Senate Bill sb1456
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Florida Senate - 2002 SB 1456
By Senator Constantine
9-1199A-02 See HB 547
1 A bill to be entitled
2 An act relating to affordable housing; amending
3 s. 373.4141, F.S.; providing that processing of
4 permit applications for affordable housing
5 projects under pt. IV of ch. 373, F.S.,
6 relating to management and storage of surface
7 waters, shall be expedited; amending s.
8 380.0552, F.S.; providing for carryover of
9 unused residential permit units from one year
10 to a subsequent year in the Florida Keys Area;
11 amending s. 420.507, F.S.; providing that
12 projects for occupancy by commercial fishing
13 workers and the homeless are eligible for the
14 lowest interest rate mortgage loans under the
15 State Apartment Incentive Loan Program;
16 authorizing the Florida Housing Finance
17 Corporation to establish subsidiary
18 corporations for certain purposes and to
19 conduct and fund certain demonstration programs
20 and projects; amending s. 420.508, F.S.;
21 authorizing the corporation to establish a
22 procedure for evaluating and ranking
23 applications for private activity bond
24 allocation in connection with multifamily
25 projects and to establish terms of mortgage
26 loans; amending s. 420.5087, F.S.; providing
27 that, until a specified date, a project located
28 in a county that includes or has included an
29 area of critical state concern for which the
30 Legislature intends to provide affordable
31 housing and that meets certain income criteria
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Florida Senate - 2002 SB 1456
9-1199A-02 See HB 547
1 is eligible under the State Apartment Incentive
2 Loan Program; amending s. 420.526, F.S.;
3 revising requirements relating to funding
4 priorities under the Predevelopment Loan
5 Program; amending s. 420.527, F.S.; revising
6 requirements relating to the application
7 procedure under the program and to evaluation
8 of applicants; amending s. 420.9075, F.S.;
9 revising requirements for monitoring and
10 determining tenant eligibility in connection
11 with a local housing assistance plan under the
12 State Housing Initiatives Partnership Program;
13 revising requirements for determining the
14 average area purchase price under such plans;
15 exempting, until a specified date, a county or
16 municipality that includes or has included an
17 area of critical state concern for which the
18 Legislature intends to provide affordable
19 housing from certain tenant income requirements
20 under such plans; revising requirements for the
21 annual report to the corporation required under
22 the program; providing an effective date.
23
24 Be It Enacted by the Legislature of the State of Florida:
25
26 Section 1. Subsection (3) is added to section
27 373.4141, Florida Statutes, to read:
28 373.4141 Permits; processing.--
29 (3) Processing of applications for permits for
30 affordable housing projects shall be expedited to a greater
31 degree than for other projects.
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Florida Senate - 2002 SB 1456
9-1199A-02 See HB 547
1 Section 2. Subsection (10) is added to section
2 380.0552, Florida Statutes, to read:
3 380.0552 Florida Keys Area; protection and designation
4 as area of critical state concern.--
5 (10) CARRYOVER OF UNUSED RESIDENTIAL PERMIT
6 UNITS.--For any rate-of-growth ordinance adopted pursuant to
7 this section, under which an annual unit cap for new
8 residential development is established, any units not used
9 during the year for which the unit cap applies shall be
10 carried over to the subsequent year and added to the unit cap
11 for the subsequent year.
12 Section 3. Paragraph (a) of subsection (22) of section
13 420.507, Florida Statutes, is amended, and subsections (40)
14 and (41) are added to said section, to read:
15 420.507 Powers of the corporation.--The corporation
16 shall have all the powers necessary or convenient to carry out
17 and effectuate the purposes and provisions of this part,
18 including the following powers which are in addition to all
19 other powers granted by other provisions of this part:
20 (22) To develop and administer the State Apartment
21 Incentive Loan Program. In developing and administering that
22 program, the corporation may:
23 (a) Make first, second, and other subordinated
24 mortgage loans including variable or fixed rate loans subject
25 to contingent interest for all SAIL loans provided for in this
26 chapter based upon the available cash flow of the projects.
