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
1
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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14 shall stand repealed on June 30, 2007 1998.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
2
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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:
3
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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
4
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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
5
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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
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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
8
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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.
9
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Florida Senate - 1998 SB 2204
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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
31
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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
11
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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
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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
13
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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
14
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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.
31
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Florida Senate - 1998 SB 2204
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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
31
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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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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.
18
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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
19
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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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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
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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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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.
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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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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
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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.)
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