House Bill 0761

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    Florida House of Representatives - 2000                 HB 761

        By Representative L. Miller






  1                      A bill to be entitled

  2         An act relating to community-based development

  3         organizations; creating the "Community

  4         Development Corporation Assistance Act";

  5         providing legislative findings and intent;

  6         providing eligibility requirements for

  7         administrative and operating grants to

  8         community-based development organizations;

  9         providing for award of grants by the Department

10         of Community Affairs for housing and economic

11         development projects; providing a three-tiered

12         plan; providing a description of activities

13         eligible for funding; providing application

14         requirements; providing reporting and

15         evaluation requirements; providing an

16         appropriation; providing an effective date.

17

18  Be It Enacted by the Legislature of the State of Florida:

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20         Section 1.  This act may be cited as the "Community

21  Development Corporation Assistance Act."

22         Section 2.  Legislative findings and intent.--

23         (1)  The Legislature finds that:

24         (a)  Significant declines and consistently depressed

25  appraised values make it impossible for business enterprises,

26  including community-based development organizations, to

27  generate sufficient revenues from business or real estate

28  ventures in low-income neighborhoods to fund the redevelopment

29  costs and other administrative expenses needed to foster new

30  developments in these hard-to-develop areas.

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  1         (b)  This deterioration contributes to the decline of

  2  neighborhoods in both rural and urban areas, causes a

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

  4  local communities, and eventually requires the expenditure of

  5  disproportionate amounts of public funds for health, social

  6  services, and police protection to prevent the development of

  7  slums and the social and economic disruption found in slum

  8  communities.

  9         (c)  The available means of eliminating or reducing

10  these deteriorating economic conditions and encouraging local

11  resident participation and support is to provide support

12  assistance and resource investment to community-based

13  development organizations. The Legislature also finds that

14  community-based development organizations can contribute to

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

16  state WAGES Program legislation, and economic development

17  activities related to urban and rural economic initiatives.

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

19  community-based development organizations with the necessary

20  administrative and operating funds to retain project staff to

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

22  revitalization developments in distressed neighborhoods.  This

23  assistance will strengthen the community-based development

24  organizations, assist local governments to enhance and expand

25  revitalization efforts, and contribute to expanding the base

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

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

28  recipients, using a bottom-up approach.

29         Section 3.  Eligibility for

30  assistance.--Community-based development organizations that

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  1  meet the following requirements shall be eligible for

  2  assistance.

  3         (1)  The community-based development organization must

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

  5  the United States Internal Revenue Code.

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

  7  community-based development organization must be elected by

  8  those members of the corporation who are stakeholders,

  9  comprising a mix of service area residents, area business

10  property owners, and area employees.

11         (3)  The community-based development organization must

12  maintain a service area in which economic and housing

13  development projects are located and which has a high poverty

14  rate, based on the most current United States Census data,

15  that exceeds over 40 percent of the median income in the

16  county where the projects and organization are located, and

17  must further meet one or more of the following criteria:

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

19  163.355, Florida Statutes, as a slum area or a blighted area,

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

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

22  area.

23         (b)  The area is a neighborhood housing service

24  district that is contained within a state enterprise zone

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

26  290.0065, Florida Statutes.

27         (c)  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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  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 develop a set of criteria for three-tiered

  6  funding that shall ensure equitable geographic distribution of

  7  the funding throughout the state. This three-tiered plan shall

  8  include emerging, intermediate, and mature community-based

  9  development organizations recognizing the varying needs of the

10  three tiers.  Funding shall be provided for core

11  administrative and operating grants for all levels of

12  community-based development organizations.  Priority shall be

13  given to those organizations that demonstrate community-based

14  productivity and high performance, and have current projects

15  located in high-poverty neighborhoods, and to emerging

16  community development corporations that demonstrate a positive

17  need.  Persons, equipment, supplies, and other resources

18  funded in whole or in part by grant funds shall then be

19  utilized to further the purposes of the Front Porch Florida

20  Initiative. The one-time appropriation provided in this act

21  shall be distributed by the Department of Community Affairs,

22  to be used in a constructive manner by community development

23  corporations across the state. Thereafter, each community

24  development corporation shall be eligible to apply for a grant

25  of up to $50,000 per year for a period of 5 years.

26         Section 5.  Eligible activities.--Activities eligible

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

28  limited to:

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

30  fundraising letters, and other documents essential to securing

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  1  additional administrative or project funds to further the

  2  purposes of this act.

