The Florida Senate

420.530  State Farmworker Housing Pilot Loan Program.--The State Farmworker Housing Pilot Loan Program is created for the purpose of demonstrating the ability to use state dedicated funds to leverage Federal Government, local government, and private resources to provide affordable, safe, and sanitary rental housing units for farmworkers.

(1)  Subject to the availability of funds appropriated to fund the State Farmworker Housing Pilot Loan Program, the Florida Housing Finance Corporation shall have the authority to make farmworker housing loans to a sponsor, as defined in s. 420.503(37), provided the sponsor:

(a)  Agrees to:

1.  Set aside at least 80 percent of the units for eligible farmworkers, as defined in s. 420.503(18);

2.  Set aside 100 percent of the units for households whose family income does not exceed:

a.  Fifty percent of the adjusted local median income in areas which are not metropolitan statistical areas; or

b.  Forty percent of adjusted local median income in metropolitan statistical areas; and

3.  Limit rents to no more than 30 percent of the maximum household income adjusted to unit size; or

(b)  Uses federal funds provided under s. 514 or s. 516 of Title V of the Federal Housing Act of 1949 and meets maximum rental limits, tenant eligibility, and other regulatory requirements established pursuant to such programs.

(2)  The corporation shall issue a request for proposals to solicit applications for loans offered pursuant to this section and shall establish a funding cycle to distribute funds pursuant to this section. The corporation shall coordinate this cycle with the fiscal year 2001 federal funding cycle for s. 514 or s. 516 of Title V of the Federal Housing Act of 1949. The corporation may distribute through this funding cycle any additional funds set aside for farmworker housing under the State Apartment Incentive Loan Program authorized by s. 420.5087, or other funds appropriated for the State Farmworker Housing Pilot Loan Program.

(3)  All eligible applications shall:

(a)  Demonstrate that the sponsor possesses title to or firm site control of land and evidences availability of required infrastructure.

(b)  Have grants, donations of land, or contributions from other sources collectively totaling at least 25 percent of the total development cost. Such grants, donations of land, or contributions need not be committed at the time of application. The corporation shall establish a set time for receipt of such commitments.

(c)  Have local government contributions and private agriculture producer funds and other private leveraged funds totaling no less than 3 percent of the total development cost.

(d)  Demonstrate accessibility to commercial businesses and services needed to serve the needs of the resident farmworkers or include a viable plan to provide access to those commercial businesses and services.

(e)  Limit developer fees to no more than 15 percent of the total development cost, less developer fees and land cost.

(4)  The corporation shall establish a review committee composed of staff of the Department of Community Affairs selected by the Secretary of Community Affairs and staff of the corporation and shall establish a scoring system for evaluation and competitive ranking of applications submitted in this program.

(a)  Each application shall address and be evaluated and ranked based on the following criteria:

1.  A demonstrated need for farmworker housing: Proposed developments in a county determined by the Shimberg Center for Affordable Housing's April 1997 Migrant Farm Worker Needs Assessment, or any subsequent assessment, to have a shortage of affordable housing for 3,000 or more farmworkers shall receive maximum points. Sponsors proposing developments in other counties and demonstrating a high need for farmworker housing through other state or local governmental reports or market studies are eligible for funding under this section, but shall receive fewer points.

2.  Developer fees: Sponsors with developer fees less than 15 percent shall be awarded additional points. There shall be no identity of interest between the sponsor, affiliated entities, and the contractor, and the sponsor or affiliated entities shall not receive any financial or other remuneration from the contractor as a condition of the contractor's selection.

3.  The project's mix: Applications providing a set-aside of 20 percent or more units for seasonal, temporary, or migrant workers, including unaccompanied workers, shall receive additional points.

4.  Innovation: Innovative planning concepts such as a phased development plan for mixed-income or occupational groups, home ownership, or commercial uses on a nearby parcel shall receive additional points.

