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





                                                   HOUSE AMENDMENT

                                                   Bill No. HB 761

    Amendment No. 01 (for drafter's use only)

                            CHAMBER ACTION
              Senate                               House
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 4                                                                

 5                                           ORIGINAL STAMP BELOW

 6

 7

 8

 9

10                                                                

11  The Committee on Community Affairs offered the following:

12

13         Amendment (with title amendment) 

14  Remove from the bill:  Everything after the enacting clause

15

16  and insert in lieu thereof:

17         Section 1.  This act may be cited as the

18  "Community-Based Development Organization Assistance Act."

19         Section 2.  Legislative findings and intent.--

20         (1)  The Legislature finds that:

21         (a)  Significant declines and consistently depressed

22  appraised values make it impossible for business enterprises,

23  including community-based development organizations, to

24  generate sufficient revenues from business or real estate

25  ventures in low-income neighborhoods to fund the redevelopment

26  costs and other administrative expenses needed to foster new

27  developments in these hard-to-develop areas.

28         (b)  This deterioration contributes to the decline of

29  neighborhoods in both rural and urban areas, causes a

30  reduction of the value of property comprising the tax base of

31  local communities, and eventually requires the expenditure of

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                                                   HOUSE AMENDMENT

                                                   Bill No. HB 761

    Amendment No. 01 (for drafter's use only)





 1  disproportionate amounts of public funds for health, social

 2  services, and police protection to prevent the development of

 3  slums and the social and economic disruption found in slum

 4  communities.

 5         (c)  The available means of eliminating or reducing

 6  these deteriorating economic conditions and encouraging local

 7  resident participation and support is to provide support

 8  assistance and resource investment to community-based

 9  development organizations. The Legislature also finds that

10  community-based development organizations can contribute to

11  the creation of jobs in response to federal welfare reform and

12  state WAGES Program legislation, and economic development

13  activities related to urban and rural economic initiatives.

14         (2)  The intent of this legislation is to provide

15  community-based development organizations with the necessary

16  administrative and operating funds to retain project staff to

17  plan, implement, and manage job-generating and community

18  revitalization developments in distressed neighborhoods.  This

19  assistance will strengthen the community-based development

20  organizations, assist local governments to enhance and expand

21  revitalization efforts, and contribute to expanding the base

22  of commerce, business, and affordable housing that will serve

23  persons with very low incomes or low incomes, or WAGES

24  recipients, using a bottom-up approach.

25         Section 3.  Eligibility for

26  assistance.--Community-based development organizations that

27  meet the following requirements shall be eligible for

28  assistance.

29         (1)  The community-based development organization must

30  be a nonprofit corporation under state law and s. 501(c)(3) of

31  the United States Internal Revenue Code.

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                                                   HOUSE AMENDMENT

                                                   Bill No. HB 761

    Amendment No. 01 (for drafter's use only)





 1         (2)  A majority of the board members of the

 2  community-based development organization must be elected by

 3  those members of the corporation who are stakeholders,

 4  comprising a mix of service area residents, area business

 5  property owners, area employees, and low-income residents.

 6  The board of a Community-based development organization shall

 7  include low-income residents.

 8         (3)  The community-based development organization must

 9  maintain a service area in which economic and housing

10  development projects are located and must further meet one or

11  more of the following criteria:

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

13  163.355, Florida Statutes, as a slum area or a blighted area,

14  as defined in s. 163.340, Florida Statutes, or is located

15  completely within the boundaries of a slum area or a blighted

16  area.

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

18  program area in which community development block grant funds

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

20  years as certified by the local government in which the

21  service area is loca ted.

22         (c)  The area is a neighborhood housing service

23  district.

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

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

26  s. 290.0065.

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

28  and enterprise communities.

