House Bill 3111e2
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CS/HB 3111, Second Engrossed
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. 290.035, F.S.; revising language with
16 respect to eligibility for assistance; amending
17 s. 290.036, F.S.; providing for the
18 community-based development organization
19 support program; providing for core and project
20 administrative grants and procedures; amending
21 s. 290.0365, F.S.; providing for a
22 community-based development training and
23 technical assistance program; amending s.
24 290.037, F.S.; providing for a community
25 development project implementation loan
26 program; amending s. 290.038, F.S.; revising
27 language with respect to the authority and
28 duties of the Department of Community Affairs;
29 amending s. 290.039, F.S.; revising language
30 with respect to reporting requirements;
31 amending s. 290.0395, F.S.; providing for
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1 program performance review and evaluation;
2 creating s. 290.055, F.S.; creating the
3 Rebuilding Urban Neighborhoods Initiative;
4 repealing s. 290.034, F.S., relating to funding
5 and use of the Operating Trust Fund; amending
6 ss. 189.427, 252.82, and 943.25 to conform to
7 this act; creating s. 420.0007, F.S.;
8 providing an exemption from property taxation
9 for charitable non-profit low income housing
10 properties; amending s. 290.0065, F.S.;
11 providing for amendment of the boundaries of an
12 enterprise zone designated pursuant to s.
13 290.0065(5)(b), F.S., upon application by the
14 county to the Office of Tourism, Trade, and
15 Economic Development; providing for effective
16 dates.
17
18 Be It Enacted by the Legislature of the State of Florida:
19
20 Section 1. Section 290.0301, Florida Statutes, is
21 amended to read:
22 290.0301 Short title.--Sections 290.0311 through
23 290.0395 shall be known and may be cited as the "Invest in
24 Neighborhood Vitality and Economies Act Community Development
25 Corporation Support and Assistance Program Act." This section
26 shall stand repealed on June 30, 2007 1998.
27 Section 2. Subsections (5), (10), and (11) of section
28 290.0311, Florida Statutes, are amended to read:
29 290.0311 Legislative findings.--The Legislature finds
30 that:
31
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1 (5) This deterioration contributes to the decline of
2 neighborhoods in both rural and urban and surrounding areas,
3 causes a reduction of the value of property comprising the tax
4 base of local communities, and eventually requires the
5 expenditure of disproportionate amounts of public funds for
6 health, social services, and police protection to prevent the
7 development of slums and the social and economic disruption
8 found in slum communities.
9 (10) A viable means of eliminating or reducing these
10 deteriorating economic conditions and encouraging local
11 resident participation and support is to provide support
12 assistance and resource investment to community-based
13 community development organizations corporations. The
14 Legislature also finds that community-based development
15 organizations can contribute to the creation of jobs in
16 response to federal welfare reform and state WAGES legislation
17 and economic development activities related to urban and rural
18 economic initiatives.
19 (11) This section shall stand repealed on June 30,
20 2007 1998.
21 Section 3. Section 290.032, Florida Statutes, is
22 amended to read:
23 (Substantial rewording of section. See
24 s. 290.032, F.S., for present text.)
25 290.032 Policy and purpose.--It is the policy of this
26 state to improve the quality of neighborhoods as environments
27 in which children and families live, by supporting and
28 fostering positive change in a broad range of domains to
29 achieve comprehensive improvements in conditions throughout
30 the neighborhood over time. Such community or neighborhood
31 redevelopment shall be based on the following principles:
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1 (1) Bottom-up, community-focused approach.
2 (2) Enables and supports the effort of the
3 neighborhoods to make improvements.
4 (3) Requires a holistic focus on the neighborhood to
5 address all needs in coordinated fashion, including:
6 (a) Need for community-based leadership.
7 (b) Empower neighborhood governance of the process.
8 (c) Human service delivery.
9 (d) Public infrastructure.
10 (e) Housing and safety.
11 (f) Economic development.
12 (4) Mandates neighborhood collaboration of all
13 partners.
14 (5) Empowers residents to make decisions on
15 improvements.
16 (6) Builds consensus for a shared vision for the
17 future of the neighborhood.
18 (7) Sets definitive performance goals to achieve
19 specific outcomes for the neighborhood.
20
21 The purpose of this act is to assist community-based
22 development organizations in undertaking projects, in concert
23 with state and local government and private enterprise,
24 designed to create and maintain a sound industrial base, to
25 revitalize the health of established commercial areas, to
26 promote and retain employment opportunities, to preserve and
27 rehabilitate existing residential neighborhoods, and to
28 provide safe, decent, affordable housing for residents of
29 these areas. The Legislature, therefore, declares that the
30 development, redevelopment, preservation, restoration, and
31 revitalization of such communities and all the purposes of
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1 this act are public purposes for which public moneys may be
2 used. This section shall stand repealed on June 30, 2007.
