Senate Bill 0322c1
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Florida Senate - 1999 CS for SB 322
By the Committee on Comprehensive Planning, Local and Military
Affairs; and Senator Klein
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1 A bill to be entitled
2 An act relating to housing; amending s.
3 195.1975, F.S.; amending criteria for exempting
4 property used by nonprofit homes for the aged
5 from ad valorem taxes; creating s. 196.1978,
6 F.S.; providing that property used to provide
7 housing for persons with incomes defined under
8 ch. 420, F.S., and owned by certain nonprofit
9 corporations, is exempt from ad valorem
10 taxation; providing for retroactive
11 application; amending s. 170.201, F.S.;
12 granting municipalities the option of exempting
13 certain nonprofit housing from special
14 assessments from any service; creating ss.
15 220.185 and 420.5093, F.S.; creating the State
16 Housing Tax Credit Program; providing
17 legislative findings and policy; providing
18 definitions; providing for a credit against the
19 corporate income tax in an amount equal to a
20 percentage of the eligible basis of certain
21 housing projects; providing a limitation;
22 providing for allocation of credits and
23 administration by the Florida Housing Finance
24 Corporation; providing for an annual plan;
25 providing application procedures; providing
26 that neither tax credits nor financing
27 generated thereby shall be considered income
28 for ad valorem tax purposes; providing for
29 recognition of certain income by the property
30 appraiser; amending s. 420.503, F.S.; providing
31 that certain projects shall qualify as housing
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1 for the elderly for purposes of certain loans
2 under the State Apartment Incentive Loan
3 Program, and shall qualify as a project
4 targeted for the elderly in connection with
5 allocation of low-income housing tax credits
6 and with the HOME program under certain
7 conditions; amending s. 420.5087, F.S.;
8 directing the Florida Housing Finance
9 Corporation to adopt rules for the equitable
10 distribution of certain unallocated funds under
11 the State Apartment Incentive Loan Program;
12 providing effective dates.
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14 Be It Enacted by the Legislature of the State of Florida:
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16 Section 1. Subsection (1) of section 196.1975, Florida
17 Statutes, is amended to read:
18 196.1975 Exemption for property used by nonprofit
19 homes for the aged.--Nonprofit homes for the aged are exempt
20 to the extent that they meet the following criteria:
21 (1) The applicant must be a corporation not for profit
22 that has been exempt as of January 1 of the year for which
23 exemption from ad valorem property taxes is requested from
24 federal income taxation by having qualified as an exempt
25 charitable organization under the provisions of s. 501(c)(3)
26 of the Internal Revenue Code of 1954 or of the corresponding
27 section of a subsequently enacted federal revenue act. A
28 corporation will not be disqualified under this subsection if,
29 for purposes of allocating tax credits, under s. 42(h)(5) of
30 the Internal Revenue Code of 1986, by the Florida Housing
31 Finance Agency as defined by s. 420.0004(4), the property is
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1 leased to or owned by a Florida limited partnership, the sole
2 general partner of which is the nonprofit corporation, and the
3 home for the aged was in existence or under construction on or
4 before April 1, 1995.
5 Section 2. (1) Section 196.1978, Florida Statutes, is
6 created to read:
7 196.1978 Low-income housing property
8 exemption.--Property used to provide housing pursuant to any
9 state housing program authorized under chapter 420 or other
10 similar local or federal governmental affordable housing
11 program for persons with incomes defined under s. 420.0004,
12 which property is owned entirely by a nonprofit corporation
13 which is qualified as charitable under s. 501(c)(3) of the
14 Internal Revenue Code and which complies with Rev. Proc.
15 96-32, 1996-1 C.B. 717, shall be considered property owned by
16 an exempt entity and used for a charitable purpose, and such
17 property shall be exempt from ad valorem taxation.
18 (2) This section shall take effect upon this act
19 becoming a law and shall apply retroactively to January 1,
20 1997.
