CODING: Words stricken are deletions; words underlined are additions.





                                                   HOUSE AMENDMENT

    hbd-06                Bill No. CS for CS for SB 2524, 2nd Eng.

    Amendment No.     (for drafter's use only)

                            CHAMBER ACTION
              Senate                               House
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 2                                 .
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 3                                 .
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 4                                                                

 5                                           ORIGINAL STAMP BELOW

 6

 7

 8

 9

10                                                                

11  Representative(s) Bradley offered the following:

12

13         Amendment (with title amendment) 

14         On page 6, line 8,

15

16  insert:

17         Section 1.  Section 290.0301, Florida Statutes, is

18  amended to read:

19         290.0301  Short title.--Sections 290.0311 through

20  290.0395 shall be known and may be cited as the "Invest in

21  Neighborhood Vitality and Economies Act Community Development

22  Corporation Support and Assistance Program Act." This section

23  shall stand repealed on June 30, 2007 1998.

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

25  290.0311, Florida Statutes, are amended to read:

26         290.0311  Legislative findings.--The Legislature finds

27  that:

28         (5)  This deterioration contributes to the decline of

29  neighborhoods in both rural and urban and surrounding areas,

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

31  base of local communities, and eventually requires the

                                  1

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                                                   HOUSE AMENDMENT

    hbd-06                Bill No. CS for CS for SB 2524, 2nd Eng.

    Amendment No.     (for drafter's use only)





 1  expenditure of disproportionate amounts of public funds for

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

 3  development of slums and the social and economic disruption

 4  found in slum communities.

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

 6  deteriorating economic conditions and encouraging local

 7  resident participation and support is to provide support

 8  assistance and resource investment to community-based

 9  community development organizations corporations. The

10  Legislature also finds that community-based development

11  organizations can contribute to the creation of jobs in

12  response to federal welfare reform and state WAGES legislation

13  and economic development activities related to urban and rural

14  economic initiatives.

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

16  2007 1998.

17         Section 3.  Section 290.032, Florida Statutes, is

18  amended to read:

19         (Substantial rewording of section.  See

20         s. 290.032, F.S., for present text.)

21         290.032  Policy and purpose.--It is the policy of this

22  state to improve the quality of neighborhoods as environments

23  in which children and families live, by supporting and

24  fostering positive change in a broad range of domains to

25  achieve comprehensive improvements in conditions throughout

26  the neighborhood over time. Such community or neighborhood

27  redevelopment shall be based on the following principles:

28         (1)  Bottom-up, community-focused approach.

29         (2)  Enables and supports the effort of the

30  neighborhoods to make improvements.

31         (3)  Requires a holistic focus on the neighborhood to

                                  2

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                                                   HOUSE AMENDMENT

    hbd-06                Bill No. CS for CS for SB 2524, 2nd Eng.

    Amendment No.     (for drafter's use only)





 1  address all needs in coordinated fashion, including:

 2         (a)  Need for community-based leadership.

 3         (b)  Empower neighborhood governance of the process.

 4         (c)  Human service delivery.

 5         (d)  Public infrastructure.

 6         (e)  Housing and safety.

 7         (f)  Economic development.

 8         (4)  Mandates neighborhood collaboration of all

 9  partners.

10         (5)  Empowers residents to make decisions on

11  improvements.

12         (6)  Builds consensus for a shared vision for the

13  future of the neighborhood.

14         (7)  Sets definitive performance goals to achieve

15  specific outcomes for the neighborhood.

16

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

18  development organizations in undertaking projects, in concert

19  with state and local government and private enterprise,

20  designed to create and maintain a sound industrial base, to

21  revitalize the health of established commercial areas, to

22  promote and retain employment opportunities, to preserve and

23  rehabilitate existing residential neighborhoods, and to

24  provide safe, decent, affordable housing for residents of

25  these areas. The Legislature, therefore, declares that the

26  development, redevelopment, preservation, restoration, and

27  revitalization of such communities and all the purposes of

28  this act are public purposes for which public moneys may be

29  used. This section shall stand repealed on June 30, 2007.

30         Section 4.  Section 290.033, Florida Statutes, is

31  amended to read:

                                  3

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                                                   HOUSE AMENDMENT

    hbd-06                Bill No. CS for CS for SB 2524, 2nd Eng.

    Amendment No.     (for drafter's use only)





 1         (Substantial rewording of section.  See

 2         s. 290.033, F.S., for present text.)

 3         290.033  Definitions.--As used in this act, the term:

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

 5  Affairs.

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

 7  community-based nonprofit organization, which may also be

 8  known as a "CBDO," that is committed to or engaged in

 9  developing or managing real estate or business enterprises in

10  economically distressed neighborhoods. To qualify, an agency

11  must be community based in that the majority of the board is

12  elected by a mix of stakeholders consisting of area residents,

13  area business and property owners, and persons employed in the

14  service area and demonstrate an ability to undertake

15  affordable housing, business assistance, or commercial

16  developments.

17         (3)  "Fund" means the Operating Trust Fund.