3 Section 4. Section 290.033, Florida Statutes, is
4 amended to read:
5 (Substantial rewording of section. See
6 s. 290.033, F.S., for present text.)
7 290.033 Definitions.--As used in this act, the term:
8 (1) "Department" means the Department of Community
9 Affairs.
10 (2) "Community-based development organization" means a
11 community-based nonprofit organization, which may also be
12 known as a "CBDO," that is committed to or engaged in
13 developing or managing real estate or business enterprises in
14 economically distressed neighborhoods. To qualify, an agency
15 must be community based in that the majority of the board is
16 elected by a mix of stakeholders consisting of area residents,
17 area business and property owners, and persons employed in the
18 service area and demonstrate an ability to undertake
19 affordable housing, business assistance, or commercial
20 developments.
21 (3) "Fund" means the Operating Trust Fund.
22 (4) "Neighborhood comprehensive revitalization plan"
23 means a long-term holistic, integrated, and collaborative
24 strategic plan for the improvement of a defined service area
25 or neighborhood that was prepared by and approved by a
26 collaborative partnership of residents, community-based
27 organizations, local government representatives, churches,
28 schools, businesses, and other community stakeholders that
29 sets forth the shared vision for the service area and
30 identifies specific, measurable outcomes. This comprehensive,
31 holistic plan shall address the wide array of interrelated
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1 needs including, but not limited to, human services, jobs and
2 economic development, housing, safety, public infrastructure,
3 health care, education, community organization, neighborhood
4 governance, and social organizations. The plan must describe
5 an organization's mission; include strategies to maintain
6 community involvement; demonstrate innovation, efficiency, and
7 accountability to the benefit of the service area
8 stakeholders; and identify sources of anticipated revenue.
9 (5) "Project" means a public and private activity or
10 series of activities, designed to be carried out in a
11 specific, definable location, that achieve objectives which
12 are consistent with the agency's neighborhood comprehensive
13 revitalization plan and the provisions and intent of this act.
14 (6) "Secretary" means the Secretary of Community
15 Affairs.
16 (7) "Service area" or "target area" means the entire
17 area in which a community-based development organization
18 operates and in which community development grant and loan
19 funds are to be spent.
20 (8) "Permanent job" means a full-time position, the
21 duration of which exceeds 12 months and which consists of an
22 average of at least 30 hours per week of employment.
23 (9) "Temporary job" means a full-time or part-time
24 position, the duration of which exceeds 45 days, which
25 consists of an average of at least 15 hours per week of
26 employment, and which is not a permanent job.
27 (10) This section shall stand repealed on June 30,
28 2007.
29 Section 5. Section 290.035, Florida Statutes, is
30 amended to read:
31
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1 290.035 Eligibility for assistance.--Community-based
2 community development organizations corporations meeting the
3 following requirements shall be eligible for assistance:
4 (1) The community-based community development
5 organization corporation must be a nonprofit corporation under
6 state law or a local development company established under
7 state law and certified to be eligible to participate in the
8 Small Business Administration Loan Program under s. 502 of the
9 Small Business Investment Act of 1958, as amended, and must
10 meet the following further requirements:
11 (a) Its membership must be open to all service area
12 residents 18 years of age or older.
13 (b) A majority of its board members must be elected by
14 those members of the corporation who are stakeholders
15 comprised of a mix of service area residents, area business
16 and property owners, and area employees.
17 (c) Elections must be held annually for at least a
18 third of the elected board members so that elected members
19 serve terms of no more than 3 years.
20 (d) Elections must be adequately publicized within the
21 service area, and ample opportunity must be provided for full
22 participation.
23 (e) At least one of the board members shall be
24 appointed by the Governor.
25 (2) The community-based community development
26 organization corporation shall maintain a service area in
27 which economic development projects are located which meets
28 one or more of the following criteria:
29 (a) The area has been designated pursuant to s.
30 163.355 as a slum area or a blighted area as defined in s.
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1 163.340(7) or (8) or is located completely within the
2 boundaries of a slum or blighted area.
3 (b) The area is a community development block grant
4 program area in which community development block grant funds
5 are currently being spent or have been spent during the last 3
6 years as certified by the local government in which the
7 service area is located.
8 (c) The area is a neighborhood housing service
9 district.
10 (d) The area is contained within a state an enterprise
11 zone designated on or after July 1, 1995, in accordance with
12 pursuant to s. 290.0065.
13 (e) The area is contained in federal empowerment zones
14 and enterprise communities.
15 (3) This section shall stand repealed on June 30, 2007
16 1998.
17 Section 6. Section 290.036, Florida Statutes, is
18 amended to read:
19 (Substantial rewording of section. See
20 s. 290.036, F.S., for present text.)