21 Section 3. Subsection (2) of section 170.201, Florida
22 Statutes, 1998 Supplement, is amended to read:
23 170.201 Special assessments.--
24 (2) Property owned or occupied by a religious
25 institution and used as a place of worship or education; by a
26 public or private elementary, middle, or high school; or by a
27 governmentally financed, insured, or subsidized housing
28 facility that is used primarily for persons who are elderly or
29 disabled shall be exempt from any special assessment levied by
30 a municipality to fund any service emergency medical services
31 if the municipality so desires. As used in this subsection,
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1 the term "religious institution" means any church, synagogue,
2 or other established physical place for worship at which
3 nonprofit religious services and activities are regularly
4 conducted and carried on and the term "governmentally
5 financed, insured, or subsidized housing facility" means a
6 facility that is financed by a mortgage loan made or insured
7 by the United States Department of Housing and Urban
8 Development under s. 8, s. 202, s. 221(d)(3) or (4), s. 232,
9 or s. 236 of the National Housing Act and is owned or operated
10 by an entity that qualifies as an exempt charitable
11 organization under s. 501(c)(3) of the Internal Revenue Code.
12 Section 4. Section 220.185, Florida Statutes, is
13 created to read:
14 220.185 State housing tax credit.--
15 (1) LEGISLATIVE FINDINGS.--The Legislature finds that:
16 (a) There exist within the urban areas of the state
17 conditions of blight evidenced by extensive deterioration of
18 public and private facilities, abandonment of sound
19 structures, and high unemployment, and these conditions impede
20 the conservation and development of healthy, safe, and
21 economically viable communities.
22 (b) Deterioration of housing and industrial,
23 commercial, and public facilities contributes to the decline
24 of neighborhoods and communities and leads to the loss of
25 their historic character and the sense of community which this
26 inspires; reduces the value of property comprising the tax
27 base of local communities; discourages private investment; and
28 requires a disproportionate expenditure of public funds for
29 the social services, unemployment benefits, and police
30 protection required to combat the social and economic problems
31 found in urban communities.
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1 (c) In order to ultimately restore social and economic
2 viability to urban areas, it is necessary to renovate or
3 construct new infrastructure and housing, including housing
4 specifically targeted for the elderly, and to specifically
5 provide mechanisms to attract and encourage private economic
6 activity.
7 (d) The various local governments and other
8 redevelopment organizations now undertaking physical
9 revitalization projects and new housing developments in urban
10 areas are limited by tightly constrained budgets and
11 inadequate resources.
12 (e) In order to significantly improve revitalization
13 efforts by local governments and community development
14 organizations and to retain as much of the historic character
15 of our communities as possible, it is necessary to provide
16 additional resources, and the participation of private
17 enterprise in revitalization efforts is an effective means for
18 accomplishing that goal.
19 (2) POLICY AND PURPOSE.--It is the policy of this
20 state to encourage the participation of private corporations
21 in revitalization projects within urban areas. The purpose of
22 this section is to provide an incentive for such participation
23 by granting state corporate income tax credits to qualified
24 low-income housing projects, including housing specifically
25 designed for the elderly, and associated mixed-use projects.
26 The Legislature thus declares this a public purpose for which
27 public money may be borrowed, expended, loaned, and granted.
28 (3) DEFINITIONS.--As used in this section, the term:
29 (a) "Credit period" means the period of 5 years
30 beginning with the year the project is completed.
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1 (b) "Eligible basis" means a project's adjusted basis
2 as of the close of the first taxable year of the credit
3 period.
4 (c) "Adjusted basis" means the owner's adjusted basis
5 in the project, calculated in a manner consistent with the
6 calculation of basis under the Internal Revenue Code, taking
7 into account the adjusted basis of property of a character
8 subject to the allowance for depreciation used in common areas
9 or provided as comparable amenities to the entire project.
10 (d) "Designated project" means a qualified project
11 designated pursuant to s. 420.5093 to receive the tax credit
12 under this section.
13 (e) "Qualified project" means a project located in an
14 urban infill area, at least 50 percent of which, on a cost
15 basis, consists of a qualified low-income project within the
16 meaning of s. 42(g) of the Internal Revenue Code, including
17 such projects designed specifically for the elderly but
18 excluding any income restrictions imposed pursuant to s. 42(g)
19 of the Internal Revenue Code upon residents of the project
20 unless such restrictions are otherwise established by the
21 Florida Housing Finance Corporation pursuant to s. 420.5093,
22 and the remainder of which constitutes commercial or
23 single-family residential development consistent with and
24 serving to complement the qualified low-income project.
