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House Bill 3111

Florida House of Representatives - 1998 HB 3111 By Representative Bradley 1 A bill to be entitled 2 An act relating to affordable housing; amending 3 s. 290.0301, F.S.; changing the title of the 4 "Community Development Corporation Support and 5 Assistance Program Act" to the "Invest in 6 Neighborhood Vitality and Economies Act"; 7 advancing the date of the repeal of the act to 8 June 30, 2007; amending s. 290.0311, F.S.; 9 revising language with respect to legislative 10 findings; providing reference to 11 community-based development organizations; 12 amending s. 290.032, F.S.; revising language 13 with respect to policy and purpose; amending s. 14 290.033, F.S.; providing definitions; amending 15 s. 290.034, F.S.; revising language with 16 respect to funding; amending s. 290.035, F.S.; 17 revising language with respect to eligibility 18 for assistance; amending s. 290.036, F.S.; 19 providing for the community-based development 20 organization support program; providing for 21 administrative grants and procedures; providing 22 for incentive awards; amending s. 290.0365, 23 F.S.; providing for a community-based 24 development training and technical assistance 25 program; amending s. 290.037, F.S.; revising 26 language with respect to the community 27 development deferred payment loan program; 28 amending s. 290.038, F.S.; revising language 29 with respect to the authority and duties of the 30 Department of Community Affairs; amending s. 31 290.039, F.S.; revising language with respect 1 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1998 HB 3111 547-128-98 1 to reporting requirements; amending s. 2 290.0395, F.S.; providing for program 3 performance review and evaluation; providing an 4 effective date. 5 6 Be It Enacted by the Legislature of the State of Florida: 7 8 Section 1. Section 290.0301, Florida Statutes, is 9 amended to read: 10 290.0301 Short title.--Sections 290.0311 through 11 290.0395 shall be known and may be cited as the "Invest in 12 Neighborhood Vitality and Economies Act Community Development 13 Corporation Support and Assistance Program Act." This section 14 shall stand repealed on June 30, 2007 1998. 15 Section 2. Subsections (5), (10), and (11) of section 16 290.0311, Florida Statutes, are amended to read: 17 290.0311 Legislative findings.--The Legislature finds 18 that: 19 (5) This deterioration contributes to the decline of 20 neighborhoods in both rural and urban and surrounding areas, 21 causes a reduction of the value of property comprising the tax 22 base of local communities, and eventually requires the 23 expenditure of disproportionate amounts of public funds for 24 health, social services, and police protection to prevent the 25 development of slums and the social and economic disruption 26 found in slum communities. 27 (10) A viable means of eliminating or reducing these 28 deteriorating economic conditions and encouraging local 29 resident participation and support is to provide support 30 assistance and resource investment to community-based 31 community development organizations corporations. The 2 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1998 HB 3111 547-128-98 1 Legislature also finds that community-based development 2 organizations can contribute to the creation of jobs in 3 response to federal WAGES legislation. 4 (11) This section shall stand repealed on June 30, 5 2007 1998. 6 Section 3. Section 290.032, Florida Statutes, is 7 amended to read: 8 290.032 Policy and purpose.--It is the policy of this 9 state to provide the necessary means to preserve and improve 10 the health and vitality of its established communities by 11 enabling them to restore and expand their affordable housing, 12 commercial, and industrial base and to reverse the 13 deterioration of their residential and public-facility assets. 14 The purpose of this act is to assist community development 15 corporations and community housing development organizations 16 in undertaking projects, in concert with state and local 17 government and private enterprise, designed to create and 18 maintain a sound industrial base, to revitalize the health of 19 established commercial areas, to promote and retain employment 20 opportunities, to preserve and rehabilitate existing 21 residential neighborhoods, and to provide safe, decent, 22 affordable housing for residents of these areas. The 23 Legislature, therefore, declares that the development, 24 redevelopment, preservation, restoration, and revitalization 25 of such communities and all the purposes of this act are 26 public purposes for which public money may be used. This 27 section shall stand repealed on June 30, 2007 1998. 28 Section 4. Section 290.033, Florida Statutes, is 29 amended to read: 30 290.033 Definitions.--As used in this act, the term: 31 3 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1998 HB 3111 547-128-98 1 (1) "Department" means the Department of Community 2 Affairs. 