21 290.036 Community-based development organization
22 support program; administrative grants and procedures.--
23 (1) The department is authorized to award core and
24 project administrative grants and project implementation
25 loans. Administrative grants shall be used for staff salaries
26 and administrative expenses for eligible community-based
27 development organizations selected through a competitive
28 three-tiered process. The department shall develop a set of
29 criteria for three-tiered funding that shall ensure equitable
30 geographic distribution of the funding throughout the state.
31 This three-tiered plan shall include emerging, intermediate,
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1 and mature community-based development organizations
2 recognizing the varying needs of the three tiers. Funding
3 shall be provided for core administrative grants for all
4 levels of community-based development organizations. Priority
5 shall be given to those organizations that demonstrate
6 community-based high performance. Project administrative
7 grants tied to project implementation loans shall be available
8 to all levels of community-based development organizations
9 depending upon their capacity. Extensive training and
10 technical assistance shall be available to all community-based
11 development organizations. Persons, equipment, supplies, and
12 other resources funded in whole or in part by grant funds
13 shall then be utilized to further the purposes of this act.
14 Eligible activities include, but are not limited to:
15 (a) Preparing grant and loan applications, proposals,
16 fundraising letters, and other documents essential to securing
17 additional administrative or project funds to further the
18 purposes of this act.
19 (b) Monitoring and administrating grants and loans,
20 providing technical assistance to businesses, and any other
21 administrative tasks essential to maintaining funding
22 eligibility or meeting contractual obligations.
23 (c) Developing local programs to encourage the
24 participation of financial institutions, insurance companies,
25 attorneys, architects, engineers, planners, law enforcement
26 officers, developers, and other professional firms and
27 individuals providing services beneficial to redevelopment
28 efforts.
29 (d) Providing management, technical, accounting, and
30 financial assistance and information to businesses and
31
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1 entrepreneurs interested in locating, expanding, or operating
2 in the service area.
3 (e) Coordinating with state, federal, and local
4 governments and other nonprofit organizations to ensure that
5 activities meet local plans and ordinances and to avoid
6 duplication of tasks.
7 (f) Preparing plans or performing research to identify
8 critical needs within the service area and developing
9 approaches to address those needs.
10 (g) Assisting service area residents in identifying
11 and determining eligibility for state, federal, and local
12 housing programs including rehabilitation, weatherization,
13 homeownership, rental assistance, or public housing programs.
14 (h) Developing, owning, and managing housing designed
15 for very-low-income persons, low-income persons, or WAGES
16 recipients; or developing, owning, and managing industrial
17 parks providing jobs to very-low-income persons, low-income
18 persons, or WAGES recipients.
19 (i) Preparing the neighborhood comprehensive
20 revitalization plan with baseline data, outcome measures, and
21 estimates of service area impact as a result of job-generating
22 or revenue-generating businesses, or enterprise assistance, or
23 units of commercial, industrial, or affordable housing
24 developments.
25 (2) A community-based development organization
26 applying for an administrative grant pursuant to this section
27 must submit a proposal to the department which includes:
28 (a) A map and narrative description of the service
29 areas for the community-based development organization.
30 (b) A copy of the documents creating the
31 community-based development organization.
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1 (c) A listing of the membership of the board,
2 including individual terms of office.
3 (d) An annual plan that describes the expenditure of
4 the funds, including goals, objectives, and expected results,
5 and which has a clear relationship to the agency's
6 neighborhood comprehensive revitalization strategy.
7 (e) Other supporting information which may be required
8 by the department.
9 (3) The amount of any core administrative grant to an
10 emerging community-based development organization in any 1
11 year shall be no more than $50,000. The amount of any core
12 administrative grant to an intermediate community-based
13 development organization shall be no more than $45,000. The
14 amount of core administrative grant to a mature
15 community-based development organization shall be no more than
16 $40,000. The department may fund as many community-based
17 development organizations each year as is permitted based on
18 the level of funds provided for in the General Appropriations
19 Act.
20 (4) The amount of any project administrative grant to
21 any community-based development organization shall be no more
22 than $15,000 for every $100,000 of project implementation
23 loans.
24 (5) A community-based development organization that
25 receives funding hereunder shall submit to the department an
26 annual year-end audit performed by an independent certified
27 public accountant.
28 (6) In evaluating proposals pursuant to this section,
29 the department shall develop and consider scoring criteria
30 including, but not limited to, the following:
31
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1 (a) The relative degree of distress of the service
2 areas of the community-based development organization.
3 (b) The demonstrable capacity of the community-based
4 development organization to improve the economic health of the
5 service area and carry out the activities contained in the
6 long-term revitalization plan.
