§ 20.1204. Real property tax surcharge.

(a)

Repayment of Loans . A property owner participating in the Clean Energy Loan program shall repay the loan through a surcharge on the owner's real property tax bill. Upon receipt of written notice from the Clean Energy Loan Program Administrator of the execution of a Clean Energy Loan Financing Agreement, the County shall, add the surcharge to the tax property bill on July 1 of the year immediately following the execution of the Agreement. The surcharge shall constitute a first lien on the property from the date it becomes payable until the unpaid surcharge and interest and penalties on the surcharge are paid in full, regardless of a change in ownership, whether voluntary or involuntary. A person that acquires property subject to a surcharge assumes the obligation to pay the surcharge.

(b)

Calculation . The surcharge for a Clean Energy Loan shall include the Clean Energy Loan Obligation and any administrative costs incurred by the County. The included administrative costs shall be the actual expenses incurred to administer the program.

(c)

Agreement . The property owner shall execute an agreement with the County and the Clean Energy Lender that will be recorded in the Land Records of Howard County, at the expense of the owner, and which shall include:

(1)

The date the Clean Energy Loan was made to the property owner and the property became subject to the surcharge;

(2)

The term of the Clean Energy Loan and the surcharge;

(3)

The amount of the Clean Energy Loan Obligation and estimated county administrative costs for the first year:

(4)

The annual principal and interest amount for each year of the term of the loan, including any partial year prorated amounts;

(5)

The prepayment requirements and any prepayment premium that may apply, if the loan is a prepayable Clean Energy Loan;

(6)

Agreement by the property owner to repay all Clean Energy Loan Obligations and the county's administrative costs through a surcharge included on the owner's real property tax bill due and payable on the same date as the real property tax bill;

(7)

Acknowledgement by the property owner that an unpaid Clean Energy Loan surcharge constitutes a first lien on the property that has priority over prior or subsequent liens in favor of private parties, and that the surcharge will continue as a lien on the property from the date it becomes payable until the unpaid surcharge and interest and penalties on the surcharge are paid in full, regardless of a change in ownership of the property, whether voluntary or involuntary;

(8)

Acknowledgement by the property owner and the lender that the County has no liability for the Clean Energy Loan Obligation or any costs associated with the collection of amounts due under the Clean Energy Financing Agreement; and

(9)

Acknowledgement by the property owner that an overdue surcharge shall be collected pursuant to Ann. Code of Md., Tax-Property article, title 14, subtitle 8 and section 20.140 of this Code.

(d)

Default . If a property owner defaults on the Clean Energy Loan Surcharge, the lien will be collected pursuant to Ann. Code of Md., Tax-Property article, title 14, subtitle 8 and section 20.140 of this Code, irrespective of whether property taxes (or any other taxes, charges or assessments) are due and owing.

(e)

Credit of Payments. Payments received from a property owner shall be credited first to all County taxes, assessments, and charges.

(f)

County to Forward Surcharges Collected . The County shall forward the surcharges to the Clean Energy Lenders or the Program Administrator within 30 days of receipt.

(g)

County Liability. Except for the obligation to forward surcharges under subsection (f) of this section, the County does not incur any liability by participating in the Clean Energy Loan Program and the County shall not incur any liability to the Clean Energy Lender or others in the event of default.

(C.B. 4, 2016, § 1)