Florida Senate - 2019                                     SB 842
       
       
        
       By Senator Thurston
       
       
       
       
       
       33-00865-19                                            2019842__
    1                        A bill to be entitled                      
    2         An act relating to county funding for affordable
    3         housing; creating s. 125.01675, F.S.; defining terms;
    4         authorizing the governing authority of each specified
    5         county to levy a discretionary surtax on documents for
    6         the purpose of establishing and financing an
    7         Affordable Housing Trust Fund; specifying the purpose
    8         of the trust fund and the required use of the funds;
    9         specifying a limit on the surtax; providing
   10         applicability of the surtax; specifying procedures and
   11         requirements for approval of the surtax by referendum;
   12         requiring the county, if levying the surtax, to enact
   13         an ordinance creating the trust fund and a housing
   14         assistance program; specifying requirements for the
   15         ordinance and enactment of the ordinance; specifying a
   16         limit on surtax revenues used for administrative costs
   17         by the Department of Revenue; specifying authorized
   18         actions and requirements for, and limitations and
   19         prohibitions on, the deposit and use of surtax
   20         proceeds by the county; defining the term
   21         “homeownership assistance”; specifying a condition for
   22         the rehabilitation of housing owned by a recipient
   23         government; defining the terms “housing assistance
   24         voucher” and “purchasing employer”; authorizing the
   25         governing authority of the county to create a housing
   26         assistance voucher program by ordinance; specifying
   27         requirements for such housing assistance vouchers;
   28         specifying a limit on voucher allocations for
   29         purchasing employers; requiring purchasing employers
   30         to distribute the allocations to employees in a
   31         specified manner; specifying a limitation on
   32         allocations not distributed within a certain
   33         timeframe; specifying a requirement for including
   34         certain housing assistance paid in a certain
   35         calculation; requiring the Office of Program Policy
   36         Analysis and Government Accountability, at specified
   37         intervals, to review the discretionary surtax program
   38         and provide a report to the Governor and the
   39         Legislature; amending s. 201.031, F.S.; providing
   40         applicability of provisions relating to the
   41         discretionary surtax on documents to the surtax
   42         created under s. 125.01675, F.S.; providing an
   43         effective date.
   44          
   45  Be It Enacted by the Legislature of the State of Florida:
   46  
   47         Section 1. Section 125.01675, Florida Statutes, is created
   48  to read:
   49         125.01675County affordable housing discretionary surtax on
   50  documents; adoption; application of revenue.—
   51         (1) As used in this section, the term:
   52         (a)“County” means the governing authority of a charter
   53  county or a county government that is consolidated with one or
   54  more municipalities, which have an estimated population of
   55  900,000 or more, except the term does not include any county
   56  defined in s. 125.011 which levies a discretionary surtax on
   57  documents pursuant to s. 125.0167.
   58         (b)“Housing” includes, but is not limited to, single
   59  family detached dwellings and multifamily dwellings.
   60         (c)“Low-income family” means one or more natural persons
   61  or a family with a total anticipated income for the household
   62  which does not exceed 80 percent of the median annual income,
   63  adjusted for family size, for households within the area of the
   64  county.
   65         (d)“Moderate-income family” means one or more natural
   66  persons or a family with a total anticipated income for the
   67  household which is in excess of 80 percent, but is less than 140
   68  percent, of the median annual income, adjusted for family size,
   69  for households within the area of the county.
   70         (2) Pursuant to s. 201.031, the governing authority in each
   71  county may levy a discretionary surtax on documents for the
   72  purpose of establishing and financing an Affordable Housing
   73  Trust Fund to assist in the financing of construction,
   74  rehabilitation, or purchase of housing for low-income and
   75  moderate-income families. At least 50 percent of the funds used
   76  in each county to provide such housing assistance must be for
   77  the benefit of low-income families. In addition, at least 10
   78  percent of the funds used in each county must be used to provide
   79  housing assistance for income-eligible, qualified individuals
   80  with disabilities.
   81         (3)The rate of the surtax may not exceed the rate of 45
   82  cents for each $100, or fractional part thereof, of the
   83  consideration therefor. The surtax must apply only to those
   84  documents taxable under s. 201.02, except that there may not be
   85  a surtax on any document pursuant to which the interest granted,
