Senate Bill 2204

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    Florida Senate - 1998                                  SB 2204

    By Senators Hargrett and Meadows





    21-480A-98                                         See HB 3111

  1                      A bill to be entitled

  2         An act relating to affordable housing; amending

  3         s. 290.0301, F.S.; changing the title of the

  4         "Community Development Corporation Support and

  5         Assistance Program Act" to the "Invest in

  6         Neighborhood Vitality and Economies Act";

  7         advancing the date of the repeal of the act to

  8         June 30, 2007; amending s. 290.0311, F.S.;

  9         revising language with respect to legislative

10         findings; providing reference to

11         community-based development organizations;

12         amending s. 290.032, F.S.; revising language

13         with respect to policy and purpose; amending s.

14         290.033, F.S.; defining terms; amending s.

15         290.034, F.S.; revising language with respect

16         to funding; amending s. 290.035, F.S.; revising

17         language with respect to eligibility for

18         assistance; amending s. 290.036, F.S.;

19         providing for the community-based development

20         organization support program; providing for a

21         three-tiered funding system; providing for

22         administrative grants and procedures; amending

23         s. 290.0365, F.S.; providing for a

24         community-based development training and

25         technical assistance program; amending s.

26         290.037, F.S.; revising language with respect

27         to the community development deferred payment

28         loan program; amending s. 290.038, F.S.;

29         revising language with respect to the authority

30         and duties of the Department of Community

31         Affairs; amending s. 290.039, F.S.; revising

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    Florida Senate - 1998                                  SB 2204
    21-480A-98                                         See HB 3111




  1         language with respect to reporting

  2         requirements; amending s. 290.0395, F.S.;

  3         providing for program performance review and

  4         evaluation; providing an effective date.

  5

  6  Be It Enacted by the Legislature of the State of Florida:

  7

  8         Section 1.  Section 290.0301, Florida Statutes, is

  9  amended to read:

10         290.0301  Short title.--Sections 290.0311 through

11  290.0395 shall be known and may be cited as the "Invest in

12  Neighborhood Vitality and Economies Act Community Development

13  Corporation Support and Assistance Program Act." This section

14  shall stand repealed on June 30, 2007 1998.

15         Section 2.  Subsections (5), (10), and (11) of section

16  290.0311, Florida Statutes, are amended to read:

17         290.0311  Legislative findings.--The Legislature finds

18  that:

19         (5)  This deterioration contributes to the decline of

20  neighborhoods in both rural and urban and surrounding areas,

21  causes a reduction of the value of property comprising the tax

22  base of local communities, and eventually requires the

23  expenditure of disproportionate amounts of public funds for

24  health, social services, and police protection to prevent the

25  development of slums and the social and economic disruption

26  found in slum communities.

27         (10)  A viable means of eliminating or reducing these

28  deteriorating economic conditions and encouraging local

29  resident participation and support is to provide support

30  assistance and resource investment to community-based

31  community development organizations corporations. The

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    Florida Senate - 1998                                  SB 2204
    21-480A-98                                         See HB 3111




  1  Legislature also finds that community-based development

  2  organizations can contribute to the creation of jobs in

  3  response to federal WAGES legislation and economic development

  4  activities related to state urban and rural initiatives.

  5         (11)  This section shall stand repealed on June 30,

  6  2007 1998.

  7         Section 3.  Section 290.032, Florida Statutes, is

  8  amended to read:

  9         290.032  Policy and purpose.--It is the policy of this

10  state to provide the necessary means to preserve and improve

11  the health and vitality of its established communities by

12  enabling them to restore and expand their affordable housing,

13  commercial, and industrial base and to reverse the

14  deterioration of their residential and public-facility assets.

15  The purpose of this act is to assist community-based

16  development organizations corporations in undertaking

17  projects, in concert with state and local government and

18  private enterprise, designed to create and maintain a sound

19  industrial base, to revitalize the health of established

20  commercial areas, to promote and retain employment

21  opportunities, to preserve and rehabilitate existing

22  residential neighborhoods, and to provide safe, decent,

23  affordable housing for residents of these areas.  The

24  Legislature, therefore, declares that the development,

25  redevelopment, preservation, restoration, and revitalization

26  of such communities and all the purposes of this act are

27  public purposes for which public money may be used.  This

28  section shall stand repealed on June 30, 2007 1998.