18         (4)  "Neighborhood comprehensive revitalization plan"

19  means a long-term holistic, integrated, and collaborative

20  strategic plan for the improvement of a defined service area

21  or neighborhood that was prepared by and approved by a

22  collaborative partnership of residents, community-based

23  organizations, local government representatives, churches,

24  schools, businesses, and other community stakeholders that

25  sets forth the shared vision for the service area and

26  identifies specific, measurable outcomes. This comprehensive,

27  holistic plan shall address the wide array of interrelated

28  needs including, but not limited to, human services, jobs and

29  economic development, housing, safety, public infrastructure,

30  health care, education, community organization, neighborhood

31  governance, and social organizations. The plan must describe

                                  4

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                                                   HOUSE AMENDMENT

    hbd-06                Bill No. CS for CS for SB 2524, 2nd Eng.

    Amendment No.     (for drafter's use only)





 1  an organization's mission; include strategies to maintain

 2  community involvement; demonstrate innovation, efficiency, and

 3  accountability to the benefit of the service area

 4  stakeholders; and identify sources of anticipated revenue.

 5         (5)  "Project" means a public and private activity or

 6  series of activities, designed to be carried out in a

 7  specific, definable location, that achieve objectives which

 8  are consistent with the agency's neighborhood comprehensive

 9  revitalization plan and the provisions and intent of this act.

10         (6)  "Secretary" means the Secretary of Community

11  Affairs.

12         (7)  "Service area" or "target area" means the entire

13  area in which a community-based development organization

14  operates and in which community development grant and loan

15  funds are to be spent.

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

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

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

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

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

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

22  employment, and which is not a permanent job.

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

24  2007.

25         Section 5.  Section 290.035, Florida Statutes, is

26  amended to read:

27         290.035  Eligibility for assistance.--Community-based

28  community development organizations corporations meeting the

29  following requirements shall be eligible for assistance:

30         (1)  The community-based community development

31  organization corporation must be a nonprofit corporation under

                                  5

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                                                   HOUSE AMENDMENT

    hbd-06                Bill No. CS for CS for SB 2524, 2nd Eng.

    Amendment No.     (for drafter's use only)





 1  state law or a local development company established under

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

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

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

 5  meet the following further requirements:

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

 7  residents 18 years of age or older.

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

 9  those members of the corporation who are stakeholders

10  comprised of a mix of service area residents, area business

11  and property owners, and area employees.

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

13  third of the elected board members so that elected members

14  serve terms of no more than 3 years.

15         (d)  Elections must be adequately publicized within the

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

17  participation.

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

19  appointed by the Governor.

20         (2)  The community-based community development

21  organization corporation shall maintain a service area in

22  which economic development projects are located which meets

23  one or more of the following criteria:

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

25  163.355 as a slum area or a blighted area as defined in s.

26  163.340(7) or (8) or is located completely within the

27  boundaries of a slum or blighted area.

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

29  program area in which community development block grant funds

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

31  years as certified by the local government in which the

                                  6

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                                                   HOUSE AMENDMENT

    hbd-06                Bill No. CS for CS for SB 2524, 2nd Eng.

    Amendment No.     (for drafter's use only)





 1  service area is located.

 2         (c)  The area is a neighborhood housing service

 3  district.

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

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

 6  pursuant to s. 290.0065.

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

 8  and enterprise communities.

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

10  1998.

11         Section 6.  Section 290.036, Florida Statutes, is

12  amended to read:

13         (Substantial rewording of section.  See

14         s. 290.036, F.S., for present text.)

15         290.036  Community-based development organization

16  support program; administrative grants and procedures.--

17         (1)  The department is authorized to award core and

18  project administrative grants and project implementation

19  loans. Administrative grants shall be used for staff salaries

20  and administrative expenses for eligible community-based

21  development organizations selected through a competitive

22  three-tiered process. The department shall develop a set of

23  criteria for three-tiered funding that shall ensure equitable

24  geographic distribution of the funding throughout the state.

25  This three-tiered plan shall include emerging, intermediate,

26  and mature community-based development organizations

27  recognizing the varying needs of the three tiers. Funding

28  shall be provided for core administrative grants for all

29  levels of community-based development organizations. Priority

30  shall be given to those organizations that demonstrate

31  community-based high performance. Project administrative

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                                                   HOUSE AMENDMENT

    hbd-06                Bill No. CS for CS for SB 2524, 2nd Eng.

    Amendment No.     (for drafter's use only)





 1  grants tied to project implementation loans shall be available

 2  to all levels of community-based development organizations

 3  depending upon their capacity. Extensive training and

 4  technical assistance shall be available to all community-based

 5  development organizations. Persons, equipment, supplies, and

 6  other resources funded in whole or in part by grant funds

 7  shall then be utilized to further the purposes of this act.

 8  Eligible activities include, but are not limited to:

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

10  fundraising letters, and other documents essential to securing

11  additional administrative or project funds to further the

12  purposes of this act.

13         (b)  Monitoring and administrating grants and loans,

14  providing technical assistance to businesses, and any other

15  administrative tasks essential to maintaining funding

16  eligibility or meeting contractual obligations.

