The Florida Senate

380.510  Conditions of grants and loans.--

(1)  The trust may seek repayment of funds loaned pursuant to this part on terms and conditions as it deems appropriate to carry out the provisions of this part.

(2)  Trust loan applications may include a requirement that the loan include all reasonable and necessary administrative costs that the trust incurs in processing and administering the loan application.

(3)  In the case of a grant or loan for land acquisition, agreements shall provide all of the following:

(a)  The trust shall approve the terms under which the interest in land is acquired.

(b)  The transfer of land acquired with a trust grant or loan shall be subject to the approval of the trust, and the trust shall enter into a new agreement with the transferee, containing such covenants, reverter clauses, or other restrictions as are sufficient to protect the interest of the people of Florida.

(c)  The interest in land acquired with a loan or grant from the trust may not serve as security for any debt the grantee or borrower incurs unless the trust approves the transaction.

(d)  If any essential term or condition of a grant or loan is violated, title to all interest in real property acquired with state funds shall be conveyed or revert to the Board of Trustees of the Internal Improvement Trust Fund. The trust shall treat such property in accordance with s. 380.508(4)(e).

(e)  If the existence of a nonprofit organization or local government terminates for any reason, title to all interest in real property it has acquired with state funds shall be conveyed or revert to the Board of Trustees of the Internal Improvement Trust Fund, unless the trust negotiates an agreement with another local government or nonprofit organization which agrees to accept title to all interest in and to manage the property.

(f)  The term of any grant using funds received from the Preservation 2000 Trust Fund, pursuant to s. 259.101(3)(c), shall be for a period not to exceed 24 months. The governing board of the trust may offer a grant with a shorter term and may extend a grant beyond 24 months when the grant recipient demonstrates that significant progress is being made toward closing the project or that extenuating circumstances warrant an extension of time. If a local government project which was awarded a grant is not closed within 24 months and the governing board of the trust does not grant an extension, the grant reverts to the trust's unencumbered balance of Preservation 2000 funds to be redistributed to other eligible projects. The local government may reapply for a grant to fund the project in the trust's next application cycle.

Any deed or other instrument of conveyance whereby a nonprofit organization or local government acquires real property under this section shall set forth the interest of the state. The trust shall keep at least one copy of any such instrument and shall provide at least one copy to the Board of Trustees of the Internal Improvement Trust Fund.

(4)  The trust shall require in a grant or loan agreement terms sufficient to protect the public interest in any improvement or development constructed under a grant or loan to a nonprofit organization or local government. The agreement shall describe with particularity any real property which is subject to the agreement, and the trust shall record the agreement in the county in which the real property is located.

(5)  Any funds the trust collects from a nonprofit organization or local government under a grant or loan agreement shall be deposited in the Florida Communities Trust Fund.

(6)  Funds the trust loans for land acquisition may, in part, be used to pay reasonable real estate commission fees.

(7)  Any funds received by the trust from the Preservation 2000 Trust Fund pursuant to s. 259.101(3)(c) shall be held separate and apart from any other funds held by the trust and shall be used only to pay the cost of the acquisition of lands by a local government or the state for the purposes of this part. Such funds may not be used to pay for a redevelopment project or an urban waterfront restoration project or for site reservation except to acquire lands to help implement the goals, objectives, and policies of the coastal, the conservation, or recreation and open space elements of the local comprehensive plan. In addition to the other conditions set forth in this section, the disbursement of Preservation 2000 funds from the trust shall be subject to the following conditions:

(a)  The administration and use of any funds received by the trust from the Preservation 2000 Trust Fund shall be subject to such terms and conditions imposed thereon by the agency of the state responsible for the revenue bonds, the proceeds of which are deposited in the Preservation 2000 Trust Fund, including restrictions imposed to ensure that the interest on any such revenue bonds issued by the state as tax-exempt revenue bonds will not be included in the gross income of the holders of such bonds for federal income tax purposes.

(b)  All deeds or leases with respect to any real property acquired with funds received by the trust from the Preservation 2000 Trust Fund shall contain such covenants and restrictions as are sufficient to ensure that the use of such real property at all times complies with s. 375.051 and s. 9, Art. XII of the State Constitution. Each deed or lease shall contain a reversion, conveyance, or termination clause that will vest title in the Board of Trustees of the Internal Improvement Trust Fund if any of the covenants or restrictions are violated by the titleholder or leaseholder or by some third party with the knowledge of the titleholder or leaseholder.

(8)  The Auditor General shall conduct performance postaudits of acquisitions and divestitures which, according to his or her review of the overall Florida Communities Trust Program, he or she considers necessary.

History.--s. 28, ch. 89-175; s. 2, ch. 90-192; s. 20, ch. 90-217; s. 13, ch. 91-192; s. 5, ch. 91-429; s. 70, ch. 93-206; s. 647, ch. 95-148; s. 22, ch. 96-389.