29         Section 4.  Section 290.033, Florida Statutes, is

30  amended to read:

31         290.033  Definitions.--As used in this act, the term:

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    Florida Senate - 1998                                  SB 2204
    21-480A-98                                         See HB 3111




  1         (1)  "Department" means the Department of Community

  2  Affairs.

  3         (2)  "Community-based development organization" means a

  4  community-based nonprofit organization that is committed to or

  5  engaged in developing or managing real estate or business

  6  enterprises in economically distressed neighborhoods.  To

  7  qualify, an agency must be community-based in that the

  8  majority of the board is elected by a mix of stakeholders,

  9  consisting of area residents, area business and property

10  owners, and persons employed in the service area, and must

11  demonstrate an ability to undertake affordable housing,

12  business assistance, or commercial developments; such an

13  organization may also be known as a "CBDO."

14         (2)  "Community development corporation" means a

15  community-based organization which facilitates or financially

16  supports revenue-generating business for the purpose of

17  community and economic development, based in a specific

18  geographic area controlled by residents, and committed to

19  enhancing community well-being, and which may also be known as

20  a "CDC."

21         (3)  "Fund" means the Operating Community Development

22  Support and Assistance Trust Fund.

23         (4)  "Neighborhood comprehensive revitalization plan"

24  means a long-term holistic and collaborative strategic plan

25  that describes an organization's mission, its strategies to

26  maintain community involvement and to demonstrate innovation,

27  efficiency, and accountability for the benefit of service area

28  stakeholders; its sources of anticipated revenue; a

29  needs-based plan to redevelop residential and commercial

30  properties and revitalize area businesses for the benefit of

31

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    Florida Senate - 1998                                  SB 2204
    21-480A-98                                         See HB 3111




  1  service area stakeholders, and that identifies specific

  2  measurable outcomes.

  3         (5)(4)  "Project" means a public and private activity

  4  or series of activities, designed to be carried out in a

  5  specific, definable location, which that achieves objectives

  6  that which are consistent with the agency's neighborhood

  7  comprehensive revitalization plan and the provisions and

  8  intent of this act.

  9         (6)(5)  "Secretary" means the Secretary of Community

10  Affairs.

11         (7)(6)  "Service area" or "target area" means the

12  entire area in which a community-based community development

13  organization corporation operates and in which community

14  development grant and loan funds are to be spent.

15         (8)(7)  "Permanent job" means a full-time position, the

16  duration of which exceeds 12 months and which consists of an

17  average of at least 30 hours per week of employment.

18         (9)(8)  "Temporary job" means a full-time or part-time

19  position, the duration of which exceeds 45 days, which

20  consists of an average of at least 15 hours per week of

21  employment, and which is not a permanent job.

22         (10)(9)  This section shall stand repealed on June 30,

23  2007 1998.

24         Section 5.  Section 290.034, Florida Statutes, is

25  amended to read:

26         290.034  Operating Trust Fund; priority of use.--

27         (1)  The Legislature shall annually provide funding in

28  the General Appropriations Act for the Invest in Neighborhood

29  Vitality and Economies Program Community Development

30  Corporation Support and Assistance Program. The funds

31  appropriated for the program shall be deposited in the State

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    Florida Senate - 1998                                  SB 2204
    21-480A-98                                         See HB 3111




  1  Treasury in a fund established and designated as the Operating

  2  Trust Fund, which shall be administered by the department. The

  3  department shall develop a set of criteria for three-tiered

  4  funding which ensures equitable geographic distribution of the

  5  funding throughout the state. This three-tier plan must

  6  include emerging, intermediate, and mature community-based

  7  development organizations, recognizing the varying needs of

  8  the three tiers. Funding must be provided for core

  9  administrative grants for emerging and intermediate

10  community-based development organizations only. Project

11  administrative grants tied to project implementation loans

12  must be available to all levels of community-based development

13  organizations, depending upon their capacity. Extensive

14  training and technical assistance must be available to all

15  community-based development organizations. The appropriation

16  for the program shall be apportioned by the Legislature

17  between loans and administrative grants to community

18  development corporations.  All funds deposited in the trust

19  fund and not needed for immediate disbursement shall be

20  invested pursuant to s. 18.125 and the interest earned shall

21  be deposited in the trust fund.  The administrative costs of

22  the program shall be annually set in the General

23  Appropriations Act and shall be funded from the trust fund.

24         (2)  The department shall give priority for loans and

25  administrative grants to those community-based community

26  development organizations corporations the service areas of

27  which include a state an enterprise zone as designated on or

28  after July 1, 1995, in accordance with s. 290.0065 or a

29  federal empowerment zone and enterprise community designated

30  pursuant to s. 290.0065.

31

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    Florida Senate - 1998                                  SB 2204
    21-480A-98                                         See HB 3111




  1         (3)  This section shall stand repealed on June 30, 2007

  2  1998.