27 The corporation shall make loans exceeding 25 percent of
28 project cost available only to nonprofit organizations and
29 public bodies which are able to secure grants, donations of
30 land, or contributions from other sources and to projects
31
3
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Florida Senate - 2002 SB 1456
9-1199A-02 See HB 547
1 meeting the criteria of subparagraph 1. Mortgage loans shall
2 be made available at the following rates of interest:
3 1. Zero to 3 percent interest for sponsors of projects
4 that maintain an 80 percent occupancy of residents qualifying
5 as farmworkers as defined in s. 420.503(18), commercial
6 fishing workers as defined in s. 420.503(5), or the homeless
7 as defined in s. 420.621(4) over the life of the loan.
8 2. Three to 9 percent interest for sponsors of
9 projects targeted at populations other than farmworkers,
10 commercial fishing workers, and the homeless.
11 (40) To establish subsidiary corporations for the
12 purpose of taking title to and managing and disposing of
13 property acquired by the corporation. Such subsidiary
14 corporations shall be public corporations wholly owned by the
15 corporation; shall be entitled to own, mortgage, and sell
16 property on the same basis as the corporation; and shall be
17 deemed corporations primarily acting as agents of the state,
18 within the meaning of s. 768.28, on the same basis as the
19 corporation.
20 (41) To conduct and fund, solely from funds derived
21 from amounts other than those deposited in the state housing
22 trust fund, demonstration programs and projects that further
23 the statutory purposes of the corporation, including the power
24 to establish selection criteria by rule or by means of
25 requests for proposals.
26 Section 4. Subsections (6) and (7) are added to
27 section 420.508, Florida Statutes, to read:
28 420.508 Special powers; multifamily and single-family
29 projects.--The corporation shall have the special power to:
30 (6) Establish, by rule, a procedure for evaluating,
31 scoring, and competitively ranking all applications for
4
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Florida Senate - 2002 SB 1456
9-1199A-02 See HB 547
1 private activity bond allocation in connection with
2 multifamily projects financed under this part.
3 (7) Establish terms of mortgage loans funded pursuant
4 to this part, including applicable security documents and
5 limitations on sources and uses of funds.
6 Section 5. Subsection (2) of section 420.5087, Florida
7 Statutes, is amended to read:
8 420.5087 State Apartment Incentive Loan
9 Program.--There is hereby created the State Apartment
10 Incentive Loan Program for the purpose of providing first,
11 second, or other subordinated mortgage loans or loan
12 guarantees to sponsors, including for-profit, nonprofit, and
13 public entities, to provide housing affordable to
14 very-low-income persons.
15 (2) The corporation shall have the power to underwrite
16 and make state apartment incentive loans or loan guarantees to
17 sponsors, provided:
18 (a) The sponsor uses tax-exempt financing for the
19 first mortgage and at least 20 percent of the units in the
20 project are set aside for persons or families who have incomes
21 which meet the income eligibility requirements of s. 8 of the
22 United States Housing Act of 1937, as amended;
23 (b) The sponsor uses taxable financing for the first
24 mortgage and at least 20 percent of the units in the project
25 are set aside for persons or families who have incomes below
26 50 percent of the state or local median income, whichever is
27 higher, which shall be adjusted by the corporation for family
28 size; or
29 (c) The sponsor uses the federal low-income housing
30 tax credit, and the project meets the tenant income
31
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Florida Senate - 2002 SB 1456
9-1199A-02 See HB 547
1 eligibility requirements of s. 42 of the Internal Revenue Code
2 of 1986, as amended; or.
3 (d) The project is located in a county that includes,
4 or has included within the previous 5 years, an area of
5 critical state concern designated or ratified by the
6 Legislature for which the Legislature has declared its intent
7 to provide affordable housing, and 100 percent of the units in
8 the project are set aside for persons or families who have
9 incomes below 120 percent of the state or local median income,
10 whichever is higher, which shall be adjusted by the
11 corporation for family size. This paragraph expires July 1,
12 2005.
13
14 This subsection does not prohibit a tenant from qualifying
15 under the income eligibility criteria of paragraph (a),
16 paragraph (b), or paragraph (c), or paragraph (d) due to the
17 tenant's participation in a job training program approved by
18 the corporation. Compliance with the provisions of this
19 subsection must be contractually provided for the term of the
20 loan or 12 years, whichever is longer; however, this
21 subsection does not apply to loans made to housing communities
22 for the elderly to provide for lifesafety, building
23 preservation, health, sanitation, or security-related repairs
24 or improvements. Such loans shall be subject to tenant income
25 criteria established by corporation rule.
