Senate Bill 2578c2
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Florida Senate - 2000 CS for CS for SB 2578
By the Committees on Commerce and Economic Opportunities;
Fiscal Resource; and Senator Hargrett
310-2177-00
1 A bill to be entitled
2 An act relating to neighborhood revitalization;
3 amending s. 212.08, F.S.; providing an
4 exemption from the tax on sales, use, and other
5 transactions for building materials used in the
6 construction of certain single-family homes
7 located in an enterprise zone, empowerment
8 zone, or Front Porch Florida Community;
9 providing an exemption from the tax on sales,
10 use, and other transactions for building
11 materials used in the construction of specified
12 redevelopment projects; providing requirements
13 for refund applications; providing for rules;
14 directing the agencies involved with specified
15 housing programs to give priority consideration
16 to specified projects in urban-core
17 neighborhoods; directing the Department of
18 Community Affairs to propose modifications to
19 the Brownfields Redevelopment Act for
20 consideration by the Legislature; requiring
21 that applicants for assistance in state
22 housing, economic development, and community
23 revitalization programs who support the
24 objectives of redeveloping HOPE VI grant
25 neighborhoods be given priority; providing
26 application requirements; requiring the
27 Department of Community Affairs to submit to
28 the Legislature an annual summary of certain
29 HOPE VI assistance provided; providing an
30 effective date.
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Florida Senate - 2000 CS for CS for SB 2578
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1 WHEREAS, Florida's urban-core neighborhoods continue to
2 have inadequate supplies of affordable housing units, and
3 WHEREAS, these same neighborhoods contain vacant or
4 abandoned industrial and manufacturing facilities, and
5 WHEREAS, vacant and dilapidated structures can have a
6 blighting influence on the neighborhood, and
7 WHEREAS, the opportunity exists to convert these vacant
8 or abandoned industrial and manufacturing facilities into
9 alternative housing options, such as loft apartments, and
10 WHEREAS, the opportunity exists to convert these vacant
11 or abandoned industrial and manufacturing facilities into
12 mixed-use facilities that include businesses in the art,
13 entertainment, and related fields, thereby attracting tourists
14 and other visitors to the neighborhoods and encouraging
15 individuals who work in such fields to reside in those
16 neighborhoods, and
17 WHEREAS, the Legislature finds that the state should
18 encourage adaptive reuse of existing buildings in these
19 urban-core neighborhoods, NOW, THEREFORE,
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21 Be It Enacted by the Legislature of the State of Florida:
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23 Section 1. Paragraphs (n) and (o) are added to
24 subsection (5) of section 212.08, Florida Statutes, to read:
25 212.08 Sales, rental, use, consumption, distribution,
26 and storage tax; specified exemptions.--The sale at retail,
27 the rental, the use, the consumption, the distribution, and
28 the storage to be used or consumed in this state of the
29 following are hereby specifically exempt from the tax imposed
30 by this chapter.
31 (5) EXEMPTIONS; ACCOUNT OF USE.--
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Florida Senate - 2000 CS for CS for SB 2578
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1 (n) Materials for construction of single-family homes
2 in certain areas.--
3 1. As used in this paragraph, the term:
4 a. "Building materials" means tangible personal
5 property that becomes a component part of a qualified home.
6 b. "Qualified home" means a single-family home having
7 an appraised value of no more than $160,000 which is located
8 in an enterprise zone, empowerment zone, or Front Porch
9 Florida Community and which is constructed and occupied by the
10 owner thereof for residential purposes.
11 c. "Substantially completed" has the same meaning as
12 provided in s. 192.042(1).
13 2. Building materials used in the construction of a
14 qualified home and the costs of labor associated with the
15 construction of a qualified home are exempt from the tax
16 imposed by this chapter upon an affirmative showing to the
17 satisfaction of the department that the requirements of this
18 paragraph have been met. This exemption inures to the owner
19 through a refund of previously paid taxes. To receive this
20 refund, the owner must file an application under oath with the
21 department which includes:
22 a. The name and address of the owner.
23 b. The address and assessment roll parcel number of
24 the home for which a refund is sought.
25 c. A copy of the building permit issued for the home.
26 d. A certification by the local building inspector
27 that the home is substantially completed.