  3         Section 6.  Section 290.035, Florida Statutes, is

  4  amended to read:

  5         290.035  Eligibility for assistance.--Community-based

  6  community development organizations corporations meeting the

  7  following requirements shall be eligible for assistance:

  8         (1)  The community-based community development

  9  organization corporation must be a nonprofit corporation under

10  state law or a local development company established under

11  state law and certified to be eligible to participate in the

12  Small Business Administration Loan Program under s. 502 of the

13  Small Business Investment Act of 1958, as amended, and must

14  meet the following further requirements:

15         (a)  Its membership must be open to all service area

16  residents 18 years of age or older.

17         (b)  A majority of its board members must be elected by

18  those members of the organization corporation who are

19  stakeholders, comprising a mix of service area residents, area

20  business and property owners, and area employees.

21         (c)  Elections must be held annually for at least a

22  third of the elected board members so that elected members

23  serve terms of no more than 3 years.

24         (d)  Elections must be adequately publicized within the

25  service area, and ample opportunity must be provided for full

26  participation.

27         (e)  At least one of the board members shall be

28  appointed by the Governor.

29         (2)  The community-based community development

30  organization corporation shall maintain a service area in

31

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    Florida Senate - 1998                                  SB 2204
    21-480A-98                                         See HB 3111




  1  which economic development projects are located which meets

  2  one or more of the following criteria:

  3         (a)  The area has been designated pursuant to s.

  4  163.355 as a slum area or a blighted area as defined in s.

  5  163.340(7) or (8) or is located completely within the

  6  boundaries of a slum or blighted area.

  7         (b)  The area is a community development block grant

  8  program area in which community development block grant funds

  9  are currently being spent or have been spent during the last 3

10  years as certified by the local government in which the

11  service area is located.

12         (c)  The area is a neighborhood housing service

13  district.

14         (d)  The area is contained within a state an enterprise

15  zone designated on or after July 1, 1995, in accordance with

16  pursuant to s. 290.0065.

17         (e)  The area is contained in federal empowerment zones

18  and enterprise communities.

19         (3)  This section shall stand repealed on June 30, 2007

20  1998.

21         Section 7.  Section 290.036, Florida Statutes, is

22  amended to read:

23         290.036  Community-based Community development

24  organization corporation support program; administrative

25  grants and procedures.--

26         (1)  The department secretary is authorized to award

27  core and project administrative grants and project

28  implementation loans, within the limits of specific

29  appropriations in accordance with s. 290.034(1).,

30  Administrative grants must be used to eligible applicants for

31  staff salaries and administrative expenses for eligible

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    Florida Senate - 1998                                  SB 2204
    21-480A-98                                         See HB 3111




  1  community-based development organizations selected through a

  2  competitive three-tiered process as provided in s. 290.034(1).

  3  Persons, equipment, supplies, and other resources funded in

  4  whole or in part by grant funds shall then be utilized to

  5  further the purposes of this act. Eligible activities include,

  6  but are not limited to:

  7         (a)  Preparing grant and loan applications, proposals,

  8  fundraising letters, and other documents essential to securing

  9  additional administrative or venture funds to further the

10  purposes of this act.

11         (b)  Monitoring and administering grants and loans,

12  providing technical assistance to businesses, and any other

13  administrative tasks essential to maintaining funding

14  eligibility or meeting contractual obligations.

15         (c)  Developing local programs to encourage the

16  participation of financial institutions, insurance companies,

17  attorneys, architects, engineers, planners, law enforcement

18  officers, developers, and other professional firms and

19  individuals providing services beneficial to redevelopment

20  efforts.

21         (d)  Providing management, technical, accounting, and

22  financial assistance and information to businesses and

23  entrepreneurs interested in locating, expanding, or operating

24  in the service area.

25         (e)  Coordinating with state, federal, and local

26  governments and other nonprofit organizations to ensure that

27  activities meet local plans and ordinances and to avoid

28  duplication of tasks.

29         (f)  Preparing plans or performing research to identify

30  critical needs within the service area and developing

31  approaches to address those needs.

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    Florida Senate - 1998                                  SB 2204
    21-480A-98                                         See HB 3111




  1         (g)  Assisting service area residents in identifying

  2  and determining eligibility for state, federal, and local

  3  housing programs including rehabilitation, weatherization,

  4  home ownership, rental assistance, or public housing programs.

  5         (h)  Developing, owning, and managing housing designed

  6  for low-income and moderate-income persons or industrial parks

  7  providing jobs to low-income and moderate-income persons.

  8         (i)  Preparing the neighborhood comprehensive

  9  revitalization plan with baseline data, outcome measures, and

10  estimates of service area impact as a result of job-generating

11  or revenue-generating businesses, or enterprise assistance, or

12  units of commercial, industrial, or affordable housing

13  developments.

