CODING: Words stricken are deletions; words underlined are additions.
SENATE AMENDMENT
Bill No. SB 2436
Amendment No.
CHAMBER ACTION
Senate House
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11 Senator Dyer moved the following amendment:
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13 Senate Amendment (with title amendment)
14 On page 0, delete everything after the enacting clause
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16 and insert:
17 Section 1. Subsection (4) of section 420.0003, Florida
18 Statutes, is amended to read:
19 420.0003 State housing strategy.--
20 (4) IMPLEMENTATION.--The Department of Community
21 Affairs and the Florida Housing Finance Corporation in
22 carrying out the strategy articulated herein shall have the
23 following duties:
24 (a) The fiscal resources of the Department of
25 Community Affairs shall be directed to achieve the following
26 programmatic objectives:
27 1. Effective technical assistance and
28 capacity-building programs shall be established at the state
29 and local levels.
30 2. The Shimberg Center for Affordable Housing at the
31 University of Florida shall develop and maintain statewide
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1 data on housing needs and production, provide technical
2 assistance relating to real estate development and finance,
3 operate an information clearinghouse on housing programs, and
4 coordinate state housing initiatives with local government and
5 federal programs.
6 (b) The agency strategic functional plan of the
7 Department of Community Affairs, prepared pursuant to the
8 provisions of ss. 186.021 and 186.022, shall include specific
9 goals, objectives, and strategies that which implement the
10 housing policies in this section and shall include the
11 strategic plan for housing production prepared by the
12 corporation pursuant to s. 420.511.
13 (c) The Shimberg Center for Affordable Housing, in
14 consultation with the Department of Community Affairs and
15 cooperation with the Florida Housing Finance Corporation
16 Agency, shall review and evaluate existing housing
17 rehabilitation, production, and finance programs to determine
18 their consistency with relevant policies in this section and
19 identify the needs of specific populations, including, but not
20 limited to, elderly and handicapped persons, and shall
21 recommend statutory modifications where appropriate. The
22 Shimberg Center for Affordable Housing, in consultation with
23 the Department of Community Affairs and cooperation with the
24 corporation agency, shall also evaluate the degree of
25 coordination between state housing programs, and between
26 state, federal, and local housing activities, and shall
27 recommend improved program linkages. The recommendations
28 required above and a report of any programmatic modifications
29 made as a result of these policies shall be included in the
30 housing report required by s. 420.6075, beginning December 31,
31 1991, and every 5 years thereafter.
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1 (d) The department and the corporation agency are
2 anticipated to conform the administrative rules for each
3 housing program to the policies stated in this section,
4 provided that such changes in the rules are consistent with
5 the statutory intent or requirements for the program. This
6 authority applies only to programs offering loans, grants, or
7 tax credits and only to the extent that state policies are
8 consistent with applicable federal requirements.
9 Section 2. Section 420.0005, Florida Statutes, is
10 amended to read:
11 420.0005 State Housing Trust Fund.--There is hereby
12 established in the State Treasury a separate trust fund to be
13 named the "State Housing Trust Fund." There shall be deposited
14 in the fund all moneys appropriated by the Legislature, or
15 moneys received from any other source, for the purpose of this
16 chapter, and all proceeds derived from the use of such moneys.
17 Portions of The fund shall be administered by the Department
18 of Community Affairs and the Florida Housing Finance
19 Corporation on behalf of the department Agency, as specified
20 in this chapter. Money deposited to the fund must,
21 notwithstanding the provisions of chapter 216, be transferred
22 quarterly in advance, to the extent available, or, if not so
23 available, as soon as received into the State Housing Trust
24 Fund, and subject to the provisions of s. 420.5092(6)(a) and
25 (b) by the Comptroller to the corporation upon certification
26 by the Secretary of Community Affairs that the corporation is
27 in compliance with the requirements of s. 420.0006. The
28 certification made by the secretary shall also include the
29 split of funds among programs administered by the corporation
30 and the department as specified in chapter 92-317, Laws of
31 Florida, as amended. Moneys advanced by the Comptroller must
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1 be deposited by the corporation into a separate fund
2 established with a qualified public depository meeting the
3 requirements of chapter 280 to be named the "State Housing
4 Fund" and used for the purposes of this chapter.
5 Administrative and personnel costs incurred in implementing
6 this chapter may be paid from the fund, but such costs may not
7 exceed 5 percent of the moneys deposited into the fund. To
8 this fund shall be credited all loan repayments, penalties,
9 and other fees and charges accruing to the fund under this
10 chapter. It is the intent of this chapter that all loan
11 repayments, penalties, and other fees and charges collected be
12 credited in full to the program account from which the loan
13 originated. Moneys in the trust fund which are not currently
14 needed for the purposes of this chapter shall be deposited
15 with the Treasurer to the credit of the trust fund and may be
16 invested in such manner as is provided for by statute. The
17 interest received on any such investment shall be credited to
18 the fund.
19 Section 3. Section 420.0006, Florida Statutes, is
20 created to read:
21 420.0006 Authority to contract with corporation.--The
22 secretary of the department shall contract, notwithstanding
23 the provisions of part I of chapter 287, with the Florida
24 Housing Finance Corporation on a multiyear basis to stimulate,
25 provide, and foster affordable housing in the state. The
26 contract must incorporate the performance measures required by
27 s. 420.511. The contract must provide that, in the event the
28 corporation fails to comply with any of the performance
29 measures required by s. 420.511, the secretary shall notify
30 the Governor and shall refer the nonperformance to the
31 department's inspector general for review and determination as
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1 to whether such failure is due to forces beyond the
2 corporation's control or whether such failure is due to
3 inadequate management of the corporation's resources. Advances
4 shall continue to be made pursuant to s. 420.0005 during the
5 pendency of the review by the department's inspector general.
6 If such failure is due to outside forces, it shall not be
7 deemed a violation of the contract. If such failure is due to
8 inadequate management, the department's inspector general
9 shall provide recommendations regarding solutions. The
10 Governor is authorized to resolve any differences of opinion
11 with respect to performance under the contract and to direct
12 that advances continue in the event of a failure under the
13 contract due to inadequate management.
14 Section 4. Section 420.501, Florida Statutes, is
15 amended to read:
16 420.501 Short title.--This act shall be known and may
17 be cited as the "Florida Housing Finance Corporation Agency
18 Act."
19 Section 5. Subsections (2) and (7) of section 420.502,
20 Florida Statutes, are amended to read:
21 420.502 Legislative findings.--It is hereby found and
22 declared as follows:
23 (2) There exist presently and periodically serious
24 economic dislocations in the construction and building trade
25 industry, resulting in substantial unemployment, business
26 losses, and bankruptcies, and a general deterioration of the
27 economic well-being of Florida residents, and a need to assist
28 and implement welfare-to-work transitioning initiatives to
29 coordinate with state and federal policies.
30 (7) It is necessary to create a state housing finance
31 corporation agency to encourage the investment of private
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1 capital in residential housing through the use of public
2 financing to deal with the problem of disintermediation, to
3 stimulate the construction and rehabilitation of residential
4 housing, to facilitate the purchase and sale of existing
5 residential housing, to provide construction and mortgage
6 loans for projects, and to make loans to and purchase mortgage
7 loans from private lending institutions, each on a
8 quantifiable, measurable basis providing sufficient, clear
9 evidence of the corporation's goals and its success in
10 achieving the goals.
11 Section 6. Section 420.503, Florida Statutes, is
12 amended to read:
13 420.503 Definitions.--As used in this part, the term:
14 (1) "Affordable housing debt" means debt issued by or
15 loans made to the corporation agency, counties,
16 municipalities, or other public agencies of this state or
17 not-for-profit corporations or for-profit entities
18 corporations for the purpose of providing affordable housing
19 to residents of the state.
20 (2) "Agency" means the Florida Housing Finance Agency
21 as it exists before January 1, 1998, and thereafter as
22 previously existing under state law created pursuant to this
23 part.
24 (3) "Authorized investments" means any of the
25 following securities:
26 (a) Investments permitted under s. 215.47(1) and (2),
27 without regard to any limitation set forth therein Direct
28 obligations of, or obligations guaranteed by, the United
29 States of America.
30 (b) Investment agreements the issuer of which is rated
31 or the guarantor of which is rated in one of the three highest
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1 rating categories by a nationally recognized rating service.
2 Bonds, debentures, notes, or other evidences of indebtedness
3 issued by any of the following: Bank for Cooperatives;
4 federal intermediate credit banks; federal home loan banks;
5 Export-Import Bank of the United States; federal land banks;
6 Federal National Mortgage Association; Government National
7 Mortgage Association; Federal Financing Bank; Small Business
8 Administration; or any other agency or instrumentality of the
9 United States of America, created by an Act of Congress,
10 substantially similar to the foregoing in its legal
11 relationship to the United States of America.
12 (c) Public housing bonds issued by public housing
13 agencies and fully secured as to the payment of both principal
14 and interest by a pledge of annual contributions under an
15 annual contributions contract or contracts with the United
16 States of America, and temporary notes, preliminary loan
17 notes, or project notes issued by public housing agencies, in
18 each case fully secured as to the payment of both principal
19 and interest by a requisition or payment agreement with the
20 United States of America.
21 (d) Interest-bearing time or demand deposits,
22 certificates of deposit, or other similar banking arrangements
23 with any bank, trust company, national banking association, or
24 other depository institution, including any trustee or other
25 fiduciary with respect to the bonds of the agency, provided:
26 1. The deposits, certificates, and other arrangements
27 are insured to the satisfaction of the agency by the Federal
28 Deposit Insurance Corporation or the Federal Savings and Loan
29 Insurance Corporation;
30 2. The depository institution has combined capital and
31 surplus of at least $10 million and the deposits,
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1 certificates, and other arrangements are fully secured by
2 obligations described in paragraphs (a) through (c),
3 inclusive, or a combination thereof; or
4 3. The depository institution has combined capital and
5 surplus of at least $25 million.
6 (e) Contracts for the purchase and sale of obligations
7 described in paragraphs (a) and (b), provided that if the
8 parties with which the contracts are made are not members of
9 the Federal Reserve System or if the parties, including
10 members of the Federal Reserve System, are not required to set
11 aside and otherwise identify, to the satisfaction of the
12 agency, obligations described in paragraph (a) or paragraph
13 (b) to such contracts as security or reserve therefor in an
14 amount at least equal to the face value of each contract, the
15 obligations shall be delivered to and held by a trustee or
16 other fiduciary with respect to the bonds of the agency during
17 the term of the contracts.
18 (4) "Bond" means any bond, debenture, note, or other
19 evidence of financial indebtedness issued by on behalf of the
20 corporation agency under and pursuant to this act.
21 (5) "Commercial fishing worker" means a laborer who is
22 employed on a seasonal, temporary, or permanent basis in
23 fishing in salt water or fresh water and who derived at least
24 50 percent of his income in the immediately preceding 12
25 months from such employment. The term includes a person who
26 has retired as a laborer due to age, disability, or illness.
27 In order to be considered retired due to age, a person must be
28 50 years of age or older and must have been employed for a
29 minimum of 5 years as a commercial fishing worker. In order
30 to be considered retired due to disability or illness, a
31 person must:
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1 (a) Establish medically that he is unable to be
2 employed as a commercial fishing worker due to that disability
3 or illness; and
4 (b) Establish that he was previously employed as a
5 commercial fishing worker.
6 (6) "Community-based organization" means a private
7 corporation organized under chapter 617 to assist in the
8 provision of housing-related services on a not-for-profit
9 basis within a designated area, which may include a
10 municipality, a county, or more than one municipality or
11 county.
12 (7) "Community housing development organization" means
13 a nonprofit organization that has among its purposes the
14 provision of affordable housing for low-income families and
15 moderate-income families, maintains accountability to
16 low-income community residents, has demonstrated the capacity
17 to carry out affordable housing activities, and has a history
18 of serving the local community.
19 (8) "Contract" means the contract between the
20 secretary of the department and the corporation for provision
21 of housing services referenced in s. 420.0006.
22 (9) "Contribution" means a gift, subscription,
23 conveyance, deposit, loan, payment, or distribution of money
24 or anything of value, including contributions in kind having
25 an attributable monetary value in any form, made directly or
26 indirectly for the purpose of influencing an election.
27 (10) "Corporation" means the Florida Housing Finance
28 Corporation.
29 (11) "Covered employee" means those corporation
30 employees designated by rule of the corporation.
31 (12)(8) "Department" means the Department of Community
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1 Affairs.
2 (13)(9) "Development costs" means the sum total of all
3 costs incurred in the development of a project which are
4 approved by the corporation agency as reasonable and
5 necessary. Such costs may include, but are not limited to:
6 (a) The cost of acquiring real property and any
7 buildings thereon, including payments for options, deposits,
8 or contracts to purchase properties.
9 (b) The cost of site preparation, demolition, and
10 development.
11 (c) Any expenses relating to the issuance of the bonds
12 of the corporation agency.
13 (d) Fees in connection with the planning, execution,
14 and financing of the project, such as those of architects,
15 engineers, attorneys, accountants, and the corporation agency.
16 (e) The cost of studies, surveys, plans, permits,
17 insurance, interest, financing, tax and assessment costs, and
18 other operating and carrying costs during construction,
19 rehabilitation, or reconstruction of the project.
20 (f) The cost of the construction, rehabilitation, and
21 equipping of the project.
22 (g) The cost of land improvements, such as landscaping
23 and offsite improvements, whether such costs are paid in cash,
24 property, or services.
25 (h) Expenses in connection with initial occupancy of
26 the project.
27 (i) A reasonable profit-and-risk fee in addition to
28 job overhead to the general contractor and, if applicable, the
29 sponsor.
30 (j) Allowances established by the corporation agency
31 for working capital, contingency reserves, and reserves for
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1 any anticipated operating deficits during the first 2 years
2 after completion of the project.
3 (k) The cost of such other items, including relocation
4 costs, indemnity and surety bonds, premiums on insurance, and
5 fees and expenses of trustees, depositories, and paying agents
6 for the corporation's agency's bonds, as the corporation
7 agency shall determine to be reasonable and necessary for the
8 development of the project.
9 (14)(10) "Division" means the Division of Bond Finance
10 of the State Board of Administration created by and referred
11 to in the State Bond Act.
12 (15)(11) "Elderly" means persons 62 years of age or
13 older.
14 (16)(12) "Eligible housing provider" means a
15 for-profit developer or not-for-profit developer or a
16 community housing development organization having demonstrated
17 the capacity to construct or rehabilitate affordable housing.
18 (17)(13) "Eligible persons" means one or more natural
19 persons or a family, irrespective of race, creed, national
20 origin, or sex, determined by the corporation agency pursuant
21 to a rule to be of low, moderate, or middle income. Such
22 determination shall not preclude any person or family earning
23 up to 150 percent of the state or county median family income
24 from participating in programs. Persons 62 years of age or
25 older shall be defined as eligible persons regardless of
26 income. In determining the income standards of eligible
27 persons for its various programs, the corporation agency may
28 take into account the following factors:
29 (a) Requirements mandated by federal law.
30 (b) Variations in circumstances in the different areas
31 of the state.
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1 (c) Whether the determination is for rental housing or
2 homeownership purposes.
3 (d) The need for family size adjustments to accomplish
4 the purposes set forth in this act.
5 (14) "Energy audit" means an evaluation of
6 energy-saving measures in which the estimates of costs and
7 savings are based on an onsite inspection of the residence of
8 an eligible customer by an auditor qualified pursuant to s.
9 366.82.
10 (15) "Energy conservation loan" means a loan made
11 pursuant to s. 366.82(3).
12 (18)(16) "Farmworker" means a laborer who is employed
13 on a seasonal, temporary, or permanent basis in the planting,
14 cultivating, harvesting, or processing of agricultural or
15 aquacultural products and who derived at least 50 percent of
16 his income in the immediately preceding 12 months from such
17 employment. "Farmworker" also includes a person who has
18 retired as a laborer due to age, disability, or illness. In
19 order to be considered retired as a farmworker due to age
20 under this part, a person must be 50 years of age or older and
21 must have been employed for a minimum of 5 years as a
22 farmworker before retirement. In order to be considered
23 retired as a farmworker due to disability or illness, a person
24 must:
25 (a) Establish medically that he is unable to be
26 employed as a farmworker due to that disability or illness.
27 (b) Establish that he was previously employed as a
28 farmworker.
29 (19)(17) "Housing for the elderly" means, for purposes
30 of s. 420.5087(3)(c)2., any nonprofit housing community that
31 is financed by a mortgage loan made or insured by the United
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1 States Department of Housing and Urban Development under s.
2 202, s. 202 with a s. 8 subsidy, s. 221(d)(3) or (4), or s.
3 236 of the National Housing Act, as amended, and that is
4 subject to income limitations established by the United States
5 Department of Housing and Urban Development, or any program
6 funded by the Rural Development Agency of the United States
7 Department of Agriculture Farmers Home Administration and
8 subject to income limitations established by the United States
9 Department of Agriculture.
10 (20)(18) "Lending institution" means any bank or trust
11 company, mortgage banker, savings bank, credit union, national
12 banking association, savings and loan association, building
13 and loan association, insurance company, the Florida Housing
14 Development Corporation, or other financial institution or
15 governmental agency authorized to transact business in this
16 state and which customarily provides service or otherwise aids
17 in the financing of mortgages on real property located in the
18 state.
19 (21)(19) "Loan," for purposes of the State Apartment
20 Incentive Loan Program and HOME Investment Partnership
21 Program, means any direct loan or loan guaranty issued or
22 backed by such funds.
23 (22)(20) "Local government" means a unit of local
24 general-purpose government as defined in s. 218.31(2).
25 (23)(21) "Local partnership" means a formally
26 constituted group, including representatives of local
27 government, lenders, developers, nonprofit organizations,
28 realtors, social service providers, and other entities in the
29 community which are involved with the development of
30 affordable housing.
31 (24) "Members" means the members of the board of
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1 directors of the corporation.
2 (25)(22) "Mortgage" means:
3 (a) A mortgage, mortgage deed, deed of trust, or other
4 instrument:
5 1. Creating a lien, subject only to such title
6 exceptions as may be acceptable to the corporation agency, on
7 a fee interest in real property located within the state or on
8 a leasehold on such a fee interest which has a remaining term
9 at the time of computation that exceeds the maturity date of
10 the mortgage loan by a number of years determined by the
11 corporation agency to be sufficient to protect its interests;
12 and
13 2. Secured, insured, or guaranteed in such manner as
14 the corporation agency determines will protect its interests
15 and those of the bondholders, provided the bonds issued to
16 fund or finance such instrument are rated by a nationally
17 recognized rating service in any one of the three highest
18 classifications, which rating services and classifications are
19 determined pursuant to rules adopted by the State Board of
20 Administration under s. 215.84(3), unless the bonds are
21 privately placed through a negotiated sale as authorized in s.
22 420.509(7)(a); or
23 (b) A pledge of stock in a cooperative association and
24 a security interest in the related lease.
25 (26)(23) "Mortgage loan" means a financial obligation
26 secured by a mortgage.
27 (27)(24) "Nonparticipating local jurisdiction" means a
28 locality which is not a participating local jurisdiction.
29 (28) "Officers" means the chairman, vice chairman, and
30 secretary of the board of directors of the corporation.
31 (29)(25) "Participating local jurisdiction" means a
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1 locality which has accrued at least $750,000 in HOME funds
2 through the federal formula allocation process or which has
3 supplemented its formula allocation by processes approved by
4 the Federal Government to equal $750,000.
5 (30)(26) "Pledged revenues" means revenues to be
6 derived from the financing of residential housing, mortgages,
7 or loan payments and any other revenues or assets that may be
8 legally available to pay the principal of, redemption premium,
9 if any, and interest on the bonds derived from sources other
10 than ad valorem taxation, including revenues from other
11 sources or any combination thereof and any funds or accounts
12 designated by the corporation; however, in no event shall the
13 full faith and credit of the state be pledged to secure such
14 revenue bonds.
15 (31) "Prohibited business solicitation communication"
16 means a private written or verbal communication between a
17 member, officer, or covered employee of the corporation and a
18 service provider regarding the merits of the service provider
19 and whether the corporation should retain the services of the
20 service provider. The term does not include:
21 (a) A verbal communication made on the record during a
22 public meeting;
23 (b) A written communication provided to each member
24 and officer of the corporation and made part of the record at
25 a public meeting;
26 (c) A written proposal or statement of qualifications
27 submitted to the corporation in response to a corporation
28 advertisement seeking proposals or statements of
29 qualifications as part of a competitive selection process.
30 (d) A verbal or written communication related to the
31 contractual responsibilities of a service provider who was
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1 selected to provide services or who was included in a pool of
2 service providers eligible to provide services as a result of
3 a competitive selection process, so long as the communications
4 do not relate to solicitation of business.
5 (e) A verbal or written communication related to a
6 proposed method of financing or proposed projects, so long as
7 the communications do not relate to solicitation of business.
8 (32)(27) "Project" means any work or improvement
9 located or to be located in the state, including real
10 property, buildings, and any other real and personal property,
11 designed and intended for the primary purpose of providing
12 decent, safe, and sanitary residential housing for persons or
13 four or more families, whether new construction, the
14 acquisition of existing residential housing, or the
15 remodeling, improvement, rehabilitation, or reconstruction of
16 existing housing, together with such related nonhousing
17 facilities as the corporation agency determines to be
18 necessary, convenient, or desirable.
19 (33)(28) "Real property" means all lands, including
20 improvements and fixtures thereon and property of any nature
21 appurtenant thereto or used in connection therewith, and every
22 estate, interest, and right, legal or equitable, therein,
23 including terms of years and liens by way of judgment,
24 mortgage, or otherwise and the indebtedness secured by such
25 liens.
26 (34)(29) "Residential housing" means one or more new
27 or existing residential dwelling units located or to be
28 located in the state, including any buildings, land,
29 improvements, equipment, facilities, or other real or personal
30 properties which are necessary in connection therewith,
31 including, but not limited to, related facilities for streets,
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1 sewers, and utilities.
2 (35) "Service provider," except as otherwise defined
3 in s. 420.512(5), means a law firm, investment bank, certified
4 public accounting firm, auditor, trustee bank, credit
5 underwriter, homeowner loan servicer, or any other provider of
6 services to the corporation which offers to perform or
7 performs services to the corporation or other provider for
8 fees in excess of $25,000 in the aggregate during any fiscal
9 year. The term includes the agents, officers, principals, and
10 professional employees of the service provider.
11 (36) "Services" means the professional services
12 normally provided by the service provider. The term includes,
13 but is not limited to, the services of bond and special
14 counsel, auditor, accountant, trustee bank, and master
15 servicer.
16 (37)(30) "Sponsor" means any individual, association,
17 corporation, joint venture, partnership, trust, local
18 government, or other legal entity or any combination thereof
19 which:
20 (a) Has been approved by the corporation agency as
21 qualified to own, construct, acquire, rehabilitate,
22 reconstruct, operate, lease, manage, or maintain a project;
23 and
24 (b) Except for a local government, has agreed to
25 subject itself to the regulatory powers of the corporation
26 agency.
27 (38)(31) "State" means the State of Florida.
28 (39)(32) "State Board of Administration" means the
29 State Board of Administration created by and referred to in s.
30 9, Art. XII of the State Constitution.
31 (33) "State Bond Act" means ss. 215.57-215.83, as the
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1 same may be amended from time to time.
2 (40)(34) "State Housing Trust Fund" means the trust
3 fund established pursuant to s. 420.0005.
4 (41)(35) "Substantial rehabilitation" means repair or
5 restoration of a dwelling unit where the value of such repair
6 or restoration exceeds 40 percent of the value of the
7 dwelling.
8 Section 7. Section 420.504, Florida Statutes, 1996
9 Supplement, is amended to read:
10 420.504 Public corporation Agency; creation,
11 membership, terms, expenses.--
12 (1) There is created within the Department of
13 Community Affairs a public corporation and a state agency and
14 instrumentality, which shall be a public body corporate and
15 politic, to be known as the "Florida Housing Finance
16 Corporation Agency." It is declared to be the intent of and
17 constitutional construction by the Legislature that the
18 Florida Housing Finance Corporation constitutes an
19 entrepreneurial public corporation organized to provide and
20 promote the public welfare by administering the governmental
21 function of financing or refinancing housing and related
22 facilities in Florida and that the corporation is not a
23 department of the executive branch of state government within
24 the scope and meaning of s. 6, Art. IV of the State
25 Constitution, but is functionally related to the Department of
26 Community Affairs in which it is placed. The executive
27 function of state government to be performed by the secretary
28 of the department in the conduct of the business of the
29 Florida Housing Finance Corporation must be performed pursuant
30 to an annual contract to monitor and set performance standards
31 for the implementation of the business plan for the provision
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1 of housing approved for the corporation as provided in s.