17         (c)  Developing local programs to encourage the

18  participation of financial institutions, insurance companies,

19  attorneys, architects, engineers, planners, law enforcement

20  officers, developers, and other professional firms and

21  individuals providing services beneficial to redevelopment

22  efforts.

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

24  financial assistance and information to businesses and

25  entrepreneurs interested in locating, expanding, or operating

26  in the service area.

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

28  governments and other nonprofit organizations to ensure that

29  activities meet local plans and ordinances and to avoid

30  duplication of tasks.

31         (f)  Preparing plans or performing research to identify

                                  8

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                                                   HOUSE AMENDMENT

    hbd-06                Bill No. CS for CS for SB 2524, 2nd Eng.

    Amendment No.     (for drafter's use only)





 1  critical needs within the service area and developing

 2  approaches to address those needs.

 3         (g)  Assisting service area residents in identifying

 4  and determining eligibility for state, federal, and local

 5  housing programs including rehabilitation, weatherization,

 6  homeownership, rental assistance, or public housing programs.

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

 8  for very-low-income persons, low-income persons, or WAGES

 9  recipients; or developing, owning, and managing industrial

10  parks providing jobs to very-low-income persons, low-income

11  persons, or WAGES recipients.

12         (i)  Preparing the neighborhood comprehensive

13  revitalization plan with baseline data, outcome measures, and

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

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

16  units of commercial, industrial, or affordable housing

17  developments.

18         (2)  A community-based development organization

19  applying for an administrative grant pursuant to this section

20  must submit a proposal to the department which includes:

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

22  areas for the community-based development organization.

23         (b)  A copy of the documents creating the

24  community-based development organization.

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

26  including individual terms of office.

27         (d)  An annual plan that describes the expenditure of

28  the funds, including goals, objectives, and expected results,

29  and which has a clear relationship to the agency's

30  neighborhood comprehensive revitalization strategy.

31         (e)  Other supporting information which may be required

                                  9

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                                                   HOUSE AMENDMENT

    hbd-06                Bill No. CS for CS for SB 2524, 2nd Eng.

    Amendment No.     (for drafter's use only)





 1  by the department.

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

 3  emerging community-based development organization in any 1

 4  year shall be no more than $50,000. The amount of any core

 5  administrative grant to an intermediate community-based

 6  development organization shall be no more than $45,000. The

 7  amount of core administrative grant to a mature

 8  community-based development organization shall be no more than

 9  $40,000. The department may fund as many community-based

10  development organizations each year as is permitted based on

11  the level of funds provided for in the General Appropriations

12  Act.

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

14  any community-based development organization shall be no more

15  than $15,000 for every $100,000 of project implementation

16  loans.

17         (5)  A community-based development organization that

18  receives funding hereunder shall submit to the department an

19  annual year-end audit performed by an independent certified

20  public accountant.

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

22  the department shall develop and consider scoring criteria

23  including, but not limited to, the following:

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

25  areas of the community-based development organization.

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

27  development organization to improve the economic health of the

28  service area and carry out the activities contained in the

29  long-term revitalization plan.

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

31  development organization would provide assistance to

                                  10

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                                                   HOUSE AMENDMENT

    hbd-06                Bill No. CS for CS for SB 2524, 2nd Eng.

    Amendment No.     (for drafter's use only)





 1  very-low-income persons, low-income persons, and particularly

 2  WAGES recipients.

 3         (d)  The service area of the community-based

 4  development organization which is located in whole or in part

 5  within a state enterprise zone designated pursuant to s.

 6  290.0065, a federal empowerment zone, or an enterprise

 7  community.

 8         (e)  The extent to which the proposal would further the

 9  policy and purposes of this act.

10         (7)  The department is authorized to award project

11  administrative grants from the fund to community-based

12  development organizations for staff salaries, administrative

13  expenses, and the added cost of technical assistance directly

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

15  including business, commercial, or affordable housing

16  developments. Eligible organizations shall apply for

17  competitive funding under the three categories of: business

18  assistance, commercial, and affordable housing development.

19  The allocations of funds to these three categories will be

20  made by the department subject to funding availability and

21  trends in the amount of qualified proposals submitted under

22  each category. Community-based development organizations

23  receiving funds under this section shall be subject to all

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

25  290.038, and 290.039, as determined by the department.

26         (8)  The department shall award funding hereunder based

27  upon a three-tiered approach which recognizes the differing

28  capacities of new and emerging, intermediate, and mature

29  community-based development organizations. No community-based

30  development organization may apply for funding in more than

31  one tier in any 1 fiscal year.

                                  11

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                                                   HOUSE AMENDMENT

    hbd-06                Bill No. CS for CS for SB 2524, 2nd Eng.

    Amendment No.     (for drafter's use only)





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

 2  development organizations, shall offer, on a competitive

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

 4  $50,000, annually. Once tier I community-based development

 5  organizations have achieved a minimum level of capacity, they

 6  shall be eligible to apply for, on a competitive funding

 7  basis, a project implementation loan of no more than $100,000

 8  and an accompanying project administrative grant of up to

 9  $15,000. Tier I community-based development organizations

10  shall also receive extensive training and technical assistance

11  designed to enhance the organization's capacity and thereby

12  enable it to undertake more complex development projects.