25 (f) "Urban infill area" means an area designated for
26 urban infill as defined by s. 163.3164.
27 (4) AUTHORIZATION TO GRANT STATE HOUSING TAX CREDITS;
28 LIMITATION.--
29 (a) There shall be allowed a credit of 9 percent of
30 the eligible basis of any designated project for each year of
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1 the credit period against any tax due for a taxable year under
2 this chapter.
3 (b) The total amount of tax credit which may be
4 granted for all projects approved under this section is $5
5 million annually, for each of 5 years.
6 (c) The tax credit shall be allocated among designated
7 projects by the Florida Housing Finance Corporation as
8 provided in s. 420.5093.
9 (d) Each designated project must comply with the
10 applicable provisions of s. 42 of the Internal Revenue Code
11 with respect to the multifamily residential rental housing
12 element of the project, including specifically the provisions
13 of s. 42(h)(6).
14 (e) A tax credit shall be allocated to a designated
15 project and shall not be subject to transfer by the recipient
16 unless the transferee is also an owner of the designated
17 project.
18 Section 5. Section 420.5093, Florida Statutes, is
19 created to read:
20 420.5093 State Housing Tax Credit Program.--
21 (1) There is created the State Housing Tax Credit
22 Program for the purposes of stimulating creative private
23 sector initiatives to increase the supply of affordable
24 housing in urban areas, including specifically housing for the
25 elderly, and to provide associated commercial facilities
26 associated with such housing facilities.
27 (2) The Florida Housing Finance Corporation shall
28 determine those qualified projects which shall be considered
29 designated projects under s. 220.185 and eligible for the
30 corporate tax credit under that section. The corporation shall
31 establish procedures necessary for proper allocation and
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1 distribution of state housing tax credits, including the
2 establishment of criteria for any single-family or commercial
3 component of a project, and may exercise all powers necessary
4 to administer the allocation of such credits. The board of
5 directors of the corporation shall administer the allocation
6 procedures and determine allocations on behalf of the
7 corporation. The corporation shall prepare an annual plan,
8 which must be approved by the Governor, containing general
9 guidelines for the allocation and distribution of credits to
10 designated projects.
11 (3) The corporation shall adopt allocation procedures
12 that will ensure the maximum use of available tax credits in
13 order to encourage development of low-income housing and
14 associated mixed-use projects in urban areas, taking into
15 consideration the timeliness of the application, the location
16 of the proposed project, the relative need in the area of
17 revitalization and low-income housing and the availability of
18 such housing, the economic feasibility of the project, and the
19 ability of the applicant to proceed to completion of the
20 project in the calendar year for which the credit is sought.
21 (4)(a) A taxpayer who wishes to participate in the
22 State Housing Tax Credit Program must submit an application
23 for tax credit to the corporation. The application shall
24 identify the project and its location and include evidence
25 that the project is a qualified project as defined in s.
26 220.185. The corporation may request any information from an
27 applicant necessary to enable the corporation to make tax
28 credit allocations according to the guidelines set forth in
29 subsection (3).
30 (b) The corporation's approval of an applicant as a
31 designated project shall be in writing and shall include a
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1 statement of the maximum credit allowable to the applicant. A
2 copy of this approval shall be transmitted to the executive
3 director of the Department of Revenue, who shall apply the tax
4 credit to the tax liability of the applicant.
5 (5) For purposes of implementing this program and
6 assessing the property for ad valorem taxation under s.
7 193.011, neither the tax credits nor financing generated by
8 tax credits shall be considered as income to the property, and
9 the rental income from rent-restricted units in a state
10 housing tax credit development shall be recognized by the
11 property appraiser.
12 (6) The corporation is authorized to expend fees
13 received in conjunction with the allocation of state housing
14 tax credits only for the purpose of administration of the
15 program, including private legal services which relate to
16 interpretation of s. 42 of the Internal Revenue Code.
