§ 30-8. Surcharge.

(a) In general.

(1) A property owner participating in the PACE Loan Program shall repay the clean energy loan through an annual surcharge on the property owner's real property or stand-alone tax bill.

(2) This surcharge constitutes a first lien on the property, with priority over all prior or subsequent liens in favor of private parties, from the date it is billed on the property owner's real property or stand-alone tax bill until the unpaid surcharge, interest, and any associated penalties are paid in full.

(b) Calculation.

The amount of the surcharge shall be the sum of:

(1) the amount due under the terms of indebtedness and obligations agreed to in the loan's financing agreement; and

(2) any administrative costs owed to the City under this subtitle.

Except as provided in § 30-3(a)(2) of this subtitle, if a person acquires a commercial property that is subject to a surcharge incurred under this subtitle, that person assumes the obligation to pay the surcharge, whether the acquisition was voluntary or involuntary.

(d) Recordation.

(1) Within 30 days of receiving written notice from the Administrator that a financing agreement for a clean energy loan has been executed, the clean energy lender or the Administrator shall cause a Notice of Surcharge Levy to be recorded in the Land Records of Baltimore City.

(2) The Notice of Surcharge Levy shall include:

(i) the clean energy loan financing agreement; and

(ii) any other information required by the rules and regulations adopted under this subtitle.

(e) Billing.

(1) In general.

The annual surcharge shall be:

(i) billed:

(A) as a separate, clearly defined line item on the real property tax bill; or

(B) on a separate, stand-alone tax bill; and

(ii) due on the same dates as City real property taxes.

(2) Initial surcharge.

(i) The City shall bill the first surcharge due by a property owner on the first tax bill after the Administrator provides written notice to the Finance Director of the financing agreement's repayment schedule.

(ii) This billing practice does not impact the legal rights afforded a clean energy lender under:

(A) a valid, executed finance agreement; and

(B) a properly recorded Notice of Surcharge Levy.

(f) Disbursement.

(1) Surcharges collected by the City under this subtitle shall be disbursed to the Administrator within 45 days after the last day of the month in which the amounts are collected.

(2) Neither the City nor the Administrator shall at any time possess any ownership of a surcharge collected, except for the administrative costs included in the surcharge under this subtitle.

(3) The City is obligated to pay a clean energy lender only the portion of the surcharge actually collected to repay the clean energy loan.

(g) Repayment priority.

Surcharge payments collected through a property owner's real property or stand-alone tax bill shall be credited:

(1) first, to any non-Program taxes, as defined by § 14-801(d) of the State Tax-Property Article, that are delinquent as of the date the surcharge payments are received; and

(2) then, to Program surcharges.

(h) Delinquency.

(1) If a property owner fails to pay a surcharge installment in accordance with the terms of the loan financing agreement, the Finance Director shall provide written notice of the delinquency to the Administrator in a timely manner.

(2) After providing this notice to the Administrator, the City has no obligation to collect unpaid surcharge payments until a tax lien attaches to the property.

(i) Default.

(1) If a property owner defaults on a surcharge, the Finance Director shall collect the surcharge as a tax lien, through the tax sale process, in a manner similar to other property tax assessments with respect to any penalties, fees, remedies, and lien priorities authorized under the State Tax-Property Article, Title 14, Subtitle 8.

(2) A surcharge levied under this subtitle may be foreclosed only to the extent of any unpaid installment and any related penalties, interest, and fees.

(3) This collection process applies to an overdue surcharge, regardless of whether real property taxes (or any other taxes, charges, or assessments) are due and owing.

(j) Assignability.

The City may assign a PACE tax lien to the Administrator.

(k) Survivability.

If a PACE tax lien is foreclosed, the PACE tax lien shall survive the judgment of foreclosure to the extent that any unpaid surcharge installments secured by the lien were not the subject of that judgment.