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

14  development organizations, shall be eligible to apply on a

15  competitive basis for core administrative grants of up to

16  $45,000, annually, and shall be eligible to apply for, on a

17  competitive basis, project implementation loans of up to

18  $300,000, annually, per community-based development

19  organization and an accompanying project administrative grant

20  of up to $45,000. Tier II community-based development

21  organizations shall also receive training and technical

22  assistance services hereunder.

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

24  development organizations, shall be eligible to apply, on a

25  competitive basis, for core administrative grants of up to

26  $40,000, annually.  Such community-based development

27  organizations shall be eligible to apply for, on a competitive

28  basis, project implementation loans of up to $400,000,

29  annually, per community-based development organization and an

30  accompanying project administrative grant of up to $60,000.

31  Tier III community-based development organizations shall also

                                  12

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                                                   HOUSE AMENDMENT

    hbd-06                Bill No. CS for CS for SB 2524, 2nd Eng.

    Amendment No.     (for drafter's use only)





 1  receive training and technical assistance services hereunder.

 2         (d)  No development project funded hereunder shall

 3  exceed $200,000, annually, per community-based development

 4  organization. A community-based development organization can

 5  apply for project implementation loans in up to three

 6  categories of business development, affordable housing, and

 7  commercial development, within the dollar limitations

 8  contained herein. Project implementation grants shall be based

 9  on up to $15,000 in grant funds for every $100,000 awarded in

10  loan funds.

11         (9)  A community-based development organization

12  applying for project administrative grants pursuant to this

13  section must submit a proposal to the department which

14  includes:

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

16  areas for the community-based development organization.

17         (b)  A copy of the documents creating the

18  community-based development organization.

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

20  including individual terms of office.

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

22  organization's neighborhood comprehensive revitalization plan.

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

24  potential impact of the business enterprise or residential,

25  commercial, or industrial development which shows a clear

26  relationship to the organization's neighborhood comprehensive

27  revitalization plan and demonstrates how the proposed

28  expenditures are directly related to the project.

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

30  the department shall develop and consider scoring criteria,

31  including, but not limited to, the following:

                                  13

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                                                   HOUSE AMENDMENT

    hbd-06                Bill No. CS for CS for SB 2524, 2nd Eng.

    Amendment No.     (for drafter's use only)





 1         (a)  The reasonableness of project goals and production

 2  schedules.

 3         (b)  Prior experience and performance of the applicant

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

 5  developments.

 6         (c)  The extent of financial leveraging with private

 7  and public funding.

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

 9  development organization to improve the economic health of the

10  target area as seen by the reasonableness of its comprehensive

11  neighborhood revitalization plan and the impact of the

12  proposed project.

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

14  very-low-income persons, low-income persons, and particularly

15  WAGES recipients.

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

17  community-based development organization, in whole or in part,

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

19  1995, in accordance with s. 290.0065 or a federal empowerment

20  zone or enterprise community.

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

22  policy and purposes of this act.

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

24  2007.

25         Section 7.  Section 290.0365, Florida Statutes, is

26  amended to read:

27         (Substantial rewording of section. See

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

29         290.0365  Community-based development training and

30  technical assistance program.--

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

                                  14

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                                                   HOUSE AMENDMENT

    hbd-06                Bill No. CS for CS for SB 2524, 2nd Eng.

    Amendment No.     (for drafter's use only)





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

 2  finds and declares that:

 3         (a)  Significant declines in resources make it

 4  difficult for community-based development organizations to

 5  generate sufficient revenues from business enterprises or real

 6  estate ventures in low-income neighborhoods to fund the

 7  predevelopment costs, technical assistance, and other

 8  administrative expenses needed to foster new developments.

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

10  developments is becoming increasingly complex and

11  community-based development organizations, even those with

12  considerable experience, often lack the expertise to structure

13  project financing, partnerships, and joint ventures to

14  accelerate and expand development activities in distressed

15  communities.

16         (c)  Local governments and private lenders are

17  demonstrating a willingness to provide risk capital and

18  project financing, but they are seldom able to provide

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

20  development organizations.

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

22  provide community-based development organizations with the

23  necessary training and technical support to plan, implement,

24  and manage job-generating and revenue-generating developments

25  in distressed neighborhoods. This will strengthen the

26  organizational capacity of community-based development

27  organizations, assist local governments to enhance and expand

28  revitalization efforts, and contribute to expanding the base

29  of commerce, business, and affordable housing that will

30  benefit persons who are very-low-income, low-income, or WAGES

31  recipients.

                                  15

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                                                   HOUSE AMENDMENT

    hbd-06                Bill No. CS for CS for SB 2524, 2nd Eng.

    Amendment No.     (for drafter's use only)





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

 2  Department of Community Affairs shall be responsible for

 3  securing the necessary expertise, which may include

 4  subcontracts with nonprofit organizations, to provide training

 5  and technical support to the staff and board of

 6  community-based development organizations, as appropriate, and

 7  to persons forming such organizations, which are formed for

 8  the purpose of redeveloping commercial and residential areas

 9  and revitalizing businesses within distressed neighborhoods

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

11  residents, and WAGES recipients.