3 (2) "Community-based development organization" means a 4 community-based nonprofit organization that is either a 5 community development corporation or a community housing 6 development organization and is committed to or engaged in 7 developing or managing real estate or business enterprises in 8 economically distressed neighborhoods. To qualify, an agency 9 must be community based in that the majority of the board is 10 elected by a mix of area residents, area business owners, and 11 persons employed in the service area, and meet the state's 12 definition of a community development corporation or the 13 United States Department of Housing and Urban Development's 14 definition of a community housing development organization, 15 and demonstrate an ability to undertake affordable housing, 16 business assistance, or commercial developments, and which may 17 also be known as a "CBDO." 18 (3)(2) "Community development corporation" means a 19 community-based organization which facilitates or financially 20 supports affordable housing development, and job-generating 21 and revenue-generating business for the purpose of community 22 and economic development, based in a specific geographic area 23 or multicounty jurisdiction, controlled by a mix of residents, 24 area business owners, and persons employed in the 25 neighborhood, and committed to enhancing community well-being, 26 and which may also be known as a "CDC." 27 (4)(3) "Fund" means the Operating Community 28 Development Support and Assistance Trust Fund. 29 (5) "Neighborhood comprehensive revitalization 30 strategy" means a long-term strategic plan that describes an 31 organization's mission, strategies to maintain community 4 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1998 HB 3111 547-128-98 1 involvement and to demonstrate accountability to the service 2 area residents, sources of anticipated revenue, and a 3 needs-based plan to redevelop residential and commercial 4 properties and revitalize area businesses to the benefit of 5 area residents. 6 (6)(4) "Project" means a public and private activity 7 or series of activities, designed to be carried out in a 8 specific, definable location, that achieves objectives which 9 are consistent with the agency's neighborhood comprehensive 10 revitalization strategy and the provisions and intent of this 11 act. 12 (7)(5) "Secretary" means the Secretary of Community 13 Affairs. 14 (8)(6) "Service area" or "target area" means the 15 entire area in which a community-based community development 16 organization corporation operates and in which community 17 development grant and loan funds are to be spent. 18 (9)(7) "Permanent job" means a full-time position, the 19 duration of which exceeds 12 months and which consists of an 20 average of at least 30 hours per week of employment. 21 (10)(8) "Temporary job" means a full-time or part-time 22 position, the duration of which exceeds 45 days, which 23 consists of an average of at least 15 hours per week of 24 employment, and which is not a permanent job. 25 (11)(9) This section shall stand repealed on June 30, 26 2007 1998. 27 Section 5. Section 290.034, Florida Statutes, is 28 amended to read: 29 290.034 Operating Trust Fund; priority of use.-- 30 (1) The Legislature shall annually provide funding in 31 the General Appropriations Act for the Invest in Neighborhood 5 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1998 HB 3111 547-128-98 1 Vitality and Economies Program Community Development 2 Corporation Support and Assistance Program. The funds 3 appropriated for the program shall be deposited in the State 4 Treasury in a fund established and designated as the Operating 5 Trust Fund, which shall be administered by the department. 6 The appropriation for the program shall be apportioned by the 7 Legislature among between loans, incentives, and 8 administrative grants to community-based community development 9 organizations and technical assistance contracts with 10 nonprofit private organizations corporations. All funds 11 deposited in the trust fund and not needed for immediate 12 disbursement shall be invested pursuant to s. 18.125 and the 13 interest earned shall be deposited in the trust fund. The 14 administrative costs of the program shall be annually set in 15 the General Appropriations Act and shall be funded from the 16 trust fund. 17 (2) The department shall give priority for loans and 18 administrative grants to those community-based community 19 development organizations corporations the service areas of 20 which include a state an enterprise zone as designated on or 21 after July 1, 1995, in accordance with s. 290.0065 or a 22 federal empowerment zone and enterprise community designated 23 pursuant to s. 290.0065. 24 (3) This section shall stand repealed on June 30, 2007 25 1998. 26 Section 6. Section 290.035, Florida Statutes, is 27 amended to read: 28 290.035 Eligibility for assistance.--Community-based 29 community development organizations corporations meeting the 30 following requirements shall be eligible for assistance: 31 6 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1998 HB 3111 547-128-98 1 (1) The community-based community development 2 organization corporation must be a nonprofit corporation under 3 state law or a local development company established under 4 state law and certified to be eligible to participate in the 5 Small Business Administration Loan Program under s. 502 of the 6 Small Business Investment Act of 1958, as amended, and must 7 meet the following further requirements: 8 (a) Its membership must be open to all service area 9 residents 18 years of age or older. 