   86  assigned, transferred, or conveyed involves only a single-family
   87  residence. For purposes of this subsection, a single-family
   88  residence may be a condominium unit, a unit held through stock
   89  ownership or membership representing a proprietary interest in a
   90  corporation owning a fee or a leasehold initially in excess of
   91  98 years, or a detached dwelling.
   92         (4)The surtax authorized in this section may be levied
   93  only upon approval of a majority of the electorate of the county
   94  voting in a referendum held at a general election, as defined in
   95  s. 97.021, unless before January 1, 2020, the electorate of the
   96  county approved an amendment to the county’s charter creating a
   97  continuing, nonlapsing housing-related trust fund to address the
   98  need for affordable housing within the county.
   99         (5)Subject to subsection (4), a county levying the
  100  discretionary surtax authorized in this section shall enact an
  101  ordinance creating an Affordable Housing Trust Fund and a
  102  housing assistance program. Consistent with this section, the
  103  ordinance must establish the policies and procedures governing
  104  the levy of the surtax, the use of surtax proceeds, eligibility
  105  standards, and housing assistance programs available to low
  106  income and moderate-income families residing within the county.
  107  The surtax ordinance must be proposed at a regular meeting of
  108  the governing authority of the county at least 2 weeks before
  109  the public hearing at which the ordinance is formally enacted.
  110  The ordinance is not effective unless approved by a majority
  111  vote of the total membership of the governing authority of the
  112  county. The ordinance may not take effect until 90 days after
  113  formal enactment or other date prescribed by the governing
  114  authority of the county, whichever is later.
  115         (6)No more than 10 percent of surtax revenues collected
  116  under this section by the Department of Revenue and remitted to
  117  the county in any fiscal year may be used for administrative
  118  costs.
  119         (7) The county shall deposit all proceeds from the
  120  discretionary surtax in the Affordable Housing Trust Fund of the
  121  county. The county shall use the proceeds only to help finance
  122  the construction, rehabilitation, or purchase of housing for
  123  low-income and moderate-income families, to pay the necessary
  124  costs of collection and enforcement of the surtax, and to fund
  125  any local matching contributions required pursuant to federal
  126  law. No more than 50 percent of the revenues collected each year
  127  pursuant to this section may be used to help finance new
  128  construction as provided in this section. The proceeds of the
  129  surtax may not be used for rent subsidies or grants. For
  130  purposes of this section, authorized uses of the proceeds
  131  include, but are not limited to:
  132         (a)Providing funds for first and second mortgages;
  133         (b)Acquiring property for the purpose of forming housing
  134  cooperatives; and
  135         (c)Land acquisition expenditures for a residential housing
  136  project in which at least 30 percent of the units are affordable
  137  to low-income and moderate-income families, if the land is owned
  138  by a local government or a special district that enters into an
  139  agreement with the county to provide such housing. The local
  140  government or special district may enter into a ground lease
  141  with a public or private person or entity for nominal or other
  142  consideration for the construction of the residential housing
  143  project on land acquired pursuant to this paragraph.
  144         (8)(a) Notwithstanding subsection (7), of the discretionary
  145  surtax revenues collected by the Department of Revenue remaining
  146  after any deduction for administrative costs as provided in
  147  subsection (6), at least 35 percent must be used to provide
  148  homeownership assistance for low-income and moderate-income
  149  families, and at least 35 percent must be used for the
  150  construction, rehabilitation, and purchase of rental housing
  151  units. The remaining amount may be allocated to provide for
  152  homeownership assistance or rental housing units at the
  153  discretion of the county. Any funds allocated for homeownership
  154  assistance or rental housing units which are not committed at
  155  the end of the fiscal year must be reallocated in subsequent
  156  years consistent with this subsection, in that at least 35
  157  percent must be reallocated to provide homeownership assistance
  158  for low-income and moderate-income families, and at least 35
  159  percent must be reallocated for construction, rehabilitation,
  160  and purchase of rental housing units. The remaining amount of
  161  uncommitted funds may be reallocated at the discretion of the
  162  county within any of the categories established in this section.
  163         (b) As used in this subsection, the term “homeownership
  164  assistance” means assisting low-income and moderate-income
  165  families in purchasing a home as their primary residence, which
  166  includes, but is not limited to, reducing the cost of a home
  167  with below-market construction financing, reducing the amount of
  168  a down payment and closing costs paid by a borrower, reducing a