14         (2)  A community-based community development

15  organization corporation applying for an administrative grant

16  pursuant to this section must submit a proposal to the

17  department which includes:

18         (a)  A map and narrative description of the service

19  areas area for the community-based community development

20  organization corporation;

21         (b)  A copy of the documents creating the

22  community-based community development organization

23  corporation;

24         (c)  A listing of the membership of the board,

25  including individual terms of office;

26         (d)  An annual plan that describes The proposed 3-year

27  plan for expenditure of the funds, including goals,

28  objectives, and expected results, and which has a clear

29  relationship to the agency's neighborhood comprehensive

30  revitalization plan; and

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    Florida Senate - 1998                                  SB 2204
    21-480A-98                                         See HB 3111




  1         (e)  Other supporting information that which may be

  2  required by the department secretary.

  3         (3)  The amount of any core administrative grant to an

  4  emerging a community-based community development organization

  5  corporation in any one year shall be no more than $50,000 any

  6  amount up to $100,000. The amount of any project

  7  administrative grant to any community-based development

  8  organization may be no more than $15,000 of grant funding for

  9  every $100,000 of project implementation loans.  The

10  department may fund as many community-based up to 18 community

11  development organizations corporations each year as is

12  permitted based on the level of funds provided for in the

13  General Appropriations Act. The department shall develop a

14  diminishing scale of funding each year based on the annual

15  appropriation to ensure compliance with this section and s.

16  290.0365.

17         (4)  The amount of any project administrative grant to

18  any community-based development organization may be no more

19  than $15,000 of grant funding for every $100,000 of project

20  implementation loans. The department may provide grants on a

21  multiyear basis, provided that:

22         (a)  Such grants shall not exceed 3 years.

23         (b)  Community development corporations designated to

24  receive multiyear grants provide a detailed plan of activities

25  to be accomplished during each year of the grant period.

26         (c)  All contracts containing multiyear commitments

27  contain the following statement: "The State of Florida's

28  obligation to pay under this contract is contingent upon an

29  annual appropriation by the Legislature."

30         (5)  A community-based community development

31  organization corporation that receives funding under this

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    Florida Senate - 1998                                  SB 2204
    21-480A-98                                         See HB 3111




  1  section an administrative grant shall submit to the department

  2  an annual year-end audit performed by an independent certified

  3  public accountant.

  4         (6)  In evaluating proposals pursuant to this section,

  5  the department secretary shall develop and consider scoring

  6  criteria including, but not limited to, the following:

  7         (a)  The relative degree of distress of the service

  8  areas area of the community-based community development

  9  organization corporation.

10         (b)  The demonstrable capacity of the community-based

11  community development organization corporation to improve the

12  economic health of the service area and carry out the

13  activities contained in the long-term revitalization 3-year

14  plan.

15         (c)  The degree to which the community-based community

16  development organization corporation would provide assistance

17  to very-low-income persons, low-income persons, and

18  particularly WAGES recipients.

19         (d)  The service area percentage of the community-based

20  community development organization which is located in whole

21  or in part within a state corporation service area which

22  overlaps an enterprise zone designated pursuant to s.

23  290.0065, a federal empowerment zone, or an enterprise

24  community.

25         (e)  The extent to which the community development

26  corporation utilizes the loan program authorized by s.

27  290.037.

28         (f)  The number of preceding years during the history

29  of the program in which the community development corporation

30  has not received state administrative support.

31

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    Florida Senate - 1998                                  SB 2204
    21-480A-98                                         See HB 3111




  1         (e)(g)  The extent to which the proposal would further

  2  the policy and purposes of this act.

  3         (7)  The department is authorized to award project

  4  administrative grants from the fund to community-based

  5  development organizations for staff salaries, administrative

  6  expenses, and the added cost of technical assistance directly

  7  related to job-generating and revenue-generating enterprises,

  8  including business, commercial, or affordable housing

  9  developments.  Eligible organizations shall apply for

10  competitive funding under the three categories of:  business

11  assistance, commercial, and affordable housing development.

12  The allocations of funds to these three categories will be

13  made by the department subject to funding availability and

14  trends in the amount of qualified proposals submitted under

15  each category.  Community-based development organizations

16  receiving funds under this section shall be subject to all

17  applicable requirements of ss. 290.034(1), 290.035, 290.037,

18  290.038, and 290.039, as determined by the department.

19         (8)  The department shall award funding under this

20  section based upon a three-tiered approach that recognizes the

21  differing capacities of new and emerging, intermediate, and

22  mature community-based development organizations. A

23  community-based development organization may not apply for

24  funding in more than one tier in any 1 fiscal year.