7 (c) The degree to which the community-based
8 development organization would provide assistance to
9 very-low-income persons, low-income persons, and particularly
10 WAGES recipients.
11 (d) The service area of the community-based
12 development organization which is located in whole or in part
13 within a state enterprise zone designated pursuant to s.
14 290.0065, a federal empowerment zone, or an enterprise
15 community.
16 (e) The extent to which the proposal would further the
17 policy and purposes of this act.
18 (7) The department is authorized to award project
19 administrative grants from the fund to community-based
20 development organizations for staff salaries, administrative
21 expenses, and the added cost of technical assistance directly
22 related to job-generating and revenue-generating enterprises,
23 including business, commercial, or affordable housing
24 developments. Eligible organizations shall apply for
25 competitive funding under the three categories of: business
26 assistance, commercial, and affordable housing development.
27 The allocations of funds to these three categories will be
28 made by the department subject to funding availability and
29 trends in the amount of qualified proposals submitted under
30 each category. Community-based development organizations
31 receiving funds under this section shall be subject to all
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1 applicable requirements of ss. 290.034(1), 290.035, 290.037,
2 290.038, and 290.039, as determined by the department.
3 (8) The department shall award funding hereunder based
4 upon a three-tiered approach which recognizes the differing
5 capacities of new and emerging, intermediate, and mature
6 community-based development organizations. No community-based
7 development organization may apply for funding in more than
8 one tier in any 1 fiscal year.
9 (a) Tier I, for new and emerging community-based
10 development organizations, shall offer, on a competitive
11 basis, a minimum of five core administrative grants of up to
12 $50,000, annually. Once tier I community-based development
13 organizations have achieved a minimum level of capacity, they
14 shall be eligible to apply for, on a competitive funding
15 basis, a project implementation loan of no more than $100,000
16 and an accompanying project administrative grant of up to
17 $15,000. Tier I community-based development organizations
18 shall also receive extensive training and technical assistance
19 designed to enhance the organization's capacity and thereby
20 enable it to undertake more complex development projects.
21 (b) Tier II, for intermediate level community-based
22 development organizations, shall be eligible to apply on a
23 competitive basis for core administrative grants of up to
24 $45,000, annually, and shall be eligible to apply for, on a
25 competitive basis, project implementation loans of up to
26 $300,000, annually, per community-based development
27 organization and an accompanying project administrative grant
28 of up to $45,000. Tier II community-based development
29 organizations shall also receive training and technical
30 assistance services hereunder.
31
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1 (c) Tier III, for mature level community-based
2 development organizations, shall be eligible to apply, on a
3 competitive basis, for core administrative grants of up to
4 $40,000, annually. Such community-based development
5 organizations shall be eligible to apply for, on a competitive
6 basis, project implementation loans of up to $400,000,
7 annually, per community-based development organization and an
8 accompanying project administrative grant of up to $60,000.
9 Tier III community-based development organizations shall also
10 receive training and technical assistance services hereunder.
11 (d) No development project funded hereunder shall
12 exceed $200,000, annually, per community-based development
13 organization. A community-based development organization can
14 apply for project implementation loans in up to three
15 categories of business development, affordable housing, and
16 commercial development, within the dollar limitations
17 contained herein. Project implementation grants shall be based
18 on up to $15,000 in grant funds for every $100,000 awarded in
19 loan funds.
20 (9) A community-based development organization
21 applying for project administrative grants pursuant to this
22 section must submit a proposal to the department which
23 includes:
24 (a) A map and narrative description of the target
25 areas for the community-based development organization.
26 (b) A copy of the documents creating the
27 community-based development organization.
28 (c) A listing of the membership of the board,
29 including individual terms of office.
30 (d) A copy of the community-based development
31 organization's neighborhood comprehensive revitalization plan.
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1 (e) A description of the location, financing plan, and
2 potential impact of the business enterprise or residential,
3 commercial, or industrial development which shows a clear
4 relationship to the organization's neighborhood comprehensive
5 revitalization plan and demonstrates how the proposed
6 expenditures are directly related to the project.
7 (10) In evaluating proposals pursuant to this section,
8 the department shall develop and consider scoring criteria,
9 including, but not limited to, the following:
10 (a) The reasonableness of project goals and production
11 schedules.
12 (b) Prior experience and performance of the applicant
13 in the production of similar housing, commercial, or business
14 developments.
15 (c) The extent of financial leveraging with private
16 and public funding.
17 (d) The demonstrable capacity of the community-based
18 development organization to improve the economic health of the
19 target area as seen by the reasonableness of its comprehensive
20 neighborhood revitalization plan and the impact of the
21 proposed project.
22 (e) The degree to which the project will benefit
23 very-low-income persons, low-income persons, and particularly
24 WAGES recipients.
25 (f) The location of the target area of the
26 community-based development organization, in whole or in part,
27 in a state enterprise zone designated on or after July 1,
28 1995, in accordance with s. 290.0065 or a federal empowerment
29 zone or enterprise community.