5.  Innovative building designs: Innovative building designs, which are targeted to meet the needs of the hard-to-serve population of migrant, seasonal, and very-low-income tenants which lower costs and rents while providing safe, sanitary, and decent housing shall receive additional points.

6.  Federal Government contributions: Scoring shall provide additional points based on the percentage of federal funds leveraged. Such funds need not be committed to the proposed project. The corporation shall establish a set time for receipt of such commitments, taking into consideration the application deadlines and projected determination periods set by each of the agencies responsible for the federal funds proposed as leveraged. The corporation may give more points to applications with commitments of federal contributions.

7.  Local government participation: Evidence of local government participation in project planning demonstrating a commitment to the project's success, including, but not limited to, comprehensive planning, letters of support, and other activities, shall receive additional points.

8.  A provision for supportive services accessible onsite or through cooperative agreements with service providers in the community: Scoring shall provide additional points to eligible applications that provide one or more qualified tenant programs to enhance quality of life for residents. Such programs include, but are not limited to, the inclusion of a Title XX or Head Start child care facility for children onsite or within 3 miles of the development, tenant activities, health care, financial counseling, English as a Second Language courses, and GED courses.

9.  The quality of the project's design: All developments shall include the equivalent of 0.25 full bathroom facilities per bed or tenant; onsite laundry, laundry sink, or hookups and space for a washer and dryer inside each unit; and appropriate minimum storage space. Flexibility shall be permitted for innovative designs which meet the needs of the population served.

a.  The following items are not required and shall receive no points in the scoring of applications: two full bathrooms in all three-bedroom units, one and one-half bathrooms in all two-bedroom units, swimming pool, dishwasher, garbage disposals, and cable television hookups.

b.  The following items are not required but shall receive additional points in the scoring of applications: window treatments, 30-year roofing on all buildings, gated community with carded entry or security guard, car care area, covered picnic area, playground, outdoor recreation area for older children, two or more parking spaces per unit, large multipurpose room or clubhouse, air conditioning or whole-house fan as determined by geographic region or seasonal occupancy, hurricane shutters or resistant glass, and energy conservation features.

10.  The feasibility and economic viability of the project.

11.  The sponsor's development experience: Scoring shall provide the most points to eligible applicants with successful experience in the development of farmworker housing commensurate to the size and scope of the proposed development. Applicants with less development experience or experience in projects substantially smaller than that proposed shall receive fewer points. The experience may be that of an affiliated or controlling corporation where the eligible applicant is established to limit liability of the affiliated group.

12.  The sponsor's management experience: Scoring shall provide the most points to eligible applicants with successful experience in the management of farmworker housing commensurate to the size and scope of the proposed development. Applicants with less management experience or experience in projects substantially smaller than the proposed development shall receive fewer points. The experience may be that of an affiliated or controlling nonprofit corporation where the eligible applicant is established to limit liability of the affiliated group.

13.  The ability to proceed with construction: Scoring shall provide the most points to those applicants able to proceed in a timely manner. In addition to local government participation as addressed in subparagraph 7., items to be scored shall include, but not be limited to: environmental safety, infrastructure availability, schematic site plans and elevations, and conceptual, preliminary, or final site plan approval.

14.  A management plan to attract, serve, and keep eligible farmworker tenants.

(b)  The corporation may reject any application.

(c)  The review committee established by the corporation shall make recommendations to the board of directors of the corporation regarding program participation under the State Farmworker Housing Pilot Loan Program. The corporation board shall make the final ranking and the decisions regarding which applicants shall become program participants based on the scores received in the competitive ranking, further review of applications, and the recommendations of the review committee. The corporation board shall approve or reject applications for loans and shall determine the tentative loan amount available to each applicant selected for participation in the program.