2 420.0006. This contract shall include the performance
3 standards for the provision of affordable housing in Florida
4 established in the business plan described in s. 420.511.
5 (2) The corporation is constituted as a public
6 instrumentality, and the exercise by the corporation of the
7 power conferred by this act is considered to be the
8 performance of an essential public function. The corporation
9 shall constitute an agency for the purposes of s. 120.52. The
10 corporation is subject to chapter 119, subject to exceptions
11 applicable to the corporation, and to the provisions of
12 chapter 286. The corporation is not governed by chapter 607,
13 but by the provisions of this part. If for any reason the
14 establishment of the corporation is deemed in violation of
15 law, such provision is severable and the remainder of this act
16 remains in full force and effect.
17 (3) The corporation is a separate budget entity and is
18 not subject to control, supervision, or direction by the
19 Department of Community Affairs in any manner, including, but
20 not limited to, personnel, purchasing, transactions involving
21 real or personal property, and budgetary matters. The
22 corporation agency shall consist of a board of directors
23 composed of the Secretary of Community Affairs as an ex
24 officio and voting member and eight members appointed by the
25 Governor subject to confirmation by the Senate from the
26 following:
27 (a) One citizen actively engaged in the residential
28 home building industry.
29 (b) One citizen actively engaged in the banking or
30 mortgage banking industry.
31 (c) One citizen who is a representative of those areas
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1 of labor engaged in home building.
2 (d) One citizen with experience in housing development
3 who is an advocate for low-income persons.
4 (e) One citizen actively engaged in the commercial
5 building industry.
6 (f) One citizen who is a former local government
7 elected official.
8 (g)(e) Two Four citizens of the state who are not
9 principally employed as members or representatives of any of
10 the groups specified in paragraphs (a) through (f) (d).
11
12 The changes in membership categories required by this act
13 shall be effective when the term of one citizen member expires
14 in 1998 on November 13, 1988.
15 (4)(2)(a) Members of the corporation agency shall be
16 appointed for terms of 4 years, except that any vacancy shall
17 be filled for the unexpired term.
18 (b) Subject to removal or reinstatement of the member
19 by the Senate, the Governor may suspend a member for cause,
20 including, but not limited to, failure to attend at least 3
21 meetings of the board during any 12-month period.
22 (5)(3) The chairman and a vice chairman shall be
23 elected annually by the members thereof. Any additional
24 officers, who need not be members, as may be deemed necessary
25 by the members of the corporation agency may be designated and
26 elected by the members thereof.
27 (6)(4) A member of the board of directors of the
28 corporation agency shall receive no compensation for his or
29 her services but shall be entitled to the necessary expenses,
30 including per diem and travel expenses, incurred in the
31 discharge of his duties, as provided by law.
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1 (7)(5) Each member of the board of directors of the
2 corporation agency shall file full and public disclosure of
3 financial interests at the times and places and in the same
4 manner required of elected constitutional officers under s. 8,
5 Art. II of the State Constitution and any law implementing s.
6 8, Art. II of the State Constitution.
7 (8) A member of the board of directors of the
8 corporation is not personally liable for monetary damages to
9 the corporation or to any person for any statement, vote,
10 decision, or failure to take an action regarding corporation
11 management or policy by that member, unless:
12 (a) The member breached or failed to perform his or
13 her duties as a member; and
14 (b) The member's breach of, or failure to perform, his
15 or her duties constitutes:
16 1. A violation of criminal law, unless the member had
17 reasonable cause to believe his or her conduct was lawful or
18 had no reasonable cause to believe his or her conduct was
19 unlawful. A judgment or other final adjudication against a
20 member in any criminal proceeding for violation of the
21 criminal law estops that member from contesting the fact that
22 his or her breach, or failure to perform, constitutes a
23 violation of the criminal law, but does not estop the member
24 from establishing that he or she had reasonable cause to
25 believe that his or her conduct was lawful or had no
26 reasonable cause to believe that his or her conduct was
27 unlawful;
28 2. A transaction from which the member derived an
29 improper personal benefit, either directly or indirectly; or
30 3. Recklessness or an act or omission that was
31 committed in bad faith or with malicious purpose or in a
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1 manner exhibiting wanton and willful disregard of human
2 rights, safety, or property.
3 (9) For purposes of this section, the term
4 "recklessness" means the acting, or omission to act, in
5 conscious disregard of a risk:
6 (a) Known, or so obvious that it should have been
7 known, to the member; and
8 (b) Known to the member, or so obvious that it should
9 have been known, to be so great as to make it highly probable
10 that harm would follow from the action or omission.
11 (10) The members of the agency in office on December
12 31, 1997, shall continue in office as the directors of the
13 corporation without further act of the Governor or Senate for
14 the balance of their respective terms of office with their
15 terms being defined to have commenced as of the date of first
16 appointment for purposes of chapter 112.
17 Section 8. Section 420.505, Florida Statutes, is
18 amended to read:
19 420.505 Meetings; quorum; voting.--The powers of the
20 corporation agency shall be vested in the its members of its
21 board of directors in office from time to time. Five members
22 of the board agency shall constitute a quorum for the purpose
23 of conducting its business and exercising its powers and for
24 all other purposes. Action may be taken by the board agency
25 upon an affirmative vote of a majority of the members present,
26 provided that no action shall be taken by an affirmative vote
27 of less than four members.
28 Section 9. Section 420.506, Florida Statutes, is
29 amended to read:
30 420.506 Executive director; agents and employees.--The
31 appointment and removal of an executive director shall be by
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1 the Secretary of Community Affairs, with the advice and
2 consent of the corporation's board of directors agency. The
3 executive director shall subsequently employ legal and
4 technical experts and such other agents and employees,
5 permanent and temporary, as the corporation agency may
6 require, and shall communicate with and provide information to
7 the Legislature with respect to the corporation's activities.
8 The executive director shall establish a contact within the
9 corporation to work with the department's inspector general.
10 The board is authorized, notwithstanding the provisions of s.
11 216.262, to develop and implement rules regarding the
12 employment of employees of the corporation and service
13 providers, including legal counsel. The corporation may hire
14 any individual who, as of the effective date of this act, is
15 employed by the agency. The corporation is authorized to enter
16 into a lease agreement with the Department of Management
17 Services or the Department of Community Affairs for the lease
18 of state employees from such entity, wherein an employee shall
19 retain his or her status as a state employee without regard to
20 the foregoing but shall work under the direct supervision of
21 the corporation, and shall retain the right to participate in
22 the Florida Retirement system. The board of directors of the
23 corporation is entitled to establish travel procedures and
24 guidelines for employees of the corporation. The executive
25 director's office and the corporation's files and records must
26 be located in Leon County. The provisions of the state
27 personnel law contained in chapter 110 shall apply, except
28 that no more than 10 policymaking employees of the agency as
29 determined from time to time by the agency may be exempted.
30 Section 10. Section 420.5061, Florida Statutes, is
31 created to read:
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1 420.5061 Transfer of agency assets and
2 liabilities.--Effective January 1, 1998, all assets and
3 liabilities, rights and obligations, including any outstanding
4 contractual obligations, of the agency shall be transferred to
5 the corporation as legal successor in all respects to the
6 agency. The corporation shall thereupon become obligated to
7 the same extent as the agency under any existing agreements
8 and be entitled to any rights and remedies previously afforded
9 the agency by law or contract, including specifically the
10 rights of the agency under chapter 201 and chapter 159, part
11 VI. Effective January 1, 1998, all references under Florida
12 law to the agency are deemed to mean the corporation. For
13 purposes of s. 112.313, the corporation is deemed to be a
14 continuation of the agency, and the provisions thereof are
15 deemed to apply as if the same entity remained in place. Any
16 employees of the agency and agency board members covered by s.
17 112.313(9)(a)6. shall continue to be entitled to the exemption
18 in that subparagraph, notwithstanding being hired by the
19 corporation or appointed as board members of the corporation.
20 Effective January 1, 1998, all state property in use by the
21 agency shall be transferred to and become the property of the
22 corporation.
23 Section 11. Section 420.507, Florida Statutes, is
24 amended to read:
25 420.507 Powers of the corporation agency.--The
26 corporation agency shall have all the powers necessary or
27 convenient to carry out and effectuate the purposes and
28 provisions of this part, including the following powers which
29 are in addition to all other powers granted by other
30 provisions of this part:
31 (1) To sue and be sued, to have a seal, to alter the
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1 same at pleasure and to authorize the use of a facsimile
2 thereof, and to make and execute contracts and other
3 instruments necessary or convenient to the exercise of the
4 powers of the corporation agency.
5 (2) To undertake and carry out studies and analyses of
6 housing needs within the state and ways of meeting those
7 needs.
8 (3) To participate in federal housing assistance and
9 federal community development, insurance, and guarantee
10 programs and to agree and comply with any conditions attached
11 to federal financial assistance, including, without
12 limitation, the waiver of exemption from federal income
13 taxation on interest payable on its bonds, unless expressly
14 prohibited by this act.
15 (4) To provide for the collection and payment of fees
16 and charges, regardless of method of payment, in connection
17 with its loans, commitments, and servicing, including, but not
18 limited to, reimbursement of costs of financing by the
19 corporation agency, service charges and insurance premiums as
20 the corporation agency shall determine to be reasonable and as
21 shall be approved by the corporation agency. The fees and
22 charges may be paid directly by the borrower to the insurer,
23 lender, or servicing agent or may be deducted from the
24 interest collected by such insurer, lender, or servicing
25 agent.
26 (5) To acquire real and personal property or any
27 interest therein when such acquisition is necessary or
28 appropriate to protect any loan or to participate in any
29 program in which the corporation agency has an interest; to
30 sell, transfer, and convey any such property to a buyer
31 without regard to the provisions of chapters 253 and 270; and,
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1 in the event that such sale, transfer, or conveyance cannot be
2 effected with reasonable promptness or at a reasonable price,
3 to lease such property for occupancy by eligible persons.
4 (6) To borrow money through the issuance of bonds or
5 from the Federal Home Loan Bank or Rural Housing Services of
6 the United States Department of Agriculture for the purposes
7 provided in this part, to provide for and secure the payment
8 thereof, and to provide for the rights of the holders thereof.
9 (7) To purchase bonds of the corporation agency out of
10 any funds or moneys of the corporation agency available
11 therefor and to hold, cancel, or resell such bonds.
12 (8) To invest any funds held in reserves or sinking
13 funds, or any funds not required for immediate disbursement,
14 in such investments as may be authorized for trust funds under
15 s. 215.47 and in any authorized investments, provided such
16 investments will be made on behalf of the corporation agency
17 by the State Board of Administration or by another trustee
18 appointed for that purpose.
19 (9) To set standards for residential housing financed
20 by the corporation agency under this chapter and to provide
21 for inspections to determine compliance with those standards.
22 (10) To contract for and to accept gifts, grants,
23 loans, or other aid from the United States Government or any
24 person or corporation.
25 (11) To insure and procure insurance against any loss
26 in connection with any bonds of the corporation agency and the
27 corporation's agency's operations or property, including
28 without limitation:
29 (a) The repayment of any loans to mortgage lenders or
30 mortgage loans.
31 (b) Any project.
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1 (c) Any bonds of the corporation agency, in such
2 amounts and from such insurers, including the Federal
3 Government, as it may deem necessary or desirable, and to pay
4 any premiums therefor.
5 (12) To make rules necessary to carry out the purposes
6 of this part and to exercise any power granted in this part
7 pursuant to the provisions of chapter 120.
8 (13) To engage the services of private consultants on
9 a contract basis for rendering professional and technical
10 assistance and advice.
11 (14) To make additional conditions respecting the
12 grant of loans or mortgage loans pursuant to this part,
13 including, without limitation, the regulation of eligible
14 persons and the admission of tenants and other occupants or
15 users of projects and residential housing, and to enter into
16 regulatory and other agreements and contracts under the
17 provisions of this part.
18 (15) To institute any action or proceeding against any
19 eligible person or sponsor receiving a loan or owning any
20 residential housing financed under the provisions of this part
21 in any court of competent jurisdiction to enforce the
22 provisions of this part or the terms and provisions of any
23 agreement or contract between the corporation agency and such
24 person and, in connection with any such action or proceeding,
25 to apply for and accept the appointment, by a court of
26 competent jurisdiction, of a receiver to take over, manage,
27 operate, and maintain such residential housing.
28 (16) To procure or require the procurement of a policy
29 or policies of group life insurance or disability insurance,
30 or both, to insure repayment of mortgage loans for residential
31 housing in the event of the death or disability of the
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1 eligible person or persons liable therefor, and to pay any
2 premiums therefor.
3 (17) To renegotiate any mortgage loan or any purchase
4 agreement with a borrower or loan to a lending institution in
5 default; to waive any default or consent to the modification
6 of the terms of any mortgage loan or any purchase agreement
7 with or loan to a lending institution; and to commence,
8 prosecute, and enforce a judgment in any action or proceeding
9 to protect or enforce any right conferred upon it by law,
10 mortgage loan, loan agreement or purchase agreement with a
11 lending institution, contract, or other agreement, including
12 without limitation foreclosure of the security interest on the
13 property securing such a mortgage loan or loan to a lending
14 institution; provided that any such action or proceeding shall
15 be brought in the name of the entity servicing the mortgage
16 loan on behalf of the corporation agency and not in the name
17 of the corporation agency, and in connection with any such
18 proceeding, to bid for and purchase the property or acquire or
19 take possession thereof and, in such event, complete,
20 administer, pay the principal of and interest on any
21 obligations incurred in connection with the property and
22 dispose of and otherwise deal with the property in such manner
23 as the corporation agency may deem advisable to protect its
24 interests therein.
25 (18) To make and execute contracts for the
26 administration, servicing, or collection of any mortgage loan
27 or loan agreement or purchase agreement with a mortgage lender
28 or servicing agent for the duration of the loan or agreement
29 and pay the reasonable value of services rendered to the
30 corporation agency pursuant to such contracts. The fees and
31 charges for such services may be paid directly by the borrower
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1 to the lender or servicing agent or may be deducted from the
2 interest collected by such lender or servicing agent.
3 (19) To fix, revise from time to time, charge, and
4 collect fees and other charges in connection with the making
5 of mortgage loans and loans to mortgage lenders, the
6 purchasing of mortgage loans, and any other services rendered
7 by the corporation agency.
8 (20) To make and execute agreements, contracts, and
9 other instruments necessary or convenient in the exercise of
10 the powers and functions of the corporation agency under this
11 part, including contracts with any person, firm, corporation,
12 local government, or other entity; and all local governments
13 established under the laws of the state are hereby authorized
14 to enter into and do all things necessary to perform such
15 contracts and otherwise cooperate with the corporation agency
16 to facilitate the accomplishment of the purposes of this part.
17 (21) Review all reverse mortgage provisions proposed
18 to be used by an individual lender or a consortium to
19 determine that such provisions are consistent with the
20 purposes and intent of this act. If the corporation agency
21 finds that the provisions are consistent, it shall approve
22 those provisions. If the corporation agency finds that the
23 provisions are inconsistent, it shall state its objections and
24 give the parties an opportunity to amend the provisions to
25 overcome such objections. In approving these provisions, the
26 corporation agency must determine:
27 (a) That the mortgagee is either licensed pursuant to
28 ss. 494.006-494.0077 or specifically exempt from ss.
29 494.006-494.0077.
30 (b) That the mortgagee has sufficient resources to
31 finance such mortgages.
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1 (22) To develop and administer the State Apartment
2 Incentive Loan Program. In developing and administering that
3 program, the corporation agency may:
4 (a) Make first, second, and other subordinated
5 mortgage loans including variable or fixed rate loans subject
6 to contingent interest. The corporation agency shall make
7 loans exceeding 25 percent of project cost available only to
8 nonprofit organizations and public bodies which are able to
9 secure grants, donations of land, or contributions from other
10 sources and to projects meeting the criteria of subparagraph
11 1. Mortgage loans shall be made available at the following
12 rates of interest:
13 1. Zero to 3 percent interest for sponsors of projects
14 that maintain an 80 percent occupancy of residents qualifying
15 as farmworkers as defined in s. 420.306(7) over the life of
16 the loan.
17 2. Three to 9 percent interest for sponsors of
18 projects targeted at populations other than farmworkers.
19 (b) Geographically and demographically target the
20 utilization of loans.
21 (c) Underwrite credit, and reject projects which do
22 not meet the established standards of the corporation agency.
23 (d) Negotiate with governing bodies within the state
24 after a loan has been awarded to obtain local government
25 contributions.
26 (e) Inspect any records of a sponsor at any time
27 during the life of the loan or the agreed period for
28 maintaining the provisions of s. 420.5087.
29 (f) Establish, by rule, the procedure for evaluating,
30 scoring, and competitively ranking all applications based on
31 the criteria set forth in s. 420.5087(6)(c); determining
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1 actual loan amounts; making and servicing loans; and
2 exercising the powers authorized in this subsection.
3 (g) Establish a loan loss insurance reserve to be used
4 to protect the outstanding program investment in case of a
5 default, deed in lieu of foreclosure, or foreclosure of a
6 program loan.
7 (23) To develop and administer the Florida
8 Homeownership Assistance Program. In developing and
9 administering the program, the corporation agency may:
10 (a)1. Make subordinated loans to eligible borrowers
11 for down payments or closing costs related to the purchase of
12 the borrower's primary residence.
13 2. Make permanent loans to eligible borrowers related
14 to the purchase of the borrower's primary residence.
15 3. Make subordinated loans to nonprofit sponsors or
16 developers of housing for construction financing of housing to
17 be offered for sale to eligible borrowers as a primary
18 residence at an affordable price.
19 (b) Establish a loan loss insurance reserve to
20 supplement existing sources of mortgage insurance with
21 appropriated funds.
22 (c) Geographically and demographically target the
23 utilization of loans.
24 (d) Defer repayment of loans for the term of the first
25 mortgage.
26 (e) Establish flexible terms for loans with an
27 interest rate not to exceed 3 percent per annum and which are
28 nonamortizing for the term of the first mortgage.
29 (f) Require repayment of loans upon sale, transfer,
30 refinancing, or rental of secured property.
31 (g) Accelerate a loan for monetary default, for
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1 failure to provide the benefits of the loans to eligible
2 borrowers, or for violation of any other restriction placed
3 upon the loan.
4 (h) Adopt rules for the program and exercise the
5 powers authorized in this subsection.
6 (24) To do any and all things necessary or convenient
7 to carry out the purposes of, and exercise the powers given
8 and granted in, this part.
9 (25) To develop and administer the Florida Affordable
10 Housing Guarantee Program. In developing and administering
11 the program, the corporation agency may:
12 (a) Develop criteria for determining the priority for
13 expending the moneys in the State Housing Trust Fund.
14 (b) Select affordable housing debt to be guaranteed or
15 additionally secured by amounts on deposit in the Affordable
16 Housing Guarantee Trust Fund.
17 (c) Adopt rules for the program and exercise the
18 powers authorized in this subsection.
19 (26) To develop and administer the Predevelopment Loan
20 Program. In developing and administering the program, the
21 corporation agency may make loans and grants as provided in
22 ss. 420.521-420.529.
23 (27) Notwithstanding the provisions of part I of
24 chapter 287, to establish guidelines for and to implement the
25 purchase and procurement of materials for use by the
26 corporation.
27 (28) To expend amounts advanced from the State Housing
28 Trust Fund for the purposes of this part.
29 (29) To own real and personal property for the
30 purposes of this part and to sell the property without regard
31 to the provisions of chapters 253 and 270.
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1 (30) To prepare and submit to the secretary of the
2 department a budget request for purposes of the corporation,
3 which request shall, notwithstanding the provisions of chapter
4 216 and in accordance with s. 216.351, contain a request for
5 operational expenditures and separate requests for other
6 authorized corporation programs, each of which shall be
7 classified as a special category appropriation. The request
8 shall not be required to contain information on the number of
9 employees, salaries, or any classification thereof, and the
10 approved operating budget therefor need not comply with s.
11 216.181(7)-(9). The secretary is authorized to include within
12 the department's budget request the corporation's budget
13 request in the form as authorized by this section.
14 (31) Notwithstanding the provisions of s. 216.301, to
15 retain any unused operational expenditure appropriation for
16 other lawful purposes of the corporation.
17 (32) To pay pensions and establish pension plans,
18 pension trusts, and benefit and incentive plans for any and
19 all of its current or former employees and agents.
20 (33) To receive federal funding in connection with the
21 corporation's programs directly from the Federal Government.
22 (34) To appoint an internal affairs officer, who shall
23 be accountable directly to the board of the corporation. The
24 internal affairs officer shall be responsible for conducting
25 independent investigations at the direction of the board.
26 Audits completed by the internal affairs officer shall conform
27 to the current standards for the Professional Practice of
28 Internal Auditing and subsequent Internal Auditing Standards
29 or Statements on Internal Auditing Standards published by the
30 Institute of Internal Auditors, Inc., or be in accordance with
31 generally accepted governmental auditing standards.
33
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1 Section 12. Section 420.508, Florida Statutes, 1996
2 Supplement, is amended to read:
3 420.508 Special powers; multifamily and single family
4 projects mortgages and loans to lenders.--The corporation
5 agency shall have the special power to:
6 (1)(a) Purchase or take assignments of, and enter into
7 commitments to purchase or to take assignments of, mortgage
8 loans and promissory notes accompanying such mortgage loans
9 (including participations therein) from lending institutions
10 acting as a principal or as an agent of the corporation
11 agency; provided, at or before the time of any such purchase
12 or assignment, each lending institution shall represent and
13 warrant to, and covenant with, the corporation agency with
14 respect to each mortgage loan to be so purchased or assigned
15 or in which the corporation agency is to purchase a
16 participation that:
17 1. The unpaid principal balance of the mortgage loan
18 and the interest rate thereon have been accurately stated to
19 the corporation agency;
20 2. The amount of the unpaid principal balance is
21 justly due and owing;
22 3. The lending institution has no notice of the
23 existence of any counterclaim, offset, or defense asserted by
24 the mortgagor or his successor in interest;
25 4. The mortgage loan is evidenced by a duly executed
26 promissory note and a duly executed mortgage which has been
27 properly recorded with the appropriate public official;
28 5. The mortgage constitutes a valid first lien on the
29 real property described to the corporation authority, subject
30 only to such title exceptions as are specifically described to
31 the corporation agency and as are acceptable to the
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1 corporation agency;
2 6. The mortgagor is not in default in the payment of
3 any installment of principal or interest, escrow funds, real
4 property taxes, or otherwise in the performance of his
5 obligations under the mortgage documents;
6 7. The improvements to the mortgaged real property are
7 covered by a valid and subsisting policy of insurance issued
8 by a company authorized to issue such policies in the state
9 and providing fire and extended coverage in such amounts as
10 the corporation agency may prescribe by rule;
11 8. The mortgage loan meets the prevailing investment
12 quality standards for such mortgage loans in the state; and
13 9. Either:
14 a. The mortgage loan was originated after such date as
15 the corporation agency shall have specified, for the purpose
16 of selling or assigning such mortgage loan or a participation
17 therein to the corporation agency, and was made to an eligible
18 person to finance the construction, purchase, or refinancing
19 of residential housing for occupancy by one to four families,
20 all of whom are eligible persons and one of whom is the
21 mortgagor; or
22 b. An amount at least equal to the aggregate proceeds
23 received by the lending institution upon the sale or
24 assignment will be invested by the lending institution in new
25 mortgage loans originated after such date as the corporation
26 agency shall specify and will be made to eligible persons to
27 finance the construction, purchase, or refinancing of
28 residential housing for occupancy by one to four families, all
29 of whom are eligible persons and one of whom is the mortgagor.
30 (b) Provide, as a condition of any such purchase,
31 that:
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1 1. Each lending institution shall submit evidence
2 satisfactory to the corporation agency of the making of the
3 new mortgage loans to eligible persons and, in connection
4 therewith, shall permit the corporation agency, through its
5 members, employees, and agents, to inspect the books and
6 records of the lending institution; and
7 2. Each lending institution shall be liable to the
8 corporation agency for any damage suffered by the corporation
9 agency by reason of the untruth of any representation or the
10 breach of any warranty or covenant and, in the event that any
11 representation shall prove to be untrue when made or in the
12 event of any breach of warranty or covenant, the lending
13 institution shall, at the option of the corporation agency,
14 repurchase the mortgage loan for the original purchase price
15 adjusted for amounts subsequently paid thereon, as the
16 corporation agency may determine.
17 (c) Make and enter into contracts and agreements with
18 lending institutions for the servicing and processing of
19 mortgage loans purchased by the corporation agency pursuant to
20 this section.
21 (d) Sell, at public or private sale, with or without
22 public biddings, any mortgage or other obligation held by the
23 corporation agency.