30 (g) The extent to which the proposal would further the
31 policy and purposes of this act.
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1 (11) This section shall stand repealed on June 30,
2 2007.
3 Section 7. Section 290.0365, Florida Statutes, is
4 amended to read:
5 (Substantial rewording of section. See
6 s. 290.0365, F.S., for present text.)
7 290.0365 Community-based development training and
8 technical assistance program.--
9 (1) LEGISLATIVE FINDINGS.--In addition to the
10 legislative findings set forth in s. 290.0311, the Legislature
11 finds and declares that:
12 (a) Significant declines in resources make it
13 difficult for community-based development organizations to
14 generate sufficient revenues from business enterprises or real
15 estate ventures in low-income neighborhoods to fund the
16 predevelopment costs, technical assistance, and other
17 administrative expenses needed to foster new developments.
18 (b) The financing and planning of large-scale
19 developments is becoming increasingly complex and
20 community-based development organizations, even those with
21 considerable experience, often lack the expertise to structure
22 project financing, partnerships, and joint ventures to
23 accelerate and expand development activities in distressed
24 communities.
25 (c) Local governments and private lenders are
26 demonstrating a willingness to provide risk capital and
27 project financing, but they are seldom able to provide
28 technical support and training to the staff of community-based
29 development organizations.
30 (2) PURPOSE.--The purpose of this section is to
31 provide community-based development organizations with the
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1 necessary training and technical support to plan, implement,
2 and manage job-generating and revenue-generating developments
3 in distressed neighborhoods. This will strengthen the
4 organizational capacity of community-based development
5 organizations, assist local governments to enhance and expand
6 revitalization efforts, and contribute to expanding the base
7 of commerce, business, and affordable housing that will
8 benefit persons who are very-low-income, low-income, or WAGES
9 recipients.
10 (3) TRAINING AND TECHNICAL ASSISTANCE PROGRAM.--The
11 Department of Community Affairs shall be responsible for
12 securing the necessary expertise, which may include
13 subcontracts with nonprofit organizations, to provide training
14 and technical support to the staff and board of
15 community-based development organizations, as appropriate, and
16 to persons forming such organizations, which are formed for
17 the purpose of redeveloping commercial and residential areas
18 and revitalizing businesses within distressed neighborhoods
19 for the benefit of very-low-income residents, low-income
20 residents, and WAGES recipients.
21 (a) The training component of the program shall assist
22 organizations receiving administrative grants through a
23 developmental curriculum to build board and staff capacities
24 to implement or manage affordable housing, commercial, or
25 business enterprises. Training will include, but not be
26 limited to, resource development, project management, real
27 estate financing, business or venture plan development,
28 strategic planning for community economic development, and
29 community leadership and participation.
30 (b) The technical assistance provider shall conduct
31 onsite assessments, involving the board and staff, to prepare
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1 a technical assistance plan for new and emerging
2 organizations. The scope and nature of the training will
3 compliment the annual performance objectives of the
4 organizations from the development of a neighborhood
5 comprehensive revitalization plan.
6 (c) Technical support shall be provided to
7 community-based development organizations receiving project
8 administrative grants, as appropriate, in methods of financing
9 and structuring housing, business, or commercial development
10 projects. This will be in the form of one-on-one technical
11 assistance secured by either the department or by the
12 community-based development organization.
13 (d) The department shall coordinate the technical
14 assistance and training in support of affordable housing
15 development with programs funded under s. 420.606.
16 (e) The department may permit other community-based
17 development organizations to participate in the training based
18 on the availability of classes, funding, and the priority of
19 need.
20 (4) REPEAL.--This section shall stand repealed on June
21 30, 2007.
22 Section 8. Section 290.037, Florida Statutes, is
23 amended to read:
24 (Substantial rewording of section. See
25 s. 290.037, F.S., for present text.)
26 290.037 Community development project implementation
27 loan program.--
28 (1) The department is authorized to make loans, within
29 the limits of specific appropriations, to eligible applicants
30 for the following purposes:
31
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1 (a) Financial assistance to a new or existing business
2 venture located within a community-based development
3 organization service area;
4 (b) New construction or substantial rehabilitation of
5 housing to be utilized by very-low-income and low-income
6 families and individuals, and WAGES recipients; and
7 (c) Commercial developments located within the
8 community-based development organization's service area.
9 (2) A community-based development organization
10 applying for a loan pursuant to this section must submit the
11 information required by s. 290.036(2).
12 (3) In no case shall loans to one community-based
13 development organization exceed 40 percent of the total annual
14 appropriation for loans during any given year or $400,000,
15 whichever is less.
