACE improvements from those registered with the administrator. Makes the contractor responsible for remedying improper upgrades, and makes the C-PACE program administrator responsible for handling complaints and resolution procedures, and to make complaints involving contractors registered with the program publicly available. Directs the administrator to recommend a benchmarking survey or other review by a licensed third party upon completion of upgrades.
Authorizes C-PACE financiers to impose property tax assessments on qualifying real property when an owner has voluntarily executed a written agreement consenting to undertake building or property upgrades or improvements and have a C-PACE assessment imposed on the owner's property. Requires the financing agreement to be in writing. Requires written lender consent forms for each existing secured mortgage, and provides requirements for the consent forms. Authorizes C-PACE programs to access project capital from any funds legally available to the local government unit whose governing body created the C-PACE district. Requires revenue bonds secured solely by C-PACE assessment payments to be issued by a local government unit or an authorized authority or local development corporation. Does not affect existing laws related to issuance of revenue bonds by cities participating in C-PACE programs or by other qualified issuers of bonds, subject to certain requirements, or any other funds lawfully pledged as security. Authorizes local government units to offer C-PACE capital by establishing a special C-PACE benefit district. Requires assessment of the C-PACE program to include at least 100% of the unpaid costs of the qualifying upgrades or improvements. Provides that the sum of the mortgage and the C-PACE lien should not exceed 95% of the total assessed property value, unless otherwise provided by the governing body. Provides that the term of the assessment must not exceed the weighted average of the useful life of the property upgrades or improvements, or 25 years, and that liability for assessments related to the property upgrades or improvements remain with the real property. Authorizes competitive bidding for C-PACE financiers to provide financing to qualifying real property. Requires property upgrades or improvements to meet all applicable safety, performance, interconnection, and reliability standards established by listed entities.
Provides that property tax assessments levied constitute C-PACE liens against the qualifying real property if the lender consent form is filed as provided. Provides the perfected C-PACE lien related to the portion of the currently due, payable, and delinquent assessments currently in arrears with priority over any mortgage. Requires foreclosing mortgagees to serve all procedural documents of the foreclosure on the governing body of the local government unit that created the C-PACE district, or its administrator, as if they were a party to the action. Provides that the C-PACE lien survives a judgment of foreclosure. Provides for the governing body of a local government unit, if provided for in a written agreement, to assign to the C-PACE financier any and all liens filed by the unit's tax collector. Provides for the payment of the liens, and the removal of obsolete or damaged equipment that is the subject of the lien while preserving the lien. Authorizes the local government unit or its C-PACE administrator to enforce the lien in the same manner as property taxes.