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

13  organizations receiving administrative grants through a

14  developmental curriculum to build board and staff capacities

15  to implement or manage affordable housing, commercial, or

16  business enterprises. Training will include, but not be

17  limited to, resource development, project management, real

18  estate financing, business or venture plan development,

19  strategic planning for community economic development, and

20  community leadership and participation.

21         (b)  The technical assistance provider shall conduct

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

23  a technical assistance plan for new and emerging

24  organizations. The scope and nature of the training will

25  compliment the annual performance objectives of the

26  organizations from the development of a neighborhood

27  comprehensive revitalization plan.

28         (c)  Technical support shall be provided to

29  community-based development organizations receiving project

30  administrative grants, as appropriate, in methods of financing

31  and structuring housing, business, or commercial development

                                  16

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                                                   HOUSE AMENDMENT

    hbd-06                Bill No. CS for CS for SB 2524, 2nd Eng.

    Amendment No.     (for drafter's use only)





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

 2  assistance secured by either the department or by the

 3  community-based development organization.

 4         (d)  The department shall coordinate the technical

 5  assistance and training in support of affordable housing

 6  development with programs funded under s. 420.606.

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

 8  development organizations to participate in the training based

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

10  need.

11         (4)  REPEAL.--This section shall stand repealed on June

12  30, 2007.

13         Section 8.  Section 290.037, Florida Statutes, is

14  amended to read:

15         (Substantial rewording of section.  See

16         s. 290.037, F.S., for present text.)

17         290.037  Community development project implementation

18  loan program.--

19         (1)  The department is authorized to make loans, within

20  the limits of specific appropriations, to eligible applicants

21  for the following purposes:

22         (a)  Financial assistance to a new or existing business

23  venture located within a community-based development

24  organization service area;

25         (b)  New construction or substantial rehabilitation of

26  housing to be utilized by very-low-income and low-income

27  families and individuals, and WAGES recipients; and

28         (c)  Commercial developments located within the

29  community-based development organization's service area.

30         (2)  A community-based development organization

31  applying for a loan pursuant to this section must submit the

                                  17

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                                                   HOUSE AMENDMENT

    hbd-06                Bill No. CS for CS for SB 2524, 2nd Eng.

    Amendment No.     (for drafter's use only)





 1  information required by s. 290.036(2).

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

 3  development organization exceed 40 percent of the total annual

 4  appropriation for loans during any given year or $400,000,

 5  whichever is less.

 6         (4)  A community-based development organization that

 7  receives a loan shall submit to the department an annual audit

 8  performed by an independent certified public accountant;

 9  however, this subsection shall not be construed to require the

10  submittal of more than one audit by an individual

11  community-based development organization submitting pursuant

12  to s. 290.036.

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

14  the department shall consider:

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

16  capacity of the venture to repay the loan.

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

18  area.

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

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

21  committed.

22         (d)  The demonstrated inability of the borrower to

23  secure funding from conventional sources at the terms offered

24  by the community-based development organization.

25         (e)  The number of temporary and permanent jobs

26  generated by the project.

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

28  long term on local economic and social conditions.

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

30  or provides assistance to very-low-income individuals,

31  low-income individuals, or job-displaced individuals or WAGES

                                  18

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                                                   HOUSE AMENDMENT

    hbd-06                Bill No. CS for CS for SB 2524, 2nd Eng.

    Amendment No.     (for drafter's use only)





 1  recipients.

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

 3  development organization and technical assistance providers to

 4  see that the project is successfully carried out and managed.

 5         (6)  Loans permitted under this section for affordable

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

 7  second, or other subordinated mortgage loans or loan

 8  guarantees in the construction of single-family homeownership

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

10  persons and low-income persons and WAGES recipients in the

11  target area.

12         (7)  All loans to a community-based development

13  organization shall be at interest rates not to exceed 3

14  percent and shall be repaid within 15 years or on a basis

15  approved by the department, except as provided in subsection

16  (8).

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

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

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

20  Operating Trust Fund. When losses are incurred, the

21  community-based development organization shall make a diligent

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

23  the business venture, including foreclosure of security and

24  recovery from guarantors. Upon completion of all such efforts

25  to the satisfaction of the department, the department shall

26  write off the unpaid balance of the loan.

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

28  2007.

29         Section 9.  Paragraph (f) of subsection (2) and

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

31  amended to read:

                                  19

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                                                   HOUSE AMENDMENT

    hbd-06                Bill No. CS for CS for SB 2524, 2nd Eng.

    Amendment No.     (for drafter's use only)





 1         290.038  Authority and duties of the department.--

 2         (2)  The department may:

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

 4  community development organizations corporations to help

 5  achieve and increase their capacity to administer programs

 6  pursuant to this act and provide technical assistance and

 7  advice to community-based community development organizations

 8  corporations involved with these programs.