16 (4) A community-based development organization that
17 receives a loan shall submit to the department an annual audit
18 performed by an independent certified public accountant;
19 however, this subsection shall not be construed to require the
20 submittal of more than one audit by an individual
21 community-based development organization submitting pursuant
22 to s. 290.036.
23 (5) In evaluating proposals pursuant to this section,
24 the department shall consider:
25 (a) The economic feasibility of the project and the
26 capacity of the venture to repay the loan.
27 (b) The relative degree of distress of the target
28 area.
29 (c) The ratio of private and nonstate public money
30 committed to a project to the amount of state money to be
31 committed.
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1 (d) The demonstrated inability of the borrower to
2 secure funding from conventional sources at the terms offered
3 by the community-based development organization.
4 (e) The number of temporary and permanent jobs
5 generated by the project.
6 (f) The overall net positive impact of the project
7 long term on local economic and social conditions.
8 (g) The degree to which the project directly benefits
9 or provides assistance to very-low-income individuals,
10 low-income individuals, or job-displaced individuals or WAGES
11 recipients.
12 (h) The demonstrable capacity of the community-based
13 development organization and technical assistance providers to
14 see that the project is successfully carried out and managed.
15 (6) Loans permitted under this section for affordable
16 housing may be used for the purpose of providing first,
17 second, or other subordinated mortgage loans or loan
18 guarantees in the construction of single-family homeownership
19 or multifamily rental units affordable to very-low-income
20 persons and low-income persons and WAGES recipients in the
21 target area.
22 (7) All loans to a community-based development
23 organization shall be at interest rates not to exceed 3
24 percent and shall be repaid within 15 years or on a basis
25 approved by the department, except as provided in subsection
26 (8).
27 (8) Upon the termination of any project as a result of
28 the sale or failure of the business, all recoverable state
29 funds shall be returned to the department for deposit into the
30 Operating Trust Fund. When losses are incurred, the
31 community-based development organization shall make a diligent
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1 and good-faith effort to recover the full indebtedness from
2 the business venture, including foreclosure of security and
3 recovery from guarantors. Upon completion of all such efforts
4 to the satisfaction of the department, the department shall
5 write off the unpaid balance of the loan.
6 (9) This section shall stand repealed on June 30,
7 2007.
8 Section 9. Paragraph (f) of subsection (2) and
9 subsection (3) of section 290.038, Florida Statutes, are
10 amended to read:
11 290.038 Authority and duties of the department.--
12 (2) The department may:
13 (f) Assist in training employees of community-based
14 community development organizations corporations to help
15 achieve and increase their capacity to administer programs
16 pursuant to this act and provide technical assistance and
17 advice to community-based community development organizations
18 corporations involved with these programs.
19 (3) The department shall be the state agency
20 responsible for implementation of the urban redevelopment
21 efforts, and shall:
22 (a) Provide grants and loans authorized under the
23 INVEST initiative.
24 (b) Provide grants to community-based development
25 organizations to support the development of the neighborhood
26 collaboration and its community redevelopment plan.
27 (c) Provide a clearinghouse function to assist in
28 identifying resources available to implement community
29 redevelopment strategies.
30 (d) Provide staff coordinator to designated Rebuilding
31 Urban Neighborhoods initiatives.
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1 (e) Provide for technical assistance to neighborhoods
2 from any agency of the state, the state university system, and
3 other private providers in areas including identification of
4 stakeholders, consensus building, meeting facilitation,
5 conflict resolution, group decisionmaking, community planning
6 processes, outcome measurement, and capacity building for
7 organizations.
8 (4)(3) This section shall stand repealed on June 30,
9 2007 1998.
10 Section 10. Section 290.039, Florida Statutes, is
11 amended to read:
12 (Substantial rewording of section. See
13 s. 290.039, F.S., for present text.)
14 290.039 Reporting requirements.--
15 (1) Community-based development organizations which
16 receive funds under INVEST shall provide the following
17 information to the department annually:
18 (a) A listing of business firms and individuals
19 assisted by the community-based development organization
20 during the reporting period.
21 (b) A listing of the type, source, purpose, and amount
22 of each individual grant, loan, or donation received by the
23 community-based development organization during the reporting
24 period.
25 (c) The number of paid and voluntary positions within
26 the community-based development organization.
27 (d) A listing of the salaries and administrative
28 expenses of the community-based development organization.
29 (e) An identification and explanation of changes to
30 the target area boundaries.
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1 (f) The amount of assets and liabilities and the fund
2 balance for the community-based development organization at
3 the beginning and end of the reporting period.
4 (g) The number and description of projects attempted,
5 the number and description of projects completed, and a
6 written explanation of the reasons that caused projects not to
7 be completed.
8 (h) The impact on target area residents and its
9 relationship to expected outcomes listed in the agency's
10 comprehensive neighborhood revitalization plan, as a result of
11 receiving INVEST funding.