17 Section 6. Subsection (19) of section 420.503, Florida
18 Statutes, 1998 Supplement, is amended to read:
19 420.503 Definitions.--As used in this part, the term:
20 (19) "Housing for the elderly" means, for purposes of
21 s. 420.5087(3)(c)2., any nonprofit housing community that is
22 financed by a mortgage loan made or insured by the United
23 States Department of Housing and Urban Development under s.
24 202, s. 202 with a s. 8 subsidy, s. 221(d)(3) or (4), or s.
25 236 of the National Housing Act, as amended, and that is
26 subject to income limitations established by the United States
27 Department of Housing and Urban Development, or any program
28 funded by the Rural Development Agency of the United States
29 Department of Agriculture and subject to income limitations
30 established by the United States Department of Agriculture. A
31 project which qualifies for an exemption under the Fair
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1 Housing Act as housing for older persons as defined by s.
2 760.29(4) shall qualify as housing for the elderly for
3 purposes of s. 420.5087(3)(c)2. In addition, if the
4 corporation adopts a qualified allocation plan pursuant to s.
5 42(m)(1)(B) of the Internal Revenue Code or any other rules
6 that prioritize projects targeting the elderly for purposes of
7 allocating tax credits pursuant to s. 420.5099 or for purposes
8 of the HOME program under s. 420.5089, a project which
9 qualifies for an exemption under the Fair Housing Act as
10 housing for older persons as defined by s. 760.29(4) shall
11 qualify as a project targeted for the elderly, if the project
12 satisfies the other requirements set forth in this part.
13 Section 7. Subsection (1) of section 420.5087, Florida
14 Statutes, 1998 Supplement, is amended to read:
15 420.5087 State Apartment Incentive Loan
16 Program.--There is hereby created the State Apartment
17 Incentive Loan Program for the purpose of providing first,
18 second, or other subordinated mortgage loans or loan
19 guarantees to sponsors, including for-profit, nonprofit, and
20 public entities, to provide housing affordable to
21 very-low-income persons.
22 (1) Program funds shall be distributed over successive
23 3-year periods in a manner that meets the need and demand for
24 very-low-income housing throughout the state. That need and
25 demand must be determined by using the most recent statewide
26 low-income rental housing market studies available at the
27 beginning of each 3-year period. However, at least 10 percent
28 of the program funds distributed during a 3-year period must
29 be allocated to each of the following categories of counties,
30 as determined by using the population statistics published in
31 the most recent edition of the Florida Statistical Abstract:
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1 (a) Counties that have a population of more than
2 500,000 people;
3 (b) Counties that have a population between 100,000
4 and 500,000 people; and
5 (c) Counties that have a population of 100,000 or
6 less.
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8 Any increase in funding required to reach the 10-percent
9 minimum shall be taken from the county category that has the
10 largest allocation. The corporation shall adopt rules which
11 establish an equitable process for distributing any portion of
12 the 10 percent of program funds allocated to the county
13 categories specified in this subsection which remains
14 unallocated at the end of a 3-year period. Counties that have
15 a population of 100,000 or less shall be given preference
16 under these rules.
17 Section 8. Except as otherwise provided in this act,
18 this act shall take effect July 1, 1999.
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1 STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
COMMITTEE SUBSTITUTE FOR
2 Senate Bill 322
3
4 The CS differs from the bill in that it:
5 Amends s. 196.1975, F.S., to specify that nonprofit homes for
the aged owned by a Florida Limited Partnership, under certain
6 conditions, is not disqualified from an ad valorem tax
exemption;
7
Amends and places the proposed low-income housing property tax
8 exemption, as provided in section 1 of the bill as filed, in
s. 196.1978, F.S., instead of s. 420.0007, F.S.;
9
Amends s. 170.201, F.S., 1998 Supplement, to allow
10 municipalities to exempt certain religious, educational, and
subsidized housing facilities from any special assessments
11 levied by that municipality, rather than only municipal
special assessments for emergency medical services;
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Creates s. 220.185 and s. 420.5093, F.S., to create the State
13 Housing Tax Credit Program;
14 Amends s. 420.503, F.S., 1998 Supplement, to expand the
definition of "housing for the elderly;" and
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Amends s. 420.5087, F.S., 1998 Supplement, to allow the
16 Florida Housing Finance Corporation to adopt rules
establishing a process for distributing unallocated housing
17 funds.
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