 9         (3)  The department shall be the state agency

10  responsible for implementation of the urban redevelopment

11  efforts, and shall:

12         (a)  Provide grants and loans authorized under the

13  INVEST initiative.

14         (b)  Provide grants to community-based development

15  organizations to support the development of the neighborhood

16  collaboration and its community redevelopment plan.

17         (c)  Provide a clearinghouse function to assist in

18  identifying resources available to implement community

19  redevelopment strategies.

20         (d)  Provide staff coordinator to designated Rebuilding

21  Urban Neighborhoods initiatives.

22         (e)  Provide for technical assistance to neighborhoods

23  from any agency of the state, the state university system, and

24  other private providers in areas including identification of

25  stakeholders, consensus building, meeting facilitation,

26  conflict resolution, group decisionmaking, community planning

27  processes, outcome measurement, and capacity building for

28  organizations.

29         (4)(3)  This section shall stand repealed on June 30,

30  2007 1998.

31         Section 10.  Section 290.039, Florida Statutes, is

                                  20

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                                                   HOUSE AMENDMENT

    hbd-06                Bill No. CS for CS for SB 2524, 2nd Eng.

    Amendment No.     (for drafter's use only)





 1  amended to read:

 2         (Substantial rewording of section.  See

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

 4         290.039  Reporting requirements.--

 5         (1)  Community-based development organizations which

 6  receive funds under INVEST shall provide the following

 7  information to the department annually:

 8         (a)  A listing of business firms and individuals

 9  assisted by the community-based development organization

10  during the reporting period.

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

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

13  community-based development organization during the reporting

14  period.

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

16  the community-based development organization.

17         (d)  A listing of the salaries and administrative

18  expenses of the community-based development organization.

19         (e)  An identification and explanation of changes to

20  the target area boundaries.

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

22  balance for the community-based development organization at

23  the beginning and end of the reporting period.

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

25  the number and description of projects completed, and a

26  written explanation of the reasons that caused projects not to

27  be completed.

28         (h)  The impact on target area residents and its

29  relationship to expected outcomes listed in the agency's

30  comprehensive neighborhood revitalization plan, as a result of

31  receiving INVEST funding.

                                  21

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                                                   HOUSE AMENDMENT

    hbd-06                Bill No. CS for CS for SB 2524, 2nd Eng.

    Amendment No.     (for drafter's use only)





 1         (2)  Community-based development organizations which

 2  receive project administrative grants shall provide the

 3  following general information to the department annually:

 4         (a)  A listing of salaries and administrative expenses

 5  of the community-based development organization on approved

 6  projects that receive project administrative grant funding.

 7         (b)  An identification and explanation of changes to

 8  the target area boundaries.

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

10  residents and its relationship to expected outcomes listed in

11  the agency's comprehensive neighborhood revitalization plan.

12         (3)  Community-based development organizations which

13  receive project administrative grants, or a combination of

14  core administrative and project and grant funds, shall provide

15  the following information on applicable projects to the

16  department annually:

17         (a)  The number of housing units rehabilitated or

18  constructed by the community-based development organization

19  within the service area during the reporting period.

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

21  or individual entrepreneurs in the target area during the

22  reporting period.

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

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

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

26  payment history of the borrowers during the reporting period.

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

28  received by individuals who were directly assisted by the

29  community-based development organization through assistance to

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

31         (e)  An identification and explanation of changes to

                                  22

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                                                   HOUSE AMENDMENT

    hbd-06                Bill No. CS for CS for SB 2524, 2nd Eng.

    Amendment No.     (for drafter's use only)





 1  the service area boundaries.

 2         (f)  The impact of the completed project on target area

 3  residents and its relationship to expected outcomes listed in

 4  the agency's comprehensive neighborhood revitalization plan.

 5         (g)  Such other information as the department may

 6  require.

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

 8  the Speaker of the House of Representatives and the President

 9  of the Senate which contains the cumulative data submitted by

10  the individual community-based development organizations

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

12  January 1 of each year.

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

14  2007.

15         Section 11.  Section 290.0395, Florida Statutes, is

16  amended to read:

17         (Substantial rewording of section.  See

18         s. 290.0395, F.S., for present text.)

19         290.0395  Program performance review and evaluation.--

20         (1)  Each community-based development organization

21  which receives funding under the Invest in Neighborhood

22  Vitality and Economies Program shall be subject to an annual

23  performance review by the department. At a minimum, the review

24  shall determine whether contract objectives are being or have

25  been met in a timely and efficient manner, expected project

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

27  completed projects produced the results desired by the

28  community-based development organization as stated in its

29  comprehensive neighborhood revitalization plan and other

30  supporting documentation for receipt of the grants or loans.

31         (2)  Prior to the 2007 Regular Session of the

                                  23

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                                                   HOUSE AMENDMENT

    hbd-06                Bill No. CS for CS for SB 2524, 2nd Eng.

    Amendment No.     (for drafter's use only)





 1  Legislature, the Office of Program Policy Analysis and

 2  Government Accountability shall perform an evaluation of ss.

 3  290.0301-290.039, using the reporting data specified in s.