26 Section 6. Subsection (3) of section 420.526, Florida
27 Statutes, is amended to read:
28 420.526 Predevelopment Loan Program; loans and grants
29 authorized; activities eligible for support.--
30 (3) The corporation shall establish rules for the
31 equitable distribution of the funds in a manner that meets the
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Florida Senate - 2002 SB 1456
9-1199A-02 See HB 547
1 need and demand for housing for the target population. Funds
2 shall be made available under the program on a first-come,
3 first-served basis, unless otherwise established by
4 corporation rule. Sponsors of farmworker housing, if any,
5 shall receive first priority under this program, and further
6 priorities shall be as established by rule of the corporation.
7 Section 7. Section 420.527, Florida Statutes, is
8 amended to read:
9 420.527 Application procedure.--
10 (1) Applications shall be submitted to the corporation
11 in a form that it establishes by rule.
12 (2) Applications that propose linkage of
13 predevelopment funds with other financing offered through the
14 corporation shall receive preference in funding.
15 (3) The corporation shall publish a notice of fund
16 availability in a publication of general circulation
17 throughout the state. Such notice shall be published at least
18 60 days before the application deadline.
19 (2)(4) By rule, the corporation shall establish the
20 criteria a review committee composed of representatives of the
21 corporation and a scoring system for determining threshold
22 compliance with corporation objectives evaluating and ranking
23 applications. Final decisions regarding funding shall be
24 approved by the corporation board shall make the final ranking
25 and shall decide which applicants become program participants
26 based on the scores received in the ranking, further review of
27 applications, and the recommendations of the review committee.
28 The corporation board shall approve or reject applications for
29 loans and grants and shall determine the tentative loan or
30 grant amount available to each program participant. The
31
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Florida Senate - 2002 SB 1456
9-1199A-02 See HB 547
1 actual loan or grant amount shall be determined pursuant to
2 rule specifying credit underwriting procedures.
3 (3)(5) The criteria to be used to determine threshold
4 compliance score applications shall include, but are not
5 limited to, the following:
6 (a) Income target objectives of the corporation.
7 (b) Sponsor's agreement to reserve more than the
8 minimum number of units for low-income households and
9 very-low-income households.
10 (c) Projects requiring the least amount of
11 predevelopment funds compared to total predevelopment costs.
12 (d) Sponsor's prior experience.
13 (e) Commitments of other financing.
14 (f) Sponsor's ability to proceed.
15 (g) Project's consistency with the local government
16 comprehensive plan.
17 Section 8. Paragraph (e) of subsection (3), paragraphs
18 (c) and (d) of subsection (4), and paragraph (c) of subsection
19 (9) of section 420.9075, Florida Statutes, are amended to
20 read:
21 420.9075 Local housing assistance plans;
22 partnerships.--
23 (3) Each local housing assistance plan is governed by
24 the following criteria and administrative procedures:
25 (e) The staff or entity that has administrative
26 authority for implementing a local housing assistance plan
27 assisting rental developments shall annually monitor and
28 determine tenant eligibility or, to the extent that another
29 governmental entity the Florida Housing Finance Corporation
30 provides the same monitoring and determination, a
31 municipality, county, or local housing financing authority may
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Florida Senate - 2002 SB 1456
9-1199A-02 See HB 547
1 rely on such monitoring and determination of tenant
2 eligibility. However, any loan or grant in the original amount
3 of $3,000 or less shall not be subject to these annual
4 monitoring and determination-of-tenant-eligibility
5 requirements.
6 (4) The following criteria apply to awards made to
7 eligible sponsors or eligible persons for the purpose of
8 providing eligible housing:
9 (c) The sales price or value of new or existing
10 eligible housing may not exceed 90 percent of the average area
11 purchase price in the statistical area in which the eligible
12 housing is located, which housing was purchased during the
13 most recent 12-month period for which sufficient statistical
14 information is available or, as established by the United
15 States Department of Treasury. Such average area purchase
16 price may be that calculated for any 12-month period beginning
17 not earlier than the fourth calendar year prior to the year in
18 which the award occurs.