  3         (2)  Monitoring and administering grants and loans,

  4  providing technical assistance to businesses, and any other

  5  administrative tasks essential to maintaining funding

  6  eligibility or meeting contractual obligations.

  7         (3)  Developing local programs and home ownership

  8  housing projects to encourage the participation of financial

  9  institutions, insurance companies, attorneys, architects,

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

11  other professional firms and individuals providing services

12  beneficial to redevelopment efforts.

13         (4)  Providing technical, accounting, and financial

14  assistance and information to businesses and entrepreneurs

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

16  area.

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

18  governments and other nonprofit organizations to ensure that

19  activities meet local plans and ordinances and to avoid

20  duplication of tasks.

21         (6)  Assisting service area residents in identifying

22  and determining eligibility for state, federal, and local

23  housing programs, including rehabilitation, weatherization,

24  home ownership, rental assistance, or public housing programs.

25         (7)  Developing, selling, owning, and managing

26  subsidized affordable housing designed for persons with very

27  low incomes or low incomes, or for WAGES recipients, or

28  developing, selling, owning, and managing subsidized

29  affordable industrial parks providing jobs to such persons.

30         Section 6.  Application requirements.--A

31  community-based development organization applying for a core

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  1  administrative and operating grant pursuant to this act must

  2  submit a proposal to the Department of Community Affairs that

  3  includes:

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

  5  areas for the community-based development organization.

  6         (2)  A copy of the documents creating the

  7  community-based development organization.

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

  9  community-based development organization, including individual

10  members' terms of office.

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

12  describes the expenditure of the funds, including goals,

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

14  to the local municipality's neighborhood comprehensive plan.

15         (5)  Other supporting information that may be required

16  by the Department of Community Affairs to determine the

17  organization's capacity and productivity.

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

19  potential impact of the business enterprises on residential,

20  commercial, or industrial development, that shows a clear

21  relationship to the organization's annual revitalization plan

22  and demonstrates how the proposed expenditures are directly

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

24  annual revitalization plan.

25         Section 7.  Reporting and evaluation

26  requirements.--Community-based development organizations that

27  receive funds under this act shall provide the following

28  information to the Department of Community Affairs annually:

29         (1)  A listing of business firms and individuals

30  assisted by the community-based development organization

31  during the reporting period.

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

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

  3  community-based development organization during the reporting

  4  period.

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

  6  the community-based development organization.

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

  8  operating expenses of the community-based development

  9  organization.

10         (5)  An identification and explanation of changes in

11  the boundaries of the target area.

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

13  programs, and development activities.

14         (7)  The number and description of projects in

15  predevelopment phase, projects under construction, ongoing

16  service programs, construction projects completed, and

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

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

19  any projects not to be completed for the projected development

20  phase.

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

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

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

24  listed in the organization's annual revitalization plan.

25         (9) The number of housing units rehabilitated or

26  constructed at various stages of development, predevelopment

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

28  phase, and condominium or property management phase by the

29  community-based development organization within the service

30  area during the reporting period.

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

  2  and number of persons served by prior projects developed by

  3  the organization, the amounts of project financing leverage

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

  5  incremental amounts of local and state real estate tax and

  6  sales tax revenue generated directly by the projects and

  7  programs annually.

  8         (11)  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         (12)  An identification and explanation of changes in

13  the boundaries of the service area.

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

15  the target area and the relationship of this impact to

16  expected outcomes listed in the organization's annual

17  revitalization plan.

18         (14)  Such other information as the Department of

19  Community Affairs requires.

20         Section 8.  There is hereby appropriated from the

21  General Revenue Fund to the Department of Community Affairs,

22  the sum of $3 million to be distributed as grants to

23  community-based development organizations as provided by this

24  act.

25         Section 9.  This act shall take effect July 1, 2000.

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    Florida House of Representatives - 2000                 HB 761

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  2                          HOUSE SUMMARY

  3
      Creates the "Community Development Corporation Assistance
  4    Act." Provides for grants to certain community-based
      development organizations for administrative and
  5    operating expenses related to housing and economic
      development projects. Provides for administration and
  6    distribution of grants by the Department of Community
      Affairs according to a three-tiered plan recognizing the
  7    needs of emerging, intermediate, and mature
      community-based development organizations. Describes
  8    activities eligible for funding. Provides requirements
      for application and for reports and evaluation of
  9    projects funded. Provides an appropriation.

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