(1) A local unit of government may impose an assessment under a property assessed clean energy program only pursuant to a written contract entered into under section 5(2) with the record owner of the property to be assessed.

    (2) Before entering into a contract with the record owner under section 5(2), the local unit of government must verify that none of the following are delinquent with respect to the property:

    (a) A tax, special assessment, or water or sewer charge.

    (b) An assessment for another project under a property assessed clean energy program.