Section 11-81-241 Definitions.

For the purposes of this article, the following words have the following meanings: (1) ASSESSMENT AGREEMENT. The agreement between a local government and a property owner in which the property owner voluntarily agrees to have the local government place an assessment and lien on the benefited property to secure repayment of property insurance reduction and capital expenditure financing to a capital provider. (2) CAPITAL PROVIDER. The private third-party entity or entities, including their designees, successors, and assigns, that provide private financing for property insurance and capital expenditure financing and refinancing under this article. (3) CONSENT AGREEMENT. The written agreement or agreements between the owner of the qualifying property and all mortgagees or other secured lienholders in which all parties, individually or collectively, consent to the execution of the assessment agreement and imposition of the assessment and acknowledge that the liens of the mortgagees or other lienholders shall be subordinated to the assessment lien established under this article. (4) DESIGNATED REGION. An area approved by a local government for qualified projects pursuant to Section 11-81-242. (5) FINANCING AGREEMENT. The contract between a property owner and a capital provider in which the property owner agrees to repay the capital provider for the financing of qualifying improvements. The term includes, but is not limited to, details of financing charges, fees, debt servicing, interest and penalties, terms related to prepayment and partial payments, billing, collection, and enforcement of the repayment of the financing. (6) LOCAL GOVERNMENT. Any incorporated municipality, county, or improvement district in this state. (7) PROGRAM. A program for property insurance reduction and capital expenditure authorized and designated by a local government under this article. (8) PROGRAM ADMINISTRATOR. The department or individual within a local government designated to administer the program, or a private independent third party designated by the local government, provided that the administrative procedures used conform to this article. (9) PROGRAM GUIDEBOOK. A comprehensive document that outlines the applicable program and establishes appropriate guidelines, specifications, underwriting, and approval criteria, along with standard application forms consistent with the administration of the program and not detailed in this article, including the following: a. A program application with an attestation by the property owner that he or she has reviewed the contents of the application and all attachments and verified, to the best of his or her ability, that they are true and correct. b. An assessment agreement form between the local government and the property owner, specifying the terms of assessment under the program, terms of the financing provided by a third party, and remedies for default or foreclosure. c. A local government Notice of Assessment and Property Insurance Reduction and Capital Expenditure lien form. d. A Notice of Assignment of Assessment and Property Insurance Reduction and Capital Expenditure lien form between a local government and a capital provider. e. A consent agreement form for use between the owner of a qualifying property and the mortgagee or other secured lienholder or lienholders which specifies the consent to the execution of the assessment agreement, the imposition of the assessment, and the subordination of the liens to the assessment. (10) QUALIFIED PROJECT. A property that has at least one qualifying improvement installed. The term includes a new construction, the adaptive reuse of eligible property with the improvement, or a property where the qualifying improvement has been installed and is operational before the application date. (11) QUALIFYING IMPROVEMENT. An improvement fixed to or used by an existing building, facility, or new construction that is part of the qualified property and intended to increase energy and water efficiency, lower energy cost, increase building resilience, and harden or upgrade a property to withstand storm-related events such as high winds and flooding. The term includes, but is not limited to, any of the following: a. Resiliency improvements, including: 1. Wind resistance improvements or programs that qualify the structure for insurance discounts, including the FORTIFIED Program; 2. Improvements that increase occupant safety during tornados, including, but not limited to, safe rooms that comply with the International Code Congress (ICC-500) as mandated by the Alabama Building Commission or are manufactured or site built under the supervision of a professional or producer member of the National Storm Shelter Association; and 3. Battery or generator storage, electric vehicle charging infrastructure, or other resilience measures as deemed acceptable by a local government to provide strengthening or resilience of a structure against natural disasters or pandemics. b. Flood mitigation, including: 1. Raising a structure above the base flood elevations to eliminate flood damage; 2. Installation of a flood diversion apparatus; 3. Electrical, mechanical, plumbing, or other system improvements that reduce flood damage; 4. Improvements to mitigate or eliminate the potential for microbial growth or reduce flood insurance premiums; and 5. Any other improvement that reduces repetitive loss and is recognized by the National Flood Insurance Program, the Community Rating System, or the Federal Emergency Management Agency. c. Energy conservation and efficiency improvements installed on the qualifying property to reduce consumption by conserving or using electricity, natural gas, propane, or other forms of energy sources more efficiently, including, but not limited to, any of the following: 1. Air sealing. 2. Installation of insulation. 3. Installation of energy-efficient heating, cooling, or ventilation systems. 4. Building modifications to increase the use of daylight. 5. Replacement of windows. 6. Installation of energy controls or energy efficient lighting systems. 7. Installation of electric vehicle charging equipment. 8. Installation of efficient lighting equipment. 9. Other improvements that are intended to lead to demonstrable energy savings. d. Water conservation, efficiency, and water quality improvements. (12) QUALIFYING PROPERTY. Real property that includes commercial, industrial, agricultural, and multifamily buildings. The term excludes residential property consisting of fewer than five units.