Section 36-62-8.2 - Financing agreement; assessment agreement(a) A program shall establish a financing application and review process to evaluate such applications. The program shall prescribe the form and manner of the financing application. At a minimum: (1) An applicant shall demonstrate that the qualifying improvement provides a benefit to the public in the form of energy or water resource conservation or improved resiliency;(2) For an existing building: (A) When energy or water efficiency improvements are proposed, an applicant shall provide: (i) An energy or water efficiency analysis by a licensed engineering firm, engineer, or other qualified professional listed in the program guidebook; and(ii) A statement by the author of the analysis that the proposed qualifying improvements will result in more efficient use or conservation of energy or water, the reduction of greenhouse gas emissions, or the addition of renewable sources of energy or water; or(B) When resiliency improvements are proposed, an applicant shall provide certification by a licensed engineering firm, engineer, or other qualified professional listed in the program guidebook stating that the proposed qualifying improvements will result in improved resilience;(3) For new construction, an applicant shall provide certification by a licensed engineering firm, engineer, or other qualified professional listed in the program guidebook stating that the proposed qualifying improvements will enable the qualifying property to exceed the current building code requirements for: (4) An applicant shall include a certification that the person requesting the proposed qualifying improvements is the owner of the qualifying property and that there are no delinquent taxes or assessments on the qualifying property; and(5) An applicant shall demonstrate that the proposed assessment financing meets the following guidelines and any other guidelines adopted by the authority, which may be in addition to or more restrictive than the following guidelines:(A) Unless a higher percentage is agreed to by the holder of a lien, mortgage, or security deed encumbering the qualifying property in the written consent required by subsection (b) of this Code section, an applicant must demonstrate that the amount of the proposed assessment financing and all other debt secured by the qualifying property upon execution of the assessment agreement will not exceed 80 percent of the fair market value of the qualifying property as determined by a qualified appraiser, which appraisal may take into account the expected increase in fair market value of the qualifying property resulting from the proposed qualifying improvements, as completed or as stabilized;(B) An applicant must demonstrate that the amount of the proposed assessment financing will not exceed 25 percent of the fair market value of the qualifying property as determined by a qualified appraiser, which appraisal may take into account the expected increase in fair market value of the qualifying property resulting from the proposed qualifying improvements, as completed or as stabilized; and(C) An applicant must demonstrate that the period or term of the assessment financing will not exceed the weighted average useful life expected for the proposed qualifying improvements. The applicant shall include a statement from a qualified professional indicating the weighted average useful life expected for the proposed qualifying improvements.(b) For approved qualifying improvements, an authority may enter into an assessment agreement with the owner of the qualifying property to pay the cost of qualifying improvements. Prior to entering into an assessment agreement, an applicant shall provide written consent from any holder of a lien, mortgage, or security deed encumbering the qualifying property. Such written consent shall be signed in the sole and absolute discretion of the holder of a prior lien, mortgage, or security deed encumbering the qualifying property and, at a minimum, shall state that the holder of such prior lien, mortgage, or security deed has reviewed the final terms of the financing and the assessment agreement; that the qualifying property may participate in the program; and that the assessment lien shall have the same priority status as a lien for ad valorem taxes of the participating local government.(c) Each assessment agreement shall include:(1) A description of the qualifying improvements;(2) A statement describing the procedures for billing and collection of assessments to be imposed by the participating local government pursuant to an intergovernmental assessment agreement, which the owner of the qualifying property shall voluntarily request to be imposed and shall agree to pay either directly or through an escrow account that may be established or increased by a prior lien holder on the qualifying property;(3) The total amount of the assessment;(4) A schedule of assessment installments requested to be imposed by the participating local government;(5) Any administrative fees to be paid to the authority or to the participating local government pursuant to the related intergovernmental assessment agreement;(6) The number of years the assessment shall be imposed on the qualifying property; and(7) The conditions under which the owner of the qualifying property may prepay and permanently satisfy the unpaid portion of the assessment and remove the assessment lien from the qualifying property, including a description of the terms of any prepayment penalty.(d) An assessment agreement may authorize the owner of the qualifying property to contract directly, including through lease, power purchase agreement, or other service contract, for installing or modifying a qualifying improvement.(e) Upon execution of an assessment agreement by an owner of the qualifying property and an authority, the authority shall cause the participating local government to execute and record a notice of assessment in the land record of the jurisdiction in which the qualifying property is located, in accordance with Article 2 of this chapter.(f) No authority described in this article shall grant any capital provider the exclusive right to provide financing or refinancing on a program-wide basis. It is the intent of this subsection to enable owners of qualifying properties to recommend to authorities the capital providers to finance or refinance the qualifying improvements owned or to be owned by such qualifying property owners.Added by 2024 Ga. Laws 494,§ 5, eff. 4/25/2024.