19 (d)1. All units constructed, rehabilitated, or
20 otherwise assisted with the funds provided from the local
21 housing assistance trust fund must be occupied by
22 very-low-income persons, low-income persons, and
23 moderate-income persons.
24 2. At least 30 percent of the funds deposited into the
25 local housing assistance trust fund must be reserved for
26 awards to very-low-income persons or eligible sponsors who
27 will serve very-low-income persons and at least an additional
28 30 percent of the funds deposited into the local housing
29 assistance trust fund must be reserved for awards to
30 low-income persons or eligible sponsors who will serve
31 low-income persons. This subparagraph does not apply, until
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Florida Senate - 2002 SB 1456
9-1199A-02 See HB 547
1 July 1, 2005, to a county or an eligible municipality that
2 includes, or has included within the previous 5 years, an area
3 of critical state concern designated or ratified by the
4 Legislature for which the Legislature has declared its intent
5 to provide affordable housing.
6
7 If both an award under the local housing assistance plan and
8 federal low-income housing tax credits are used to assist a
9 project and there is a conflict between the criteria
10 prescribed in this subsection and the requirements of s. 42 of
11 the Internal Revenue Code of 1986, as amended, the county or
12 eligible municipality may resolve the conflict by giving
13 precedence to the requirements of s. 42 of the Internal
14 Revenue Code of 1986, as amended, in lieu of following the
15 criteria prescribed in this subsection with the exception of
16 paragraphs (a) and (d) of this subsection.
17 (9) Each county or eligible municipality shall submit
18 to the corporation by September 15 of each year a report of
19 its affordable housing programs and accomplishments through
20 June 30 immediately preceding submittal of the report. The
21 report shall be certified as accurate and complete by the
22 local government's chief elected official or his or her
23 designee. Transmittal of the annual report by a county's or
24 eligible municipality's chief elected official, or his or her
25 designee, certifies that the local housing incentive
26 strategies, or, if applicable, the local housing incentive
27 plan, have been implemented or are in the process of being
28 implemented pursuant to the adopted schedule for
29 implementation. The report must include, but is not limited
30 to:
31
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Florida Senate - 2002 SB 1456
9-1199A-02 See HB 547
1 (c) The average area purchase sales price or value of
2 a single-family units unit and the amount of rent charged for
3 a rental unit based on unit size.
4 Section 9. This act shall take effect upon becoming a
5 law.
6
7 *****************************************
8 LEGISLATIVE SUMMARY
9
Provides that processing of permit applications for
10 affordable housing projects under pt. IV of ch. 373,
F.S., relating to management and storage of surface
11 waters, shall be expedited.
12
Provides for carryover of unused residential permit units
13 from one year to a subsequent year in the Florida Keys
Area.
14
15 Provides that projects for occupancy by commercial
fishing workers and the homeless are eligible for the
16 lowest interest rate mortgage loans under the State
Apartment Incentive Loan Program. Authorizes the Florida
17 Housing Finance Corporation to establish subsidiary
corporations for certain purposes and to conduct and fund
18 certain demonstration programs and projects. Authorizes
the corporation to establish a procedure for evaluating
19 and ranking applications for private activity bond
allocation in connection with multifamily projects and to
20 establish terms of mortgage loans. Provides that a
project located in a county that includes or has included
21 an area of critical state concern for which the
Legislature intends to provide affordable housing and
22 that meets certain income criteria is eligible under the
State Apartment Incentive Loan Program.
23
24 Revises requirements relating to funding priorities under
the Predevelopment Loan Program, and requirements
25 relating to the application procedure under the program
and to evaluation of applicants. Revises requirements for
26 monitoring and determining tenant eligibility in
connection with a local housing assistance plan under the
27 State Housing Initiatives Partnership Program. Revises
requirements for determining the average area purchase
28 price under such plans. Exempts a county or municipality
that includes or has included an area of critical state
29 concern for which the Legislature intends to provide
affordable housing from certain tenant income
30 requirements under such plans. Revises requirements for
the annual report to the corporation required under the
31 program.
11
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