25         (a)  Tier I, for new and emerging community-based

26  development organizations, shall offer, on a competitive

27  basis, a minimum of five core administrative grants of up to

28  $50,000 annually. Once tier I community-based development

29  organizations have achieved a minimum level of capacity, they

30  are eligible to apply, on a competitive funding basis, for a

31  project implementation loan of no more than $100,000 and an

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    Florida Senate - 1998                                  SB 2204
    21-480A-98                                         See HB 3111




  1  accompanying project administrative grant of up to $15,000.

  2  Tier I community-based development organizations shall also

  3  receive extensive training and technical assistance designed

  4  to enhance the organization's capacity and thereby enable it

  5  to undertake more complex development projects.

  6         (b)  Tier II, for intermediate level community-based

  7  development organizations, are eligible to apply on a

  8  competitive basis for core administrative grants of up to

  9  $30,000 annually, and are eligible to apply on a competitive

10  basis for project implementation loans of up to $300,000

11  annually per community-based development organization and an

12  accompanying project administrative grant of up to $45,000.

13  Tier II community-based development organizations shall also

14  receive training and technical assistance services under this

15  section.

16         (c)  Tier III, for mature level community-based

17  development organizations, are ineligible to apply for core

18  administrative grant funding. Such community-based development

19  organizations are eligible to apply on a competitive basis for

20  project implementation loans of up to $400,000 annually per

21  community-based development organization and an accompanying

22  project administrative grant of up to $60,000. Tier III

23  community-based development organizations shall also receive

24  training and technical assistance services under this section.

25         (d)  A development project funded under this section

26  may not exceed $200,000 annually per community-based

27  development organization. A community-based development

28  organization can apply for project implementation loans in up

29  to three categories--business development, affordable housing,

30  and commercial development--within the total dollar

31  limitations contained in this section. Project implementation

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    Florida Senate - 1998                                  SB 2204
    21-480A-98                                         See HB 3111




  1  grants are to be based upon up to $15,000 in grant funds for

  2  every $100,000 awarded in loan funds.

  3         (9)  A community-based development organization

  4  applying for project administrative grants pursuant to this

  5  section must submit a proposal to the department which

  6  includes:

  7         (a)  A map and narrative description of the target

  8  areas for the community-based development organization.

  9         (b)  A copy of the documents creating the

10  community-based development organization.

11         (c)  A listing of the membership of the board,

12  including individual terms of office.

13         (d)  A copy of the community-based development

14  organization's neighborhood comprehensive revitalization plan.

15         (e)  A description of the location, financing plan, and

16  potential impact of the business enterprise or residential,

17  commercial, or industrial development which shows a clear

18  relationship to the organization's neighborhood comprehensive

19  revitalization plan and demonstrates how the proposed

20  expenditures are directly related to the project.

21         (10)  In evaluating proposals pursuant to this section,

22  the department shall develop and consider scoring criteria,

23  including, but not limited to, the following:

24         (a)  The reasonableness of project goals and production

25  schedules.

26         (b)  Prior experience and performance of the applicant

27  in the production of similar housing, commercial, or business

28  developments.

29         (c)  The extent of financial leveraging with private

30  and public funding.

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    Florida Senate - 1998                                  SB 2204
    21-480A-98                                         See HB 3111




  1         (d)  The demonstrable capacity of the community-based

  2  development organization to improve the economic health of the

  3  target area as seen by the reasonableness of its comprehensive

  4  neighborhood revitalization plan and the impact of the

  5  proposed project.

  6         (e)  The degree to which the project will benefit

  7  very-low-income persons, low-income persons, and,

  8  particularly, WAGES recipients.

  9         (f)  The location of the target area of the

10  community-based development organization in whole or in part

11  in a state enterprise zone designated on or after July 1,

12  1995, in accordance with s. 290.0065 or a federal empowerment

13  zone or enterprise community.

14         (g)  The extent to which the proposal would further the

15  policy and purposes of this act.

16         (11)(7)  This section shall stand repealed on June 30,

17  2007 1998.

18         Section 8.  Section 290.0365, Florida Statutes, is

19  amended to read:

20         (Substantial rewording of section. See

21         s. 290.0365, F.S., for present text.)

22         290.0365  Community-based development training and

23  technical assistance program.--

24         (1)  LEGISLATIVE FINDINGS.--In addition to the

25  legislative findings set forth in s. 290.0311, the Legislature

26  finds and declares that:

27         (a)  Significant declines in resources make it

28  difficult for community-based development organizations to

29  generate sufficient revenues from business enterprises or real

30  estate ventures in low-income neighborhoods to fund the

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    Florida Senate - 1998                                  SB 2204
    21-480A-98                                         See HB 3111




  1  predevelopment costs, technical assistance, and other

  2  administrative expenses needed to foster new developments.