10 (b) A majority of its board members must be elected by 11 those members of the corporation who are comprised of a mix of 12 service area residents, area business owners, and area 13 employees. 14 (c) Elections must be held annually for at least a 15 third of the elected board members so that elected members 16 serve terms of no more than 3 years. 17 (d) Elections must be adequately publicized within the 18 service areas area, and ample opportunity must be provided for 19 full participation. 20 (e) At least one of the board members shall be 21 appointed by the Governor. 22 (2) The community-based community development 23 organization corporation shall maintain a service area in 24 which economic development projects are located which meets 25 one or more of the following criteria: 26 (a) The area has been designated pursuant to s. 27 163.355 as a slum area or a blighted area as defined in s. 28 163.340(7) or (8) or is located completely within the 29 boundaries of a slum or blighted area. 30 (b) The area is a community development block grant 31 program area in which community development block grant funds 7 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1998 HB 3111 547-128-98 1 are currently being spent or have been spent during the last 3 2 years as certified by the local government in which the 3 service area is located. 4 (c) The area is a neighborhood housing service 5 district. 6 (d) The area is contained within a state an enterprise 7 zone designated on or after July 1, 1995, in accordance with 8 pursuant to s. 290.0065. 9 (e) The area is contained in federal empowerment zones 10 and enterprise communities. 11 (3) This section shall stand repealed on June 30, 2007 12 1998. 13 Section 7. Section 290.036, Florida Statutes, is 14 amended to read: 15 290.036 Community-based Community development 16 organization corporation support program; administrative 17 grants and procedures; incentive awards.-- 18 (1) The secretary is authorized to award 19 administrative grants, within the limits of specific 20 appropriations, to organizations established for less than 5 21 years and with no more than two completed real estate or 22 business development projects and an operating budget of less 23 than $75,000 a year. Administrative grants shall be used to 24 eligible applicants for staff salaries and administrative 25 expenses for eligible agencies selected through a competitive 26 process. Persons, equipment, supplies, and other resources 27 funded in whole or in part by grant funds shall then be 28 utilized to further the purposes of this act. Eligible 29 activities include, but are not limited to: 30 (a) Preparing grant and loan applications, proposals, 31 fundraising letters, and other documents essential to securing 8 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1998 HB 3111 547-128-98 1 additional administrative or venture funds to further the 2 purposes of this act. 3 (b) Monitoring and administering grants and loans, 4 providing technical assistance to businesses, and any other 5 administrative tasks essential to maintaining funding 6 eligibility or meeting contractual obligations. 7 (c) Developing local programs to encourage the 8 participation of financial institutions, insurance companies, 9 attorneys, architects, engineers, planners, law enforcement 10 officers, developers, and other professional firms and 11 individuals providing services beneficial to redevelopment 12 efforts. 13 (d) Providing management, technical, accounting, and 14 financial assistance and information to businesses and 15 entrepreneurs interested in locating, expanding, or operating 16 in the service area. 17 (e) Coordinating with state, federal, and local 18 governments and other nonprofit organizations to ensure that 19 activities meet local plans and ordinances and to avoid 20 duplication of tasks. 21 (f) Preparing plans or performing research to identify 22 critical needs within the service area and developing 23 approaches to address those needs. 24 (g) Assisting service area residents in identifying 25 and determining eligibility for state, federal, and local 26 housing programs including rehabilitation, weatherization, 27 home ownership, rental assistance, or public housing programs. 28 (h) Developing, owning, and managing housing designed 29 for low-income and moderate-income persons or industrial parks 30 providing jobs to low-income and moderate-income persons. 31 9 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1998 HB 3111 547-128-98 1 (i) Preparing the neighborhood comprehensive 2 revitalization strategy with estimates of service area impact 3 as a result of job-generating or revenue-generating 4 businesses, or enterprise assistance, or units of commercial, 5 industrial, or affordable housing developments. 