(5)  Loans provided pursuant to this section shall be nonamortizing. The corporation shall establish interest rates for loans made pursuant to this section. Loans to not-for-profit applicants shall have interest rates of zero percent if no low-income housing tax credits are allocated to the development. If low-income housing tax credits are allocated to the development, the interest rate may be adjusted upward to meet appropriate federal requirements. Loans to for-profit applicants shall have interest rates of 3 percent if no low-income housing tax credits are allocated to the development. If low-income housing tax credits are allocated to the development, the interest rate may be adjusted upward to meet appropriate federal requirements. Loans shall not exceed $5 million. The following provisions shall apply to all loans provided under this section:

(a)  No loan combined with any other mortgage in a superior position shall exceed the development cost or the value of security, whichever is less.

(b)  The loan term shall be for a period of not less than 20 years. The corporation may renegotiate and extend the loan in order to extend the availability of housing for farmworkers. The term of a loan may not extend beyond the period for which the sponsor agrees to provide housing for farmworkers as provided in subsection (1). Payment on the loans shall be based on the actual development cash flow and principal and interest may be deferred without constituting a default on the loan. The corporation may defer repayment of loans made under this section until the end of the loan period, including any extension, or until the housing no longer meets the requirements of subsection (1), whichever occurs first.

(c)  The discrimination provisions of s. 420.516 shall apply to all loans.

(d)  The proceeds of all loans shall be used for new construction or substantial rehabilitation which creates affordable, safe, and sanitary housing units.

(e)  Sponsors shall annually certify the eligibility status and adjusted gross income of all persons or families qualified under subsection (1) who are residing in a project funded by this program. For monitoring purposes, the corporation may rely on a federal governmental entity which is also required to monitor and determine tenant eligibility.

(f)  If agricultural and market conditions change substantially in a market area in which a project is located, the sponsor may request approval from the corporation for changes in the occupational or income set-aside requirements. The sponsor shall submit evidence of such market changes, including, but not limited to, a market study and statements from agricultural producers and agricultural labor representatives. The board of directors of the corporation may amend set-aside requirements; however, such changes shall preserve the maximum percentage of units for eligible farmworkers as market conditions permit.

(6)  If a default on a loan occurs, the corporation may foreclose on any mortgage or security interest or commence any legal action to protect the interest of the corporation and recover the amount of the unpaid principal, accrued interest, and fees. The corporation may acquire real or personal property or any interest in such property when that acquisition is necessary or appropriate to: protect any loan; sell, transfer, and convey any such property to a buyer without regard to the provisions of chapters 253 and 270; and, if that sale, transfer, or conveyance cannot be effected within a reasonable time, lease such property for occupancy by eligible persons. All sums recovered from the sale, transfer, conveyance, or lease of such property shall be deposited into an account established by the corporation in a qualified public depository meeting the requirements of chapter 280 for purposes of expending moneys appropriated to fund the State Farmworker Housing Pilot Loan Program as provided in subsection (1).

(7)  Subject to the availability of funds appropriated to fund the State Farmworker Housing Pilot Loan Program, the Florida Housing Finance Corporation shall contract with a nonprofit corporation, qualified under s. 501(c)(3) of the Internal Revenue Code, representing a mix of stakeholders concerned with housing conditions faced by migrant and seasonal farmworkers with demonstrated expertise in housing issues. The corporation shall select such contractor within 90 days after the effective date of this section to assist the corporation in establishing and implementing the State Farmworker Housing Pilot Loan Program, and to prepare a research report that includes a needs assessment and strategic plan for agricultural labor housing in this state. The research report shall be submitted to the Governor, the President of the Senate, and the Speaker of the House of Representatives. The report shall:

(a)  Identify localities throughout this state having the greatest need for newly-constructed or rehabilitated agricultural labor housing.

(b)  Identify successful project prototypes to provide safe, decent, and affordable agricultural housing.

(c)  Provide an analysis of state and local barriers to the development of agricultural housing.

(d)  Profile successful state and local government programs within and without this state that address agricultural housing needs.

(8)  The corporation may adopt rules to implement this section.

History.--s. 17, ch. 2000-353.