28 e. A sworn statement, under penalty of perjury, from
29 the general contractor licensed in this state with whom the
30 owner contracted to construct the home, which statement lists
31 the building materials used in the construction of the home
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Florida Senate - 2000 CS for CS for SB 2578
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1 and the actual cost thereof, the labor costs associated with
2 such construction, and the amount of sales tax paid on these
3 materials and labor costs. If a general contractor was not
4 used, the owner shall provide this information in a sworn
5 statement, under penalty of perjury. Copies of invoices
6 evidencing payment of sales tax must be attached to the sworn
7 statement.
8 f. A sworn statement, under penalty of perjury, from
9 the owner affirming that he or she is occupying the home for
10 residential purposes.
11 3. An application for a refund under this paragraph
12 must be submitted to the department within 6 months after the
13 date the home is deemed to be substantially completed by the
14 local building inspector. Within 30 working days after receipt
15 of the application, the department shall determine if it meets
16 the requirements of this paragraph. A refund approved pursuant
17 to this paragraph shall be made within 30 days after formal
18 approval of the application by the department. The provisions
19 of s. 212.095 do not apply to any refund application made
20 under this paragraph.
21 4. The department shall establish by rule an
22 application form and criteria for establishing eligibility for
23 exemption under this paragraph.
24 5. The exemption shall apply to purchases of materials
25 on or after July 1, 2000.
26 (o) Building materials in redevelopment projects.--
27 1. As used in this paragraph, the term:
28 a. "Building materials" means tangible personal
29 property that becomes a component part of a housing project or
30 a mixed-use project.
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1 b. "Housing project" means the conversion of an
2 existing manufacturing or industrial building to housing units
3 in an urban high-crime area, enterprise zone, empowerment
4 zone, Front Porch Community, designated brownfield area, or
5 urban infill area and in which the developer agrees to set
6 aside at least 20 percent of the housing units in the project
7 for low-income and moderate-income persons.
8 c. "Mixed-use project" means the conversion of an
9 existing manufacturing or industrial building to mixed-use
10 units that include artists' studios, art and entertainment
11 services, or other compatible uses. A mixed-use project must
12 be located in an urban high-crime area, enterprise zone,
13 empowerment zone, Front Porch Community, designated brownfield
14 area, or urban infill area and the developer must agree to set
15 aside at least 20 percent of the square footage of the project
16 for low-income and moderate-income housing.
17 d. "Substantially completed" has the same meaning as
18 provided in s. 192.042(1).
19 2. Building materials used in the construction of a
20 housing project or mixed-use project are exempt from the tax
21 imposed by this chapter upon an affirmative showing to the
22 satisfaction of the department that the requirements of this
23 paragraph have been met. This exemption inures to the owner
24 through a refund of previously paid taxes. To receive this
25 refund, the owner must file an application under oath with the
26 department which includes:
27 a. The name and address of the owner.
28 b. The address and assessment roll parcel number of
29 the project for which a refund is sought.
30 c. A copy of the building permit issued for the
31 project.
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Florida Senate - 2000 CS for CS for SB 2578
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1 d. A certification by the local building inspector
2 that the project is substantially completed.
3 e. A sworn statement, under penalty of perjury, from
4 the general contractor licensed in this state with whom the
5 owner contracted to construct the project, which statement
6 lists the building materials used in the construction of the
7 project and the actual cost thereof, and the amount of sales
8 tax paid on these materials. If a general contractor was not
9 used, the owner shall provide this information in a sworn
10 statement, under penalty of perjury. Copies of invoices
11 evidencing payment of sales tax must be attached to the sworn
12 statement.
13 3. An application for a refund under this paragraph
14 must be submitted to the department within 6 months after the
15 date the project is deemed to be substantially completed by
16 the local building inspector. Within 30 working days after
17 receipt of the application, the department shall determine if
18 it meets the requirements of this paragraph. A refund approved
19 pursuant to this paragraph shall be made within 30 days after
20 formal approval of the application by the department. The
21 provisions of s. 212.095 do not apply to any refund
22 application made under this paragraph.
23 4. The department shall establish by rule an
24 application form and criteria for establishing eligibility for
25 exemption under this paragraph.