6 (2) A community-based community development 7 organization corporation applying for an administrative grant 8 pursuant to this section must submit a proposal to the 9 department which includes: 10 (a) A map and narrative description of the service 11 areas area for the community-based community development 12 organization corporation; 13 (b) A copy of the documents creating the 14 community-based community development organization 15 corporation; 16 (c) A listing of the membership of the board, 17 including individual terms of office; 18 (d) An annual plan or, in the case of a multiyear 19 proposal, a 2-year plan that describes The proposed 3-year 20 plan for expenditure of the funds, including goals, 21 objectives, and expected results, and which has a clear 22 relationship to the agency's neighborhood comprehensive 23 revitalization strategy; and 24 (e) Other supporting information which may be required 25 by the department secretary. 26 (3) The amount of any administrative grant to a 27 community-based community development organization corporation 28 in any one year shall be $50,000 any amount up to $100,000. 29 The department may fund as many community-based up to 18 30 community development organizations corporations each year as 31 is permitted based on the level of funds provided for in the 10 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1998 HB 3111 547-128-98 1 General Appropriations Act. The department shall develop a 2 diminishing scale of funding each year based on the annual 3 appropriation to ensure compliance with this section and s. 4 290.0365. 5 (4) The department may provide grants on a multiyear 6 basis, provided that: 7 (a) Such grants shall not exceed 3 years. 8 (b) Community-based community development 9 organizations corporations designated to receive multiyear 10 grants provide a detailed plan of activities to be 11 accomplished during each year of the grant period. 12 (c) All contracts containing multiyear commitments 13 contain the following statement: "The State of Florida's 14 obligation to pay under this contract is contingent upon an 15 annual appropriation by the Legislature." 16 (5) A community-based community development 17 organization corporation that receives an administrative grant 18 shall submit to the department an annual year-end audit 19 performed by an independent certified public accountant. 20 (6) In evaluating proposals pursuant to this section, 21 the secretary shall develop and consider scoring criteria 22 including, but not limited to, the following: 23 (a) The relative degree of distress of the service 24 areas area of the community-based community development 25 organization corporation. 26 (b) The demonstrable capacity of the community-based 27 community development organization corporation to improve the 28 economic health of the service area and carry out the 29 activities contained in the annual or 2-year 3-year plan. 30 31 11 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1998 HB 3111 547-128-98 1 (c) The degree to which the community-based community 2 development organization corporation would provide assistance 3 to low-income persons. 4 (d) The service area percentage of the community-based 5 community development organization which is located in whole 6 or in part within a state corporation service area which 7 overlaps an enterprise zone designated pursuant to s. 8 290.0065, a federal empowerment zone, or an enterprise 9 community. 10 (e) The extent to which the community development 11 corporation utilizes the loan program authorized by s. 12 290.037. 13 (f) The number of preceding years during the history 14 of the program in which the community development corporation 15 has not received state administrative support. 16 (e)(g) The extent to which the proposal would further 17 the policy and purposes of this act. 18 (7) The secretary is authorized to award incentive 19 grants from the fund to community-based development 20 organizations for staff salaries, administrative expenses, and 21 the added cost of technical assistance directly related to 22 job-generating and revenue-generating enterprises, including 23 business, commercial, or affordable housing developments. 24 Eligible organizations shall apply for competitive funding 25 under the three categories of: business assistance, 26 commercial, and affordable housing development. The 27 allocations of funds to these three categories will be made by 28 the department subject to funding availability and trends in 29 the amount of qualified proposals submitted under each 30 category. Community-based development organizations receiving 31 funds under this section shall be subject to all applicable 12 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1998 HB 3111 547-128-98 1 requirements of ss. 290.035, 290.037, 290.038, and 290.039, as 2 determined by the secretary. 3 (8) Community-based development organizations which 4 have been established for 5 years or longer and have 5 experience in real estate or business development may submit 6 multiple project proposals and may receive incentive awards in 7 no more than two out of the three categories of: business 8 assistance, commercial, and affordable housing development. 