  3         (b)  The financing and planning of large-scale

  4  developments is becoming increasingly complex and

  5  community-based development organizations, even those with

  6  considerable experience, often lack the expertise to structure

  7  project financing, partnerships, and joint ventures to

  8  accelerate and expand development activities in distressed

  9  communities.

10         (c)  Local governments and private lenders are

11  demonstrating a willingness to provide risk capital and

12  project financing, but they are seldom able to provide

13  technical support and training to the staff of community-based

14  development organizations.

15         (2)  PURPOSE.--The purpose of this section is to

16  provide community-based development organizations with the

17  necessary training and technical support to plan, implement,

18  and manage job-generating and revenue-generating developments

19  in distressed neighborhoods.  This will strengthen the

20  organizational capacity of community-based development

21  organizations, assist local governments to enhance and expand

22  revitalization efforts, and contribute to expanding the base

23  of commerce, business, and affordable housing that will

24  benefit very-low-income, low-income, and moderate-income

25  residents.

26         (3)  TRAINING AND TECHNICAL ASSISTANCE PROGRAM.--The

27  Department of Community Affairs shall be responsible for

28  securing the necessary expertise, which may include

29  subcontracts with nonprofit organizations, to provide training

30  and technical support to the staff and board of

31  community-based development organizations, as appropriate, and

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    Florida Senate - 1998                                  SB 2204
    21-480A-98                                         See HB 3111




  1  to persons forming such organizations, which are formed for

  2  the purpose of redeveloping commercial and residential areas

  3  and revitalizing businesses within distressed neighborhoods

  4  for the benefit of very-low-income residents, low-income

  5  residents, and WAGES recipients.

  6         (a)  The training component of the program shall assist

  7  organizations receiving administrative grants through a

  8  developmental curriculum to build board and staff capacities

  9  to implement or manage affordable housing, commercial, or

10  business enterprises. Training will include, but not be

11  limited to:  resource development, project management, real

12  estate financing, business or venture plan development,

13  strategic planning for community economic development, and

14  community leadership and participation.

15         (b)  The technical assistance provider shall conduct

16  onsite assessments, involving the board and staff, to prepare

17  a technical assistance plan for new and emerging

18  organizations.  The scope and nature of the training will

19  complement the annual performance objectives of the

20  organizations from the development of a neighborhood

21  comprehensive revitalization plan.

22         (c)  Technical support shall be provided to

23  community-based development organizations receiving project

24  administrative grants, as appropriate, in methods of financing

25  and structuring housing, business, or commercial development

26  projects.  This will be in the form of one-on-one technical

27  assistance secured by either the department or by the

28  community-based development organization.

29         (d)  The department shall coordinate the technical

30  assistance and training in support of affordable housing

31  development with programs funded under s. 420.606.

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    Florida Senate - 1998                                  SB 2204
    21-480A-98                                         See HB 3111




  1         (e)  The department may permit other community-based

  2  development organizations to participate in the training based

  3  on the availability of classes, funding, and the priority of

  4  need.

  5         (4)  This section shall stand repealed on June 30,

  6  2007.

  7         Section 9.  Section 290.037, Florida Statutes, is

  8  amended to read:

  9         290.037  Community development project implementation

10  deferred payment loan program.--

11         (1)  The secretary is authorized to make loans, within

12  the limits of specific appropriations, to eligible applicants

13  for the following purposes:

14         (a)  Establishment of a new business venture;

15         (a)(b)  Financial assistance to a new or an existing

16  business venture located within the community-based community

17  development organization corporation service area; and

18         (b)(c)  New construction or substantial rehabilitation

19  of housing to be utilized by low-income families and

20  individuals; and.

21         (c)  Commercial developments located within the

22  community-based development organization's service area.

23         (2)  A community-based community development

24  organization corporation applying for a loan pursuant to this

25  section must submit the information required by s. 290.036(2).

26         (3)  In no case shall loans to one community-based

27  community development organization corporation exceed 40

28  percent of the total annual appropriation for loans during any

29  given year or $400,000, whichever is less.

30         (4)  A community-based community development

31  organization corporation that receives a loan shall submit to

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    Florida Senate - 1998                                  SB 2204
    21-480A-98                                         See HB 3111




  1  the department an annual audit performed by an independent

  2  certified public accountant; however, this subsection shall

  3  not be construed to require the submittal of more than one

  4  audit by an individual community-based community development

  5  organization corporation submitting pursuant to s. 290.036.