12 (2) Community-based development organizations which
13 receive project administrative grants shall provide the
14 following general information to the department annually:
15 (a) A listing of salaries and administrative expenses
16 of the community-based development organization on approved
17 projects that receive project administrative grant funding.
18 (b) An identification and explanation of changes to
19 the target area boundaries.
20 (c) The impact of the completed project on target area
21 residents and its relationship to expected outcomes listed in
22 the agency's comprehensive neighborhood revitalization plan.
23 (3) Community-based development organizations which
24 receive project administrative grants, or a combination of
25 core administrative and project and grant funds, shall provide
26 the following information on applicable projects to the
27 department annually:
28 (a) The number of housing units rehabilitated or
29 constructed by the community-based development organization
30 within the service area during the reporting period.
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1 (b) The number and amount of loans made to businesses
2 or individual entrepreneurs in the target area during the
3 reporting period.
4 (c) The number of outstanding loans made to businesses
5 or individuals in the service area by the community-based
6 development organization, the balance of the loans, and the
7 payment history of the borrowers during the reporting period.
8 (d) The number of jobs, both permanent and temporary,
9 received by individuals who were directly assisted by the
10 community-based development organization through assistance to
11 the business such as a loan or other credit assistance.
12 (e) An identification and explanation of changes to
13 the service area boundaries.
14 (f) The impact of the completed project on target area
15 residents and its relationship to expected outcomes listed in
16 the agency's comprehensive neighborhood revitalization plan.
17 (g) 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 11. Section 290.0395, Florida Statutes, is
28 amended to read:
29 (Substantial rewording of section. See
30 s. 290.0395, F.S., for present text.)
31 290.0395 Program performance review and evaluation.--
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1 (1) Each community-based development organization
2 which receives funding under the Invest in Neighborhood
3 Vitality and Economies Program shall be subject to an annual
4 performance review by the department. At a minimum, the review
5 shall determine whether contract objectives are being or have
6 been met in a timely and efficient manner, expected project
7 outcomes are being or have been realized, and the impact of
8 completed projects produced the results desired by the
9 community-based development organization as stated in its
10 comprehensive neighborhood revitalization plan and other
11 supporting documentation for receipt of the grants or loans.
12 (2) Prior to the 2007 Regular Session of the
13 Legislature, the Office of Program Policy Analysis and
14 Government Accountability shall perform an evaluation of ss.
15 290.0301-290.039, using the reporting data specified in s.
16 290.039 and any other data identified by the department and
17 the Office of Program Policy Analysis and Government
18 Accountability as crucial to the evaluation of this program.
19 The report shall critique the Invest in Neighborhood Vitality
20 and Economies Program and shall include an analysis of the
21 improvements in the service area as a result of the holistic
22 and collaborative efforts of the organizations and partners
23 within the service area.
24 (3) A report of the findings and recommendations of
25 the Office of Program Policy Analysis and Government
26 Accountability shall be submitted to the President of the
27 Senate and the Speaker of the House of Representatives prior
28 to the 2007 Regular Session.
29 (4) This section shall stand repealed on June 30,
30 2007.
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1 Section 12. Section 290.055, Florida Statutes, is
2 created to read:
3 290.055 Rebuilding Urban Neighborhoods Initiative.--
4 (1) SHORT TITLE.--This section shall be known and may
5 be cited as the "Rebuilding Urban Neighborhoods Initiative."
6 (2) PURPOSE.--The Department of Community Affairs
7 shall carry out, in accordance with this section, a training
8 and technical assistance program to rebuild urban
9 neighborhoods through coordinated urban community
10 redevelopment, utilizing effective state and local government
11 and neighborhood partnerships that will leverage resources
12 needed to improve living conditions for children and families.
13 (3) PROGRAM.--The department will provide planning
14 grants and technical assistance to communities seeking to
15 revitalize distressed areas using the principles of holistic
16 and collaborative planning and service delivery. A community
17 based organization (CBO) will be eligible to receive
18 assistance from the department upon certification by the
19 department that identified readiness criteria are in place.
20 (4) ROLES.--
21 (a) The Department of Community Affairs.--The
22 department will provide:
23 1. Administration and oversight of the planning grant
24 program.
25 2. Technical assistance through existing programs of
26 the department in the areas of planning, affordable housing,
27 public safety, social services, energy conservation,
28 infrastructure, and building collaborative, holistic
29 initiatives.
30 3. A clearinghouse to disseminate information
31 resulting from the research and successful outreach activities
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1 of numerous initiatives as well as information on available
2 state and federal resources to carry out redevelopment
3 initiatives.