 4  290.039 and any other data identified by the department and

 5  the Office of Program Policy Analysis and Government

 6  Accountability as crucial to the evaluation of this program.

 7  The report shall critique the Invest in Neighborhood Vitality

 8  and Economies Program and shall include an analysis of the

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

10  and collaborative efforts of the organizations and partners

11  within the service area.

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

13  the Office of Program Policy Analysis and Government

14  Accountability shall be submitted to the President of the

15  Senate and the Speaker of the House of Representatives prior

16  to the 2007 Regular Session.

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

18  2007.

19         Section 12.  Section 290.055, Florida Statutes, is

20  created to read:

21         290.055  Rebuilding Urban Neighborhoods Initiative.--

22         (1)  SHORT TITLE.--This section shall be known and may

23  be cited as the "Rebuilding Urban Neighborhoods Initiative."

24         (2)  PURPOSE.--The Department of Community Affairs

25  shall carry out, in accordance with this section, a training

26  and technical assistance program to rebuild urban

27  neighborhoods through coordinated urban community

28  redevelopment, utilizing effective state and local government

29  and neighborhood partnerships that will leverage resources

30  needed to improve living conditions for children and families.

31         (3)  PROGRAM.--The department will provide planning

                                  24

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                                                   HOUSE AMENDMENT

    hbd-06                Bill No. CS for CS for SB 2524, 2nd Eng.

    Amendment No.     (for drafter's use only)





 1  grants and technical assistance to communities seeking to

 2  revitalize distressed areas using the principles of holistic

 3  and collaborative planning and service delivery. A community

 4  based organization (CBO) will be eligible to receive

 5  assistance from the department upon certification by the

 6  department that identified readiness criteria are in place.

 7         (4)  ROLES.--

 8         (a)  The Department of Community Affairs.--The

 9  department will provide:

10         1.  Administration and oversight of the planning grant

11  program.

12         2.  Technical assistance through existing programs of

13  the department in the areas of planning, affordable housing,

14  public safety, social services, energy conservation,

15  infrastructure, and building collaborative, holistic

16  initiatives.

17         3.  A clearinghouse to disseminate information

18  resulting from the research and successful outreach activities

19  of numerous initiatives as well as information on available

20  state and federal resources to carry out redevelopment

21  initiatives.

22         4.  Coordination of the delivery of technical

23  assistance and other resources from other state entities to

24  develop and implement comprehensive neighborhood

25  revitalization plans. These other state entities will include

26  the Florida Housing Finance Corporation for affordable housing

27  programs, Enterprise Florida, Inc., and the Office of Tourism,

28  Trade, and Economic Development for business development and

29  job creation programs.

30         (b)  The State University System.--The State University

31  System, through a coordinating entity whose mission is to

                                  25

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                                                   HOUSE AMENDMENT

    hbd-06                Bill No. CS for CS for SB 2524, 2nd Eng.

    Amendment No.     (for drafter's use only)





 1  provide outreach to local governments and distressed

 2  communities in redevelopment initiatives, is empowered to

 3  provide expert technical assistance and facilitation services

 4  to these initiatives.

 5         (c)  Community based organizations.--Community based

 6  organizations will perform the principal leadership function

 7  at the local level, being responsible for organizing a

 8  collaborative approach to community involvement and a holistic

 9  neighborhood improvement strategy to guide immediate and

10  long-term improvements.

11         (5)  READINESS CRITERIA.--In order to be selected by

12  the department to receive state funding support, an initiative

13  must have the following elements:

14         (a)  A well defined, small neighborhood having

15  conditions of blight and distress.

16         (b)  A lead community-based development organization

17  with the capacity to guide and sustain a collaborative,

18  long-term initiative.

19         (c)  Evidence of a collaborative team.

20         (d)  Demonstrated local government commitment.

21         (e)  Commitment to a planning/implementation model

22  having documented baseline data, multiple elements (holistic

23  and comprehensive), measurable outcomes, and an evaluation

24  component.

25         (6)  REPORTS.--The department shall submit an annual

26  report to the Committees on Community Affairs in the House of

27  Representatives and the Senate. The report shall contain a

28  summary of activities carried out under this section during

29  the preceding fiscal year, and findings and conclusions drawn

30  from such activities.

31         Section 13.  Section 290.034, Florida Statutes, is

                                  26

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                                                   HOUSE AMENDMENT

    hbd-06                Bill No. CS for CS for SB 2524, 2nd Eng.

    Amendment No.     (for drafter's use only)





 1  repealed.

 2         Section 14.  Section 189.427, Florida Statutes, is

 3  amended to read:

 4         189.427  Fee schedule; Operating Trust Fund.--The

 5  Department of Community Affairs, by rule, shall establish a

 6  schedule of fees to pay one-half of the costs incurred by the

 7  department in administering this act, except that the fee may

 8  not exceed $175 per district per year. The fees collected

 9  under this section shall be deposited in the Operating Trust

10  Fund established under s. 290.034, which shall be administered

11  by the Department of Community Affairs. Any fee rule must

12  consider factors such as the dependent and independent status

13  of the district and district revenues for the most recent

14  fiscal year as reported to the Department of Banking and

15  Finance. The department may assess fines of not more than $25,

16  with an aggregate total not to exceed $50, as penalties

17  against special districts that fail to remit required fees to

18  the department. It is the intent of the Legislature that

19  general revenue funds will be made available to the department

20  to pay one-half of the cost of administering this act.

