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ARIZONA HOUSE OF REPRESENTATIVES57th Legislature, 2nd Regular Session |
House: RED DP 7-0-0-0 |
HB 2824: capital improvement; financing program
Sponsor: Representative Lopez, LD 16
Caucus & COW
Overview
Enables a governing body to adopt a resolution or ordinance to establish a C-Pace Program (Program) which provides commercial property assessed capital expenditure financing for eligible improvements.
History
Statute authorizes municipalities to adopt zoning ordinances and codes to conserve and promote the public health, safety and general welfare and outlines zoning guidelines and requirements. Municipalities must adopt, by ordinance, a citizen review process that applies to all rezoning and specific plan applications that require a public hearing (A.R.S. §§ 9-462.01 and 9-462.03).
Provisions
C-Pace Program Establishment
1. Authorizes a local government to allow the construction, installation or modification of critical capital expenditure improvements on qualifying property by establishing a C-Pace Program. (Sec. 1, 2)
2. Prohibits a local government from entering into a financing agreement for the direct financing of a qualifying improvement. (Sec. 1, 2)
3. Grants counties the ability to levy and collect non-ad valorem assessments, in addition to taxes. (Sec. 2)
4. Allows a governing body to adopt a resolution or ordinance to establish a Program. (Sec. 3)
5. Requires a governing body to hold a public hearing to consider a Program's establishment, prior to adopting a resolution or ordinance that establishes a Program. (Sec. 3)
6. Outlines the contents that are required to be included in a resolution or ordinance that establishes a Program. (Sec. 3)
7. Allows a Program to be amended in accordance with the resolution or ordinance that established the Program. (Sec. 3)
Intergovernmental Agreements
8. Stipulates an authorized local government may to enter into an intergovernmental agreement with another authorized local government to administer a Program (Sec. 3)
9. Exempts any intergovernmental agreement entered into by an authorized local government from the Arizona Procurement Code. (Sec. 3)
Special Assessment Agreements
10. Authorizes local program authorities to enter into special assessment agreements with property owners to secure special assessment financing provided the property owner submits a project application to the program administrator on a form prescribed by the program guidebook. (Sec. 3)
11. Outlines the contents of the project application. (Sec. 3)
12. Requires the local program authority receive consent and certification from specified parties prior to entering into a special assessment agreement. (Sec. 3)
13. Directs capital providers to provide and directly disburse special assessment financing to fund qualifying improvements subject to a financing agreement. (Sec. 3)
14. Requires a financing agreement to specify that the local government is not:
a. liable for the debt of the property owner;
b. a third-party obligor; and
c. pledging or lending credit to the property owner or the capital provider. (Sec. 3)
15. Specifies that a capital provider does not have any right or cause of action against the local government for nonpayment of the special assessment financing and to look solely to the property owner for recourse. (Sec. 3)
16. Establishes costs that may be included into the special assessment financing principal amount. (Sec. 3)
17. Allows a financing agreement to authorize the property owner to directly purchase through lease, power purchase agreement or other service contract, the related equipment and materials for installing or modifying a qualified improvement or contract. (Sec. 3)
18. Caps the Program administrative fees that a local program authority or program administrator may charge a property owner at the lesser of:
a. 1% of the principal amount of the special assessment financing; or
b. $50,000. (Sec. 3)
Imposition of Special Assessment
19. Instructs the local program authority, upon entering into a special assessment agreement, to record a notice of special assessment lien on the subject property in the recorder's office of the county in which the property is located. (Sec. 3)
20. Outlines specified information that the recording of the notice of special assessment lien is required to include. (Sec. 3)
21. Establishes that a special assessment lien is effective from the date that the special assessment is imposed until the date it is paid in full. (Sec. 3)
22. Grants special assessment liens priority superior to all liens, claims and titles, excluding general property taxes and prior special assessments. (Sec. 3)
23. Specifies that a special assessment lien runs with the land and any portion that has not yet become due is not accelerated or eliminated by foreclosure of the lien or any lien for taxes or other assessments against the property on which the lien is imposed or by the foreclosure of the qualifying property. (Sec. 3)