24 (2)(a) Make loans to lending institutions and purchase
25 from lending institutions obligations issued by such lending
26 institutions and secured by mortgages on residential housing
27 or projects, upon such terms and conditions as the corporation
28 agency may determine, which at a minimum shall include a
29 requirement that an amount at least equal to the proceeds
30 thereof be invested in new mortgage loans originated after
31 such date as the corporation agency shall specify and be made
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1 to eligible persons to finance the construction, purchase, or
2 refinancing of residential housing for occupancy by one to
3 four families, all of whom are eligible persons and one of
4 whom is the mortgagor, or be made to sponsors to finance the
5 construction, purchase, or refinancing of projects for tenancy
6 by eligible persons; however, under no circumstances shall any
7 loan or mortgage be made for a term which is longer than the
8 term of the bond, debenture, or note, the proceeds from which
9 have funded the mortgage or loan.
10 (b) Require that loans to, or obligations purchased
11 from, lending institutions shall be additionally secured as to
12 payment of both principal and interest by a pledge of and lien
13 upon collateral security in such amounts and consisting of
14 such obligations, securities, and mortgage loans as the
15 corporation State Board of Administration shall by resolution
16 determine to be necessary to assure the payment of such loans
17 or securities purchased and the interest thereon as the same
18 become due; provided that in no event shall the fair market
19 value of the collateral security be less than 100 percent of
20 the principal amount of the outstanding loan or obligation, as
21 determined at such time or times, but no less frequently than
22 annually, as the State Board of Administration shall specify.
23 The State Board of Administration may require in the case of
24 any or all lending institutions that any required collateral
25 security be lodged with a bank or trust company, located
26 either within or outside the state, designated by the agency
27 as custodian therefor. In the absence of such a requirement,
28 a lending institution shall, if collateral is to be provided
29 for the loan or obligation purchased, upon receipt of the
30 proceeds from the agency, enter into an agreement with the
31 agency containing such provisions as the State Board of
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1 Administration shall deem necessary to adequately identify and
2 maintain such collateral and service the same and shall
3 provide that the lending institution shall hold the collateral
4 as an agent for the agency and shall be held accountable as
5 the trustee of an express trust for the application and
6 disposition thereof and the income therefrom solely to the
7 uses and purposes in accordance with the provisions of the
8 agreement. A copy of each agreement and any revisions or
9 supplements thereto shall be filed with the Secretary of State
10 and no further filing or other action under chapter 679,
11 entitled the Uniform Commercial Code-Secured Transactions, or
12 any other law of the state shall be required to perfect the
13 security interest of the agency in the collateral or any
14 additions thereto or substitutions therefor. The lien and
15 trust so created for the benefit of the agency shall be
16 binding from and after the time made as against all parties
17 having claims of any kind in tort, contract, or otherwise
18 against the lending institution. No loan to a lending
19 institution shall be made and no obligation issued by a
20 lending institution shall be purchased unless the institution
21 shall have certified to the agency that the payment of
22 principal and interest due on the collateral security which
23 shall secure such loan or obligation shall be sufficient to
24 amortize principal and pay interest on the loan or obligation
25 secured by the collateral. The agency or the State Board of
26 Administration may also establish such additional requirements
27 as shall be deemed necessary with respect to the pledging,
28 assigning, setting aside, or holding of the collateral
29 security, the making of substitutions therefor or additions
30 thereto, and the disposition of income and receipts therefrom.
31 (c) Collect, enforce the collection of, and foreclose
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Amendment No.
1 on any collateral security securing a loan made to, or an
2 obligation purchased from, a lending institution and acquire
3 or take possession of such collateral and sell the same at
4 public or private sale, with or without public bidding, and
5 otherwise deal with such collateral as may be necessary to
6 protect the interest of the corporation agency therein, all
7 subject to any agreement with the bondholders.
8 (d) Provide, as a condition of any such loan or
9 purchase, that:
10 1. Each lending institution submit evidence
11 satisfactory to the corporation agency of the making of the
12 new mortgage loans to eligible persons or to sponsors to
13 finance projects for tenancy by eligible persons and, in
14 connection therewith, permit the corporation agency, through
15 its members, employees, and agents, to inspect the books and
16 records of such lending institution; and
17 2. Each lending institution be liable to the
18 corporation agency for any damages suffered by the corporation
19 agency by reason of the untruth of any representation or the
20 breach of any warranty or covenant made in connection with any
21 such loan or purchase.
22 (e) Adopt, modify, or repeal any additional conditions
23 governing the making of loans to, or purchasing of obligations
24 from, lending institutions and the application of the proceeds
25 thereof.
26 (3)(a) Make and participate in the making of, and
27 contract to make or participate in the making of, mortgage
28 loans for permanent or construction financing to sponsors for
29 the purposes of financing development costs of projects,
30 provided each mortgage loan for a project made by the
31 corporation agency shall:
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Bill No. SB 2436
Amendment No.
1 1. Be evidenced by a properly executed note or other
2 evidence of indebtedness and be secured by a properly recorded
3 mortgage;
4 2. Provide for regular amortization to pay the
5 mortgage loan in full not later than the expiration of the
6 useful life of the property financed with the proceeds of the
7 mortgage loan as determined by the corporation agency, and in
8 any event not later than 45 years from the date of the
9 mortgage loan;
10 3. Not exceed such percentage of the development costs
11 as the corporation agency may determine pursuant to rule and,
12 in any event, not more than 95 percent of the development
13 costs;
14 4. If the mortgage loan is to provide financing for
15 the construction of a project, have each advance thereof
16 secured, insured, or guaranteed in such manner as the
17 corporation agency determines will reasonably protect its
18 interests and those of the bondholders, provided the bonds
19 issued to fund or finance such loan are rated by a nationally
20 recognized rating service in any one of the three highest
21 classifications, which rating services and classifications are
22 determined pursuant to rules adopted by the State Board of
23 Administration under s. 215.84(3), unless the bonds are
24 privately placed through a negotiated sale as authorized in s.
25 409.509(7)(a); however, under no circumstances shall any loan
26 or mortgage be made for a term which is longer than the term
27 of the bond, debenture, or note, the proceeds from which have
28 funded the mortgage or loan;
29 5. Have the initial review, approval, and origination
30 process accomplished by a lending institution in accordance
31 with such procedure as the corporation agency may prescribe,
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Amendment No.
1 which lending institution shall be paid such fees and charges
2 for its services as the corporation agency may determine; and
3 6. Be serviced by such lending institution or other
4 private entity engaged in the business of servicing mortgage
5 loans in the state as the corporation agency shall approve in
6 accordance with such procedures as the corporation agency may
7 prescribe, which servicer shall be paid such fees and charges
8 for its services as the agency may determine.
9 (b) Make the following determinations, which must be
10 made before the corporation agency may make a mortgage loan to
11 a sponsor for a project:
12 1. That a significant number of low-income,
13 moderate-income, or middle-income persons in the local
14 government in which the project is to be located, or in an
15 area reasonably accessible thereto, are subject to hardship in
16 finding adequate, safe, and sanitary housing;
17 2. That private enterprise, unaided, is not meeting,
18 and cannot reasonably be expected to meet, the need for such
19 housing; and
20 3. That the need for such housing will be alleviated
21 by providing the project.
22 (c) Adopt and from time to time modify or repeal rules
23 for governing the making of and participation in loans to
24 sponsors for projects to implement the powers authorized, and
25 to achieve the purposes set forth, in this part.
26 (4) Sell, transfer, or otherwise encumber any loan
27 made pursuant to this part.
28 (5) Establish with a qualified depository meeting the
29 requirements of chapter 280, a separate fund to be known as
30 the "Florida Housing Finance Corporation Fund," to be
31 administered by the corporation in accordance with the
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Bill No. SB 2436
Amendment No.
1 purposes of this chapter. All fees collected by the
2 corporation directly from the Federal Government for
3 administration of the United States Department of Housing and
4 Urban Development s. 8 housing program, all annual
5 administrative fees collected by trustees for bond programs
6 and remitted to the corporation, all expense fees related to
7 costs of bond issuance collected by trustees and remitted to
8 the corporation, and all tax credit program fees must be
9 deposited into the fund. The fund shall be utilized for the
10 purposes of the corporation, including payment of
11 administrative expenses. Effective January 1, 1998, all
12 amounts held in the Housing Finance Agency Trust Fund
13 established pursuant to state law must be transferred to the
14 corporation for deposit in the Florida Housing Finance
15 Corporation Fund, whereupon the Housing Finance Agency Trust
16 Fund must be closed. Expenditures from the Florida Housing
17 Finance Corporation Fund shall not be required to be included
18 in the corporation's budget request or be subject to
19 appropriation by the Legislature.
20 Section 13. Section 420.5087, Florida Statutes, is
21 amended to read:
22 420.5087 State Apartment Incentive Loan
23 Program.--There is hereby created the State Apartment
24 Incentive Loan Program for the purpose of providing first,
25 second, or other subordinated mortgage loans or loan
26 guarantees to sponsors, including for-profit, nonprofit, and
27 public entities, to provide housing affordable to
28 very-low-income persons.
29 (1) Program funds shall be distributed over successive
30 3-year periods in a manner that meets the need and demand for
31 very-low-income housing throughout the state. That need and
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Amendment No.
1 demand must be determined by using the most recent statewide
2 low-income rental housing market studies available at the
3 beginning of each 3-year period. However, at least 10 percent
4 of the program funds distributed during a 3-year period must
5 be allocated to each of the following categories of counties,
6 as determined by using the population statistics published in
7 the most recent edition of the Florida Statistical Abstract:
8 (a) Counties that have a population of more than
9 500,000 people;
10 (b) Counties that have a population between 100,000
11 and 500,000 people; and
12 (c) Counties that have a population of 100,000 or
13 less.
14
15 Any increase in funding required to reach the 10-percent
16 minimum shall be taken from the county category that has the
17 largest allocation.
18 (2) The corporation agency shall have the power to
19 underwrite and make state apartment incentive loans or loan
20 guarantees to sponsors, provided:
21 (a) The sponsor uses tax-exempt financing for the
22 first mortgage and at least 20 percent of the units in the
23 project are set aside for persons or families who have incomes
24 which meet the income eligibility requirements of s. 8 of the
25 United States Housing Act of 1937, as amended;
26 (b) The sponsor uses taxable financing for the first
27 mortgage and at least 20 percent of the units in the project
28 are set aside for persons or families who have incomes below
29 50 percent of the state or local median income, whichever is
30 higher, which shall be adjusted by the corporation agency for
31 family size; or
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Amendment No.
1 (c) The sponsor uses the federal low-income housing
2 tax credit, and the project meets the tenant income
3 eligibility requirements of s. 42 of the Internal Revenue Code
4 of 1986, as amended.
5
6 This subsection does not prohibit a tenant from qualifying
7 under the income eligibility criteria of paragraph (a),
8 paragraph (b), or paragraph (c) due to the tenant's
9 participation in a job training program approved by the
10 corporation agency. Compliance with the provisions of this
11 subsection must be contractually provided for the term of the
12 loan or 12 years, whichever is longer; however, this
13 subsection does not apply to loans made to housing communities
14 for the elderly to provide for lifesafety, building
15 preservation, health, sanitation, or security-related repairs
16 or improvements. Such loans shall be subject to tenant income
17 criteria established by corporation agency rule.
18 (3) During the first 6 months of loan or loan
19 guarantee availability, program funds shall be reserved for
20 use by sponsors who provide the housing set-aside required in
21 subsection (2) for tenants in the three tenant groups
22 designated in this subsection. The reservation of funds to
23 each of these groups shall be determined using the most recent
24 statewide very-low-income rental housing market study
25 available at the time of publication of each notice of fund
26 availability required by paragraph (6)(b). The reservation of
27 funds within each notice of fund availability to the three
28 tenant groups designated in this subsection may not be less
29 than 10 percent of the funds available at that time. Any
30 increase in funding required to reach the 10-percent minimum
31 shall be taken from the tenant group that has the largest
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Amendment No.
1 reservation. The three tenant groups are:
2 (a) Commercial fishing workers and farmworkers;
3 (b) Families; and
4 (c)1. Elderly persons.
5 2. Ten percent of the amount reserved pursuant to
6 subparagraph 1. shall be reserved to provide loans to sponsors
7 of housing for the elderly, as defined in s. 420.503, for the
8 purpose of making building preservation, health, or sanitation
9 repairs or improvements which are required by federal, state,
10 or local regulation or code, or lifesafety or security-related
11 repairs or improvements to such housing. A loan for a
12 lifesafety, building preservation, health, sanitation, or
13 security-related repair or improvement may not exceed $200,000
14 per housing community for the elderly. In order to receive
15 the loan, the sponsor of the housing community for the elderly
16 must make a commitment to match at least 15 percent of the
17 loan amount to pay the cost of such repair or improvement.
18 The corporation agency shall establish the rate of interest on
19 the loan, which may not exceed 3 percent, and the term of the
20 loan, which may not exceed 15 years. The term of the loan
21 shall be established on the basis of a credit analysis of the
22 applicant. The corporation agency shall establish, by rule,
23 the procedure and criteria for receiving, evaluating, and
24 competitively ranking all applications for loans under this
25 subparagraph. A loan application must include evidence of the
26 first mortgagee's having reviewed and approved the sponsor's
27 intent to apply for a loan. A nonprofit organization or
28 sponsor may not use the proceeds of a loan received pursuant
29 to this subparagraph to pay for administrative costs, routine
30 maintenance, or new construction.
31 (4) Loans shall be in an amount not to exceed the
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Bill No. SB 2436
Amendment No.
1 lesser of 25 percent of the total project cost or the minimum
2 amount required to make the project economically feasible;
3 however, loans exceeding 25 percent of project cost may be
4 made as provided in s. 420.507.
5 (5) The amount of the mortgage provided under this
6 program combined with any other mortgage in a superior
7 position shall be less than the value of the project without
8 the housing set-aside required by subsection (2).
9 (6) On all state apartment incentive loans, except
10 loans made to housing communities for the elderly to provide
11 for lifesafety, building preservation, health, sanitation, or
12 security-related repairs or improvements, the following
13 provisions shall apply:
14 (a) The corporation agency shall establish two
15 interest rates in accordance with s. 420.507(22)(a)1. and 2.
16 (b) The corporation agency shall publish a notice of
17 fund availability in a publication of general circulation
18 throughout the state. Such notice shall be published at least
19 60 days prior to the application deadline and shall provide
20 notice of the temporary reservations of funds established in
21 subsection (3).
22 (c) In consultation with the department, The
23 corporation agency shall provide by rule for the establishment
24 of a review committee composed of the department and
25 corporation agency staff and shall establish by rule a scoring
26 system for evaluation and competitive ranking of applications
27 submitted in this program, including, but not limited to, the
28 following criteria:
29 1. Tenant income and demographic targeting objectives
30 of the corporation agency.
31 2. Targeting objectives of the corporation agency
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Bill No. SB 2436
Amendment No.
1 which will ensure an equitable distribution of loans between
2 rural and urban areas.
3 3. Sponsor's agreement to reserve the units for
4 persons or families who have incomes below 50 percent of the
5 state or local median income, whichever is higher, for a time
6 period to exceed the minimum required by federal law or the
7 provisions of this part.
8 4. Sponsor's agreement to reserve more than:
9 a. Twenty percent of the units in the project for
10 persons or families who have incomes that do not exceed 50
11 percent of the state or local median income, whichever is
12 higher; or
13 b. Forty percent of the units in the project for
14 persons or families who have incomes that do not exceed 60
15 percent of the state or local median income, whichever is
16 higher, without requiring a greater amount of the loans as
17 provided in this section.
18 5. Provision for tenant counseling.
19 6. Sponsor's agreement to accept rental assistance
20 certificates or vouchers as payment for rent; however, when
21 certificates or vouchers are accepted as payment for rent on
22 units set aside pursuant to subsection (2), the benefit must
23 be divided between the corporation agency and the sponsor, as
24 provided by corporation agency rule.
25 7. Projects requiring the least amount of a state
26 apartment incentive loan compared to overall project cost.
27 8. Local government contributions and local government
28 comprehensive planning and activities that promote affordable
29 housing.
30 9. Project feasibility.
31 10. Economic viability of the project.
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Amendment No.
1 11. Commitment of first mortgage financing.
2 12. Sponsor's prior experience.
3 13. Sponsor's ability to proceed with construction.
4 14. Projects that directly implement or assist
5 welfare-to-work transitioning.
6 (d) The corporation agency may reject any and all
7 applications.
8 (e) The corporation agency may approve and reject
9 applications for the purpose of achieving geographic
10 targeting.
11 (f) The review committee established by corporation
12 agency rule pursuant to this subsection shall make
13 recommendations to the board of directors of the corporation
14 Housing Finance Agency Board regarding program participation
15 under the State Apartment Incentive Loan Program. The
16 corporation agency board shall make the final ranking and the
17 decisions regarding which applicants shall become program
18 participants based on the scores received in the competitive
19 ranking, further review of applications, and the
20 recommendations of the review committee. The corporation
21 agency board shall approve or reject applications for loans
22 and shall determine the tentative loan amount available to
23 each applicant selected for participation in the program. The
24 actual loan amount shall be determined pursuant to rule
25 adopted pursuant to s. 420.507(22)(f).
26 (g) The loan term shall be for a period of not more
27 than 15 years; however, if both a program loan and federal
28 low-income housing tax credits are to be used to assist a
29 project, the corporation agency may set the loan term for a
30 period commensurate with the investment requirements
31 associated with the tax credit syndication. The term of the
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Bill No. SB 2436
Amendment No.
1 loan may also exceed 15 years if necessary to conform to
2 requirements of the Federal National Mortgage Association.
3 The corporation agency may renegotiate and extend the loan in
4 order to extend the availability of housing for the targeted
5 population. The term of a loan may not extend beyond the
6 period for which the sponsor agrees to provide the housing
7 set-aside required by subsection (2).
8 (h) The loan shall be subject to sale, transfer, or
9 refinancing. However, all requirements and conditions of the
10 loan shall remain following sale, transfer, or refinancing.
11 (i) The discrimination provisions of s. 420.516 shall
12 apply to all loans.
13 (j) The corporation agency may require units dedicated
14 for the elderly.
15 (k) Rent controls shall not be allowed on any project
16 except as required in conjunction with the issuance of
17 tax-exempt bonds or federal low-income housing tax credits.
18 (l) The proceeds of all loans shall be used for new
19 construction or substantial rehabilitation which creates
20 affordable, safe, and sanitary housing units.
21 (m) Sponsors shall annually certify the adjusted gross
22 income of all persons or families qualified under subsection
23 (2) at the time of initial occupancy, who are residing in a
24 project funded by this program. All persons or families
25 qualified under subsection (2) may continue to qualify under
26 subsection (2) in a project funded by this program if the
27 adjusted gross income of those persons or families at the time
28 of annual recertification meets the requirements established
29 in s. 142(d)(3)(B) of the Internal Revenue Code of 1986, as
30 amended. If the annual recertification of persons or families
31 qualifying under subsection (2) results in noncompliance with
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Bill No. SB 2436
Amendment No.
1 income occupancy requirements, the next available unit must be
2 rented to a person or family qualifying under subsection (2)
3 in order to ensure continuing compliance of the project.
4 (n) Upon submission and approval of a marketing plan
5 which demonstrates a good faith effort of a sponsor to rent a
6 unit or units to persons or families reserved under subsection
7 (3) and qualified under subsection (2), the sponsor may rent
8 such unit or units to any person or family qualified under
9 subsection (2) notwithstanding the reservation.
10 (o) Sponsors may participate in federal mortgage
11 insurance programs and must abide by the requirements of those
12 programs. If a conflict occurs between the requirements of
13 federal mortgage insurance programs and the requirements of
14 this section, the requirements of federal mortgage insurance
15 programs shall take precedence.
16 (7) There is authorized to be established by the
17 corporation with a qualified public depository meeting the
18 requirements of chapter 280 established in the State Treasury
19 a separate trust fund to be named the "State Apartment
20 Incentive Loan Trust Fund," which shall be administered by the
21 corporation agency according to the provisions of this
22 program. Any amounts held in the State Apartment Incentive
23 Loan Trust Fund for such purpose as of January 1, 1998, must
24 be transferred to the corporation for deposit in the State
25 Apartment Incentive Loan Fund and the State Apartment
26 Incentive Loan Trust Fund must be closed. There shall be
27 deposited into the fund moneys from the State Housing Trust
28 Fund as created by s. 420.0005, or moneys received from any
29 other source, for the purpose of this program and all proceeds
30 derived from the use of such moneys. In addition, all loan
31 repayments, proceeds from the sale of any property, and any
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Bill No. SB 2436
Amendment No.
1 other proceeds that would otherwise accrue pursuant to the
2 activities conducted under the provisions of the State
3 Apartment Incentive Loan Program shall be deposited in the
4 fund and shall not revert to the General Revenue Fund.
5 Expenditures from the State Apartment Incentive Loan Fund
6 shall not be required to be included in the corporation's
7 budget request or be subject to appropriation by the
8 Legislature. If a loan commitment for program funds is
9 entered into during the state fiscal year for which the
10 program funds were appropriated, the funds shall continue to
11 be made available for use during the entire construction
12 period, even if it extends beyond the fiscal year in which the
13 loan commitment was entered. The budget amendment process
14 created in s. 216.181 shall be used to make funds available
15 throughout the construction period.
16 (8) If a default on a loan occurs, the corporation
17 agency may foreclose on any mortgage or security interest or
18 commence any legal action to protect the interest of the
19 corporation agency or the fund and recover the amount of the
20 unpaid principal, accrued interest, and fees on behalf of the
21 fund. The corporation agency may acquire real and personal
22 property or any interest therein when that acquisition is
23 necessary or appropriate to protect any loan; to sell,
24 transfer, and convey any such property to a buyer without
25 regard to the provisions of chapters 253 and 270; and, if that
26 sale, transfer, or conveyance cannot be effected within a
27 reasonable time, to lease such property for occupancy by
28 eligible persons. All sums recovered from the sale, transfer,
29 conveyance, or lease of such property shall be deposited into
30 the State Apartment Incentive Loan Trust Fund. The budget
31 amendment process created in s. 216.181 shall be used to make
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Bill No. SB 2436
Amendment No.
1 funds available for the loan loss insurance reserve authorized
2 in s. 420.507.
3 Section 14. Section 420.5088, Florida Statutes, is
4 amended to read:
5 420.5088 Florida Homeownership Assistance
6 Program.--There is created the Florida Homeownership
7 Assistance Program for the purpose of assisting low-income
8 persons in purchasing a home by reducing the cost of the home
9 with below-market construction financing, by reducing the
10 amount of down payment and closing costs paid by the borrower
11 to a maximum of 5 percent of the purchase price, or by
12 reducing the monthly payment to an affordable amount for the
13 purchaser. Loans shall be made available at an interest rate
14 that does not exceed 3 percent. The balance of any loan is due
15 at closing if the property is sold or transferred.
16 (1) For loans made available pursuant to s.
17 420.507(23)(a)1. or 2.:
18 (a) The corporation agency may underwrite and make
19 those mortgage loans through the program to persons or
20 families who are eligible to participate in the corporation's
21 agency's single-family mortgage revenue bond programs and who
22 have incomes that do not exceed 80 percent of the state or
23 local median income, whichever is greater, adjusted for family
24 size. If the corporation agency determines that there is
25 insufficient demand for such loans by persons or families who
26 are eligible to participate in the corporation's agency's
27 single-family mortgage revenue bond programs, the corporation
28 agency may make such mortgage loans to other persons or
29 families who have incomes that do not exceed 80 percent of the
30 state or local median income, whichever amount is greater.
31 (b) Loans shall be made available for the term of the
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Bill No. SB 2436
Amendment No.
1 first mortgage.
2 (c) Loans are limited to the lesser of 25 percent of
3 the purchase price of the home or the amount necessary to
4 enable the purchaser to meet credit underwriting criteria.
5 (2) For loans made pursuant to s. 420.507(23)(a)3.:
6 (a) Availability is limited to nonprofit sponsors or
7 developers who are selected for program participation pursuant
8 to this subsection.
9 (b) Preference must be given to community development
10 corporations as defined in s. 290.033 and to community-based
11 organizations as defined in s. 420.503.
12 (c) Priority must be given to projects that have
13 received state assistance in funding project predevelopment
14 costs.
15 (d) The benefits of making such loans shall be
16 contractually provided to the persons or families purchasing
17 homes financed under this subsection.
18 (e) At least 30 percent of the units in a project
19 financed pursuant to this subsection must be sold to persons
20 or families who have incomes that do not exceed 80 percent of
21 the state or local median income, whichever amount is greater,
22 adjusted for family size; and at least another 30 percent of
23 the units in a project financed pursuant to this subsection
24 must be sold to persons or families who have incomes that do
25 not exceed 50 percent of the state or local median income,
26 whichever amount is greater, adjusted for family size.
27 (f) The maximum loan amount may not exceed 33 percent
28 of the total project cost.