29         Section 4.  Three-tiered plan.--The Department of

30  Community Affairs is authorized to award core administrative

31  and operating grants.  Administrative and operating grants

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                                                   HOUSE AMENDMENT

                                                   Bill No. HB 761

    Amendment No. 01 (for drafter's use only)





 1  shall be used for staff salaries and administrative expenses

 2  for eligible community-based development organizations

 3  selected through a competitive three-tiered process for the

 4  purpose of housing and economic development projects.  The

 5  department shall adopt by rule a set of criteria for

 6  three-tiered funding that shall ensure equitable geographic

 7  distribution of the funding throughout the state. This

 8  three-tiered plan shall include emerging, intermediate, and

 9  mature community-based development organizations recognizing

10  the varying needs of the three tiers.  Funding shall be

11  provided for core administrative and operating grants for all

12  levels of community-based development organizations.  Priority

13  shall be given to those organizations that demonstrate

14  community-based productivity and high performance as evidenced

15  by past projects developed with stakeholder input that have

16  responded to neighborhood needs, and have current projects

17  located in high-poverty neighborhoods, and to emerging

18  community-based development corporations that demonstrate a

19  positive need identified by stakeholders.  Persons, equipment,

20  supplies, and other resources funded in whole or in part by

21  grant funds shall be utilized to further the purposes of this

22  act, and may be utilized to further the goals and objectives

23  of the Front Porch Florida Initiative. The one-time

24  appropriation provided in this act shall be distributed by the

25  Department of Community Affairs, to be used in a constructive

26  manner by community-based development organizations across the

27  state. Thereafter, each community-based development

28  organization shall be eligible to apply for a grant of up to

29  $50,000 per year for a period of 5 years.

30         Section 5.  Eligible activities.--Activities eligible

31  for assistance pursuant to this act include, but are not

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                                                   HOUSE AMENDMENT

                                                   Bill No. HB 761

    Amendment No. 01 (for drafter's use only)





 1  limited to:

 2         (1)  Preparing grant and loan applications, proposals,

 3  fundraising letters, and other documents essential to securing

 4  additional administrative or project funds to further the

 5  purposes of this act.

 6         (2)  Monitoring and administering grants and loans,

 7  providing technical assistance to businesses, and any other

 8  administrative tasks essential to maintaining funding

 9  eligibility or meeting contractual obligations.

10         (3)  Developing local programs and home ownership

11  housing projects to encourage the participation of financial

12  institutions, insurance companies, attorneys, architects,

13  engineers, planners, law enforcement officers, developers, and

14  other professional firms and individuals providing services

15  beneficial to redevelopment efforts.

16         (4)  Providing technical, accounting, and financial

17  assistance and information to businesses and entrepreneurs

18  interested in locating, expanding, or operating in the service

19  area.

20         (5)  Coordinating with state, federal, and local

21  governments and other nonprofit organizations to ensure that

22  activities meet local plans and ordinances and to avoid

23  duplication of tasks.

24         (6)  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         (7)  Developing, selling, owning, and managing

29  subsidized affordable housing designed for persons with very

30  low incomes or low incomes, or for WAGES recipients, or

31  developing, selling, owning, and managing subsidized

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                                                   HOUSE AMENDMENT

                                                   Bill No. HB 761

    Amendment No. 01 (for drafter's use only)





 1  affordable industrial parks providing jobs to such persons.

 2         (8)  Obtaining technical assistance to build capacity

 3  to support community-based development organization projects.

 4         Section 6.  Application requirements.--A

 5  community-based development organization applying for a core

 6  administrative and operating grant pursuant to this act must

 7  submit a proposal to the Department of Community Affairs that

 8  includes:

 9         (1)  A map and narrative description of the service

10  areas for the community-based development organization.

11         (2)  A copy of the documents creating the

12  community-based development organization.

13         (3)  A listing of the membership of the board of the

14  community-based development organization, including individual

15  members' terms of office and the number low-income residents

16  on the board.

17         (4)  The organization's annual revitalization plan that

18  describes the expenditure of the funds, including goals,

19  objectives, and expected results, and has a clear relationship

20  to the local municipality's comprehensive plan.

21         (5)  Other supporting information that may be required

22  by the Department of Community Affairs to determine the

23  organization's capacity and productivity.