9 The maximum amount of incentive awards to any one 10 community-based development organization shall not exceed 11 $100,000 in any given year. 12 (9) The amount of an individual incentive award for a 13 business assistance, commercial, or affordable housing 14 development shall not exceed $50,000 for an approved project 15 in any given year. 16 (10) Multiyear projects may be funded in one incentive 17 award area. For the duration of the project, which shall not 18 exceed 3 years in duration, the agency is not eligible to 19 apply for other incentive awards. The maximum amount of a 20 multiyear incentive award is $100,000 in funding. 21 (11) Community-based development organizations that 22 are receiving second-year and third-year administrative grants 23 are eligible to receive one incentive award for an acceptable 24 project proposal under any of the three categories. The 25 project shall not exceed 2 years in duration. 26 (12) A community-based development organization 27 applying for incentive awards pursuant to this section must 28 submit a proposal to the department which includes: 29 (a) A map and narrative description of the target 30 areas for the community-based development organization. 31 13 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1998 HB 3111 547-128-98 1 (b) A copy of the documents creating the 2 community-based development organization. 3 (c) A listing of the membership of the board, 4 including individual terms of office. 5 (d) A copy of the community-based development 6 organization's neighborhood comprehensive revitalization 7 strategy. 8 (e) A description of the location, financing plan, and 9 potential impact of the business enterprise or residential, 10 commercial, or industrial development which shows a clear 11 relationship to the organization's neighborhood comprehensive 12 revitalization strategy and demonstrates how the proposed 13 expenditures are directly related to the project. 14 (13) In evaluating proposals pursuant to this section, 15 the department shall develop and consider scoring criteria, 16 including, but not limited to, the following: 17 (a) The reasonableness of project goals and production 18 schedules. 19 (b) Prior experience and performance of the applicant 20 in the production of similar housing, commercial, or business 21 developments. 22 (c) The extent of financial leveraging with private 23 and public funding. 24 (d) The demonstrable capacity of the community-based 25 development organization to improve the economic health of the 26 target area as seen by the reasonableness of its comprehensive 27 neighborhood revitalization strategy and the impact of the 28 proposed project. 29 (e) The degree to which the project will benefit 30 very-low-income and low-income persons. 31 14 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1998 HB 3111 547-128-98 1 (f) The location of the target area of the 2 community-based development organization in whole or in part 3 in a state enterprise zone designated on or after July 1, 4 1995, in accordance with s. 290.0065 or a federal empowerment 5 zone or enterprise community. 6 (g) The extent to which the proposal would further the 7 policy and purposes of this act. 8 (14)(7) This section shall stand repealed on June 30, 9 2007 1998. 10 Section 8. Section 290.0365, Florida Statutes, is 11 amended to read: 12 (Substantial rewording of section. See 13 s. 290.0365, F.S., for present text.) 14 290.0365 Community-based development training and 15 technical assistance program.-- 16 (1) LEGISLATIVE FINDINGS.--In addition to the 17 legislative findings set forth in s. 290.0311, the Legislature 18 finds and declares that: 19 (a) Significant declines in resources make it 20 difficult for community development corporations and other 21 nonprofit organizations to generate sufficient revenues from 22 business enterprises or real estate ventures in low-income 23 neighborhoods to fund the predevelopment costs, technical 24 assistance, and other administrative expenses needed to foster 25 new developments. 26 (b) The financing and planning of large-scale 27 developments is becoming increasingly complex and 28 community-based nonprofit organizations, even those with 29 considerable experience, often lack the expertise to structure 30 project financing, partnerships, and joint ventures to 31 15 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1998 HB 3111 547-128-98 1 accelerate and expand development activities in distressed 2 communities. 3 (c) Local governments and private lenders are 4 demonstrating a willingness to provide risk capital and 5 project financing, but they are seldom able to provide 6 technical support and training to the staff of community-based 7 development organizations. 8 (2) PURPOSE.--The purpose of this section is to 9 provide community-based development organizations with the 10 necessary training and technical support to plan, implement, 11 and manage job-generating and revenue-generating developments 12 in distressed neighborhoods. This will strengthen the 13 organizational capacity of community-based development 14 organizations, assist local governments to enhance and expand 15 revitalization efforts, and contribute to expanding the base 16 of commerce, business, and affordable housing that will 17 benefit very-low-income, low-income, and moderate-income 18 residents. 19 (3) TRAINING AND TECHNICAL ASSISTANCE PROGRAM.