29 (g) A person who purchases a home in a project
30 financed under this subsection is eligible for a loan
31 authorized by s. 420.507(23)(a)1. or 2. in an aggregate amount
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Bill No. SB 2436
Amendment No.
1 not exceeding the construction loan made pursuant to this
2 subsection. The home purchaser must meet all the requirements
3 for loan recipients established pursuant to the applicable
4 loan program.
5 (h) The corporation agency shall provide, by rule, for
6 the establishment of a review committee composed of
7 corporation department and agency staff and shall establish,
8 by rule, a scoring system for evaluating and ranking
9 applications submitted for construction loans under this
10 subsection, including, but not limited to, the following
11 criteria:
12 1. The affordability of the housing proposed to be
13 built.
14 2. The direct benefits of the assistance to the
15 persons who will reside in the proposed housing.
16 3. The demonstrated capacity of the applicant to carry
17 out the proposal, including the experience of the development
18 team.
19 4. The economic feasibility of the proposal.
20 5. The extent to which the applicant demonstrates
21 potential cost savings by combining the benefits of different
22 governmental programs and private initiatives, including the
23 local government contributions and local government
24 comprehensive planning and activities that promote affordable
25 housing.
26 6. The use of the least amount of program loan funds
27 compared to overall project cost.
28 7. The provision of homeownership counseling.
29 8. The applicant's agreement to exceed the
30 requirements of paragraph (e).
31 9. The commitment of first mortgage financing for the
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Amendment No.
1 balance of the construction loan and for the permanent loans
2 to the purchasers of the housing.
3 10. The applicant's ability to proceed with
4 construction.
5 11. The targeting objectives of the corporation agency
6 which will ensure an equitable distribution of loans between
7 rural and urban areas.
8 12. The extent to which the proposal will further the
9 purposes of this program.
10 (i) The corporation agency may reject any and all
11 applications.
12 (j) The review committee established by corporation
13 agency rule pursuant to this subsection shall make
14 recommendations to the corporation agency board regarding
15 program participation under this subsection. The corporation
16 agency board shall make the final ranking for participation
17 based on the scores received in the ranking, further review of
18 the applications, and the recommendations of the review
19 committee. The corporation agency board shall approve or
20 reject applicants for loans and shall determine the tentative
21 loan amount available to each program participant. The final
22 loan amount shall be determined pursuant to rule adopted under
23 s. 420.507(23)(h).
24 (3) The corporation agency shall publish a notice of
25 fund availability in a publication of general circulation
26 throughout the state at least 60 days prior to the anticipated
27 availability of funds.
28 (4) During the first 9 months of each fiscal year:
29 (a) Sixty percent of the program funds shall be
30 reserved for use by borrowers pursuant to s. 420.507(23)(a)1.;
31 (b) Twenty percent of the program funds shall be
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1 reserved for use by borrowers pursuant to s. 420.507(23)(a)2.;
2 and
3 (c) Twenty percent of the program funds shall be
4 reserved for use by borrowers pursuant to s. 420.507(23)(a)3.
5
6 If the application of these percentages would cause the
7 reservation of program funds under paragraph (a) to be less
8 than $1 million, the reservation for paragraph (a) shall be
9 increased to $1 million or all available funds, whichever
10 amount is less, with the increase to be accomplished by
11 reducing the reservation for paragraph (b) and, if necessary,
12 paragraph (c).
13 (5) There is authorized to be established by the
14 corporation with a qualified public depository meeting the
15 requirements of chapter 280 in the State Treasury the Florida
16 Homeownership Assistance Trust Fund to be administered by the
17 corporation agency according to the provisions of this
18 program. Any amounts held in the Florida Homeownership
19 Assistance Trust Fund for such purposes as of January 1, 1998,
20 must be transferred to the corporation for deposit in the
21 Florida Homeownership Assistance Fund, whereupon the Florida
22 Homeownership Assistance Trust Fund must be closed. There
23 shall be deposited in the fund moneys from the State Housing
24 Trust Fund created by s. 420.0005, or moneys received from any
25 other source, for the purpose of this program and all proceeds
26 derived from the use of such moneys. In addition, all
27 unencumbered funds, loan repayments, proceeds from the sale of
28 any property, existing funds remaining in the Affordable
29 Housing Demonstration Loan Program and the Affordable Housing
30 Trust Fund, and any other proceeds that would otherwise accrue
31 pursuant to the activities of the programs described in this
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1 section funded by the Affordable Housing Trust Fund shall be
2 transferred to this fund. In addition, all loan repayments,
3 proceeds from the sale of any property, and any other proceeds
4 that would otherwise accrue pursuant to the activities
5 conducted under the provisions of the Florida Homeownership
6 Assistance Program shall be deposited in the fund and shall
7 not revert to the General Revenue Fund. Expenditures from the
8 Florida Homeownership Assistance Fund shall not be required to
9 be included in the corporation's budget request or be subject
10 to appropriation by the Legislature.
11 (6) No more than one-fifth of the funds available in
12 the Florida Homeownership Assistance Trust Fund may be made
13 available to provide loan loss insurance reserve funds to
14 facilitate homeownership for eligible persons or families
15 whose incomes do not exceed 120 percent of the state median
16 income or local median income, whichever amount is higher.
17 Section 15. Section 420.5089, Florida Statutes, is
18 amended to read:
19 420.5089 HOME Investment Partnership Program; HOME
20 trust fund.--
21 (1) There is authorized to be established by the
22 corporation with a qualified public depository meeting the
23 requirements of chapter 280 in the State Treasury the HOME
24 Investment Partnership Trust Fund, which shall be administered
25 by the corporation agency according to the provisions of the
26 HOME Investment Partnership Program which is hereby created.
27 Any amounts held in the HOME Partnership Trust Fund for such
28 purposes as of January 1, 1998, must be transferred to the
29 corporation for deposit in the HOME Investment Partnership
30 Fund, whereupon the HOME Partnership Trust Fund must be
31 closed. There shall be deposited into the fund moneys from the
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1 State Housing Trust Fund or moneys received from any other
2 source for the purpose of this program, and all proceeds
3 derived from the use of such moneys. In addition, all loan
4 repayments, proceeds from the sale of any property, and any
5 other proceeds that would otherwise accrue pursuant to the
6 activities conducted under the provisions of the HOME
7 Investment Partnership Program shall be deposited into the
8 fund and shall not revert to the General Revenue Fund.
9 Expenditures from the HOME Investment Partnership Fund shall
10 not be required to be included in the corporation's budget
11 request or be subject to appropriation by the Legislature. If
12 a loan commitment for program funds is entered into during the
13 state fiscal year for which the program funds were
14 appropriated, the funds shall continue to be made available
15 for use during the entire construction period of any project
16 financed by the program, even if it extends beyond the fiscal
17 year in which the loan commitment was entered. The budget
18 amendment process created in s. 216.181 shall be used to make
19 funds available throughout the construction period.
20 (2) The corporation agency shall make loans available
21 to eligible housing providers or home buyers on the basis of
22 the competitive selection process established in subsections
23 (5) and (6) and as described by corporation program rules
24 agency rule. Such process must incorporate and provide
25 incentives for welfare-to-work transitioning in coordination
26 with applicable state and federal programs. However, in the
27 first year of this program, the secretary of the department,
28 with the advice and consent of the agency board, may select
29 demonstration pilot programs. Pilot programs shall be
30 monitored by the agency for compliance with program
31 requirements and evaluated to determine what modifications
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1 might need to be made to the administration of the HOME
2 Partnership Program in following years. Selection of pilot
3 programs shall be based upon the following criteria:
4 (a) Existence of a working local partnership.
5 (b) Geographic distribution of the demonstration areas
6 throughout the state to include both urban and rural counties
7 of varying sizes and populations.
8 (c) Need and demand for affordable housing stock.
9 (d) Conformance to strategies enumerated in the
10 state's Comprehensive Housing Affordability Strategy.
11 (3) The corporation may make loans to home buyers in
12 connection with the corporation's single family mortgage
13 revenue bond program on the basis of "first come-first served"
14 or as described in the program rule.
15 (4) The corporation's board of directors may approve
16 projects located in a state or federally declared disaster
17 area or demonstration projects based on selection criteria as
18 approved by the board of directors. In addition, as approved
19 by the corporation's board of directors, disaster projects or
20 demonstration projects may be granted or provided a HOME loan
21 with forgivable terms.
22 (5)(3) Loans made under this program shall be made
23 used for eligible applicants and activities as enumerated in
24 24 C.F.R. part 92, and as enumerated in the program rule
25 approved by the corporation's board of directors. including
26 acquisition, moderate and substantial rehabilitation, new
27 construction, site improvement, demolition and relocation
28 expenses, and rental assistance. Loans shall be made
29 available directly to eligible housing providers for eligible
30 activities relating to rental or homeownership projects the
31 intended beneficiaries of which meet income guidelines and
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1 rent and sales price limits specified by agency rule.
2 (4) All loans must be matched with local funds as
3 specified in 24 C.F.R. part 92 and agency rule and must be
4 limited to the amount needed to make the project economically
5 feasible.
6 (6)(5) Applications for loans under any competitive
7 scoring process established by program rule must made under
8 this program shall be approved scored and ranked by a review
9 committee established by corporation agency rule which shall
10 analyze factors, including, but not limited to, the following:
11 (a) Tenant and homeowner income and Demographic
12 targeting objectives of the corporation agency.
13 (b) Corporation Agency portfolio diversification.
14 (c) Developer's agreement to make more than a minimum
15 number of units in the project available for the targeted
16 group.
17 (c)(d) Developer's agreement to make units for the
18 targeted group available for more than the minimum period
19 required by rule.
20 (e) Incorporation of the proposed housing within a
21 coordinated community or neighborhood development strategy.
22 (d)(f) Leveraging of HOME funds.
23 (e) Local match funds.
24 (f)(g) The project's feasibility and long-term
25 economic viability.
26 (g)(h) Demonstrated capacity of the proposed project's
27 development team.
28 (h)(i) Conformance with the consolidated plan
29 comprehensive housing affordability strategy for the state and
30 area in which the proposed project will be located.
31 (j) Evidence that the proposed project will be part of
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1 a comprehensive neighborhood strategy designed to offer
2 full-service support to residents.
3 (i)(k) Other factors determined and approved by the
4 corporation's board of directors from the evaluation of the
5 first demonstration projects.
6 (7)(6) The review committee established by corporation
7 agency rule pursuant to this subsection shall make
8 recommendations to the corporation Florida Housing Finance
9 Agency board regarding program participation. The corporation
10 agency board shall approve make the final ranking and decide
11 which applicants become program participants based on the
12 scores received in the ranking., further review of the
13 applications, and the recommendations of the review committee.
14 The agency board shall approve or reject applications for
15 loans and shall determine the tentative loan amount available
16 to each applicant selected for participation in the program.
17 The actual loan amount shall be determined pursuant to rule
18 and the Notice of Funding Availability (NOFA).
19 (8)(7) The loan term shall be for a minimum period
20 equal to the affordability period as stated in 24 C.F.R. part
21 92 or 15 years for rental rehabilitations and 20 years for
22 rental or homeownership new construction loans. period of not
23 more than 15 years for rental projects and 5 years for
24 homeownership construction or rehabilitation loans. However,
25 if both a program loan and federal low-income housing tax
26 credits are to be used to assist a project, the agency may set
27 the loan term for a period commensurate with the investment
28 requirements associated with the tax credit syndication. The
29 corporation agency may renegotiate and extend the loan in
30 order to extend the availability of housing for the targeted
31 population. The term of a loan may not extend beyond the
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1 period for which the sponsor agrees to set aside units for the
2 target population.
3 (9)(8) If a default on a loan occurs, the corporation
4 agency may cause a foreclosure foreclose on any mortgage or
5 security interest or commence any legal action to protect the
6 interest of the corporation agency or the fund and recover the
7 amount of the unpaid principal, accrued interest, and fees on
8 behalf of the fund. The corporation agency may acquire real
9 and personal property or any interest in the property if that
10 acquisition is necessary to protect any loan; sell, transfer,
11 and convey any such property to a buyer without regard to the
12 provisions of chapters 253 and 270; and, if that sale,
13 transfer, or conveyance cannot be effected within a reasonable
14 time, lease such property for occupancy by eligible persons.
15 (10)(9) All sums recovered from the sale, transfer,
16 conveyance, or lease of such property shall be deposited into
17 the HOME Investment Partnership Trust Fund.
18 (11)(10) The corporation agency shall monitor all
19 projects funded under this section to ensure compliance with
20 federal and state requirements. The corporation agency may
21 inspect such projects or records pertaining to those projects
22 at any reasonable time.
23 Section 16. Section 420.509, Florida Statutes, is
24 amended to read:
25 420.509 Bonds; purpose, terms, approval,
26 limitations.--
27 (1) The issuance of revenue bonds, as defined in this
28 part, to provide sufficient funds to achieve the purposes of
29 this part; pay interest on bonds; pay expenses incident to the
30 issuance and sale of any bond issued pursuant to this part,
31 including costs of validating, printing, and delivering the
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1 bonds, printing the official statement, publishing notices of
2 sale of the bonds, and related administrative expenses; and
3 pay all other capital expenditures of the corporation agency
4 incident to and necessary or convenient to carry out the
5 purposes and powers granted by this part is authorized,
6 subject and pursuant to the provisions of s. 16, Art. VII of
7 the State Constitution and the applicable provisions of this
8 chapter and of the State Bond Act. The provisions of ss.
9 215.57-215.83 shall not be applicable to the corporation.
10 Revenue bonds, as so defined, shall be payable solely from
11 pledged revenues and shall not be secured by the full faith
12 and credit of the state.
13 (2) The State Board of Administration is designated as
14 the state fiscal agency to make the determinations required by
15 s. 16, Art. VII of the State Constitution in connection with
16 the issuance of such bonds that in no state fiscal year will
17 the debt service requirements of the bonds proposed to be
18 issued and all other bonds secured by the same pledged
19 revenues exceed the pledged revenues available for such debt
20 service requirements. The State Board of Administration may
21 delegate to its executive director the authority and power to
22 perform that function without further review of the agency.
23 The determinations pursuant to this paragraph are limited to a
24 review of the matters essential to making the determinations
25 required by s. 16, Art. VII of the State Constitution. The
26 executive director shall report annually to the State Board of
27 Administration and the Legislature regarding the number of
28 bond issues considered and the determination with respect
29 thereto.
30 (3) All such bonds shall be issued by the corporation
31 on behalf of the state on behalf of the agency and in the name
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1 of the agency by the Division of Bond Finance from time to
2 time, as provided by the State Bond Act, with a term of not
3 more than 45 years, and except as otherwise provided herein,
4 in such principal amounts as shall be necessary to provide
5 sufficient funds to achieve the purposes of the corporation
6 agency in carrying out this part and purposes incident
7 thereto.
8 (4) Bonds of the corporation may:
9 (a) Bear interest at a rate or rates not exceeding the
10 interest rate limitation set forth in s. 215.84(3), unless the
11 State Board of Administration authorizes an interest rate in
12 excess of such maximum;
13 (b) Have such provisions for payment at maturity and
14 redemption before maturity at such time or times and at such
15 price or prices; and
16 (c) Be payable at such place or places within or
17 without the state as the board determines by resolution.
18 (5) The bonds may be signed by the officers of the
19 corporation as is provided for by resolution of the board. The
20 signatures may be manual or facsimile signatures as
21 established by the board. In case any officer whose signature
22 or a facsimile of whose signature appears on any bonds ceases
23 to be an officer before delivery of bonds, the signature or
24 facsimile signature is nevertheless valid and sufficient for
25 all purposes as fully and to the same extent as if he or she
26 had remained in office until the delivery.
27 (6) All bonds issued under the provisions of this act
28 are declared to be negotiable instruments under the Uniform
29 Commercial Code - Investment Securities Law of the state.
30 (7) Bonds of the corporation may not be issued unless
31 the face or reverse thereof contains a certificate, executed
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1 either manually or with a facsimile signature by the secretary
2 of the board, to the effect that the issuance of the bonds has
3 been approved under this act by the board. The certificate is
4 conclusive evidence as to approval of the issuance of the
5 bonds by the corporation and that the requirements of this act
6 and all of the laws relating to the bonds have been complied
7 with.
8 (8) The corporation has the authority to issue bond
9 anticipation notes in anticipation of the receipt of the
10 proceeds of the bonds in the same manner and subject to the
11 same limitations and conditions as provided by s. 215.431. The
12 rights and remedies of the holders of the notes are the same
13 rights and remedies they would have if they were the holders
14 of the definitive bonds in anticipation of which they are
15 issued; and all of the covenants, agreements, or other
16 proceedings relating to the definitive bonds in anticipation
17 of which the bond anticipation notes are issued are a part of
18 the proceedings relating to the issuance of the notes as fully
19 and to the same extent as if incorporated verbatim therein.
20 (9) Before the preparation of definitive bonds, the
21 corporation may issue interim receipts or temporary bonds,
22 exchangeable for definitive bonds when the bonds have been
23 executed and are available for delivery under the terms and
24 conditions the board deems advisable. The board may also
25 provide for the replacement of any bonds that become mutilated
26 or destroyed, stolen, or lost under the terms and conditions
27 the board deems advisable.
28 (4) There shall be established, from the proceeds of
29 each issue of bonds, a debt service reserve account in an
30 amount at least equal to the greatest amount of principal and
31 interest to become due on such issue in any ensuing state
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1 fiscal year or an amount at least equal to an average of the
2 annual principal and interest, all as may be determined by the
3 Division of Bond Finance; except that a reserve of a lesser
4 amount may be established if the agency, with the concurrence
5 of the Division of Bond Finance, determines that such reserve,
6 if any, will adequately protect the interests of bondholders.
7 (5)(a) The provisions of the State Bond Act,
8 including, without limitation, the definitions contained
9 therein, shall be applicable to all bonds issued pursuant to
10 this chapter, when not in conflict with the provisions hereof;
11 provided the basis of award of sale of such bonds may be
12 either the net interest cost or the true or effective interest
13 cost, as set forth in the resolution authorizing the sale of
14 such bonds. In cases of conflict, the provisions of this
15 chapter shall be controlling.
16 (10)(b) Bonds of the corporation may be validated
17 pursuant to chapter 75. In actions to validate such bonds
18 pursuant to chapter 75, the complaint shall be filed in the
19 Circuit Court of Leon County, the notice required by s. 75.06
20 shall be published only in Leon County and in two newspapers
21 of general circulation in the state, and the complaint and
22 order of the court shall be served only on the state attorney
23 of the Second Judicial Circuit.
24 (11)(6) Any resolution or resolutions authorizing any
25 bonds issued by the corporation on behalf of the agency may
26 contain provisions, without limitation, which shall be a part
27 of the contract or contracts with the holders thereof, as to:
28 (a) Pledging all or any part of the income or revenues
29 of the corporation agency to secure the payment of bonds or of
30 any issue thereof, subject to such agreements with holders of
31 bonds as may then exist.
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1 (b) Pledging all or any part of the assets of the
2 corporation agency, including mortgages and obligations
3 securing the same, to secure the payment of bonds or of any
4 issue of bonds, subject to such agreements with holders of
5 bonds as may then exist.
6 (c) The use and disposition of the income from
7 mortgages owned by the corporation agency and payment of the
8 principal of mortgages owned by the corporation agency.
9 (d) The procedure, if any, by which the terms of any
10 contract with holders of bonds may be amended or abrogated,
11 the amount of bonds the holders of which must consent thereto,
12 and the manner in which such consent may be given.
13 (e) Limitations on the amount of moneys to be expended
14 by the corporation agency for its operating expenses.
15 (f) Vesting, for the life of the bonds, in a trustee
16 or trustees such property, rights, powers, and duties in trust
17 as the corporation agency may determine, which may include any
18 or all of the rights, powers, and duties of the trustee
19 appointed by the holders of bonds pursuant to this part, and
20 limiting or abrogating the right of holders of bonds to
21 appoint a trustee under this part or limiting the rights,
22 powers, and duties of such trustee.
23 (g) Defining the acts or omissions to act which shall
24 constitute a default in the obligations and duties of the
25 corporation agency to the holders of bonds in providing for
26 the rights and remedies of holders of bonds in the event of
27 such default, including, as a matter of right, the appointment
28 of a receiver; provided such rights and remedies shall not be
29 inconsistent with the general laws of the state and the other
30 provisions of this part.
31 (h) Any other matters, of like or different character,
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1 which in any way affect the security or protection of holders
2 of bonds.
3 (12)(7)(a) The bonds issued by on behalf of the
4 corporation agency shall be sold at public sale in the manner
5 provided by s. 215.68 the State Bond Act. However, if the
6 corporation agency shall by official action at a public
7 meeting determine that a negotiated sale of the bonds is in
8 the best interest of the corporation agency, the corporation
9 division may negotiate for sale of the bonds to, or the
10 placement of bonds through, the underwriter or underwriters
11 designated by the corporation agency. In the official action
12 authorizing the negotiated sale, the corporation agency shall
13 provide specific findings as to the reasons for the negotiated
14 sale. The reasons shall include, but shall not be limited to,
15 characteristics of the bond issue and prevailing market
16 conditions that necessitate a negotiated sale. In the event
17 the corporation agency decides to negotiate for a sale of
18 bonds, the managing underwriter, or financial consultant or
19 adviser, if applicable, shall provide to the corporation
20 agency or division, prior to the award of bonds to the
21 managing underwriter, a disclosure statement containing the
22 following information:
23 1. An itemized list setting forth the nature and
24 estimated amounts of expenses to be incurred by the managing
25 underwriter in connection with the issuance of such bonds.
26 Notwithstanding the foregoing, any such list may include an
27 item for miscellaneous expenses, provided it includes only
28 minor items of expense which cannot be easily categorized
29 elsewhere in the statement.
30 2. The names, addresses, and estimated amounts of
31 compensation of any finders connected with the issuance of the
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1 bonds.
2 3. The amount of underwriting spread expected to be
3 realized.
4 4. Any management fee charged by the managing
5 underwriter.
6 5. Any other fee, bonus, or compensation estimated to
7 be paid by the managing underwriter in connection with the
8 bond issue to any person not regularly employed or retained by
9 it.
10 6. The name and address of the managing underwriter or
11 underwriters, if any, connected with the bond issue.
12 7. Any other disclosure that which the corporation
13 agency or division may require.
14
15 This paragraph is not intended to restrict or prohibit the
16 employment of professional services relating to bonds issued
17 under this chapter or the issuance of bonds by the agency or
18 division under any other chapter.
19 (b) In the event an offer of an issue of bonds at
20 public sale produces no bid, or in the event all bids received
21 are rejected, the corporation division is authorized to
22 negotiate for the sale of the bonds under such rates and terms
23 as are acceptable; provided that no bonds shall be so sold or
24 delivered on terms less favorable than the terms contained in
25 any bids rejected at the public sale thereof or, if no bids
26 were received at such public sale, the terms contained in the
27 notice of public sale.
28 (c) The failure of the corporation agency or division
29 to comply with one or more provisions of this section shall
30 not affect the validity of the bond issue; however, upon such
31 failure to comply, the agency shall sell all future bonds only
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1 at public sale as provided for herein, except as provided in
2 paragraph (b).
3 (13)(8)(a) No underwriter, commercial bank, investment
4 banker, or financial consultant or adviser shall pay any
5 finder any bonus, fee, or gratuity in connection with the sale
6 of general obligation bonds or revenue bonds issued by the
7 corporation agency unless full disclosure is made to the
8 corporation agency prior to or concurrently with the
9 submission of a purchase proposal for bonds by the
10 underwriter, commercial bank, investment banker, or financial
11 consultant or adviser and is made subsequently in the official
12 statement or offering circular, if any, detailing the name and
13 address of any finder and the amount of bonus, fee, or
14 gratuity paid to such finder.
15 (b) The willful violation of this subsection is a
16 felony of the third degree, punishable as provided in s.
17 775.082, s. 775.083, or s. 775.084.
18 (c) No violation of this subsection shall affect the
19 validity of the bond issue.
20 (14)(9) As used in this section, the term "finder"
21 means a person who is neither regularly employed by, nor a
22 partner or officer of, an underwriter, bank, banker, or
23 financial consultant or adviser and who enters into an
24 understanding with either the issuer or the managing
25 underwriter, or both, for any paid or promised compensation or
26 valuable consideration, directly or indirectly, expressly or
27 impliedly, to act solely as an intermediary between such
28 issuer and managing underwriter for the purpose of influencing
29 any transaction in the purchase of such bonds.
30 (15)(10) All bonds issued by on behalf of the
31 corporation agency shall state on the face thereof that they
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1 are payable, both as to principal and interest, solely out of
2 the assets of the corporation agency and do not constitute an
3 obligation, either general or special, of the state or of any
4 local government.
