DISTRICT UPDATES

The following highlighted updates are the general program changes being implemented: 

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Definitions Updates 

• “Commercial property” means real property other than residential property. The term includes, but is not limited to, a property zoned multifamily residential which is composed of five or more dwelling units; and real property used for commercial, industrial, or agricultural purposes.

• “Property owner” means the owner or owners of record of real property. The term includes real property held in trust for the benefit of one or more individuals, in which case the individual or individuals may be considered as the property owner or owners, provided that the trustee provides written consent. The term does not include persons renting, using, living, or otherwise occupying real property.

• “Third-party administrator” means an entity under contract with a program administrator pursuant to s. 163.084.

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Financial Feasibility Requirements

• There are sufficient recourses to complete the project.

• There are no involuntary liens greater than $5,000, including, but not limited to, construction liens on the commercial property.

• No notices of default or other evidence of property-based debt delinquency have been recorded and not been released during the preceding 3 years or the property owner’s period of ownership, whichever is less.

• The property owner is current on all mortgage debt on the commercial property.

• The term of the financing agreement does not exceed the weighted average useful life of the qualified improvements to which the greatest portion of funds disbursed under the assessment contract is attributable, not to exceed 30 years. The program administrator shall determine the useful life of a qualifying improvement using established standards, including certification criteria from government agencies or nationally recognized standards and testing organizations.

• The property owner is not currently the subject of bankruptcy proceedings.

• Whether there are any current financing agreements on the commercial property and whether the property has obtained or sought to obtain additional qualifying improvements on the same property which have not yet been recorded.

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Change Orders

Although the update to the statute allows for change orders post closing, change orders will not be permitted by the FDFC program. 

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​Completion Certificates

Upon disbursement of all financing and completion of installation of qualifying improvements financed, the program administrator shall retain a certificate that the qualifying improvements have been installed and are in good working order.

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Disclosures

• Financing Estimate 

  • The following items must be included on the disclosure:

    • The estimated total amount to be financed, including the total and itemized cost of the qualifying improvement, program fees, and capitalized interest;

    • The estimated annual non-ad valorem assessment;

    • The term of the financing agreement and the schedule for the non-ad valorem assessments;

    • The interest charged and estimated annual percentage rate;

    • A description of the qualifying improvement;

    • The total estimated annual costs that will be required to be paid under the assessment contract, including program fees;

    • The estimated due date of the first payment that includes the non-ad valorem assessment; and

    • A disclosure of any prepayment penalties, fees, or fines as set forth in the financing agreement. 

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• Sale of Commercial Property

  • At or before the time a seller executes a contract for the sale of any commercial property for which a non-ad valorem assessment has been levied and has an unpaid balance due, the seller shall give the prospective purchaser a written disclosure statement. ​

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