--The 20 Department of Community Affairs shall be responsible for 21 securing the necessary expertise, which may include 22 subcontracts with nonprofit organizations, to provide training 23 and technical support to the staff and board of 24 community-based development organizations, as appropriate, and 25 to persons forming such organizations, which are formed for 26 the purpose of redeveloping commercial and residential areas 27 and revitalizing businesses within distressed neighborhoods 28 for the benefit of very-low-income, low-income, and 29 moderate-income residents. 30 (a) The training component of the program shall assist 31 organizations receiving administrative grants through a 16 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1998 HB 3111 547-128-98 1 developmental curriculum to build board and staff capacities 2 to implement or manage affordable housing, commercial, or 3 business enterprises. Training will include, but not be 4 limited to: resource development, project management, real 5 estate financing, business or venture plan development, 6 strategic planning for community economic development, and 7 community leadership and participation. 8 (b) The technical assistance provider shall conduct 9 onsite assessments, involving the board and staff, to prepare 10 a technical assistance plan for new and emerging 11 organizations. The scope and nature of the training will 12 complement the annual performance objectives of the 13 organizations from the development of a neighborhood 14 comprehensive revitalization strategy in the first year 15 through to the execution of an affordable housing, commercial, 16 or business development plan by the third year. 17 (c) Technical support shall be provided to 18 community-based development organizations receiving incentive 19 awards, as appropriate, in methods of financing and 20 structuring housing or business development projects. This 21 will be in the form of one-on-one technical assistance secured 22 by either the department or by the community-based development 23 organization. 24 (d) The department shall coordinate the technical 25 assistance and training in support of affordable housing 26 development with programs funded under s. 420.606. 27 (e) The department may permit other community-based 28 development organizations to participate in the training based 29 on the availability of classes, funding, and the priority of 30 need. 31 17 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1998 HB 3111 547-128-98 1 (4) This section shall stand repealed on June 30, 2 2007. 3 Section 9. Section 290.037, Florida Statutes, is 4 amended to read: 5 290.037 Community development deferred payment loan 6 program.-- 7 (1) The secretary is authorized to make loans, within 8 the limits of specific appropriations, to eligible applicants 9 for the following purposes: 10 (a) Establishment of a new business venture; 11 (b) Financial assistance to an existing business 12 venture located within the community-based community 13 development organization corporation service area; and 14 (c) New construction or substantial rehabilitation of 15 housing to be utilized by low-income families and individuals. 16 (2) A community-based community development 17 organization corporation applying for a loan pursuant to this 18 section must submit the information required by s. 290.036(2). 19 (3) In no case shall loans to one community-based 20 community development organization corporation exceed 40 21 percent of the total annual appropriation for loans during any 22 given year. 23 (4) A community-based community development 24 organization corporation that receives a loan shall submit to 25 the department an annual audit performed by an independent 26 certified public accountant; however, this subsection shall 27 not be construed to require the submittal of more than one 28 audit by an individual community-based community development 29 organization corporation submitting pursuant to s. 290.036. 30 (5) In evaluating proposals pursuant to this section, 31 the secretary shall consider: 18 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1998 HB 3111 547-128-98 1 (a) The economic feasibility of the project and the 2 capacity of the venture to repay the loan; 3 (b) The relative degree of distress of the target 4 area; 5 (c) The ratio of private and nonstate public money 6 committed to a project to the amount of state money to be 7 committed; 8 (d) The demonstrated inability of the borrower to 9 secure funding from conventional sources at the terms offered 10 by the community-based community development organization 11 corporation; 12 (e) The number of temporary and permanent jobs 13 generated by the project; 14 (f) The overall net positive impact of the project 15 long term on local economic and social conditions; 16 (g) The degree to which the project directly benefits 17 or provides assistance to very-low-income, low-income, or 18 job-displaced individuals; and 19 (h) The demonstrable capacity of the community-based 20 community development organization and technical assistance 21 providers corporation to see that the project is successfully 22 carried out and managed. 