5 (16)(11) All bonds issued by on behalf of the
6 corporation agency are hereby declared to have all the
7 qualities and incidents of negotiable instruments under the
8 applicable laws of the state.
9 (17)(12) It is the intention of the Legislature that
10 any pledge of earnings, revenues, or other moneys made by the
11 corporation agency shall be valid and binding from the time
12 when the pledge is made; that the earnings, revenues, or other
13 moneys so pledged and thereafter received by the corporation
14 agency shall immediately be subject to the lien of that pledge
15 without any physical delivery thereof or further act; and that
16 the lien of the pledge shall be valid and binding as against
17 the corporation agency irrespective of whether the parties
18 have notice thereof. Neither the resolution nor any other
19 instrument by which a pledge is created need be recorded or
20 filed pursuant to the Uniform Commercial Code.
21 (18)(13) Neither the members of the corporation agency
22 nor any person executing the bonds of the corporation agency
23 shall be liable personally on the bonds or be subject to any
24 personal liability or accountability by reason of the issuance
25 thereof.
26 (19)(14) If the proceeds of an issue of revenue bonds
27 the interest on which is not exempt from federal taxation are
28 used to finance a project, 20 percent of the tenants of the
29 project must have annual income under 80 percent of the state
30 or county median income, whichever is higher.
31 Section 17. Section 420.5091, Florida Statutes, is
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1 amended to read:
2 420.5091 HOPE Program.--
3 (1) The corporation agency may adopt rules to
4 implement the HOPE Program, created by the 1990 National
5 Affordable Housing Act, to make loans and grants, foreclose on
6 any mortgage or security interest, or commence any legal
7 action to protect the interest of the corporation agency and
8 recover the amount of the unpaid principal, accrued interest,
9 and fees. The corporation agency may acquire real and
10 personal property or any interest in the property if that
11 acquisition is necessary to protect any loan; sell, transfer,
12 and convey any such property to a buyer without regard to the
13 provisions of chapters 253 and 270; and, if that sale,
14 transfer, or conveyance cannot be effected within a reasonable
15 time, lease such property for occupancy by eligible persons.
16 All sums recovered from the sale, transfer, conveyance, or
17 lease of such property shall be deposited into the HOME
18 Investment Partnership Trust Fund.
19 (2) The corporation agency shall monitor all projects
20 funded under this section to ensure compliance with federal
21 and state requirements. The corporation agency may inspect
22 such projects or records pertaining to those projects at any
23 reasonable time.
24 Section 18. Section 420.5092, Florida Statutes, 1996
25 Supplement, is amended to read:
26 420.5092 Florida Affordable Housing Guarantee
27 Program.--
28 (1) There is created the Florida Affordable Housing
29 Guarantee Program for the purposes of:
30 (a) Stimulating creative private sector lending
31 activities to increase the supply and lower the cost of
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1 financing or refinancing eligible housing;
2 (b) Creating security mechanisms to allow lenders to
3 sell affordable housing loans in the secondary market; and
4 (c) Encouraging affordable housing lending activities
5 that would not have taken place or that serve persons who
6 would not have been served but for the creation of this
7 program.
8 (2) As used in this section, the term:
9 (a) "Affordable housing guarantee" means an obligation
10 of the guarantee fund to guarantee the payment of an
11 obligation made to finance or refinance the purchase,
12 construction, or rehabilitation of eligible housing.
13 (b) "Agency" means the Florida Housing Finance Agency.
14 (b)(c) "Annual debt service reserve" means the reserve
15 maintained in the guarantee fund in an amount equal to the
16 maximum reserve amount for each series of revenue bonds issued
17 to establish the guarantee fund.
18 (c) "Corporation" means the Florida Housing Finance
19 Corporation.
20 (d) "Eligible housing" means any real and personal
21 property designed and intended for the primary purpose of
22 providing decent, safe, and sanitary residential units for
23 homeownership or rental for eligible persons as determined by
24 the corporation agency pursuant to rule.
25 (e) "Guarantee fund" means the Affordable Housing
26 Guarantee Fund created and established with proceeds of
27 revenue bonds issued by the corporation or its predecessor
28 agency pursuant to this section to implement the Florida
29 Affordable Housing Guarantee Program.
30 (f) "Maximum reserve amount" means, for each series of
31 outstanding revenue bonds issued to establish the guarantee
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1 fund, the largest aggregate amount of annual principal
2 installments and interest payments becoming due in any state
3 fiscal year in which the revenue bonds are outstanding.
4 (3) Amounts on deposit in the State Housing Trust Fund
5 may also be used to support the Florida Affordable Housing
6 Guarantee Program. Such use, if any, is in addition to those
7 purposes for which the State Housing Trust Fund was created,
8 and such moneys shall be obligated and committed in accordance
9 with the corporation agency certification provided for in
10 subsection (6).
11 (4) The corporation agency may, by rule, establish
12 rates and fees for the issuance of an affordable housing
13 guarantee, including contractual provisions to foster
14 reimbursement, in the event of default, to the guarantee fund
15 of payments made pursuant to an affordable housing guarantee
16 issued for eligible housing.
17 (5) Pursuant to s. 16, Art. VII of the State
18 Constitution, the corporation agency may issue, in accordance
19 with s. 420.509, revenue bonds of the corporation agency to
20 establish the guarantee fund. Such revenue bonds shall be
21 primarily payable from and secured by annual debt service
22 reserves, from interest earned on funds on deposit in the
23 guarantee fund, from fees, charges, and reimbursements
24 established by the corporation agency for the issuance of
25 affordable housing guarantees, and from any other revenue
26 sources received by the corporation agency and deposited by
27 the corporation agency into the guarantee fund for the
28 issuance of affordable housing guarantees. To the extent such
29 primary revenue sources are considered insufficient by the
30 corporation agency, pursuant to the certification provided in
31 subsection (6), to fully fund the annual debt service reserve,
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1 the certified deficiency in such reserve shall be additionally
2 payable from the first proceeds of the documentary stamp tax
3 moneys deposited into the State Housing Trust Fund pursuant to
4 s. 201.15(6)(a) and (7)(a) during the ensuing state fiscal
5 year.
6 (6)(a) If the primary revenue sources to be used for
7 repayment of revenue bonds used to establish the guarantee
8 fund are insufficient for such repayment, the annual principal
9 and interest due on each series of revenue bonds shall be
10 payable from funds in the annual debt service reserve. The
11 corporation agency shall, before June 1 of each year, perform
12 a financial audit to determine whether at the end of the state
13 fiscal year there will be on deposit in the guarantee fund an
14 annual debt service reserve from interest earned pursuant to
15 the investment of the guarantee fund, fees, charges, and
16 reimbursements received from issued affordable housing
17 guarantees and other revenue sources available to the
18 corporation agency. Based upon the findings in such guarantee
19 fund financial audit, the corporation agency shall certify to
20 the Comptroller the amount of any projected deficiency in the
21 annual debt service reserve for any series of outstanding
22 bonds as of the end of the state fiscal year and the amount
23 necessary to maintain such annual debt service reserve. Upon
24 receipt of such certification, the Comptroller shall transfer
25 to the annual debt service reserve, from the first available
26 taxes distributed to the State Housing Trust Fund pursuant to
27 s. 201.15(6)(a) and (7)(a) during the ensuing state fiscal
28 year, the amount certified as necessary to maintain the annual
29 debt service reserve.
30 (b) If the claims payment obligations under affordable
31 housing guarantees from amounts on deposit in the guarantee
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1 fund would cause the claims paying rating assigned to the
2 guarantee fund to be less than the third-highest third highest
3 rating classification of any nationally recognized rating
4 service, which classifications being consistent with s.
5 215.84(3) and rules adopted thereto by the State Board of
6 Administration, the corporation agency shall certify to the
7 Comptroller the amount of such claims payment obligations.
8 Upon receipt of such certification, the Comptroller shall
9 transfer to the guarantee fund, from the first available taxes
10 distributed to the State Housing Trust Fund pursuant to s.
11 201.15(6)(a) and (7)(a) during the ensuing state fiscal year,
12 the amount certified as necessary to meet such obligations,
13 such transfer to be subordinate to any transfer referenced in
14 paragraph (a) and not to exceed 50 percent of the amounts
15 distributed to the State Housing Trust Fund pursuant to s.
16 201.15(6)(a) and (7)(a) during the preceding state fiscal
17 year.
18 (7) Funds on deposit in the guarantee fund shall be
19 used as the primary resource to support the performance by the
20 corporation agency of its obligation under an affordable
21 housing guarantee issued by the corporation agency as
22 determined by rule.
23 (8) Before establishing the fees, charges, and other
24 obligations and conditions for the issuance of an affordable
25 housing guarantee and defining housing eligible to obtain a
26 guarantee, the corporation agency must perform an affordable
27 housing guarantee feasibility study. Such study must
28 determine the eligible housing for which a guarantee is
29 required for the investment of private capital, the
30 anticipated risk of default for classifications of eligible
31 housing, and the level of fees, charges, and reimbursement
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1 conditions necessary to establish a financially sound
2 affordable housing guarantee program that exposes funds
3 deposited into the guarantee fund to a reasonable or
4 acceptable level of risk. Revenue bonds may not be issued to
5 create and establish a guarantee fund until the completion of
6 an initial financial feasibility study.
7 (9) This section does not preclude the use of the
8 remaining funds in the State Housing Trust Fund.
9 (10) Revenue bonds may not be issued to establish and
10 create a guarantee fund until validated pursuant to the
11 provisions of chapter 75.
12 (11) The maximum total amount of revenue bonds that
13 may be issued by the corporation agency pursuant to subsection
14 (5) is $200 million.
15 Section 19. Section 420.5099, Florida Statutes, is
16 amended to read:
17 420.5099 Allocation of the low-income housing tax
18 credit.--
19 (1) The Florida Housing Finance Corporation Agency is
20 designated the housing credit agency for the state within the
21 meaning of s. 42(h)(7)(A) of the Internal Revenue Code of 1986
22 and shall have the responsibility and authority to establish
23 procedures necessary for proper allocation and distribution of
24 low-income housing tax credits and shall exercise all powers
25 necessary to administer the allocation of such credits.
26 (2) The corporation agency shall adopt allocation
27 procedures that will ensure the maximum use of available tax
28 credits in order to encourage development of low-income
29 housing in the state, taking into consideration the timeliness
30 of the application, the location of the proposed housing
31 project, the relative need in the area for low-income housing
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1 and the availability of such housing, the economic feasibility
2 of the project, and the ability of the applicant to proceed to
3 completion of the project in the calendar year for which the
4 credit is sought.
5 (3) The corporation agency may request such
6 information from applicants as will enable it to make the
7 allocations according to the guidelines set forth in
8 subsection (2), including, but not limited to, the information
9 required to be provided the corporation agency by chapter
10 9I-21 91-21, Florida Administrative Code.
11 (4) The executive director of the corporation agency
12 shall administer the allocation procedures and determine
13 allocations on behalf of the corporation agency. Any
14 applicant disputing the amount of an allocation or the denial
15 of a request for an allocation may request an appeal to the
16 governing board of directors of the corporation agency.
17 (5) For purposes of implementing this program in
18 Florida, neither the tax credits, nor the value of the equity
19 generated by tax credits allocated to or invested in
20 low-income housing tax credit developments, shall be
21 considered as income to the property, and the rental income
22 from rent restricted units in a low-income tax credit
23 development shall be the actual rents charged.
24 (6) The corporation agency is authorized to expend
25 fees received in conjunction with the allocation of low-income
26 housing tax credits only for the purpose of administration of
27 the program, including private legal services which relate to
28 interpretation of s. 42 of the Internal Revenue Code of 1986,
29 as amended.
30 Section 20. Section 420.51, Florida Statutes, is
31 amended to read:
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1 420.51 State and local government not liable on bonds
2 or notes.--The bonds of the corporation agency shall not be a
3 debt of the state or of any local government, and neither the
4 state nor any local government shall be liable thereon. The
5 corporation agency shall not have the power to pledge the
6 credit, the revenues, or the taxing power of the state or of
7 any local government; and neither the credit, the revenues,
8 nor the taxing power of the state or of any local government
9 shall be, or shall be deemed to be, pledged to the payment of
10 any bonds of the corporation agency.
11 Section 21. Section 420.511, Florida Statutes, is
12 amended to read:
13 420.511 Business plan; annual report.--
14 (1) The corporation shall develop a business plan for
15 the provision of affordable housing for the state. The plan
16 shall not be inconsistent with the strategic plan prepared
17 pursuant to subsection (2) and shall contain performance
18 measures and specific performance targets for the following:
19 (a) The ability of low-income and moderate-income
20 Floridians to access housing that is decent and affordable.
21 (b) The continued availability and affordability of
22 housing financed by the corporation to target populations.
23 (c) The availability of affordable financing programs,
24 including equity and debt products, and programs that reduce
25 gaps in conventional financing, to increase individual access
26 to housing and stimulate private production of affordable
27 housing.
28 (d) The stimulus of economic activity created by the
29 affordable housing finance programs administered by the
30 corporation.
31 (e) The establishment and maintenance of efficiencies
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1 in the delivery of affordable housing.
2 (f) Such other measures as directed by the
3 corporation's board of directors.
4 (2) The corporation, in equal partnership with the
5 department, shall develop annually a strategic plan for the
6 provision of affordable housing in Florida as part of the
7 department's agency strategic plan required pursuant to
8 chapter 186. In part, the plan shall include provisions that
9 maximize the abilities of the corporation and the department
10 to implement the state housing strategy established under s.
11 420.0003, to respond to federal housing initiatives, and to
12 develop programs in a manner that is more responsive to the
13 needs of public and private partners. The plan shall be
14 developed on a schedule consistent with that established by
15 ss. 186.021 and 186.022. For purposes of this act, the
16 executive director or his or her designee shall serve as the
17 corporation's representative to achieve a coordinated and
18 integrated planning relationship with the department.
19 (3) The corporation agency shall submit to the
20 Governor and the presiding officers of each house of the
21 Legislature, within 6 months after the end of its fiscal year,
22 a complete and detailed report setting forth:
23 (a)(1) Its operations and accomplishments;
24 (b)(2) Its receipts and expenditures during the fiscal
25 year in accordance with the categories or classifications
26 established by the corporation agency for its operating and
27 capital outlay purposes;
28 (c)(3) Its assets and liabilities at the end of its
29 fiscal year and the status of reserve, special, or other
30 funds;
31 (d)(4) A schedule of its bonds outstanding at the end
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1 of its fiscal year, together with a statement of the principal
2 amounts of bonds issued and redeemed during the fiscal year;
3 and
4 (e)(5) Information relating to the corporation's
5 agency's activities in implementing the provisions of ss.
6 420.5087 and 420.5088. The report required by this subsection
7 shall include, but not be limited to:
8 1.(a) The number of people served, delineated by
9 income, age, family size, and racial characteristics.
10 2.(b) The number of units produced under each program.
11 3.(c) The average cost of producing units under each
12 program.
13 4.(d) The average sales price of single-family units
14 financed under s. 420.5088.
15 5.(e) The average amount of rent charged based on unit
16 size on units financed under s. 420.5087.
17 6.(f) The number of persons in rural communities
18 served under each program.
19 7.(g) The number of farmworkers served under each
20 program.
21 8.(h) The number of elderly persons served under each
22 program.
23 9.(i) The extent to which geographic distribution has
24 been achieved in accordance with the provisions of s.
25 420.5087.
26 10.(j) Any other information the corporation agency
27 deems appropriate.
28 (4) The corporation shall submit, with the annual
29 report required by s. 420.511, a copy of an annual financial
30 audit of its accounts and records conducted by an independent
31 certified public accountant performed in accordance with
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1 generally accepted auditing standards and government auditing
2 standards.
3 (5) Both the corporation's business plan and annual
4 report shall recognize the different fiscal periods under
5 which the corporation, the state, the Federal Government, and
6 local governments operate.
7 Section 22. Section 420.512, Florida Statutes, is
8 amended to read:
9 420.512 Conflicts of interest.--
10 (1) If any member, officer, or employee of the
11 corporation agency shall have an interest, either direct or
12 indirect, in any contract to which the corporation agency is,
13 or is to be, a party or in any sponsor or in any lending
14 institution requesting a loan from, or offering to sell
15 mortgage loans or obligations to, the corporation agency, such
16 interest shall be disclosed to the corporation agency in
17 writing and shall be set forth in the minutes of the
18 corporation agency. The member, officer, or employee having
19 such interest shall not participate in any action by the
20 corporation agency with respect to the contract, sponsor, or
21 lending institution.
22 (2) Nothing in this section shall be deemed or
23 construed to limit the right of any member, officer, or
24 employee of the corporation agency to acquire an interest in
25 bonds of the corporation agency or have an interest in any
26 banking institution in which the bonds of the corporation
27 agency are, or are to be, deposited or which is, or is to be,
28 acting as trustee or paying agent under any bond resolution,
29 trust indenture, or similar instrument to which the
30 corporation agency is a party.
31 (3) A member, officer, or covered employee of the
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1 corporation shall not participate in any political fundraising
2 activities other than for purposes of the corporation's
3 programs through solicitation of contributions from service
4 providers, underwriters on the corporation's approved managing
5 underwriters' list, or their agents, including underwriters'
6 counsel, officers, principals, and professional employees of
7 underwriters on the corporation's approved managing
8 underwriters' list.
9 (4) A member, officer, or covered employee of the
10 corporation shall not be an applicant in any program
11 administered by the corporation that is competitively bid or
12 selected. A member, officer, or covered employee shall not
13 have a financial interest in, and shall not be a member of a
14 board or an officer or an employee of, an applicant in any
15 program administered by the corporation which is competitively
16 bid or selected.
17 (5) Service providers shall comply with the following
18 standards of conduct as a condition of eligibility to be
19 considered or retained to provide services. For purposes of
20 this section only, the term "service provider" means and is
21 limited to a law firm, an investment bank, or a credit
22 underwriter, and the agents, officers, principals, and
23 professional employees of the service provider.
24 (a) A service provider may not make contributions in
25 any amounts, directly or indirectly, for or on behalf of
26 candidates for Governor, nor shall any service provider make a
27 contribution in excess of $100 to any candidate for a member
28 of the State Board of Administration other than the Governor
29 in Florida while the service provider is included in an
30 applicant pool from which service providers are selected to
31 provide services to the corporation, while the service
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1 provider provides services to the corporation, and for the
2 longer of a period of 2 years thereafter or for a period
3 through the next general election for Governor.
4 (b) The service provider shall not participate in
5 fundraising activities for or on behalf of candidates for
6 Governor in Florida while the service provider is included in
7 an applicant pool from which service providers are selected to
8 provide services to the corporation, while the service
9 provider provides services to the corporation, and for the
10 longer of a period of 2 years thereafter or for a period
11 through the next general election for Governor.
12 (c) Service providers shall provide to the corporation
13 a statement that the service provider has not contributed to
14 candidates for Governor or contributed in excess of the
15 amounts allowed by this section for a Cabinet position or
16 engaged in fundraising activities for or on behalf of
17 candidates for Governor in Florida since the effective date of
18 this section or during the 24 months preceding the service
19 providers' application to provide services to the corporation,
20 whichever period is shorter.
21 (d) The service provider may not engage in prohibited
22 business solicitation communications with officers, members,
23 or covered employees of the corporation.
24 (e) If a service provider is in doubt as to whether
25 its activities, or the activities of its principals, agents,
26 or employees, violate the provisions of this section, it may
27 request a declaratory statement in accordance with the
28 applicable rule and s. 120.565.
29 (f) If the corporation determines that a service
30 provider has failed to meet the provisions of this section, it
31 shall consider the magnitude of the violation and whether
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1 there has been a pattern of violations in determining whether
2 to terminate or decline to enter into contracts with the
3 service provider.
4 (6) Each solicitation for a service provider to
5 provide services shall require the service provider to
6 formally acknowledge the conditions in subsection (5) and to
7 agree, if selected, to abide by the conditions. When
8 appropriate, the acknowledgment must include a statement that
9 the service provider is currently in compliance with the
10 conditions.
11 (7) Each contract or other form of agreement to retain
12 a service provider to provide services must incorporate the
13 conditions in subsection (5) and a provision allowing
14 unilateral cancellation by the corporation for refusal of the
15 service provider to comply with the terms of eligibility.
16 (3) Under no circumstances shall a financial adviser
17 to the Florida Housing Finance Agency serve as an underwriter
18 for the agency's bonds within 2 years of having been its
19 financial adviser.
20 Section 23. Section 420.513, Florida Statutes, is
21 amended to read:
22 420.513 Exemption from taxes and eligibility as
23 investment.--
24 (1) The property of the corporation agency, the
25 transactions and operations thereof, and the income therefrom,
26 and the bonds of the corporation issued under this act,
27 together with all notes, mortgages, security agreements,
28 letters of credit, or other instruments that arise out of or
29 are given to secure the repayment of bonds issued in
30 connection with the financing of any housing development under
31 this part, as well as the interest thereon and income
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1 therefrom, shall be exempt from taxation by the state and its
2 political subdivisions. The exemption granted by this
3 subsection shall not apply to any tax imposed by chapter 220
4 on interest, income, or profits on debt obligations owned by
5 corporations.
6 (2) All bonds of the corporation agency shall be and
7 constitute legal investments without limitation for all public
8 bodies of this state; for all banks, trust companies, savings
9 banks, savings associations, savings and loan associations,
10 and investment companies; for all administrators, executors,
11 trustees, and other fiduciaries; for all insurance companies
12 and associations and other persons carrying on an insurance
13 business; and for all other persons whatsoever who are now or
14 may hereafter be authorized to invest in bonds or other
15 obligations of the state and shall be and constitute eligible
16 securities to be deposited as collateral for the security of
17 any state, county, municipal, or other public funds. This
18 subsection shall be considered as additional and supplemental
19 authority and shall not be limited without specific reference
20 hereto.
21 Section 24. Section 420.514, Florida Statutes, is
22 amended to read:
23 420.514 Corporate existence.--The corporation agency
24 and its corporate existence shall continue until terminated by
25 law, provided that no such law shall take effect so long as
26 the corporation agency shall have bonds outstanding, unless
27 adequate provision has been made for the payment thereof.
28 Upon termination of the existence of the corporation agency,
29 all its rights and properties in excess of its obligations
30 shall pass to and be vested in the state.
31 Section 25. Section 420.517, Florida Statutes, is
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1 created to read:
2 420.517 Affordable housing and job training
3 coordination.--The Florida Housing Finance Corporation shall
4 undertake efforts to provide incentives to developers to build
5 housing that encourages on-site job-skills training to enable
6 low-income residents to obtain and maintain meaningful
7 employment. To the extent possible, the corporation shall
8 direct all recipients of state housing funds, including
9 municipalities, to work in cooperation with local and regional
10 Job Training Partnerships Boards to provide training to
11 residents and others who may be making the transition from
12 welfare to the work force. The Corporation shall provide
13 incentives through housing policy and program guidelines to
14 prioritize those developments that encourage workforce
15 training and skills development.
16 Section 26. Subsection (3) of section 420.523, Florida
17 Statutes, is amended to read:
18 420.523 Purpose.--The purpose of the Predevelopment
19 Loan Program is to:
20 (3) Create a Housing Predevelopment Trust Fund to be
21 used by eligible sponsors of housing.
22 Section 27. Section 420.525, Florida Statutes, is
23 amended to read:
24 420.525 Housing Predevelopment Trust Fund.--
25 (1) There is authorized to be established by the
26 corporation with a qualified public depository meeting the
27 requirements of chapter 280 in the State Treasury a separate
28 trust fund to be named the "Housing Predevelopment Trust Fund"
29 which shall be administered by the corporation agency
30 according to the provisions of ss. 420.521-420.529. Any
31 amounts held in the Housing Predevelopment Trust Fund for such
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1 purposes as of January 1, 1998, must be transferred to the
2 corporation for deposit in the Housing Predevelopment Fund,
3 whereupon the Housing Predevelopment Trust Fund must be
4 closed. There shall be deposited into the fund all moneys
5 from the State Housing Trust Fund as created by s. 420.0005
6 appropriated by the Legislature, or moneys received from any
7 other source, for the purpose of this program ss.
8 420.521-420.529 and all proceeds derived from the use of such
9 moneys. Administrative and personnel costs incurred in
10 implementing the provisions of ss. 420.521-420.529 may be paid
11 from the fund. Expenditures from the Housing Predevelopment
12 Fund shall not be required to be included in the corporation's
13 budget request or be subject to appropriation by the
14 Legislature. If a loan commitment for program funds is entered
15 into during the state fiscal year for which the program funds
16 were appropriated, the funds shall continue to be made
17 available for use during the entire predevelopment period,
18 even if it extends beyond the fiscal year in which the loan
19 commitment was entered. The budget amendment process created
20 in s. 216.181 shall be used to make funds available throughout
21 the predevelopment period.
