The Florida Senate

220.185  State housing tax credit.--

(1)  LEGISLATIVE FINDINGS.--The Legislature finds that:

(a)  There exist within the urban areas of the state conditions of blight evidenced by extensive deterioration of public and private facilities, abandonment of sound structures, and high unemployment, and these conditions impede the conservation and development of healthy, safe, and economically viable communities.

(b)  Deterioration of housing and industrial, commercial, and public facilities contributes to the decline of neighborhoods and communities and leads to the loss of their historic character and the sense of community which this inspires; reduces the value of property comprising the tax base of local communities; discourages private investment; and requires a disproportionate expenditure of public funds for the social services, unemployment benefits, and police protection required to combat the social and economic problems found in urban communities.

(c)  In order to ultimately restore social and economic viability to urban areas, it is necessary to renovate or construct new infrastructure and housing, including housing specifically targeted for the elderly, and to specifically provide mechanisms to attract and encourage private economic activity.

(d)  The various local governments and other redevelopment organizations now undertaking physical revitalization projects and new housing developments in urban areas are limited by tightly constrained budgets and inadequate resources.

(e)  In order to significantly improve revitalization efforts by local governments and community development organizations and to retain as much of the historic character of our communities as possible, it is necessary to provide additional resources, and the participation of private enterprise in revitalization efforts is an effective means for accomplishing that goal.

(2)  POLICY AND PURPOSE.--It is the policy of this state to encourage the participation of private corporations in revitalization projects within urban areas. The purpose of this section is to provide an incentive for such participation by granting state corporate income tax credits to qualified low-income housing projects, including housing specifically designed for the elderly, and associated mixed-use projects. The Legislature thus declares this a public purpose for which public money may be borrowed, expended, loaned, and granted.

(3)  DEFINITIONS.--As used in this section, the term:

(a)  "Credit period" means the period of 5 years beginning with the year the project is completed.

(b)  "Eligible basis" means a project's adjusted basis of the housing portion of the qualified project as of the close of the first taxable year of the credit period.

(c)  "Adjusted basis" means the owner's adjusted basis in the project, calculated in a manner consistent with the calculation of basis under the Internal Revenue Code, taking into account the adjusted basis of property of a character subject to the allowance for depreciation used in common areas or provided as comparable amenities to the entire project.

(d)  "Designated project" means a qualified project designated pursuant to s. 420.5093 to receive the tax credit under this section.

(e)  "Qualified project" means a project located in an urban infill area, at least 50 percent of which, on a cost basis, consists of a qualified low-income project within the meaning of s. 42(g) of the Internal Revenue Code, including such projects designed specifically for the elderly but excluding any income restrictions imposed pursuant to s. 42(g) of the Internal Revenue Code upon residents of the project unless such restrictions are otherwise established by the Florida Housing Finance Corporation pursuant to s. 420.5093, and the remainder of which constitutes commercial or single-family residential development consistent with and serving to complement the qualified low-income project.

(f)  "Urban infill area" means an area designated for urban infill as defined by s. 163.3164 or as defined through a statewide urban infill study solicited and approved by the Board of Directors of the Florida Housing Finance Corporation.

(4)  AUTHORIZATION TO GRANT STATE HOUSING TAX CREDITS; LIMITATION.--

(a)  There shall be allowed a credit of up to 9 percent, but no more than necessary to make the project feasible, of the eligible basis of any designated project for each year of the credit period against any tax due for a taxable year under this chapter.

(b)  The total amount of tax credits allocated for all projects shall not exceed the amount appropriated for the State Housing Tax Credit Program in the General Appropriations Act. The total tax credits allocated is defined as the total credits pledged over a 5-year period for all projects.

(c)  The tax credit shall be allocated among designated projects by the Florida Housing Finance Corporation as provided in s. 420.5093.

(d)  Each designated project must comply with the applicable provisions of s. 42 of the Internal Revenue Code with respect to the multifamily residential rental housing element of the project, including specifically the provisions of s. 42(h)(6).

(e)  A tax credit shall be allocated to a designated project and shall not be subject to transfer by the recipient unless the transferee is also an owner of the designated project.

History.--s. 19, ch. 99-378.