23 (6) Loans permitted under this section for affordable 24 housing may be used for the purpose of providing first, 25 second, or other subordinated mortgage loans or loan 26 guarantees in the construction of single-family home ownership 27 or multifamily rental units affordable to very-low-income and 28 low-income persons in the target area. 29 (a) Conditions of funding for multifamily units shall 30 conform with provisions of the State Apartment Incentive Loan 31 Program pursuant to s. 420.5087(2), (4), (5), and (8). Up to 19 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1998 HB 3111 547-128-98 1 25 percent of the total project cost of rehabilitating or 2 constructing a multifamily rental unit, not to exceed $250,000 3 per applicant, may fund predevelopment costs for a secured 4 site, if the project is uncompetitive for funding under the 5 Housing Predevelopment Fund pursuant to s. 420.525. 6 (b) Loan terms for homeownership construction or 7 rehabilitation shall be no more than 5 years unless federal 8 low-income tax credits are used to assist the project. The 9 department may set the loan term commensurate with the 10 investment requirements associated with tax credit 11 syndication. 12 (7)(6) All loans to a community-based the community 13 development organization corporation shall be at interest 14 rates not to exceed 3 percent interest free and shall be 15 repaid within 15 years or on a basis approved by the 16 secretary, except as provided in subsection (8) (7). 17 (8)(7) Upon the termination of any project as a result 18 of 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 amount returned to 27 the state shall be reduced so that the state absorbs losses in 28 proportion to the amount of equity held by the community 29 development corporation compared to the total equity held in 30 the business venture or the amount lost by all other 31 comparable creditors in those cases in which a loan has been 20 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1998 HB 3111 547-128-98 1 extended to a business venture by a community development 2 corporation. 3 (9)(8) This section shall stand repealed on June 30, 4 2007 1998. 5 Section 10. Paragraph (f) of subsection (2) and 6 subsection (3) of section 290.038, Florida Statutes, are 7 amended to read: 8 290.038 Authority and duties of the department.-- 9 (2) The department may: 10 (f) Assist in training employees of community-based 11 community development organizations corporations to help 12 achieve and increase their capacity to administer programs 13 pursuant to this act and provide technical assistance and 14 advice to community-based community development organizations 15 corporations involved with these programs. 16 (3) This section shall stand repealed on June 30, 2007 17 1998. 18 Section 11. Section 290.039, Florida Statutes, is 19 amended to read: 20 (Substantial rewording of section. See 21 s. 290.039, F.S., for present text.) 22 290.039 Reporting requirements.-- 23 (1) Community-based development organizations which 24 receive administrative funds under the Community Development 25 Support and Assistance Program shall provide the following 26 information to the department annually: 27 (a) A listing of business firms and individuals 28 assisted by the community-based development organization 29 during the reporting period. 30 (b) A listing of the type, source, purpose, and amount 31 of each individual grant, loan, or donation received by the 21 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1998 HB 3111 547-128-98 1 community-based development organization during the reporting 2 period. 3 (c) The number of paid and voluntary positions within 4 the community-based development organization. 5 (d) A listing of the salaries and administrative 6 expenses of the community-based development organization. 7 (e) An identification and explanation of changes to 8 the target area boundaries. 9 (f) The amount of assets and liabilities and the fund 10 balance for the community-based development organization at 11 the beginning and end of the reporting period. 12 (g) The number and description of projects attempted, 13 the number and description of projects completed, and a 14 written explanation of the reasons that caused projects not to 15 be completed. 16 (2) Community-based development organizations which 17 receive incentive awards shall provide the following general 18 information to the department annually: 19 (a) A listing of salaries and administrative expenses 20 of the community-based development organization on approved 21 projects that receive incentive funding. 22 (b) An identification and explanation of changes to 23 the target area boundaries. 24 (c) The impact of the completed project on target area 25 residents and its relationship to expected outcomes listed in 26 the agency's comprehensive neighborhood revitalization plan. 27 (3) Community-based development organizations which 28 receive incentive awards or a combination of administrative 29 and incentive funds shall provide the following information on 30 applicable projects to the department annually: 31 22 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1998 HB 3111 547-128-98 1 (a) The number of housing units rehabilitated or 2 constructed by the community-based development organization 3 within the service area during the reporting period. 