  6         (5)  In evaluating proposals pursuant to this section,

  7  the department secretary shall consider:

  8         (a)  The economic feasibility of the project and the

  9  capacity of the venture to repay the loan;

10         (b)  The relative degree of distress of the target

11  area;

12         (c)  The ratio of private and nonstate public money

13  committed to a project to the amount of state money to be

14  committed;

15         (d)  The demonstrated inability of the borrower to

16  secure funding from conventional sources at the terms offered

17  by the community-based community development organization

18  corporation;

19         (e)  The number of temporary and permanent jobs

20  generated by the project;

21         (f)  The overall net positive impact of the project

22  long term on local economic and social conditions;

23         (g)  The degree to which the project directly benefits

24  or provides assistance to very-low-income, low-income, or

25  job-displaced individuals or WAGES recipients; and

26         (h)  The demonstrable capacity of the community-based

27  community development organization and technical assistance

28  providers corporation to see that the project is successfully

29  carried out and managed.

30         (6)  Loans permitted under this section for affordable

31  housing may be used for the purpose of providing first,

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    Florida Senate - 1998                                  SB 2204
    21-480A-98                                         See HB 3111




  1  second, or other subordinated mortgage loans or loan

  2  guarantees in the construction of single-family home ownership

  3  or multifamily rental units affordable to very-low-income

  4  persons, low-income persons, and WAGES recipients in the

  5  target area.

  6         (7)(6)  All loans to a community-based the community

  7  development organization corporation shall be at interest

  8  rates not to exceed 3 percent interest free and shall be

  9  repaid within 15 years or on a basis approved by the

10  secretary, except as provided in subsection (8) (7).

11         (8)(7)  Upon the termination of any project as a result

12  of the sale or failure of the business, all recoverable state

13  funds shall be returned to the department for deposit into the

14  Operating Trust Fund.  When losses are incurred, the

15  community-based development organization shall make a diligent

16  and good-faith effort to recover the full indebtedness from

17  the business venture, including foreclosure of security and

18  recovery from guarantors.  Upon completion of all such efforts

19  to the satisfaction of the department, the department shall

20  write off the unpaid balance of the loan amount returned to

21  the state shall be reduced so that the state absorbs losses in

22  proportion to the amount of equity held by the community

23  development corporation compared to the total equity held in

24  the business venture or the amount lost by all other

25  comparable creditors in those cases in which a loan has been

26  extended to a business venture by a community development

27  corporation.

28         (9)(8)  This section shall stand repealed on June 30,

29  2007 1998.

30

31

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    Florida Senate - 1998                                  SB 2204
    21-480A-98                                         See HB 3111




  1         Section 10.  Paragraph (f) of subsection (2) and

  2  subsection (3) of section 290.038, Florida Statutes, are

  3  amended to read:

  4         290.038  Authority and duties of the department.--

  5         (2)  The department may:

  6         (f)  Assist in training employees of community-based

  7  community development organizations corporations to help

  8  achieve and increase their capacity to administer programs

  9  pursuant to this act and provide technical assistance and

10  advice to community-based community development organizations

11  corporations involved with these programs.

12         (3)  This section shall stand repealed on June 30, 2007

13  1998.

14         Section 11.  Section 290.039, Florida Statutes, is

15  amended to read:

16         (Substantial rewording of section.  See

17         s. 290.039, F.S., for present text.)

18         290.039  Reporting requirements.--

19         (1)  Community-based development organizations which

20  receive administrative funds under the Invest in Neighborhood

21  Vitality and Economies Program shall provide the following

22  information to the department annually:

23         (a)  A listing of business firms and individuals

24  assisted by the community-based development organization

25  during the reporting period.

26         (b)  A listing of the type, source, purpose, and amount

27  of each individual grant, loan, or donation received by the

28  community-based development organization during the reporting

29  period.

30         (c)  The number of paid and voluntary positions within

31  the community-based development organization.

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    Florida Senate - 1998                                  SB 2204
    21-480A-98                                         See HB 3111




  1         (d)  A listing of the salaries and administrative

  2  expenses of the community-based development organization.

  3         (e)  An identification and explanation of changes to

  4  the target area boundaries.

  5         (f)  The amount of assets and liabilities and the fund

  6  balance for the community-based development organization at

  7  the beginning and end of the reporting period.

  8         (g)  The number and description of projects attempted,

  9  the number and description of projects completed, and a

10  written explanation of the reasons that caused projects not to

11  be completed.

12         (2)  Community-based development organizations that

13  receive project administrative grant awards shall provide the

14  following general information to the department annually:

15         (a)  A listing of salaries and administrative expenses

16  of the community-based development organization on approved

17  projects that receive project administrative grant funding.