22 (2) All unencumbered funds, loan repayments, proceeds
23 from the sale of any property, existing funds remaining in the
24 following programs, and any other proceeds that would
25 otherwise accrue pursuant to the activities conducted under
26 this program and the provisions of the following programs
27 shall be deposited in the fund and shall not revert to the
28 General Revenue Fund:
29 (a) The Rural Housing Land Acquisition and Site
30 Development Act;
31 (b) The Farmworker Housing Assistance Act; and
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1 (c) The Community-Based Organization Loan Program
2 created by the Florida Affordable Housing Act of 1986.
3 Section 28. Section 420.526, Florida Statutes, is
4 amended to read:
5 420.526 Predevelopment Loan Program; loans and grants
6 authorized; activities eligible for support.--
7 (1) The corporation agency is authorized to underwrite
8 and make loans and grants from the Housing Predevelopment
9 Trust Fund to eligible sponsors when it determines that:
10 (a) A need for housing for the target population
11 exists in the area described in the application; and
12 (b) Federal, state, or local public funds or private
13 funds are available or likely to be available to aid in the
14 site acquisition, site development, construction,
15 rehabilitation, maintenance, or support of the housing
16 proposed in the application.
17 (2) The corporation agency shall not award a grant or
18 loan to a sponsor that is unable to demonstrate the ability to
19 proceed as verified by a qualified development team.
20 (3) The corporation agency shall establish rules for
21 the equitable distribution of the funds in a manner that meets
22 the need and demand for housing for the target population.
23 However, during the first 6 months of fund availability, at
24 least 40 percent of the total funds made available under this
25 program shall be reserved for sponsors of farmworker housing.
26 (4) The activities of sponsors which are eligible for
27 housing predevelopment loans shall include, but not be limited
28 to:
29 (a) Site acquisition.
30 (b) Site development.
31 (c) Fees for requisite services from architects,
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1 engineers, surveyors, attorneys, and other professionals.
2 (d) Marketing expenses relating to advertisement.
3 (5) The activities of sponsors which are eligible for
4 housing predevelopment grants shall include, but not be
5 limited to:
6 (a) Administrative expenses.
7 (b) Market and feasibility studies.
8 (c) Consulting fees.
9 (6) Any funds paid out of the Housing Predevelopment
10 Trust Fund for activities under ss. 420.521-420.529 which are
11 reimbursed to the sponsor from another source shall be repaid
12 to the fund.
13 (7) Sponsors receiving loans for professional fees may
14 receive forgiveness of such loans if it is determined that the
15 proposed project would not be feasible for housing for the
16 target population.
17 (8) Terms and conditions of housing predevelopment
18 loan agreements shall be established by rule and shall
19 include:
20 (a) Provision for interest, which shall be set at 3
21 percent per year.
22 (b) Provision of a schedule for the repayment of
23 principal and interest for a term not to exceed 3 years or
24 initiation of permanent financing, whichever event occurs
25 first. However, the corporation agency may extend the term of
26 a loan for an additional period not to exceed 1 year if
27 extraordinary circumstances exist and if such extension would
28 not jeopardize the corporation's agency's security interest.
29 (c) Provision of reasonable security for the housing
30 predevelopment loan to ensure the repayment of the principal
31 and any interest accrued within the term specified.
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1 Reasonable security shall be a promissory note secured by a
2 mortgage from the sponsor on the property to be purchased,
3 improved, or purchased and improved with the proceeds of the
4 housing predevelopment loan or other collateral acceptable to
5 the corporation agency.
6 (d) Provisions to ensure that the land acquired will
7 be used for the development of housing and related services
8 for the target population.
9 (e) Provisions to ensure, to the extent possible, that
10 any accrued savings in cost due to the availability of these
11 funds will be passed on to the target population in the form
12 of lower land prices. The corporation agency shall ensure
13 that such savings in land prices shall be passed on in the
14 form of lower prices or rents for dwellings constructed on
15 such land.
16 (f) Provisions to ensure that any land acquired
17 through assistance under ss. 420.521-420.529 for housing for
18 the target population shall not be disposed of or alienated in
19 a manner that violates Title VII of the 1968 Civil Rights Act,
20 which specifically prohibits discrimination based on race,
21 sex, color, religion, or national origin or that violates
22 other applicable federal or state laws.
23 (9) No predevelopment loan made under this section
24 shall exceed the lesser of:
25 (a) The development and acquisition costs for the
26 project, as determined by rule of the corporation agency; or
27 (b) Five hundred thousand dollars.
28 (10) Any real property or any portion thereof
29 purchased or developed under ss. 420.521-420.529 may be
30 disposed of by the eligible sponsor upon the terms and
31 conditions established by rule of the corporation agency and
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1 consistent with ss. 420.521-420.529, at a price not to exceed
2 the actual prorated land costs, development costs, accrued
3 taxes, and interest.
4 Section 29. Section 420.527, Florida Statutes, is
5 amended to read:
6 420.527 Application procedure.--
7 (1) Applications shall be submitted to the corporation
8 agency in a form that which it establishes by rule.
9 (2) Applications that which propose linkage of
10 predevelopment funds with other financing offered through the
11 corporation agency shall receive preference in funding.
12 (3) The corporation agency shall publish a notice of
13 fund availability in a publication of general circulation
14 throughout the state. Such notice shall be published at least
15 60 days before the application deadline.
16 (4) By rule, the corporation agency shall establish a
17 review committee composed of representatives of the
18 corporation department and of the agency and a scoring system
19 for evaluating and ranking applications. The corporation
20 agency board shall make the final ranking and shall decide
21 which applicants become program participants based on the
22 scores received in the ranking, further review of
23 applications, and the recommendations of the review committee.
24 The corporation agency board shall approve or reject
25 applications for loans and grants and shall determine the
26 tentative loan or grant amount available to each program
27 participant. The actual loan or grant amount shall be
28 determined pursuant to rule specifying credit underwriting
29 procedures.
30 (5) The criteria to be used to score applications
31 shall include, but are not limited to, the following:
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1 (a) Income target objectives of the corporation
2 agency.
3 (b) Sponsor's agreement to reserve more than the
4 minimum number of units for low-income households and
5 very-low-income households.
6 (c) Projects requiring the least amount of
7 predevelopment funds compared to total predevelopment costs.
8 (d) Sponsor's prior experience.
9 (e) Commitments of other financing.
10 (f) Sponsor's ability to proceed.
11 (g) Project's consistency with the local government
12 comprehensive plan.
13 Section 30. Section 420.528, Florida Statutes, is
14 amended to read:
15 420.528 Rules; annual reports.--
16 (1) The corporation agency may adopt rules necessary
17 to implement ss. 420.521-420.529 and to further specify the
18 purposes for which loan and grant funds may be expended, the
19 required content of applications, the procedure for evaluating
20 and competitively ranking all applications, and reporting
21 requirements for sponsors awarded funds under ss.
22 420.521-420.529.
23 (2) The corporation agency shall submit, within the
24 annual report required by s. 420.511, a summary of loans and
25 grants made, loan and grant recipients, loan commitments
26 received by sponsors, persons or families housed, projects
27 initiated and completed, and the balance on all loans
28 outstanding at the end of each fiscal year.
29 Section 31. Section 420.529, Florida Statutes, is
30 amended to read:
31 420.529 Default by sponsor.--If a default on a loan
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1 occurs, the corporation agency may foreclose on any mortgage
2 or security interest or commence any legal action to protect
3 the interest of the corporation agency or the fund and recover
4 the amount of the unpaid principal, accrued interest, and fees
5 on behalf of the fund. The corporation agency may also
6 acquire real and personal property or any interest in the
7 property if such acquisition is necessary or appropriate to
8 protect any loan; to sell, transfer, and convey any such
9 property to a buyer without regard to the provisions of
10 chapters 253 and 270; and, if such sale, transfer, or
11 conveyance cannot be effected within a reasonable time, to
12 lease such property for occupancy by eligible persons. All
13 sums recovered from the sale, transfer, conveyance, or lease
14 of such property shall be deposited into the Housing
15 Predevelopment Trust Fund.
16 Section 32. Subsection (4) of section 420.602, Florida
17 Statutes, is repealed, present subsection (5) is redesignated
18 as subsection (4) of that section, and a new subsection (5) is
19 added to that section, to read:
20 420.602 Definitions.--As used in this part, the
21 following terms shall have the following meanings, unless the
22 context otherwise requires:
23 (4) "Agency" means the Florida Housing Finance Agency
24 as created in s. 420.504(1).
25 (5) "Corporation" means the Florida Housing Finance
26 Corporation as created in s. 420.504.
27 Section 33. Section 420.606, Florida Statutes, is
28 amended to read:
29 420.606 Training and technical assistance program.--
30 (1) LEGISLATIVE FINDINGS.--In addition to the
31 legislative findings set forth in s. 420.6015, the Legislature
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1 finds and declares that:
2 (a) Housing in economically declining or distressed
3 areas is frequently substandard and is often unaffordable to
4 very-low-income persons and low-income persons;
5 (b) Community-based organizations often have limited
6 experience in development of quality housing for
7 very-low-income persons and low-income persons in economically
8 declining or distressed areas; and
9 (c) The staffs and board members of community-based
10 organizations need additional training in housing development
11 as well as technical support to assist them in gaining the
12 experience they need to better serve their communities.
13 (d) The staffs of state agencies and local
14 governments, whether directly involved in the production of
15 affordable housing or acting in a supportive role, can better
16 serve the goals of state and local governments if their
17 expertise in housing development is expanded.
18 (2) PURPOSE.--The purpose of this section is to
19 provide community-based organizations and staff of state and
20 local governments with the necessary training and technical
21 assistance to meet the needs of very-low-income persons,
22 low-income persons, and moderate-income persons for standard,
23 affordable housing.
24 (3) TRAINING AND TECHNICAL ASSISTANCE PROGRAM.--The
25 Department of Community Affairs shall be responsible for
26 securing the necessary expertise to provide training and
27 technical assistance to staff of local governments, to staff
28 of state agencies, as appropriate, and to community-based
29 organizations, and to persons forming such organizations,
30 which are formed for the purpose of developing new housing and
31 rehabilitating existing housing which is affordable for
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1 very-low-income persons, low-income persons, and
2 moderate-income persons. To the maximum extent feasible, the
3 entity to provide the necessary expertise must be recognized
4 by the Internal Revenue Service as a nonprofit tax-exempt
5 organization. It must have as its primary mission the
6 provision of affordable housing training and technical
7 assistance; an ability to provide training and technical
8 assistance statewide; and a proven track record of
9 successfully providing training and technical assistance under
10 the Affordable Housing Catalyst Program.
11 (a) The training component of the program shall be
12 designed to build the housing development capacity of
13 community-based organizations and local governments as a
14 permanent resource for the benefit of communities in this
15 state.
16 1. The scope of training shall include, but not be
17 limited to, real estate development skills related to
18 affordable housing, including the construction process and
19 property management and disposition, the development of
20 public-private partnerships to reduce housing costs, model
21 housing projects, and management and board responsibilities of
22 community-based organizations.
23 2. Training activities may include, but are not
24 limited to, materials for self-instruction, workshops,
25 seminars, internships, coursework, and special programs
26 developed in conjunction with state universities and community
27 colleges.
28 (b) The technical assistance component of the program
29 shall be designed to assist applicants for state-administered
30 programs in developing applications and in expediting project
31 implementation. Technical assistance activities for the
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1 staffs of community-based organizations and local governments
2 who are directly involved in the production of affordable
3 housing may include, but are not limited to, workshops for
4 program applicants, onsite visits, guidance in achieving
5 project completion, and a newsletter to community-based
6 organizations and local governments.
7 (c)(4) TECHNICAL SUPPORT FOR THE HOME, HOPE, AND STATE
8 HOUSING INITIATIVES PARTNERSHIP PROGRAMS.--The department
9 shall establish a program known as the Affordable Housing
10 Catalyst Program to be responsible for securing the necessary
11 expertise as provided in this section for providing
12 specialized technical support to local governments to
13 implement the HOME Partnership Program, the HOPE Program, and
14 the State Housing Initiatives Partnership Program, and other
15 affordable housing programs. The technical support shall, at
16 a minimum, provide training relating to the following key
17 elements of the partnership programs:
18 1.(a) The formation of local and regional housing
19 partnerships as a means of bringing together resources to
20 provide affordable housing.
21 2.(b) The implementation of regulatory reforms to
22 reduce the risk and cost of developing affordable housing.
23 3.(c) The implementation of affordable housing
24 programs included in local government comprehensive plans.
25 4.(d) The compliance with requirements of federally
26 funded housing programs.
27 (4)(5) POWERS.--The Department of Community Affairs
28 may do all things necessary or appropriate to carry out the
29 purposes of this section, including exercising the power to:
30 (a) Enter into contracts and agreements with the
31 Federal Government or with other agencies of the state, with
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1 local governments, or with any other person, association,
2 corporation, or entity;
3 (b) Seek and accept funding from any public or private
4 source; and
5 (c) Adopt and enforce rules consistent with this
6 section.
7 Section 34. Section 420.9071, Florida Statutes, 1996
8 Supplement, is amended to read:
9 420.9071 Definitions.--As used in ss.
10 420.907-420.9079, the term:
11 (1) "Adjusted for family size" means adjusted in a
12 manner that which results in an income eligibility level that
13 is lower for households having fewer than four people, or
14 higher for households having more than four people, than the
15 base income eligibility determined as provided in subsection
16 (19), subsection (20), or subsection (28) (25), based upon a
17 formula established by the United States Department of Housing
18 and Urban Development.
19 (2) "Adjusted gross income" means wages, income from
20 assets, regular cash or noncash contributions, and any other
21 resources and benefits determined to be income by the United
22 States Department of Housing and Urban Development, adjusted
23 for family size, minus the deductions allowable under s. 61 of
24 the Internal Revenue Code of 1986, as amended.
25 (2)(3) "Affordable" means that monthly rents or
26 monthly mortgage payments including taxes and insurance do not
27 exceed 30 percent of that amount which represents the
28 percentage of the median adjusted gross annual gross income
29 for the households as indicated in subsection (19), subsection
30 (20), or subsection (28) (25). However, it is not the intent
31 to limit an individual household's individual's ability to
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1 devote more than 30 percent of its his income for housing, and
2 housing for which a household devotes more than 30 percent of
3 its income shall be deemed affordable if the first
4 institutional mortgage lender is satisfied that the household
5 can afford mortgage payments in excess of the 30 percent
6 benchmark.
7 (3)(4) "Affordable housing advisory committee" means
8 the committee appointed by the governing body of a county or
9 eligible municipality for the purpose of recommending specific
10 initiatives and incentives to encourage or facilitate
11 affordable housing as provided in s. 420.9076.
12 (5) "Agency" means the Florida Housing Finance Agency
13 created under part V of this chapter.
14 (4) "Annual gross income" means annual income as
15 defined under the Section 8 housing assistance payments
16 programs in 24 C.F.R. part 813; annual income as reported
17 under the census long-form for the recent available decennial
18 census; or adjusted gross income as defined for purposes of
19 reporting under Internal Revenue Service Form 1040 for
20 individual federal annual income tax purposes. Counties and
21 eligible municipalities shall calculate income by projecting
22 the prevailing annual rate of income for all adults in the
23 household as the amount of income to be received in a
24 household during the 12 months following the effective date of
25 the determination.
26 (5)(6) "Award" means a loan, grant, or subsidy funded
27 wholly or partially by the local housing assistance trust fund
28 distribution.
29 (6)(7) "Community-based organization" means a
30 nonprofit organization that has among its purposes the
31 provision of affordable housing to persons who have special
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1 needs or have very low income, low income, or moderate income
2 within a designated area, which may include a municipality, a
3 county, or more than one municipality or county, and
4 maintains, through a minimum of one-third representation on
5 the organization's governing board, accountability to housing
6 program beneficiaries and residents of the designated area. A
7 community housing development organization established
8 pursuant to 24 C.F.R. part 92.2 and a community development
9 corporation created pursuant to chapter 290 are examples of
10 community-based organizations.
11 (7) "Corporation" means the Florida Housing Finance
12 Corporation.
13 (8) "Department" means the Department of Community
14 Affairs.
15 (8)(9) "Eligible housing" means any real and personal
16 property located within the county or the eligible
17 municipality which is designed and intended for the primary
18 purpose of providing decent, safe, and sanitary residential
19 units that are designed to meet the standards of chapter 553
20 for home ownership homeownership or rental for eligible
21 persons as designated by each county or eligible municipality
22 participating in the State Housing Initiatives Partnership
23 Program local housing assistance program.
24 (9)(10) "Eligible municipality" means a municipality
25 that is eligible for federal community development block grant
26 entitlement moneys as an entitlement community identified in
27 24 C.F.R. s. 570, subpart D, Entitlement Grants, or a
28 nonentitlement municipality that is receiving local housing
29 distribution funds under an interlocal agreement that provides
30 for possession and administrative control of funds to be
31 transferred to the nonentitlement municipality. An eligible
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Amendment No.
1 municipality that defers its participation in community
2 development block grants does not affect its eligibility for
3 participation in the State Housing Initiatives Partnership
4 Program.
5 (10)(11) "Eligible person" or "eligible household"
6 means one or more natural persons or a family determined by
7 the county or eligible municipality to be of very low income,
8 low income, or moderate income according to the income limits
9 adjusted to family size published annually by the United
10 States Department of Housing and Urban Development based upon
11 the annual adjusted gross income of the household resident
12 with adjustment made for family size.
13 (11)(12) "Eligible sponsor" means a person or a
14 private or public for-profit or not-for-profit entity that
15 applies for an award under the local housing assistance plan
16 program for the purpose of providing eligible housing for
17 eligible persons.
18 (12)(13) "Grant" means an award from the local housing
19 assistance trust fund a distribution of a portion of a local
20 housing distribution to an eligible sponsor or eligible person
21 to partially assist in the construction, rehabilitation, or
22 financing of eligible housing or to provide the cost of tenant
23 or ownership qualifications without requirement for repayment
24 as long as the condition of award is maintained.
25 (13)(14) "Loan" means an award from the local housing
26 assistance trust fund a pledge of the local housing
27 distribution moneys to an eligible sponsor or eligible person
28 to partially finance the acquisition, construction, or
29 rehabilitation of eligible housing with requirement for
30 repayment or provision for forgiveness of repayment if the
31 condition of the award is maintained.
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1 (14)(15) "Local housing assistance plan" means a
2 concise description of the local housing assistance strategies
3 and local housing incentive strategies program adopted by
4 local government resolution ordinance with an explanation of
5 the way in which the program meets the requirements of ss.
6 420.907-420.9079 and corporation rule.
7 (15)(16) "Local housing assistance strategies program"
8 means the housing construction, rehabilitation, repair, or and
9 finance program implemented by a participating county or
10 eligible municipality with the local housing distribution or
11 other funds deposited into the local housing assistance trust
12 fund.
13 (16) "Local housing incentive strategies" means local
14 regulatory reform or incentive programs to encourage or
15 facilitate affordable housing production, which include at a
16 minimum, assurance that permits as defined in s. 163.3164(7)
17 and (8) for affordable housing projects are expedited to a
18 greater degree than other projects; an ongoing process for
19 review of local policies, ordinances, regulations, and plan
20 provisions that increase the cost of housing prior to their
21 adoption; and a schedule for implementing the incentive
22 strategies. Local housing incentive strategies may also
23 include other regulatory reforms, such as those enumerated in
24 s. 420.9076 and adopted by the local governing body.
25 (17) "Local housing distributions" means the proceeds
26 of the taxes collected under chapter 201 deposited into the
27 Local Government Housing Trust Fund and distributed to
28 counties and eligible municipalities participating in the
29 State Housing Initiatives Partnership Program pursuant to s.
30 420.9073.
31 (18) "Local housing partnership" means the
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Amendment No.
1 implementation of the local housing assistance plan program in
2 a manner that involves the applicable county or eligible
3 municipality local government, lending institutions, housing
4 builders and developers, real estate professionals, advocates
5 for low-income persons, community-based housing and service
6 organizations, and providers of professional services relating
7 to affordable housing. The term includes initiatives to
8 provide support services for housing program beneficiaries
9 such as training to prepare persons for the responsibility of
10 homeownership, counseling of tenants, and the establishing of
11 support services such as day care, health care, and
12 transportation.
13 (19) "Low-income person" or "low-income household"
14 means one or more natural persons or a family, not including
15 students, that has a total annual adjusted gross household
16 income that does not exceed 80 percent of the median annual
17 adjusted gross income adjusted for family size for households
18 within the metropolitan statistical area, the county, or the
19 nonmetropolitan median for the state or 80 percent of the
20 median annual adjusted gross income for households within the
21 metropolitan statistical area or, if not within a metropolitan
22 statistical area, within the county, whichever amount is
23 greatest greater. With respect to rental units, the
24 low-income household's person's annual income at the time of
25 initial occupancy may not exceed 80 percent of the area's
26 state's median income adjusted for family size. While
27 occupying the rental unit, a low-income household's person's
28 annual income may increase to an amount not to exceed 140
29 percent of 80 percent of the area's state's median income
30 adjusted for family size.
31 (20) "Moderate-income person" or "moderate-income
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Amendment No.
1 household" means one or more natural persons or a family, not
2 including students, that has a total annual adjusted gross
3 household income that does not exceed is less than 120 percent
4 of the median annual adjusted gross income adjusted for family
5 size for households within the metropolitan statistical area,
6 the county, or the nonmetropolitan median for the state or 120
7 percent of the median annual adjusted gross income for
8 households within the metropolitan statistical area or, if not
9 within a metropolitan statistical area, within the county,
10 whichever is greatest greater. With respect to rental units,
11 the moderate-income household's person's annual income at the
12 time of initial occupancy may not exceed 120 percent of the
13 area's state's median income adjusted for family size. While
14 occupying the rental unit, a moderate-income household's
15 person's annual income may increase to an amount not to exceed
16 140 percent of 120 percent of the area's state's median income
17 adjusted for family size.
18 (21) "Personal property" means major appliances,
19 including a freestanding refrigerator or stove, to be
20 identified on the encumbering documents.
21 (22) "Plan amendment" means the addition or deletion
22 of a local housing assistance strategy or local housing
23 incentive strategy. Plan amendments must at all times maintain
24 consistency with program requirements and must be submitted to
25 the corporation for review pursuant to s. 420.9072(3).
26 Technical or clarifying revisions may not be considered plan
27 amendments but must be transmitted to the corporation for
28 purposes of notification.
29 (23)(22) "Population" means the latest official state
30 estimate of population certified pursuant to s. 186.901 prior
31 to the beginning of the fiscal year.
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1 (24) "Program income" means the proceeds derived from
2 interest earned on or investment of the local housing
3 distribution and other funds deposited into the local housing
4 assistance trust fund, proceeds from loan repayments, recycled
5 funds, and all other income derived from use of funds
6 deposited in the local housing assistance trust fund. It does
7 not include recaptured funds as defined in subsection (25).
8 (25) "Recaptured funds" means funds that are recouped
9 by a county or eligible municipality in accordance with the
10 recapture provisions of its local housing assistance plan
11 pursuant to s. 420.9075(4)(g) from eligible persons or
12 eligible sponsors who default on the terms of a grant award or
13 loan award.
14 (26)(23) "Rent subsidies" means ongoing monthly rental
15 assistance. The term does not include initial assistance to
16 tenants, such as grants or loans for security and utility
17 deposits.
18 (24) "Student" means a person not living with the
19 person's parent or guardian who is eligible to be claimed by
20 the person's parent or guardian as a dependent under the
21 federal income tax code and who is enrolled at least half time
22 in a secondary school, vocational-technical center, community
23 college, or university. The term does not include a person
24 participating in a job training program approved by the county
25 or the eligible municipality.
26 (27) "Sales price" or "value" means, in the case of
27 acquisition of an existing or newly constructed unit, the
28 amount on the executed sales contract. For eligible persons
29 who are building a unit on land that they own, the sales price
30 is determined by an appraisal performed by a state-certified
31 appraiser. The appraisal must include the value of the land
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Amendment No.
1 and the improvements using the after-construction value of the
2 property and must be dated within 12 months of the date
3 construction is to commence. The sales price of any unit must
4 include the value of the land in order to qualify as eligible
5 housing as defined in subsection (8). In the case of
6 rehabilitation or emergency repair of an existing unit, sales
7 price or value means the value of the real property, as
8 determined by an appraisal performed by a state-certified
9 appraiser and dated within 12 months of the date construction
10 is to commence or the assessed value of the real property as
11 determined by the county property appraiser, plus the cost of
12 the improvements.