4 4. Coordination of the delivery of technical
5 assistance and other resources from other state entities to
6 develop and implement comprehensive neighborhood
7 revitalization plans. These other state entities will include
8 the Florida Housing Finance Corporation for affordable housing
9 programs, Enterprise Florida, Inc., and the Office of Tourism,
10 Trade, and Economic Development for business development and
11 job creation programs.
12 (b) The State University System.--The State University
13 System, through a coordinating entity whose mission is to
14 provide outreach to local governments and distressed
15 communities in redevelopment initiatives, is empowered to
16 provide expert technical assistance and facilitation services
17 to these initiatives.
18 (c) Community based organizations.--Community based
19 organizations will perform the principal leadership function
20 at the local level, being responsible for organizing a
21 collaborative approach to community involvement and a holistic
22 neighborhood improvement strategy to guide immediate and
23 long-term improvements.
24 (5) READINESS CRITERIA.--In order to be selected by
25 the department to receive state funding support, an initiative
26 must have the following elements:
27 (a) A well defined, small neighborhood having
28 conditions of blight and distress.
29 (b) A lead community-based development organization
30 with the capacity to guide and sustain a collaborative,
31 long-term initiative.
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1 (c) Evidence of a collaborative team.
2 (d) Demonstrated local government commitment.
3 (e) Commitment to a planning/implementation model
4 having documented baseline data, multiple elements (holistic
5 and comprehensive), measurable outcomes, and an evaluation
6 component.
7 (6) REPORTS.--The department shall submit an annual
8 report to the Committees on Community Affairs in the House of
9 Representatives and the Senate. The report shall contain a
10 summary of activities carried out under this section during
11 the preceding fiscal year, and findings and conclusions drawn
12 from such activities.
13 Section 13. Section 290.034, Florida Statutes, is
14 repealed.
15 Section 14. Section 189.427, Florida Statutes, is
16 amended to read:
17 189.427 Fee schedule; Operating Trust Fund.--The
18 Department of Community Affairs, by rule, shall establish a
19 schedule of fees to pay one-half of the costs incurred by the
20 department in administering this act, except that the fee may
21 not exceed $175 per district per year. The fees collected
22 under this section shall be deposited in the Operating Trust
23 Fund established under s. 290.034, which shall be administered
24 by the Department of Community Affairs. Any fee rule must
25 consider factors such as the dependent and independent status
26 of the district and district revenues for the most recent
27 fiscal year as reported to the Department of Banking and
28 Finance. The department may assess fines of not more than $25,
29 with an aggregate total not to exceed $50, as penalties
30 against special districts that fail to remit required fees to
31 the department. It is the intent of the Legislature that
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1 general revenue funds will be made available to the department
2 to pay one-half of the cost of administering this act.
3 Section 15. Subsection (7) of section 252.82, Florida
4 Statutes, is amended to read:
5 252.82 Definitions.--As used in this part:
6 (7) "Trust fund" means the Operating Trust Fund
7 established in s. 290.034.
8 Section 16. Subsection (1) of section 943.25, Florida
9 Statutes, is amended to read:
10 943.25 Criminal justice trust funds; source of funds;
11 use of funds.--
12 (1) The Department of Community Affairs may approve,
13 for disbursement from the Operating Trust Fund established
14 pursuant to s. 290.034, those appropriated sums necessary and
15 required by the state for grant matching, implementing,
16 administering, evaluating, and qualifying for such federal
17 funds. Disbursements from the trust fund for the purpose of
18 supplanting state general revenue funds may not be made
19 without specific legislative appropriation.
20 Section 17. Section 420.0007, Florida Statutes, is
21 created to read:
22 420.0007 Exemption from property taxation for
23 charitable non-profit low income housing
24 properties.--Properties owned entirely by nonprofit
25 corporations which are defined as charitable organizations
26 under s. 501(c)(3) of the Internal Revenue Code and comply
27 with the Internal Revenue Procedure 96-32 and which provide
28 housing to low-income and very-low-income persons, as defined
29 in s. 420.0004, shall be considered charitable and exempt from
30 ad valorem taxation under chapter 196, to the extent
31 authorized under s. 196.192.
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1 Section 18. Subsection (11) is added to section
2 290.0065, Florida Statutes, to read:
3 290.0065 State designation of enterprise zones.--
4 (11) Before December 31, 1998, the governing body of a
5 county in which an enterprise zone designated pursuant to
6 paragraph (5)(b) is located may apply to the Office of
7 Tourism, Trade, and Economic Development to amend the
8 boundaries of the enterprise zone for the purpose of replacing
9 areas not suitable for development. The Office of Tourism,
10 Trade, and Economic Development shall approve the application
11 if it does not increase the overall size of the enterprise
12 zone.
13 Section 19. Section 18 shall take effect upon becoming
14 a law. The remaining sections shall take effect October 1 of
15 the year in which enacted.
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