18         (b)  An identification and explanation of changes to

19  the target area boundaries.

20         (c)  The impact of the completed project on target area

21  residents and its relationship to expected outcomes listed in

22  the agency's comprehensive neighborhood revitalization plan.

23         (3)  Community-based development organizations that

24  receive project administrative grant awards or a combination

25  of administrative and project administrative grant funds shall

26  provide the following information on applicable projects to

27  the department annually:

28         (a)  The number of housing units rehabilitated or

29  constructed by the community-based development organization

30  within the service area during the reporting period.

31

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    Florida Senate - 1998                                  SB 2204
    21-480A-98                                         See HB 3111




  1         (b)  The number and amount of loans made to businesses

  2  or individual entrepreneurs in the target area during the

  3  reporting period.

  4         (c)  The number of outstanding loans made to businesses

  5  or individuals in the service area by the community-based

  6  development organization, the balance of the loans, and the

  7  payment history of the borrowers during the reporting period.

  8         (d)  The number of jobs, both permanent and temporary,

  9  received by individuals who were directly assisted by the

10  community-based development organization through assistance to

11  the business such as a loan or other credit assistance.

12         (e)  An identification and explanation of changes to

13  the service area boundaries.

14         (f)  Such other information as the department may

15  require.

16         (4)  The department shall submit an annual report to

17  the Speaker of the House of Representatives and the President

18  of the Senate which contains the cumulative data submitted by

19  the individual community-based development organizations

20  pursuant to subsection (1).  The report shall be submitted by

21  January 1 of each year.

22         (5)  This section shall stand repealed on June 30,

23  2007.

24         Section 12.  Section 290.0395, Florida Statutes, is

25  amended to read:

26         290.0395  Program performance review and evaluation and

27  review.--

28         (1)  Each community-based development organization that

29  receives funding under the Invest in Neighborhood Vitality and

30  Economies Program shall be subject to an annual performance

31  review by the department.  At a minimum, the review shall

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    Florida Senate - 1998                                  SB 2204
    21-480A-98                                         See HB 3111




  1  determine whether contract objectives are being or have been

  2  met in a timely and efficient manner, expected project

  3  outcomes are being or have been realized, and the impact of

  4  completed projects produced the results desired by the

  5  community-based development organization as stated in its

  6  comprehensive neighborhood revitalization plan and other

  7  supporting documentation for receipt of the grants or loans.

  8         (2)(1)  Prior to the 2007 1998 Regular Session of the

  9  Legislature, the Office of Program Policy Analysis and

10  Government Accountability Auditor General shall perform an a

11  review and evaluation of ss. 290.0301-290.039, using the

12  reporting data specified in s. 290.039 and any other data

13  identified by the department and the Office of Program Policy

14  Analysis and Government Accountability Auditor General as

15  crucial to the evaluation of this program. The report shall

16  critique the Innovative Neighborhood Vitality and Economies

17  Program Community Development Corporation Support and

18  Assistance Program and shall include an analysis of the

19  improvements in the service area as a result of the holistic

20  and collaborative efforts of the community-based development

21  organizations and their partners within the service area

22  physical impact of the program on residential and commercial

23  structures in the community development corporation service

24  areas, an analysis of changes in state and local revenues, and

25  an analysis of the impact of the program on business activity.

26  The analysis shall attempt to investigate the significance of

27  the relationship between administrative funding and the

28  economic health of the community development corporation

29  service areas. The report shall attempt to demonstrate changes

30  in productivity based on fluctuations in funding levels.  The

31

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    Florida Senate - 1998                                  SB 2204
    21-480A-98                                         See HB 3111




  1  report shall note extreme circumstances which may affect the

  2  results of the evaluation.

  3         (3)(2)  A report of the findings and recommendations of

  4  the Office of Program Policy Analysis and Government

  5  Accountability Auditor General shall be submitted to the

  6  President of the Senate and the Speaker of the House of

  7  Representatives prior to the 2007 1998 Regular Session.

  8         (4)(3)  This section shall stand repealed on June 30,

  9  2007 1998.

10         Section 13.  This act shall take effect October 1 of

11  the year in which enacted.

12

13            *****************************************

14                       LEGISLATIVE SUMMARY

15
      Changes the title of the "Community Development
16    Corporation Support and Assistance Program Act" to the
      "Invest in Neighborhood Vitality and Economies Act."
17    Revises the act generally to refer to community-based
      development organizations that are defined as a
18    community-based nonprofit organization that is either a
      community development corporation or a community housing
19    development organization and is committed to or engaged
      in developing or managing real estate or business
20    enterprises in economically distressed neighborhoods.
      (See bill for details.)
21

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