13 (28)(25) "Very-low-income person" or "very-low-income
14 household" means one or more natural persons or a family, not
15 including students, that has a total annual adjusted gross
16 household income that does not exceed 50 percent of the median
17 annual adjusted gross income adjusted for family size for
18 households within the metropolitan statistical area, the
19 county, or the nonmetropolitan median for the state or 50
20 percent of the median annual adjusted gross income for
21 households within the metropolitan statistical area or, if not
22 within a metropolitan statistical area, within the county,
23 whichever is greatest greater. With respect to rental units,
24 the very-low-income household's person's annual income at the
25 time of initial occupancy may not exceed 50 percent of the
26 area's state's median income adjusted for family size. While
27 occupying the rental unit, a very-low-income household's
28 person's annual income may increase to an amount not to exceed
29 140 percent of 50 percent of the area's state's median income
30 adjusted for family size.
31 Section 35. Section 420.9072, Florida Statutes, is
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1 amended to read:
2 420.9072 State Housing Initiatives Partnership
3 Program.--The State Housing Initiatives Partnership Program is
4 created for the purpose of providing funds to counties and
5 eligible municipalities local governments as an incentive for
6 the creation of local housing partnerships, to expand
7 production of and preserve affordable housing, to further the
8 housing element of the local government comprehensive plan
9 specific to affordable housing, and to increase
10 housing-related employment.
11 (1)(a) In addition to the legislative findings set
12 forth in s. 420.6015, the Legislature finds that affordable
13 housing is most effectively provided by combining available
14 public and private resources to conserve and improve existing
15 housing and provide new housing for very-low-income households
16 persons, low-income households persons, and moderate-income
17 households persons. The Legislature intends to encourage
18 partnerships in order to secure the benefits of cooperation by
19 the public and private sectors and to reduce the cost of
20 housing for the target group by effectively combining all
21 available resources and cost-saving measures. The Legislature
22 further intends that local governments achieve this
23 combination of resources by encouraging active partnerships
24 between government, lenders, builders and developers, real
25 estate professionals, advocates for low-income persons, and
26 community groups to produce affordable housing and provide
27 related services. Extending the partnership concept to
28 encompass cooperative efforts among small counties as defined
29 in s. 120.52(17), and among counties and municipalities
30 between local governments is specifically encouraged. Local
31 governments are also intended to establish an affordable a
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1 housing advisory committee to recommend monetary and
2 nonmonetary incentives for affordable housing as provided in
3 s. 420.9076.
4 (b) The Legislature further intends that the State
5 Housing Initiatives Partnership Program provide the maximum
6 flexibility to local governments to determine the use of funds
7 for housing programs while ensuring accountability for the
8 efficient use of public resources and guaranteeing that
9 benefits are provided to those in need.
10 (2)(a) To be eligible to receive funds under the
11 program, a county or eligible municipality must:
12 1. Submit to the corporation agency and the department
13 its local housing assistance plan describing the local housing
14 assistance strategies program established pursuant to s.
15 420.9075; and
16 2. Within 12 months after adopting the local housing
17 assistance plan, amend the plan to incorporate the local
18 housing incentive strategies defined in s. 420.9071(16) and
19 described in s. 420.7096; and
20 3.2. Within 24 12 months after adopting establishing,
21 by ordinance, the amended local housing assistance plan to
22 incorporate the local housing incentive strategies, amend its
23 land development regulations or establish local policies and
24 procedures, as necessary, to implement the local housing
25 incentive strategies adopted by the local governing body. A
26 county or an eligible municipality that has adopted a housing
27 incentive strategy pursuant to s. 420.9076 before the
28 effective date of this act shall review the status of
29 implementation of the plan according to its adopted schedule
30 for implementation and report its findings in the annual
31 report required by s. 420.9075(9). If as a result of the
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1 review, a county or an eligible municipality determines that
2 the implementation is complete and in accordance with its
3 schedule, no further action is necessary. If a county or an
4 eligible municipality determines that implementation according
5 to its schedule is not complete, it must amend its land
6 development regulations or establish local policies and
7 procedures, as necessary, to implement the housing incentive
8 plan within 12 months after the effective date of this act, or
9 if extenuating circumstances prevent implementation within 12
10 months, pursuant to s. 420.9075(12) enter into an extension
11 agreement with the corporation program, submit to the agency
12 and the department its affordable housing incentive plan
13 pursuant to s. 420.9076.
14 (b) A county or an eligible municipality seeking
15 approval to receive its share of the local housing
16 distribution must adopt an ordinance containing the following
17 provisions:
18 1. Creation of a local an affordable housing
19 assistance trust fund as described in s. 420.9075(5).
20 2. Adoption by resolution Establishment of a local
21 housing assistance plan as defined in s. 420.9071(14) program
22 to be implemented through a local housing partnership as
23 defined in s. 420.9071(18) s. 420.9071.
24 3. Designation of the responsibility for the
25 administration of the local housing assistance plan program.
26 Such ordinance may also provide for the contracting of all or
27 part of the administrative or other functions of the program
28 to a third person or entity.
29 4. Creation of the affordable housing advisory
30 committee as provided in s. 420.9076.
31
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Bill No. SB 2436
Amendment No.
1 The ordinance must not take effect until at least 30 days
2 after the date of formal adoption. Ordinances in effect prior
3 to the effective date of amendments to this section shall be
4 amended as needed to conform to new provisions.
5 (3)(a) The governing board of the county or of an
6 eligible municipality must submit to the corporation one copy
7 agency and the department two copies of its local housing
8 assistance plan. The transmittal of the plan must include a
9 copy of the ordinance, the adopting resolution, the local
10 housing assistance plan, and such other information as the
11 corporation agency requires by rule; however, information to
12 be included in the plan is intended to demonstrate consistency
13 with the requirements of ss. 420.907-420.9079 and corporation
14 rule this program without posing an undue burden on the local
15 government. Plans shall be reviewed by a committee composed
16 of corporation agency and department staff as established by
17 corporation agency rule, in consultation with the department.
18 (b) Within 30 days after receiving a plan, the review
19 committee shall review the plan and either approve it or
20 identify inconsistencies with the requirements of the program.
21 The corporation agency and the department shall assist a local
22 government in revising its plan if it initially proves to be
23 inconsistent with program requirements. A plan that is
24 revised by the local government to achieve consistency with
25 the program requirements shall be reviewed within 30 days
26 after submission. A local government may twice revise and
27 resubmit its plan during any state fiscal year. The deadlines
28 for submitting original and revised plans shall be established
29 by corporation agency rule; however, the corporation shall not
30 require submission of a new local housing assistance plan to
31 implement amendments to this act until the currently effective
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Bill No. SB 2436
Amendment No.
1 plan expires during the first year the program is in
2 existence, counties and eligible municipalities may submit
3 their initial plans not later than June 30, 1993.
4 (c) The Legislature intends that approval of plans be
5 expedited to ensure that the production of needed housing and
6 the related creation of jobs occur as quickly as possible.
7 After being approved for funding, a local government may amend
8 by resolution revise its local housing assistance plan program
9 if the plan as amended program as revised complies with
10 program the requirements for such programs; however, a local
11 government must submit its amended revised plan for review
12 according to the process established in this subsection in
13 order to ensure continued consistency with the requirements of
14 the State Housing Initiatives Partnership Program.
15 (4) Moneys in the Local Government Housing Trust Fund
16 shall be distributed by the corporation agency to each
17 approved county and eligible municipality within the county as
18 provided in s. 420.9073. Distributions shall be allocated to
19 the participating county and to each eligible municipality
20 within the county according to an interlocal agreement between
21 the county governing authority and the governing body of the
22 eligible municipality or, if there is no interlocal agreement,
23 according to population. The portion for each eligible
24 municipality is computed by multiplying the total moneys
25 earmarked for a county by a fraction, the numerator of which
26 is the population of the eligible municipality and the
27 denominator of which is the total population of the county.
28 The remaining revenues shall be distributed to the governing
29 body of the county.
30 (5)(a) Local governments are encouraged to make the
31 most efficient use of their resources by cooperating to
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Bill No. SB 2436
Amendment No.
1 provide affordable housing assistance. Local governments may
2 enter into an interlocal agreement for the purpose of
3 establishing a joint local housing assistance plan program
4 subject to the requirements of ss. 420.907-420.9079. The
5 local housing distributions for such counties and eligible
6 municipalities shall be directly disbursed on a monthly basis
7 to each county or eligible municipality to be administered in
8 conformity with the interlocal agreement providing for a joint
9 local housing assistance plan program.
10 (b) If a county or eligible municipality enters into
11 an interlocal agreement with a municipality that becomes
12 eligible as a result of entering into that interlocal
13 agreement, the county or eligible municipality that has agreed
14 to transfer the control of funds to a municipality that was
15 not originally eligible must ensure through its local housing
16 assistance plan and through the interlocal agreement that all
17 program funds are used in a manner consistent with ss.
18 420.907-420.9079. This must be accomplished by:
19 1. Providing that the use of the portion of funds
20 transferred to the municipality meets all requirements of ss.
21 420.907-420.9079, or
22 2. Providing that the use of the portion of funds
23 transferred to the municipality, when taken in combination
24 with the use of the local housing distribution from which
25 funds were transferred, meets all requirements of ss.
26 420.907-420.9079.
27 (6) The moneys that otherwise would be distributed
28 pursuant to s. 420.9073 to a local government that does not
29 meet the program's requirements for receipts of such
30 distributions shall remain in the Local Government Housing
31 Trust Fund to be administered used by the corporation agency
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Bill No. SB 2436
Amendment No.
1 to administer the affordable housing production program
2 pursuant to s. 420.9078.
3 (7) A county or an eligible municipality must expend
4 its portion of the local housing distribution only to
5 implement a local housing assistance plan program.
6
7 A county or an eligible municipality may not expend its
8 portion of the local housing distribution to provide rent
9 subsidies; however, this does not prohibit the use of funds
10 for security and utility deposit assistance.
11 (8) Funds distributed under this program may not be
12 pledged to pay the debt service on any bonds.
13 (9) The corporation shall agency may adopt rules
14 necessary to implement ss. 420.907-420.9079.
15 Section 36. Subsection (3) of section 420.9073,
16 Florida Statutes, is amended to read:
17 420.9073 Local Housing Distributions.--
18 (3) Calculation of guaranteed amounts:
19 (a) The guaranteed amount under subsection (1) shall
20 be calculated for each fiscal year by multiplying $350,000
21 $250,000 by a fraction, the numerator of which is the amount
22 of funds distributed to the Local Government Housing Trust
23 Fund pursuant to s. 201.15(6) and the denominator of which is
24 the total amount of funds distributed to the Local Government
25 Housing Trust Fund pursuant to s. 201.15. For fiscal year
26 1992-1993, the guaranteed amount in s. 420.9073 shall be
27 $250,000.
28 (b) The guaranteed amount under subsection (2) shall
29 be calculated for each fiscal year, beginning in fiscal year
30 1995-1996, by multiplying $350,000 $250,000 by a fraction, the
31 numerator of which is the amount of funds distributed to the
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Bill No. SB 2436
Amendment No.
1 Local Government Housing Trust Fund pursuant to s. 201.15(7)
2 and the denominator of which is the total amount of funds
3 distributed to the Local Government Housing Trust Fund
4 pursuant to s. 201.15.
5 Section 37. Section 420.9075, Florida Statutes, is
6 amended to read:
7 420.9075 Local housing assistance plans programs;
8 partnerships.--
9 (1)(a) Each county or eligible municipality
10 participating in the State Housing Initiatives Partnership
11 Program shall develop and implement establish a local housing
12 assistance plan program created to make affordable residential
13 units available to persons of very low income, low income, or
14 moderate income and to persons who have special housing needs,
15 including, but not limited to, homeless people, the elderly,
16 and migrant farmworkers. The plans programs are intended to
17 increase the availability of affordable residential units by
18 combining local resources and cost-saving measures into a
19 local housing partnership and using private and public funds
20 to reduce the cost of housing.
21 (b) Local housing assistance plans programs may
22 allocate funds to:
23 1. Implement local housing assistance strategies for
24 the provision of affordable housing.
25 2. Supplement funds available to the corporation
26 agency to provide enhanced funding of state housing programs
27 within the county or the eligible municipality.
28 3. Provide the local matching share of federal
29 affordable housing grants or programs.
30 4. Fund emergency repairs, including, but not limited
31 to, repairs performed by existing service providers under
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Bill No. SB 2436
Amendment No.
1 weatherization assistance programs under ss. 409.509-409.5093.
2 5. Further the housing element of the local government
3 comprehensive plan adopted pursuant to s. 163.3184, specific
4 to affordable housing.
5 (2)(a) Each county and each eligible municipality
6 participating in the State Housing Initiatives Partnership
7 Program shall should encourage the involvement of appropriate
8 public sector and private sector entities as partners in order
9 to combine resources to reduce housing costs for the targeted
10 population. This partnership process should may involve:
11 1. Lending institutions.
12 2. Housing builders and developers.
13 3. Nonprofit and other community-based housing and
14 service organizations.
15 4. Providers of professional services relating to
16 affordable housing.
17 5. Advocates for low-income persons.
18 6. Real estate professionals.
19 7.5. Other persons or entities who can assist in
20 providing housing or related support services.
21 (b) The specific participants in partnership
22 activities may vary according to the community's resources and
23 the nature of the local housing assistance plan program.
24 (3) Each local housing assistance plan program is
25 governed by the following criteria and administrative
26 procedures:
27 (a) Each county, eligible municipality, or entity
28 formed through interlocal agreement to participate in the
29 State Housing Initiatives Partnership Program must develop a
30 qualification system and selection criteria for applications
31 for awards by eligible sponsors, and adopt criteria for the
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Bill No. SB 2436
Amendment No.
1 selection of eligible persons, and eligible sponsors and adopt
2 a maximum award schedule or system of amounts consistent with
3 the intent and budget of its local housing assistance plan,
4 with program and ss. 420.907-420.9079, and with corporation
5 rule.
6 (b) The county or eligible municipality or its
7 administrative representative shall advertise the notice of
8 funding availability of a housing assistance program in a
9 newspaper of general circulation and periodicals serving
10 ethnic and diverse neighborhoods, at least 30 days before the
11 beginning of the application period. If no funding is
12 available due to a waiting list, no notice of funding
13 availability is required.
14 (c) In accordance with the provisions of ss.
15 760.20-760.37, it is unlawful to discriminate on the basis of
16 race, creed, religion, color, age, sex, marital status,
17 familial status, national origin, or handicap in the award
18 application process for eligible housing.
19 (d) As a condition of receipt of an award, the
20 eligible sponsor or eligible person must contractually commit
21 to comply with the affordable housing criteria provided under
22 ss. 420.907-420.9079 applicable to the affordable housing
23 objective of the award. The plan program criteria adopted by
24 the county or eligible municipality must prescribe the
25 contractual obligations required to ensure compliance with
26 award conditions.
27 (e) The staff or entity that has administrative
28 authority for implementing a local housing assistance plan
29 program assisting rental developments shall annually monitor
30 and determine tenant eligibility.
31 (4) The following criteria apply to awards made to
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Bill No. SB 2436
Amendment No.
1 eligible sponsors or eligible persons for the purpose of
2 providing eligible housing:
3 (a) At least 65 percent of the funds made available in
4 each county and eligible municipality from the local housing
5 distribution must be reserved for home ownership homeownership
6 for eligible persons.
7 (b) At least 75 percent of the funds made available in
8 each county and eligible municipality from the local housing
9 distribution must be reserved for construction,
10 rehabilitation, or emergency repair of affordable, eligible
11 housing.
12 (c) The sales price or value of new or existing
13 eligible housing may not exceed 90 percent of the median area
14 purchase price in the area where the eligible housing is
15 located, as established by the United States Department of
16 Treasury in accordance with s. 3(b)(2) of the United States
17 Housing Act of 1937.
18 (d) All units constructed, rehabilitated, or otherwise
19 assisted with the funds provided from the local housing
20 assistance trust fund program must be occupied by
21 very-low-income persons, low-income persons, and
22 moderate-income persons. At least 30 percent of the funds
23 deposited into the local housing assistance trust fund must be
24 reserved for awards to must be occupied by very-low-income
25 persons or eligible sponsors who will serve very-low-income
26 persons and at least an additional 30 percent of the funds
27 deposited into the local housing assistance trust fund must be
28 reserved for awards to by low-income persons or eligible
29 sponsors who will serve low-income persons.
30 (e) Loans shall be provided for periods not exceeding
31 30 years, except for deferred payment loans or loans that
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Bill No. SB 2436
Amendment No.
1 extend beyond 30 years which continue to serve eligible
2 persons.
3 (f) Loans or grants for eligible rental housing
4 constructed, rehabilitated, or otherwise assisted from the
5 local housing assistance trust fund program moneys must be
6 subject to recapture requirements as provided by the county or
7 eligible municipality in its local housing assistance plan
8 unless reserved for eligible persons for 15 years or the term
9 of the assistance, whichever period is longer. Eligible
10 sponsors that offer rental housing for sale before 15 years or
11 that have remaining mortgages funded under this program must
12 give a first right of refusal to eligible nonprofit
13 organizations for purchase at the current market value for
14 continued occupancy by eligible persons recipients.
15 (g) Loans or grants for eligible owner-occupied
16 housing constructed, rehabilitated, or otherwise assisted from
17 proceeds provided from the local housing assistance trust fund
18 program shall be subject to the long-term affordability and
19 recapture requirements as provided by the county or eligible
20 municipality in its local housing assistance plan.
21 (h) The total amount of monthly mortgage payments or
22 the amount of monthly rent charged by the eligible sponsor or
23 his designee must be made affordable.
24 (i) The maximum sales price or value cost per unit and
25 the maximum award cost per unit for eligible housing
26 benefiting from awards made pursuant to this section must be
27 established in the local housing assistance plan by
28 resolution.
29 (j) The benefit of assistance provided through the
30 State Housing Initiatives Partnership Program must accrue to
31 eligible persons occupying eligible housing. This provision
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Bill No. SB 2436
Amendment No.
1 shall not be construed to prohibit use of the local housing
2 distribution funds for a mixed-income rental development.
3 (k) Funds from the local housing distribution not used
4 to meet the criteria established in paragraph (a) or paragraph
5 (b) or not used for the administration of a local housing
6 assistance plan program must be used for housing production
7 and finance activities, including, but not limited to,
8 financing the purchase of existing units, providing rental
9 housing, and providing home ownership homeownership training
10 to prospective home buyers homebuyers and owners of homes
11 assisted through the local housing assistance plan program.
12 Notwithstanding the provisions of paragraphs (a) and (b),
13 program income as defined in s. 420.9071(24) may also be used
14 to fund activities described in this paragraph.
15
16 If both an award under the local housing assistance plan
17 program and federal low-income housing tax credits are used to
18 assist a project and there is a conflict between the criteria
19 prescribed in this subsection and the requirements of s. 42 of
20 the Internal Revenue Code of 1986, as amended, the county or
21 eligible municipality may resolve the conflict by giving
22 precedence to the requirements of s. 42 of the Internal
23 Revenue Code of 1986, as amended, in lieu of following the
24 criteria prescribed in this subsection with the exception of
25 paragraphs (a) and (d) of this subsection.
26 (5) Each county or eligible municipality receiving
27 local housing distribution moneys shall establish and maintain
28 a local housing assistance trust fund. All moneys of a county
29 or an eligible municipality received from its share of the
30 local housing distribution, program income, recaptured funds,
31 and other funds received or budgeted to implement provide the
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Bill No. SB 2436
Amendment No.
1 local housing assistance plan program shall be deposited into
2 the trust fund; however, local housing distribution moneys
3 used to match federal HOME program moneys may be repaid to the
4 HOME program trust fund if required by federal law or
5 regulations. Expenditures other than for the administration
6 and implementation of the local housing assistance plan
7 program may not be made from the trust fund.
8 (6) The moneys deposited in the local housing
9 assistance trust fund shall be used to administer and
10 implement the local housing assistance plan program. The cost
11 of administering the plan program may not exceed 5 percent of
12 the local housing distribution moneys and program income
13 deposited into the trust fund. A county or an eligible
14 municipality may not exceed the 5-percent limitation on
15 administrative costs, unless its governing body finds, by
16 resolution, that 5 percent of the local housing distribution
17 plus 5 percent of program income is insufficient to adequately
18 pay the necessary costs of administering the local housing
19 assistance plan program. The cost of administering the program
20 may not exceed 10 percent of the local housing distribution
21 plus 5 percent of program income deposited into the trust
22 fund, except that small counties, as defined in s. 120.52(17),
23 and eligible municipalities receiving a local housing
24 distribution of up to $350,000 may use up to 10 percent of
25 program income for administrative costs.
26 (7) Pursuant to s. 420.606, the corporation department
27 shall provide technical assistance to local governments
28 regarding the creation of partnerships, the design of local
29 housing assistance strategies programs, the implementation of
30 local housing incentive strategies incentive plans, and the
31 provision of support services.
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Bill No. SB 2436
Amendment No.
1 (8) The corporation department shall monitor the
2 activities of local governments to determine compliance with
3 program requirements and shall collect data on the operation
4 and achievements of housing partnerships.
5 (9)(8) Each county or eligible municipality shall
6 submit to the corporation department and to the agency by
7 September November 15 of each year a report of its affordable
8 housing programs and accomplishments through June 30
9 immediately preceding submittal of the report. The report
10 shall be certified as accurate and complete by the local
11 government's chief elected official or his or her designee.
12 Transmittal of the annual report by a county's or eligible
13 municipality's chief elected official, or his or her designee,
14 certifies that the local housing incentive strategies, or, if
15 applicable, the local housing incentive plan, have been
16 implemented or are in the process of being implemented
17 pursuant to the adopted schedule for implementation. The
18 report must include, but is not limited to:
19 (a) The number of households served by income
20 category, age, family size, and race, and data regarding any
21 special needs populations such as farmworkers, rural
22 residents, homeless persons, and the elderly. Counties shall
23 report this information separately for households served in
24 the unincorporated area and each municipality within the
25 county.
26 (b) The number of units and the average cost of
27 producing units under each local housing assistance strategy
28 program.
29 (c) The average sales price or value of a
30 single-family unit and the amount of rent charged for a rental
31 unit based on unit size.
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Bill No. SB 2436
Amendment No.
1 (d) By income category, the number of mortgages made,
2 the average mortgage amount, and the rate of default.
3 (e) A description of the status of implementation of
4 each local housing incentive strategy, or if applicable, the
5 local the affordable housing incentive plan as set forth in
6 the local government's adopted schedule for implementation and
7 the resulting reduction in housing costs.
8 (f) A concise description of the support services that
9 are available to the residents of affordable housing provided
10 by local programs.
11 (g) The sales price or appraised value of housing
12 produced and an accounting of what percentage was financed by
13 the local housing distribution, other public moneys, and
14 private resources.
15 (h) Such other data or affordable housing
16 accomplishments considered significant by the reporting county
17 or eligible municipality.
18 (10)(9) The report shall be made available by the
19 county or eligible municipality local government for public
20 inspection and comment prior to certifying the report and
21 transmitting it to the corporation. The county or eligible
22 municipality shall provide notice of the availability of the
23 proposed report and solicit public comment. The notice must
24 state the public place where a copy of the proposed report can
25 be obtained by interested persons. Members of the public may
26 submit written comments on the report to the county or
27 eligible municipality and the corporation. Written public
28 comments shall identify the author by name, address, and
29 interest affected. The county or eligible municipality shall
30 attach a copy of all such written comments and its responses
31 to the annual report submitted to the corporation department.
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Bill No. SB 2436
Amendment No.
1 (11)(10) The corporation agency shall review the
2 report of each county or eligible municipality and any written
3 comments from the public and include transmit any comments
4 concerning the effectiveness of local programs in the report
5 required by s. 420.511 to the department.
6 (12)(a)(11) If, as a result of the review of the
7 annual such report or public comment and written response from
8 the county or eligible municipality, or at any other time, the
9 corporation agency or the department determines that a county
10 or eligible municipality may have established a pattern of
11 violation of the criteria for a local housing assistance plan
12 program established under ss. 420.907-420.9079 or that an
13 eligible sponsor or eligible person has violated the
14 applicable award conditions, the corporation agency or
15 department shall report such pattern of violation of criteria
16 or violation of award conditions to its compliance monitoring
17 agent and the Executive Office of the Governor and the
18 department's inspector general appointed pursuant to s.
19 20.055. The corporation's compliance monitoring agent
20 department's inspector general must determine within 60 days
21 whether the county or eligible municipality has violated
22 program criteria and shall issue a written report thereon. If
23 a violation has occurred, the distribution of program funds to
24 the county or eligible municipality must be suspended until
25 the violation is corrected.
26 (b) If, as a result of its review of the annual
27 report, the corporation determines that a county or eligible
28 municipality has failed to implement a local housing incentive
29 strategy, or, if applicable, a local housing incentive plan,
30 it shall send a notice of termination of the local
31 government's share of the local housing distribution by
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Bill No. SB 2436
Amendment No.
1 certified mail to the affected county or eligible
2 municipality.