24. Requires the local program authority to execute and record a notice of assignment of special assessment lien from the local government to the applicable capital provider on the subject property, at the same time the special assessment lien is recorded. (Sec. 3)
25. Outlines the information required to be provided in the notice of assignment of special assessment lien. (Sec. 3)
26. Grants the applicable capital provider the possession of the same delegable powers and rights at law or in equity as the local government, but only regarding:
a. the precedence and priority of the special assessment lien;
b. the proceeds of special assessment installments; and
c. the accrual of penalties and fees related to the special assessment. (Sec. 3)
27. Asserts that the assignee of a special assessment enforced by the local government, has the right to enforce the special assessment and special assessment lien regarding foreclosure. (Sec. 3)
28. Instructs the applicable capital provider to notify the local program authority when the underlying special assessment financing is complete to allow the local program authority to record a release of the special assessment lien by the local government. (Sec. 3)
Collection of Special Assessment Installments
29. Requires special assessments to be collected in installments pursuant to the terms of the special assessment agreement and outlines the manner that installments are to be billed and collected. (Sec. 3)
30. Authorizes a local program authority that is billing and collecting special assessment installments, to collect a delinquent special assessment installment, in the event of a nonpayment and within one year after the installment became delinquent. (Sec. 3)
31. Authorizes the capital provider to initiate a suit for foreclosure against the property owner following one year after the date of delinquency of an unpaid special assessment installment, if the local program authority fails to collect the delinquent installment or has executed a notice of delegation of authority to the capital provider. (Sec. 3)
32. Requires the suit for foreclosure to follow the procedures for judicial foreclosure of a mortgage. (Sec. 3)
33. Specifies the portion of the special assessment lien that has not yet become due is not accelerated or eliminated by foreclosure of the special assessment lien. (Sec. 3)
Delinquent Installments
34. Directs the local program authority to prepare, within 20 days after the date of delinquency, a list containing specified information of the special assessments on which any installment is delinquent. (Sec. 3)
35. Requires the local program authority to notify the property owner that unless all delinquencies due are paid, the qualifying property on which the special assessment is a lien will be sold at public auction at the time and place specified in the notice. (Sec. 3)
36. Requires the notice be mailed to the owner of the qualifying property or parcel on which the special assessment installment is delinquent at least 10 days before the date of the sale. (Sec. 3)
37. Prohibits the time of the sale from being less than 10 days after the notice is mailed to the property owner and requires the public auction to take place in front of the office of the local program authority or at a place otherwise designated in the notice. (Sec. 3)
38. Allows the delinquent special assessment installment and associated penalties of any qualifying property to be paid for by any party that has an interest in the qualifying property, prior to its sale. (Sec. 3)
39. Requires the local program authority to note in the record the date, names, and the amount associated with the qualifying property's sale that took place prior to its auction. (Sec. 3)
Notice to Lien Claimants
40. Instructs local program authorities to obtain a record search showing the names and addresses of all lien claimants on, and other persons with interest in, all properties or parcels with delinquent special assessment installments, before the date of the sale. (Sec. 3)
41. Allows the cost of a record search to be added to the special assessment and deems it to be a portion of the delinquent special assessment installment. (Sec. 3)
42. Provides the information that must be included in the notice of sale that is required to be mailed, at least 10 days before the sale date, to the property owner and to each of the lien claimants and other persons with an interest as shown by the record search. (Sec. 3)
43. Prohibits a final sale from being held unless the local program authority notifies all lien claimants and other persons with an interest found in the records search by mail before the sale date. (Sec. 3)
Sale Procedure
44. Directs the local program authority to begin the sale of the delinquent special assessment installment of the advertised property no sooner than 10 a.m. on the date set for the sale and allows the authority to postpone or continue the sale from day to day until all the property is sold. (Sec. 3)