  169  mortgage payment to an amount affordable for a purchaser, or
  170  using any other financial assistance measure set forth in s.
  171  420.5088.
  172         (9) Rehabilitation of housing owned by a recipient
  173  government may be authorized only after a determination approved
  174  by a majority of the governing authority of the county that no
  175  other sources of funds are available.
  176         (10)(a) As used in this subsection, the term:
  177         1. “Housing assistance voucher” means the document used to
  178  access assistance paid by the county from the discretionary
  179  surtax balance in the Affordable Housing Trust Fund to a
  180  prospective purchaser of a single-family residence that is to be
  181  the purchaser’s homestead.
  182         2. “Purchasing employer” means a business or business
  183  entity that has acquired real property within the county and
  184  paid the surtax due as a result of the acquisition of that
  185  property pursuant to this section.
  186         (b) The governing authority of each county may, by county
  187  ordinance and pursuant to procedures and requirements provided
  188  by the ordinance, create a housing assistance voucher program.
  189         (c) Housing assistance vouchers must be used for down
  190  payment assistance for the purchase of a single-family residence
  191  by low-income and moderate-income persons within the county and
  192  within a 5-mile radius of the purchasing employer, who are:
  193         1. Actively employed by the purchasing employer or by a
  194  business entity directly affiliated with the purchasing
  195  employer.
  196         2. Prequalified for a mortgage loan by a certified lending
  197  institution.
  198         (d) Upon payment of the discretionary surtax under this
  199  section, the purchasing employer may file for an allocation for
  200  housing assistance vouchers from the county in an amount up to
  201  50 percent of the amount of the discretionary surtax paid. The
  202  purchasing employer shall distribute the allocation to employees
  203  in the form of housing assistance vouchers pursuant to rules and
  204  procedures established for the program.
  205         (e) Any housing assistance voucher allocation not
  206  distributed to employees and redeemed by an employee within 1
  207  year after the date the discretionary surtax is paid may not be
  208  used for housing choice assistance vouchers under this
  209  subsection.
  210         (f) Any housing assistance paid pursuant to the housing
  211  assistance voucher program must be included in the calculation
  212  determining the percentage of discretionary surtax funds used
  213  for homeownership purposes during the year in which the surtax
  214  funds for such purposes are expended.
  215         (11) By January 1, 2024, and every 5 years thereafter, the
  216  Office of Program Policy Analysis and Government Accountability
  217  shall review the discretionary surtax program operated by
  218  counties under this section and shall provide a report to the
  219  Governor, the President of the Senate, and the Speaker of the
  220  House of Representatives.
  221         Section 2. Section 201.031, Florida Statutes, is amended to
  222  read:
  223         201.031 Discretionary surtax; administration and
  224  collection; Housing Assistance Loan Trust Fund; Affordable
  225  Housing Trust Fund; reporting requirements.—
  226         (1) Each county, as defined in by s. 125.011(1) or s.
  227  125.01675(1), may levy, subject to the provisions of s. 125.0167
  228  or s. 125.01675, a discretionary surtax on documents taxable
  229  under the provisions of s. 201.02, except that there shall be no
  230  surtax on any document pursuant to which the interest granted,
  231  assigned, transferred, or conveyed involves only a single-family
  232  residence. The single-family residence may be a condominium
  233  unit, a unit held through stock ownership or membership
  234  representing a proprietary interest in a corporation owning a
  235  fee or a leasehold initially in excess of 98 years, or a
  236  detached dwelling.
  237         (2) All provisions of chapter 201, except s. 201.15, apply
  238  to a the surtax levied pursuant to s. 125.0167 or s. 125.01675.
  239  The Department of Revenue shall pay to the governing authority
  240  of the county which levies the surtax all taxes, penalties, and
  241  interest collected under this section less any costs of
  242  administration.
  243         (3) Each county that levies a the surtax pursuant to s.
  244  125.0167 or s. 125.01675 shall:
  245         (a) Include in the financial report required under s.
  246  218.32 information showing the revenues and the expenses of the
  247  trust fund for the fiscal year.
  248         (b) Adopt a housing plan every 3 years which includes
  249  provisions substantially similar to the plans required in s.
  250  420.9075(1).
  251         (c) Have adopted an affordable housing element of its
  252  comprehensive land use plan which complies with s.
  253  163.3177(6)(f).
  254         (d) Require by resolution that the staff or entity that has
  255  administrative authority for implementing the housing plan
  256  prepare and submit to the county’s governing body an annual
  257  report substantially similar to the annual report required in s.
  258  420.9075(10).
  259         Section 3. This act shall take effect upon becoming a law.