Bill No.
18-16
Concerning: Commercial
Property
Assessed Clean Energy Program -
Amendments
Revised: 5/4/2016
Draft No. 2
Introduced:
April 19. 2016
Enacted:
June 28 2016
Executive: _ _ _ _ _ _ _ _ __
Effective: _ _ _ _ _ _ _ _ __
Sunset Date:
~No~n~e
_ _ _ _ _ __
Ch. _ _ , Laws of Mont. Co. _ _ __
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
Lead Sponsor: Council President at the request of the County Executive
AN ACT
to:
(1) amend the definition for commercial property;
(2) require a third-party lender to record the loan in the County land records;
(3) modify certain eligibility requirements for a loan under the program; and
(4) generally amend County law regarding the Commercial Property Assessed Clean Energy
Program.
By amending
Montgomery County Code
Chapter 18A, Environmental Sustainability
Article 5
Sections 18A-33, 18A-34, and 18A-35 ·
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Heading or defined term.
Added to existing law by original bill.
Deletedfrom existing law by original bill.
Added by amendment.
Deletedfrom existing law or the bill by amendment.
Existing law unaffected by bill.
The County Council for Montgomery County, Maryland approves the following Act.·
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BILLN0.18-16
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Sec. 1. Sections 18A-33, 18A-34, and 18A-35 are amended as follows:
Article 5. Commercial Property Assessed Clean Energy Program
18A-33. Definitions.
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(a)
Definitions.
indicated:
In this Section, the following words have the meanings
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Certified General Real Estate Appraiser
means an individual who is
certified as
£!
certified real estate appraiser for general real estate under
Title 16 of the Business Occupations Article of the Maryland Code.
Commercial property
means any real property located in the County that
is either not designed for or intended for human habitation, or that is used
for human habitation as a multi-family dwelling of [4 or] more
rental units.
than~
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(b)
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18A-34. Commercial Property Assessed Clean Energy Program established.
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Third-party lender.
ill
The Director may enter into an agreement with a third-party lender
that is either a County designated lender or a private lender that
funds a loan for an improvement. The agreement must provide for
the repayment of the loan for the improvement and any cost of
administering the Program through a surcharge on the qualified
property. The loan may include the cost of materials and labor
necessary for installation, any permit fee, any inspection fee, any
application or administrative fee, any bank or lender fee, and any
other fee that the property owner may incur for the installation of
the improvement. The third-party lender must submit a request for
collection of each surcharge amount to the County designated
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BILL
No. 18-16
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program manager or, if there is no County designated program
manager, to the Department no later than April 1 of each year.
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The third-party lender must
record~
document among the land
records of Montgomery County within 30 days of the time the loan
is funded, which provides notice of the Commercial Property
Assessed Clean Energy loan associated with the property and that
the surcharge will be collected and have lien status like all other
real property taxes.
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18A-35. Eligibility.
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(a)
Eligibility.
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(4)
criteria:
(A)
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The loan amount under this Program must meet the following
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The loan amount must be at least $5,000 and [no] not more
than 20% of either the full cash value or the appraised value
of the qualified property. The full cash value is determined
by the Maryland State Department of Assessments and
Taxation~
The appraised value must be determined
by
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Certified General Real Estate Appraiser and must have been
certified no more than 12 months before the date of the loan
application[;
(B)
and]~
The loan amount, together with the outstanding balance of
the mortgage or deed of trust, must be no more than 90% of
either the full cash value or the appraised value of the
qualified property.
(b)
Property Assessed Clean Energy Surcharge.
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BILL
No. 18-16
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Approved:
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(3)
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As a condition for entering into an agreement under the Program,
the County designated lender or private lender must provide the
County designated program manager and the Department a copy
of the loan documents and documents that verify:
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(F)
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appraised value of the qualified property as certified in the
appraisal report submitted by
f!
Certified General Real
Estate
Appraiser
if the
eligibility
requirement
in
18A-35(a)(4) is based on the appraised value of the
qualified property;
(G)
loan to value documentation; and
[G] (H) any other financial or program document that the Director
deems necessary.
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Date
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Approved:
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Isiah Leggett, County Executive
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This is a correct copy ofCouncil action.
Linda M. Lauer, Clerk of the Council
Date
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