3 1. The notice must specify a date of termination of
4 the funding if the affected county or eligible municipality
5 does not implement the plan or strategy and provide for a
6 local response. A county or eligible municipality shall
7 respond to the corporation within 30 days after receipt of the
8 notice of termination.
9 2. The corporation shall consider the local response
10 that extenuating circumstances precluded implementation and
11 grant an extension to the timeframe for implementation. Such
12 an extension shall be made in the form of an extension
13 agreement that provides a timeframe for implementation. The
14 chief elected official of a county or eligible municipality or
15 his or her designee shall have the authority to enter into the
16 agreement on behalf of the local government.
17 3. If the county or the eligible municipality has not
18 implemented the incentive strategy or entered into an
19 extension agreement by the termination date specified in the
20 notice, the local housing distribution share terminates, and
21 any uncommitted local housing distribution funds held by the
22 affected county or eligible municipality in its local housing
23 assistance trust fund shall be transferred to the Local
24 Government Housing Trust Fund to the credit of the corporation
25 to administer pursuant to s. 420.9078.
26 4.a. If the affected local government fails to meet
27 the timeframes specified in the agreement, the corporation
28 shall terminate funds. The corporation shall send a notice of
29 termination of the local government's share of the local
30 housing distribution by certified mail to the affected local
31 government. The notice shall specify the termination date, and
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Bill No. SB 2436
Amendment No.
1 any uncommitted funds held by the affected local government
2 shall be transferred to the Local Government Housing Trust
3 Fund to the credit of the corporation to administer pursuant
4 to s. 420.9078.
5 b. If the corporation terminates funds to a county,
6 but an eligible municipality receiving a local housing
7 distribution pursuant to an interlocal agreement maintains
8 compliance with program requirements, the corporation shall
9 thereafter distribute directly to the participating eligible
10 municipality its share calculated in the manner provided in s.
11 420.9072.
12 c. Any county or eligible municipality whose local
13 distribution share has been terminated may subsequently elect
14 to receive directly its local distribution share by adopting
15 the ordinance, resolution, and local housing assistance plan
16 in the manner and according to the procedures provided in ss.
17 420.907-420.9079.
18 Section 38. Section 420.9076, Florida Statutes, is
19 amended to read:
20 420.9076 Adoption of affordable housing incentive
21 strategies plans; committees.--
22 (1) Each county or eligible municipality participating
23 in the State Housing Initiatives Partnership Program,
24 including a municipality receiving program funds through the
25 county, or an eligible municipality must, within 12 months
26 after the original adoption of the local housing assistance
27 plan, amend the plan to include local housing incentive
28 strategies as defined in s. 420.9071(16) adopt an affordable
29 housing incentive plan within 12 months after the date of
30 adoption of the ordinance by the county or eligible
31 municipality establishing a local housing assistance program.
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Bill No. SB 2436
Amendment No.
1 (2) The governing board of a county or municipality
2 shall appoint the members of the affordable housing advisory
3 committee by resolution. Pursuant to the terms of any
4 interlocal agreement, a county and municipality may create and
5 jointly appoint an advisory committee to prepare a joint plan.
6 The ordinance adopted pursuant to s. 420.9072 s. 420.9075
7 which creates the advisory committee or the resolution
8 appointing the advisory committee members must provide for
9 nine committee members and their terms. The committee must
10 include:
11 (a) One citizen who is actively engaged in the
12 residential home building industry in connection with
13 affordable housing.
14 (b) One citizen who is actively engaged in the banking
15 or mortgage banking industry in connection with affordable
16 housing.
17 (c) One citizen who is a representative of those areas
18 of labor actively engaged in home building in connection with
19 affordable housing.
20 (d) One citizen who is actively engaged designated as
21 an advocate for low-income persons in connection with
22 affordable housing.
23 (e) One citizen who is actively engaged as a
24 for-profit a provider of affordable housing.
25 (f) One citizen who is actively engaged as a
26 not-for-profit provider of affordable housing.
27 (g)(f) One citizen who is actively engaged as a real
28 estate professional in connection with affordable housing.
29 (h) One citizen who actively serves on the local
30 planning agency pursuant to s. 163.3174.
31 (i) One citizen who resides within the jurisdiction of
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Bill No. SB 2436
Amendment No.
1 the local governing body making the appointments.
2
3 If a county or eligible municipality whether due to its small
4 size, the presence of a conflict of interest by prospective
5 appointees, or other reasonable factor, is unable to appoint a
6 citizen actively engaged in these activities in connection
7 with affordable housing, a citizen engaged in the activity
8 without regard to affordable housing may be appointed.
9 (3) All meetings of the advisory committee are public
10 meetings, and all committee records are public records.
11 Staff, administrative, and facility support to the advisory
12 committee shall be provided by the appointing county or
13 eligible municipality.
14 (4) The resolution creating and appointing the
15 advisory committee must define affordable housing as
16 applicable to the county and municipality in a way that is
17 consistent with the adopted local comprehensive plan. The
18 advisory committee shall review the established policies and
19 procedures, ordinances, land development regulations, and
20 adopted local government comprehensive plan of the appointing
21 local government and shall recommend specific initiatives to
22 encourage or facilitate affordable housing while protecting
23 the ability of the property to appreciate in value. Such
24 recommendations may include the modification or repeal of
25 existing policies, procedures, ordinances, regulations, or
26 plan provisions; the creation of exceptions applicable to
27 affordable housing; or the adoption of new policies,
28 procedures, regulations, ordinances, or plan provisions. At a
29 minimum, each advisory committee shall make recommendations on
30 affordable housing incentives in the following areas:
31 (a) The affordable housing definition in the
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Bill No. SB 2436
Amendment No.
1 appointing resolution.
2 (a)(b) The expedited processing of approvals of
3 development orders or permits, as defined in s. 163.3164(7)
4 and (8), for affordable housing projects is expedited to a
5 greater degree than other projects.
6 (b)(c) The modification of impact-fee requirements,
7 including reduction or waiver of fees and alternative methods
8 of fee payment for affordable housing.
9 (c)(d) The allowance of increased density levels for
10 affordable housing.
11 (d)(e) The reservation of infrastructure capacity for
12 housing for very-low-income persons and low-income persons.
13 (e) The allowance of affordable accessory residential
14 units in residential zoning districts.
15 (f) The transfer of development rights as a financing
16 mechanism for housing for very-low-income persons and
17 low-income persons.
18 (f)(g) The reduction of parking and setback
19 requirements for affordable housing.
20 (g)(h) The allowance of zero-lot-line configurations
21 for affordable housing.
22 (h)(i) The modification of street requirements for
23 affordable housing.
24 (i)(j) The establishment of a process by which a local
25 government considers, before adoption, policies, procedures,
26 ordinances, regulations, or plan provisions that increase have
27 a significant impact on the cost of housing.
28 (j)(k) The preparation of a printed inventory of
29 locally owned public lands suitable for affordable housing.
30
31 The advisory committee recommendations must also include other
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Bill No. SB 2436
Amendment No.
1 affordable housing incentives identified by the advisory
2 committee. To the maximum extent feasible, the approved
3 affordable housing incentive recommendations submitted to the
4 governing board of the appointing county or eligible
5 municipality must quantify the affordable housing cost
6 reduction anticipated from implementing the specific
7 recommendation.
8 (5) The approval by the advisory committee of its
9 local affordable housing incentive strategies recommendations
10 must be made by affirmative vote of a majority of the
11 membership of the advisory committee taken at a public
12 hearing. Notice of the time, date, and place of the public
13 hearing of the advisory committee to adopt final local
14 affordable housing incentive strategies recommendations must
15 be published in a newspaper of general paid circulation in the
16 county. Such notice must contain a short and concise summary
17 of the local housing incentives strategies affordable housing
18 initiative recommendations to be considered by the advisory
19 committee. The notice must state the public place where a
20 copy of the tentative advisory committee recommendations can
21 be obtained by interested persons.
22 (6) Within 90 days after the date of receipt of the
23 local affordable housing incentive strategies recommendations
24 from the advisory committee, the governing body of the
25 appointing local government shall adopt an amendment to its
26 local housing assistance plan to incorporate the local housing
27 incentive strategies it will implement within its jurisdiction
28 affordable housing incentive plan. The amendment Such plan
29 must consist of the adoption of specific initiatives to
30 encourage or facilitate affordable housing and a schedule for
31 implementation and must include, at a minimum, the local
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Bill No. SB 2436
Amendment No.
1 housing incentive strategies as defined in s. 420.9071(16) a
2 schedule for implementation of expedited permit processing for
3 affordable housing projects and a process for review of local
4 policies, ordinances, regulations, and plan provisions that
5 significantly impact the cost of housing prior to their
6 adoption.
7 (7) The governing board of the county or the eligible
8 municipality shall notify the corporation agency by certified
9 mail of its adoption of an amendment of its local housing
10 assistance plan to incorporate local housing incentive
11 strategies affordable housing incentive plan. The notice must
12 include a copy of the approved amended plan.
13 (a) If the corporation agency fails to receive timely
14 the approved amended local housing assistance plan to
15 incorporate local housing incentive strategies affordable
16 housing incentive plan, a notice of termination of its share
17 of the local housing distribution shall be sent by certified
18 mail by the corporation agency to the affected county or
19 eligible municipality. The notice of termination must specify
20 a date of termination of the funding if the affected county or
21 eligible municipality has not adopted an amended local housing
22 assistance plan to incorporate local housing incentive
23 strategies affordable housing incentive plan. If the county
24 or the eligible municipality has not adopted an amended local
25 housing assistance plan to incorporate local housing incentive
26 strategies affordable housing incentive plan by the
27 termination date specified in the notice of termination, the
28 local distribution share terminates; and any uncommitted local
29 distribution funds held by the affected county or eligible
30 municipality in its local housing assistance trust fund shall
31 be transferred to the Local Government State Housing Trust
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SENATE AMENDMENT
Bill No. SB 2436
Amendment No.
1 Fund to the credit of the corporation agency to administer the
2 local government housing program pursuant to s. 420.9078.
3 (b) If a county fails to timely adopt an amended local
4 housing assistance plan to incorporate local housing incentive
5 strategies affordable housing incentive plan but an eligible
6 municipality receiving a local housing distribution pursuant
7 to an interlocal agreement within the county does timely adopt
8 an amended local housing assistance plan to incorporate local
9 housing incentive strategies a plan, the corporation agency,
10 after receipt of a notice of termination, shall thereafter
11 distribute directly to the participating eligible municipality
12 its share calculated in the manner provided in s. 420.9072 s.
13 420.9071.
14 (c) Any county or eligible municipality whose local
15 distribution share has been terminated may subsequently elect
16 to receive directly its local distribution share by adopting
17 an amended local housing assistance plan to incorporate local
18 housing incentive strategies affordable housing incentive plan
19 in the manner and according to the procedure provided in this
20 section and by adopting an ordinance in the manner required in
21 s. 420.9072.
22 Section 39. Section 420.9078, Florida Statutes, is
23 amended to read:
24 420.9078 State administration of remaining local
25 housing distribution funds.--When appropriated funds remain in
26 the Local Government Housing Trust Fund, the corporation shall
27 distribute the remaining funds as follows:
28 (1) The corporation shall distribute all remaining
29 funds proportionately as provided in s. 420.9073(2)(b) among
30 counties and eligible municipalities for which an emergency or
31 natural disaster has been declared by executive order and
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Bill No. SB 2436
Amendment No.
1 which have an approved local housing assistance plan to
2 implement a local housing assistance strategy, consistent with
3 ss. 420.907-420.9079, for repairing and replacing housing
4 damaged as a result of the emergency or natural disaster.
5 (2) If subsection (1) does not apply, the corporation
6 shall distribute the remaining funds proportionately as
7 provided in s. 420.9072 and s. 420.9073(2)(b) among all
8 counties and eligible municipalities that have fully expended
9 their local housing distributions for the immediately
10 preceding state fiscal year on eligible activities and have an
11 approved local housing assistance plan. A county or eligible
12 municipality that receives local housing distributions
13 pursuant to this paragraph shall expend those funds in
14 accordance with the provisions of ss. 420.907-420.9079,
15 corporation rule, and its local housing assistance plan.
16 (1) With that portion of the documentary stamp tax
17 moneys remaining in the Local Government Housing Trust Fund
18 pursuant to s. 420.9072(6), the agency shall administer an
19 affordable housing production program for counties,
20 municipalities, and eligible sponsors in conformity with the
21 criteria prescribed in s. 420.9075.
22 (2) The agency shall, in cooperation with the
23 department, provide by rule for a scoring system for
24 evaluating applications submitted under the program. The
25 scoring system must include the following factors:
26 (a) The existence of a local housing partnership.
27 (b) For a county or eligible municipality, the extent
28 to which the local government applicant has adopted, in land
29 development regulations, incentives to encourage or facilitate
30 affordable housing.
31 (c) The extent to which the requested project will
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Bill No. SB 2436
Amendment No.
1 provide eligible housing.
2 (d) The amount of project funds other than the
3 requested moneys.
4 (e) The provision of or assistance in securing support
5 services for housing program beneficiaries, which may include:
6 1. Counseling to prepare persons for homeownership,
7 which may address personal budgeting, home inspection and
8 maintenance, the fundamentals of home mortgages and insurance,
9 and other pertinent topics.
10 2. Counseling to assist tenants in improving their
11 economic well-being, which may address educational
12 opportunities, job placement, management of personal finances,
13 and related concerns.
14 3. Providing social services, including day care,
15 health care, and transportation.
16 (f) Sponsor's agreement to reserve the units for
17 persons or families who have incomes below 50 percent of the
18 state or local median income, whichever is higher, for a time
19 period that exceeds the minimum required by federal law or the
20 provisions of ss. 420.907-420.9079.
21 (g) Sponsor's agreement to reserve more than:
22 1. Twenty percent of the units in the project for
23 persons or families who have incomes that do not exceed 50
24 percent of the state median income or local median income,
25 whichever is higher; or
26 2. Forty percent of the units in the project for
27 persons or families who have incomes that do not exceed 60
28 percent of the state median income or local median income,
29 whichever is higher, without requiring a greater amount of the
30 loans as provided in this section.
31 (3) The rule must provide for the establishment of a
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Bill No. SB 2436
Amendment No.
1 review committee composed of agency and department staff
2 members. Department staff members shall be appointed by the
3 secretary of the department.
4 (4) The rule must provide measures to be applied if
5 there is a documented failure to perform in accordance with
6 the award contract.
7 (5) At least 60 days before the application deadline,
8 the agency must publish a notice of fund availability in a
9 publication of general circulation throughout the state.
10 Section 40. Section 420.9079, Florida Statutes, is
11 amended to read:
12 420.9079 Local Government Housing Trust Fund.--
13 (1) There is created in the State Treasury the Local
14 Government Housing Trust Fund, which shall be administered by
15 the corporation on behalf of the department agency according
16 to the provisions of ss. 420.907-420.9078 and this section.
17 There shall be deposited into the fund a portion of the
18 documentary stamp tax revenues as provided in s. 201.15,
19 moneys received from any other source for the purposes of ss.
20 420.907-420.9078 and this section, and all proceeds derived
21 from the investment use of such moneys. Moneys in the trust
22 fund that are not currently needed for the purposes of the
23 programs administered pursuant to ss. 420.907-420.9078 and
24 this section shall be deposited with the Treasurer to the
25 credit of the trust fund and may be invested as provided by
26 law. The interest received on any such investment shall be
27 credited to the trust fund.
28 (2) The corporation shall administer the fund
29 exclusively for the purpose of implementing the programs
30 described in ss. 420.907-420.9078 and this section. With the
31 exception of monitoring the activities of counties and
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Bill No. SB 2436
Amendment No.
1 eligible municipalities to determine local compliance with
2 program requirements, the corporation shall not receive
3 appropriations from the fund for administrative or personnel
4 costs. For the purpose of implementing the compliance
5 monitoring provisions of s. 420.9075(8), the corporation may
6 request a maximum of $200,000 per fiscal year. When such
7 funding is appropriated, the corporation shall deduct the
8 amount appropriated prior to calculating the local housing
9 distribution pursuant to ss. 420.9072 and 420.9073.
10 Section 41. Sections 420.5085 and 420.5094, Florida
11 Statutes, are repealed.
12 Section 42. Subsection (4) of section 239.505, Florida
13 Statutes, 1996 Supplement, is amended to read:
14 239.505 Florida constructive youth programs.--
15 (4) FUNDING.--Each district school board or community
16 college board of trustees wishing to implement a constructive
17 youth program must submit a comprehensive plan to the
18 Department of Education no later than October 1 of the
19 preceding school year, which plan must include a list of all
20 funding sources, including, but not limited to:
21 (a) Funds available for programs authorized under the
22 Dropout Prevention Act, as provided in s. 230.2316, and
23 dropout prevention programs funded pursuant to the provisions
24 of s. 236.081(1)(c).
25 (b) The Vocational Improvement Program, as provided in
26 s. 239.225.
27 (c) Florida private sector and education partnerships,
28 as provided in s. 229.602.
29 (d) The Job Training Partnership Act, as provided in
30 Pub. L. No. 97-300, as it may be amended.
31 (e) The Housing Predevelopment Trust Fund, as provided
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SENATE AMENDMENT
Bill No. SB 2436
Amendment No.
1 in s. 420.525.
2 (f) Local government contributions.
3 (g) Appropriations, donations, gifts, and grants from
4 private individuals or corporations.
5 (h) Grants provided by the United States Department of
6 Housing and Urban Development.
7 (i) Grants provided by the United States Department of
8 Agriculture - Rural Development Farmers Home Administration.
9 (j) Any grant or other financial assistance from the
10 Federal Government for or in aid of any dropout prevention or
11 retrieval, adult education, community education, career
12 education, housing, neighborhood renewal or revitalization, or
13 historic restoration or preservation project or program.
14 (k) Any grant or other financial assistance from the
15 state for or in aid of any dropout prevention or retrieval,
16 adult education, community education, career education,
17 housing, neighborhood renewal or revitalization, or historic
18 restoration or preservation project or program.
19 Section 43. Subsection (5) of section 381.0081,
20 Florida Statutes, is amended read:
21 381.0081 Permit required to operate a migrant labor
22 camp or residential migrant housing; penalties for unlawful
23 establishment or operation; allocation of proceeds.--
24 (5) SEIZURE.--
25 (a) In addition to other penalties provided by this
26 section, the buildings, personal property, and land used in
27 connection with a felony violation of this section may be
28 seized and forfeited pursuant to the Contraband Forfeiture
29 Act.
30 (b) After satisfying any liens on the property, the
31 remaining proceeds from the sale of the property seized under
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SENATE AMENDMENT
Bill No. SB 2436
Amendment No.
1 this section shall be allocated as follows if the department
2 participated in the inspection or investigation leading to
3 seizure and forfeiture under this section:
4 1. One-third of the proceeds shall be allocated to the
5 law enforcement agency involved in the seizure, to be used as
6 provided in s. 932.7055.
7 2. One-third of the proceeds shall be allocated to the
8 department, to be used for purposes of enforcing the
9 provisions of this section.
10 3. One-third of the proceeds shall be deposited in the
11 State Apartment Incentive Loan Trust Fund, to be used for the
12 purpose of providing funds to sponsors who provide housing for
13 farmworkers.
14 (c) After satisfying any liens on the property, the
15 remaining proceeds from the sale of the property seized under
16 this section shall be allocated equally between the law
17 enforcement agency involved in the seizure and the State
18 Apartment Incentive Loan Trust Fund if the department did not
19 participate in the inspection or investigation leading to
20 seizure and forfeiture.
21 Section 44. This act shall take effect July 1, 1997,
22 provided that a transitional period shall occur prior to the
23 transfer of all assets and liabilities from the agency to the
24 corporation on January 1, 1998. During this transitional
25 period, by action of the members of the agency on the
26 corporation's behalf, the corporation shall be entitled to
27 execute contracts as an entity in organization and do any
28 other things necessary to assist in the formal establishment
29 of the corporation as a working organization on January 1,
30 1998. The agency's auditors shall conduct a final audit of the
31 agency for the period beginning July 1, 1997, and ending
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SENATE AMENDMENT
Bill No. SB 2436
Amendment No.
1 December 31, 1997, and the corporation's auditors shall
2 conduct an audit of the corporation for the period beginning
3 January 1, 1998, and ending June 30, 1998. The agency shall be
4 entitled to expend unencumbered amounts deposited into the
5 Florida Housing Finance Agency Trust Fund for payment of
6 transition and start-up costs with respect to the
7 establishment of the corporation.
8
9
10 ================ T I T L E A M E N D M E N T ===============
11 And the title is amended as follows:
12 Delete everything before the enacting clause
13
14 and insert:
15 A bill to be entitled
16 An act relating to affordable housing; amending
17 s. 420.0003, F.S.; revising provisions relating
18 to implementation of the State Housing
19 Strategy; amending s. 420.0005, F.S.; providing
20 directions for use of the State Housing Trust
21 Fund; creating s. 420.0006, F.S.; directing the
22 Secretary of Community Affairs to contract with
23 the Florida Housing Finance Corporation to
24 provide affordable housing; amending s.
25 420.501, F.S.; conforming terminology; amending
26 s. 420.502, F.S.; providing legislative
27 findings; amending s. 420.503, F.S.; defining
28 terms; amending s. 420.504, F.S.; renaming the
29 Florida Housing Finance Agency as the Florida
30 Housing Finance Corporation; specifying its
31 status as a public corporation; revising
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SENATE AMENDMENT
Bill No. SB 2436
Amendment No.
1 membership of its board of directors; providing
2 liability of members; amending s. 420.505,
3 F.S.; conforming terminology; amending s.
4 420.506, F.S.; providing employment conditions
5 for the executive director and other employees;
6 creating s. 420.5061, F.S.; providing for the
7 transfer of agency assets and liabilities;
8 amending s. 420.507, F.S.; providing powers of
9 the corporation; amending s. 420.508, F.S.;
10 revising requirements relating to security for
11 loans and bonds; establishing the Florida
12 Housing Corporation Fund; amending s. 420.5087,
13 F.S.; renaming and revising the status of the
14 State Apartment Incentive Loan Trust Fund and
15 transferring amounts to the renamed fund;
16 conforming terminology; amending s. 420.5088,
17 F.S.; renaming and revising the status of the
18 Florida Homeownership Assistance Trust Fund and
19 transferring amounts to the renamed fund;
20 conforming terminology; amending s. 420.5089,
21 F.S.; renaming and revising the status of the
22 HOME Partnership Trust Fund and transferring
23 amounts to the renamed fund; eliminating pilot
24 programs; amending s. 420.509, F.S.; providing
25 conditions for the issuance of bonds by the
26 corporation; amending ss. 420.5091 and
27 420.5092, F.S.; conforming terminology;
28 amending s. 420.5099, F.S.; providing for
29 allocation of the low-income housing tax
30 credit; amending s. 420.51, F.S.; conforming
31 terminology; amending s. 420.511, F.S.;
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SENATE AMENDMENT
Bill No. SB 2436
Amendment No.
1 directing the corporation to develop a business
2 plan and a strategic plan and make annual
3 reports and providing for submission of an
4 audit with the annual report; amending s.
5 420.512, F.S.; providing for standards of
6 conduct and conflicts of interest; amending s.
7 420.513, F.S.; providing for exemption from
8 taxes; amending ss. 420.514 and 420.523, F.S.;
9 conforming terminology; creating s. 420.517,
10 F.S.; providing for affordable housing and job
11 training coordination; amending s. 420.525,
12 F.S.; renaming and revising the status of the
13 Housing Predevelopment Trust Fund and
14 transferring amounts to the renamed fund;
15 amending ss. 420.526, 420.527, 420.528, and
16 420.529, F.S.; conforming terminology; amending
17 s. 420.602, F.S.; defining terms; amending s.
18 420.606, F.S.; providing for training and
19 technical assistance; amending s. 420.9071,
20 F.S.; defining terms for the State Housing
21 Initiatives Partnership Program; amending s.
22 420.9072, F.S.; revising requirements for the
23 State Housing Initiative Partnership Program;
24 amending s. 420.9073, F.S.; raising the
25 guaranteed minimum allocation; amending s.
26 420.9075, F.S.; providing for local housing
27 assistance plans; amending s. 420.9076, F.S.;
28 providing for the adoption of local housing
29 incentive strategies; amending ss. 420.9078 and
30 420.9079, F.S.; providing for the
31 administration of and distribution from the
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SENATE AMENDMENT
Bill No. SB 2436
Amendment No.
1 Local Government Housing Trust Fund; repealing
2 s. 420.5085, F.S., relating to energy
3 conservation loans; repealing s. 420.5094,
4 F.S., relating to the single-family mortgage
5 revenue bond program; amending ss. 239.505 and
6 381.0081, F.S.; conforming terminology;
7 providing for transition; providing an
8 effective date.
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
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