Bill > LB1163

This bill amends the Property Assessed Clean Energy (PACE) Act in Nebraska to clarify how delinquent annual assessments, which are payments for energy efficiency improvements that are added to property taxes, are handled and how PACE liens, which are the legal claims against the property for these unpaid assessments, are treated. Specifically, for properties other than single-family homes, the bill requires municipalities to record a notice of a PACE lien within fourteen days of an assessment becoming delinquent or upon receiving notice from a third-party lender financing the energy project that an assessment is delinquent. These delinquent assessments and their associated liens will then be treated like special assessments, meaning they will be collected through the same processes as property taxes, as outlined in Chapter 77 of Nebraska statutes. For single-family homes, the PACE lien is established upon the initial assessment and recorded immediately, with specific rules about its priority compared to other existing liens. The bill also details what information must be included in a notice of lien and how liens are handled in the event of property sales or foreclosures, noting that for single-family homes, insufficient proceeds from a sale will extinguish delinquent assessments, while for other properties, the obligation to pay runs with the land. Finally, the bill allows mortgage holders or loan servicers to adjust monthly payments to include PACE assessments and repeals the original section of law it amends, declaring an emergency to allow the act to take effect immediately upon passage.

Housing and Urban Affairs

https://nebraskalegislature.gov/bills/view_bill.php?DocumentID=63981