21         Section 15.  Subsection (7) of section 252.82, Florida

22  Statutes, is amended to read:

23         252.82  Definitions.--As used in this part:

24         (7)  "Trust fund" means the Operating Trust Fund

25  established in s. 290.034.

26         Section 16.  Subsection (1) of section 943.25, Florida

27  Statutes, is amended to read:

28         943.25  Criminal justice trust funds; source of funds;

29  use of funds.--

30         (1)  The Department of Community Affairs may approve,

31  for disbursement from the Operating Trust Fund established

                                  27

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                                                   HOUSE AMENDMENT

    hbd-06                Bill No. CS for CS for SB 2524, 2nd Eng.

    Amendment No.     (for drafter's use only)





 1  pursuant to s. 290.034, those appropriated sums necessary and

 2  required by the state for grant matching, implementing,

 3  administering, evaluating, and qualifying for such federal

 4  funds. Disbursements from the trust fund for the purpose of

 5  supplanting state general revenue funds may not be made

 6  without specific legislative appropriation.

 7         Section 17.  Section 420.0007, Florida Statutes, is

 8  created to read:

 9         420.0007  Exemption from property taxation for

10  charitable non-profit low income housing

11  properties.--Properties owned entirely by nonprofit

12  corporations which are defined as charitable organizations

13  under s. 501(c)(3) of the Internal Revenue Code and comply

14  with the Internal Revenue Procedure 96-32 and which provide

15  housing to low-income and very-low-income persons, as defined

16  in s. 420.0004, shall be considered charitable and exempt from

17  ad valorem taxation under chapter 196, to the extent

18  authorized under s. 196.192.

19         Section 18.  Subsection (11) is added to section

20  290.0065, Florida Statutes, to read:

21         290.0065  State designation of enterprise zones.--

22         (11)  Before December 31, 1998, the governing body of a

23  county in which an enterprise zone designated pursuant to

24  paragraph (5)(b) is located may apply to the Office of

25  Tourism, Trade, and Economic Development to amend the

26  boundaries of the enterprise zone for the purpose of replacing

27  areas not suitable for development.  The Office of Tourism,

28  Trade, and Economic Development shall approve the application

29  if it does not increase the overall size of the enterprise

30  zone.

31

                                  28

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                                                   HOUSE AMENDMENT

    hbd-06                Bill No. CS for CS for SB 2524, 2nd Eng.

    Amendment No.     (for drafter's use only)





 1  ================ T I T L E   A M E N D M E N T ===============

 2  And the title is amended as follows:

 3         On page 1, line 2, after the semicolon

 4

 5  insert:

 6         amending s. 290.0301, F.S.; changing the title

 7         of the "Community Development Corporation

 8         Support and Assistance Program Act" to the

 9         "Invest in Neighborhood Vitality and Economies

10         Act"; advancing the date of the repeal of the

11         act to June 30, 2007; amending s. 290.0311,

12         F.S.; revising language with respect to

13         legislative findings; providing reference to

14         community-based development organizations;

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

16         with respect to policy and purpose; amending s.

17         290.033, F.S.; providing definitions; amending

18         s. 290.035, F.S.; revising language with

19         respect to eligibility for assistance; amending

20         s. 290.036, F.S.; providing for the

21         community-based development organization

22         support program; providing for core and project

23         administrative grants and procedures; amending

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

25         community-based development training and

26         technical assistance program; amending s.

27         290.037, F.S.; providing for a community

28         development project implementation loan

29         program; amending s. 290.038, F.S.; revising

30         language with respect to the authority and

31         duties of the Department of Community Affairs;

                                  29

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                                                   HOUSE AMENDMENT

    hbd-06                Bill No. CS for CS for SB 2524, 2nd Eng.

    Amendment No.     (for drafter's use only)





 1         amending s. 290.039, F.S.; revising language

 2         with respect to reporting requirements;

 3         amending s. 290.0395, F.S.; providing for

 4         program performance review and evaluation;

 5         creating s. 290.055, F.S.; creating the

 6         Rebuilding Urban Neighborhoods Initiative;

 7         repealing s. 290.034, F.S., relating to funding

 8         and use of the Operating Trust Fund; amending

 9         ss. 189.427, 252.82, and 943.25 to conform to

10         this act;  creating s. 420.0007, F.S.;

11         providing an exemption from property taxation

12         for charitable non-profit low income housing

13         properties; amending s. 290.0065, F.S.;

14         providing for amendment of the boundaries of an

15         enterprise zone designated pursuant to s.

16         290.0065(5)(b), F.S., upon application by the

17         county to the Office of Tourism, Trade, and

18         Economic Development;

19

20

21

22

23

24

25

26

27

28

29

30

31

                                  30

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