Senate Bill sb1456

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

                                  1

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






    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.

                                  2

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






    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

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






    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

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






    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

                                  5

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






    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

                                  6

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






    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

                                  7

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






    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

                                  8

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






    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

                                  9

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






    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

                                  10

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






    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

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