24         (6)  A description of the location, financing plan, and

25  potential impact of the business enterprises on residential,

26  commercial, or industrial development, that shows a clear

27  relationship to the organization's annual revitalization plan

28  and demonstrates how the proposed expenditures are directly

29  related to the scope of work for the proposed projects in the

30  annual revitalization plan.

31         Section 7.  Reporting and evaluation

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                                                   HOUSE AMENDMENT

                                                   Bill No. HB 761

    Amendment No. 01 (for drafter's use only)





 1  requirements.--Community-based development organizations that

 2  receive funds under this act shall provide the following

 3  information to the Department of Community Affairs annually:

 4         (1)  A listing of business firms and individuals

 5  assisted by the community-based development organization

 6  during the reporting period.

 7         (2)  A listing of the type, source, purpose, and amount

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

 9  community-based development organization during the reporting

10  period.

11         (3)  The number of paid and voluntary positions within

12  the community-based development organization.

13         (4)  A listing of the salaries and administrative and

14  operating expenses of the community-based development

15  organization.

16         (5)  An identification and explanation of changes in

17  the boundaries of the target area.

18         (6)  The amount of earned income from projects,

19  programs, and development activities.

20         (7)  The number and description of projects in

21  predevelopment phase, projects under construction, ongoing

22  service programs, construction projects completed, and

23  projects at sell-out or lease-up and property management

24  phase, and a written explanation of the reasons that caused

25  any projects not to be completed for the projected development

26  phase.

27         (8)  The impact of the projects, as a result of

28  receiving funding under this act, on residents in the target

29  area, and the relationship of this impact to expected outcomes

30  listed in the organization's annual revitalization plan.

31         (9) The number of housing units rehabilitated or

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                                                   HOUSE AMENDMENT

                                                   Bill No. HB 761

    Amendment No. 01 (for drafter's use only)





 1  constructed at various stages of development, predevelopment

 2  phase, construction phase, completion and sell-out or lease-up

 3  phase, and condominium or property management phase by the

 4  community-based development organization within the service

 5  area during the reporting period.

 6         (10)  The number of housing units, number of projects,

 7  and number of persons served by prior projects developed by

 8  the organization, the amounts of project financing leverage

 9  with state funds for each prior and current project, and the

10  incremental amounts of local and state real estate tax and

11  sales tax revenue generated directly by the projects and

12  programs annually.

13         (11)  The number of jobs, both permanent and temporary,

14  received by individuals who were directly assisted by the

15  community-based development organization through assistance to

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

17         (12)  An identification and explanation of changes in

18  the boundaries of the service area.

19         (13)  The impact of completed projects on residents in

20  the target area and the relationship of this impact to

21  expected outcomes listed in the organization's annual

22  revitalization plan.

23         (14)  Such other information as the Department of

24  Community Affairs requires.

25         Section 8.  The Department of Community Affairs shall

26  adopt rules for the administration of this act.

27         Section 9.  There is hereby appropriated to the

28  Department of Community Affairs, three full-time-equivalent

29  employees and from the General Revenue Fund the sum of

30  $192,000 to fund administration of this act, and the sum of $3

31  million to be distributed as grants to community-based

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                                                   HOUSE AMENDMENT

                                                   Bill No. HB 761

    Amendment No. 01 (for drafter's use only)





 1  development organizations as provided by this act.

 2

 3

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

 5  And the title is amended as follows:

 6         On page 1, lines 3-16,

 7  remove from the title of the bill:  all of said lines

 8

 9  and insert in lieu thereof:

10         organizations; creating the "Community-Based

11         Development Organization Act"; providing

12         legislative findings and intent; providing

13         eligibility requirements for administrative and

14         operating grants to community-based development

15         organizations; providing for award of grants by

16         the Department of Community Affairs for housing

17         and economic development projects; providing a

18         three-tiered plan; providing a description of

19         activities eligible for funding; providing

20         application requirements; providing reporting

21         and evaluation requirements; authorizing the

22         Department of Community Affairs to adopt rules;

23         providing an appropriation; providing an

24         effective date.

25

26

27

28

29

30

31

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