4 (b) The number and amount of loans made to businesses 5 or individual entrepreneurs in the target area during the 6 reporting period. 7 (c) The number of outstanding loans made to businesses 8 or individuals in the service area by the community-based 9 development organization, the balance of the loans, and the 10 payment history of the borrowers during the reporting period. 11 (d) The number of jobs, both permanent and temporary, 12 received by individuals who were directly assisted by the 13 community-based development organization through assistance to 14 the business such as a loan or other credit assistance. 15 (e) An identification and explanation of changes to 16 the service area boundaries. 17 (f) Such other information as the department may 18 require. 19 (4) The department shall submit an annual report to 20 the Speaker of the House of Representatives and the President 21 of the Senate which contains the cumulative data submitted by 22 the individual community-based development organizations 23 pursuant to subsection (1). The report shall be submitted by 24 January 1 of each year. 25 (5) This section shall stand repealed on June 30, 26 2007. 27 Section 12. Section 290.0395, Florida Statutes, is 28 amended to read: 29 290.0395 Program performance review and evaluation and 30 review.-- 31 23 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1998 HB 3111 547-128-98 1 (1) Each community-based development organization 2 which receives administrative or incentive grants or loans 3 under the Invest in Neighborhood Vitality and Economies 4 Program shall be subject to an annual performance review by 5 the department. At a minimum, the review shall determine 6 whether contract objectives are being or have been met in a 7 timely and efficient manner, expected project outcomes are 8 being or have been realized, and the impact of completed 9 projects produced the results desired by the community-based 10 development organization as stated in its comprehensive 11 neighborhood revitalization plan and other supporting 12 documentation for receipt of the grants or loans. 13 (2)(1) Prior to the 2007 1998 Regular Session of the 14 Legislature, the Office of Program Policy Analysis and 15 Government Accountability Auditor General shall perform an a 16 review and evaluation of ss. 290.0301-290.039, using the 17 reporting data specified in s. 290.039 and any other data 18 identified by the department and the Office of Program Policy 19 Analysis and Government Accountability Auditor General as 20 crucial to the evaluation of this program. The report shall 21 critique the Innovative Neighborhood Vitality and Economies 22 Program Community Development Corporation Support and 23 Assistance Program and shall include an analysis of the 24 contributions made by community-based development 25 organizations that have received funds under the Invest in 26 Neighborhood Vitality and Economies Program to providing 27 affordable housing and improving residential structures in 28 community-based development organization service areas; and 29 any other related outcomes of activities of these 30 community-based development organizations. The analysis shall 31 attempt to identify the contribution of the Invest in 24 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1998 HB 3111 547-128-98 1 Neighborhood Vitality and Economies Program to the support and 2 productivity of funded community-based development 3 organizations physical impact of the program on residential 4 and commercial structures in the community development 5 corporation service areas, an analysis of changes in state and 6 local revenues, and an analysis of the impact of the program 7 on business activity. The analysis shall attempt to 8 investigate the significance of the relationship between 9 administrative funding and the economic health of the 10 community development corporation service areas. The report 11 shall attempt to demonstrate changes in productivity based on 12 fluctuations in funding levels. The report shall note extreme 13 circumstances which may affect the results of the evaluation. 14 (3)(2) A report of the findings and recommendations of 15 the Office of Program Policy Analysis and Government 16 Accountability Auditor General shall be submitted to the 17 President of the Senate and the Speaker of the House of 18 Representatives prior to the 2007 1998 Regular Session. 19 (4)(3) This section shall stand repealed on June 30, 20 2007 1998. 21 Section 13. This act shall take effect October 1 of 22 the year in which enacted. 23 24 ***************************************** 25 HOUSE SUMMARY 26 Changes the title of the "Community Development 27 Corporation Support and Assistance Program Act" to the "Invest in Neighborhood Vitality and Economies Act." 28 Revises the act generally to refer to community-based development organizations which are defined as a 29 community-based nonprofit organization that is either a community development corporation or a community housing 30 development organization and is committed to or engaged in developing or managing real estate or business 31 enterprises in economically distressed neighborhoods. See bill for details. 25