26 5. The exemption shall apply to purchases of materials
27 on or after July 1, 2000.
28 Section 2. The agencies involved with the Urban Infill
29 Implementation Project Grants Program under section 163.2523,
30 Florida Statutes, the State Apartment Incentive Loan Program
31 under section 420.5087, Florida Statutes, the HOME Investment
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Florida Senate - 2000 CS for CS for SB 2578
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1 Partnership Program under section 420.5089, Florida Statutes,
2 and the State Housing Tax Credit Program under section
3 420.5093, Florida Statutes, shall give priority consideration
4 to projects that would convert vacant industrial and
5 manufacturing facilities to affordable housing units within
6 urban high-crime areas, enterprise zones, empowerment zones,
7 Front Porch Communities, designated brownfield areas, or urban
8 infill areas.
9 Section 3. The Department of Community Affairs, in
10 conjunction with the Office of Tourism, Trade, and Economic
11 Development, the Office of Urban Opportunities, and Enterprise
12 Florida, Inc., shall recommend new economic incentives or
13 revisions to existing economic incentives in order to promote
14 the reuse of vacant industrial and manufacturing facilities
15 for affordable housing and mixed-use development. The report
16 must also identify any state regulatory or programmatic
17 barriers to the reuse of such facilities. The department
18 shall submit a report to the President of the Senate and the
19 Speaker of the House of Representatives containing its
20 recommendations by January 31, 2001. Based upon consultation
21 with the Department of Environmental Protection, the
22 department shall include, as a component of the report, any
23 recommended modifications to the Brownfields Redevelopment
24 Act, sections 376.77-376.85, Florida Statutes, for revising
25 liability protection or economic incentives under the act to
26 promote reuse of such facilities.
27 Section 4. (1) State agencies shall give priority to
28 applicants for assistance in state housing, economic
29 development, and community revitalization programs where that
30 application supports the objectives of redeveloping HOPE VI
31 grant neighborhoods. The following programs shall provide
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Florida Senate - 2000 CS for CS for SB 2578
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1 priority consideration to HOPE VI applications; SAIL, State
2 Housing Tax Credit, Federal Low Income Housing Tax Credit,
3 HOME program, Urban Infill Program, Urban High Crime Tax
4 Credits, brownfields, state empowerment zone.
5 (2) To qualify for priority consideration in the above
6 mentioned programs, a HOPE VI project applicant must document
7 the following actions in the application for assistance.
8 (a) There is an active and open grant award from the
9 United States Department of Housing and Urban Development
10 under the HOPE VI program in the community.
11 (b) There is tangible and documented support committed
12 by the unit of local government to redeveloping the
13 neighborhoods surrounding the HOPE VI project.
14 (c) There is a written agreement between the public
15 housing authority and the unit of local government that
16 outlines the joint agreement to redevelop the entire HOPE VI
17 neighborhoods and not to focus solely upon the public housing
18 site.
19 (d) There is a clearly defined plan with goals and
20 objectives to promote the redevelopment of the HOPE VI
21 neighborhoods to be a mixed income neighborhood, and to
22 deconcentrate the location of publicly assisted housing within
23 the neighborhood, promote home ownership, and involve the
24 residents of the neighborhood in the redevelopment planning
25 and improvement process.
26 (3) The Department of Community Affairs shall annually
27 submit to the Legislature a summary of all assistance provided
28 to local HOPE VI applicants, and the percentage of HOPE VI
29 projects to all program awards.
30 Section 5. This act shall take effect upon becoming a
31 law.
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Florida Senate - 2000 CS for CS for SB 2578
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1 STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
COMMITTEE SUBSTITUTE FOR
2 CS/SB 2578
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4 The committee substitute requires state agencies to give
priority consideration to applications submitted by
5 communities receiving HOPE VI grants for certain programs.
These programs include SAIL, State Housing Tax Credit, Federal
6 Low Income Housing Tax Credit, HOME, Urban Infill Program,
Urban High Crime Tax Credits, brownfields, and state
7 empowerment zone. The committee substitute further establishes
criteria for such applications, and requires the Department of
8 Community Affairs to annually provide the Legislature with a
summary of all assistance provided to HOPE VI applicants, and
9 the percentage of HOPE VI projects to all program awards.
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