45. Requires each property to be sold separately if they are separately assessed. (Sec. 3)
46. Provides a sale procedure for qualifying properties for sale that do not have a purchaser. (Sec. 3)
47. Mandates the local program authority to remit all proceeds of a sale of the qualifying property or purchase of a deed related to a delinquent special assessment installment to the applicable capital provider, except for the actual and reasonable costs incurred to enforce a delinquent special installment. (Sec. 3)
48. Requires the local program authority to execute a certificate of sale after making the sale, with specified descriptions and information of the sale of the qualifying property for a delinquent special assessment installment, to file one copy within the authority's office while delivering the other to the purchaser. (Sec. 3)
49. Transfers ownership of the lien of the delinquent special assessment installment to the purchaser when the local program authority files the copy of the certificate and is only divested by a redemption of the qualifying property. (Sec. 3)
50. Prohibits the transfer of ownership and condition for divestment from extinguishing or changing the lien for the remaining special assessment installments. (Sec. 3)
51. Directs the local program authority to enter on the record of the special assessment installment lien a description of the part thereof sold, the amount for which the qualifying property was sold, the date of the sale and the name of the purchaser. (Sec. 3)
Redemption
52. Allows redemption to be made by any party with an interest in the qualifying property prior to the execution and delivery of a deed for the property by paying to the local program authority the sale price of the qualifying property with an additional:
a. 5% if paid within 3 months from the date of the sale;
b. 10% if paid within 6 months;
c. 12% if paid within 9 months;
d. 15% if paid within 12 months; or
e. 20% if paid at any time after 12 months from the date of the sale. (Sec. 3)
53. Directs the local program authority to note the redemption on their filed duplicate certificate and deposit the amount paid with the capital provider, who is required to credit the purchaser named in the certificate of sale with the amount paid and pay the sum to the purchaser on the surrender of the certificate of sale. (Sec. 3)
54. Instructs the local program authority to execute a deed to the property sold to the purchaser after 12 months from the date of sale, which is to recite the matters contained in the certificate of sale and that a person has not redeemed the qualifying property and can only receive $1 to make the deed. (Sec. 3)
55. Outlines the contents of a required written notice that must be mailed by the purchaser to specified parties indicating that the qualifying property has been sold for a delinquent special assessment installment. (Sec. 3)
56. Requires the applicant to file an affidavit with the local program authority showing that notice of the application has been given, and that if the mailed notice was returned to the sender, that due diligence was used to find the owner. (Sec. 3)
57. Stipulates the person making the redemption to pay, for payment to the purchaser, $10 for the service of notice and the making of the affidavit if redemption of the qualifying property is made after the affidavit is filed and more than twelve months from the date of sale. (Sec. 3)
58. Deems the deed of the local program authority as prima facie evidence of the truth of all matters recited therein and of the regularity of all proceedings before the execution thereof and of title in the grantee. (Sec. 3)
59. Outlines the information required to be conveyed to the purchaser through the deed of the local program authority. (Sec. 3)
60. Specifies proof of mailing, publishing or posting the required notices must be made by affidavit of the person required to mail, publish or post the notice and outlines the requirements of the affidavit. (Sec. 3)
61. Asserts the required affidavit is prima facie evidence of the posting, publishing or mailing described. (Sec. 3)
62. Prohibits a person's failure to receive a mailed notice from affecting the validity of any notice that was mailed, and the failure to mail a notice to one or more person from affecting the validity of notices already mailed. (Sec. 3)
63. Specifies the costs of mailing and publishing are a valid incidental expense. (Sec. 3)
64. Specifies a notice served on:
a. a married person is deemed a notice on the person's spouse;
b. Guardians and administrators constitute notice to heirs and wards; and
c. An attorney-in-fact constitutes notice to the attorney's principal. (Sec. 3)
Miscellaneous
65. Defines pertinent terms. (Sec. 1, 2, 3)
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69. Initials PB HB 2824
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