| 1 | The Economic Development, Trade & Banking Committee recommends |
| 2 | the following: |
| 3 |
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| 4 | Council/Committee Substitute |
| 5 | Remove the entire bill and insert: |
| 6 | A bill to be entitled |
| 7 | An act relating to affordable housing; amending s. 421.02, |
| 8 | F.S.; revising a legislative declaration relating to |
| 9 | blighted areas; amending s. 421.08, F.S.; authorizing |
| 10 | certain housing authorities to create business entities |
| 11 | for certain purposes; providing requirements and |
| 12 | limitations; authorizing such authorities to provide for |
| 13 | per diem, travel, and other expenses; amending s. 421.09, |
| 14 | F.S.; providing construction; amending s. 421.23, F.S.; |
| 15 | revising a limitation on financial liabilities of such |
| 16 | authorities; repealing s. 421.54, F.S., relating to |
| 17 | limitations on housing authorities in Orange and Seminole |
| 18 | Counties; providing an effective date. |
| 19 |
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| 20 | Be It Enacted by the Legislature of the State of Florida: |
| 21 |
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| 22 | Section 1. Subsection (2) of section 421.02, Florida |
| 23 | Statutes, is amended to read: |
| 24 | 421.02 Finding and declaration of necessity.--It is hereby |
| 25 | declared that: |
| 26 | (2) Blighted Slum areas in the state cannot be revitalized |
| 27 | cleared, nor can the shortage of safe and sanitary dwellings for |
| 28 | persons of low income be relieved, solely through the operation |
| 29 | of private enterprise, and that the construction of housing |
| 30 | projects for persons of low income, as herein defined, would |
| 31 | therefore not be competitive with private enterprise. |
| 32 | Section 2. Subsection (8) of section 421.08, Florida |
| 33 | Statutes, is renumbered as subsection (10), and new subsections |
| 34 | (8) and (9) are added to said section, to read: |
| 35 | 421.08 Powers of authority.--An authority shall constitute |
| 36 | a public body corporate and politic, exercising the public and |
| 37 | essential governmental functions set forth in this chapter, and |
| 38 | having all the powers necessary or convenient to carry out and |
| 39 | effectuate the purpose and provisions of this chapter, including |
| 40 | the following powers in addition to others herein granted: |
| 41 | (8) To organize for the purpose of creating a for-profit |
| 42 | or not-for-profit corporation, limited liability company, or |
| 43 | other similar business entity pursuant to all applicable laws of |
| 44 | the state in which the housing authority may hold an ownership |
| 45 | interest or participate in their governance to engage in the |
| 46 | development, acquisition, leasing, construction, rehabilitation, |
| 47 | management, or operation of multifamily and single family |
| 48 | residential projects. These projects may include nonresidential |
| 49 | uses and may utilize public and private funds to serve |
| 50 | individuals or families who meet the applicable income |
| 51 | requirements of the state or federal program involved, whose |
| 52 | income does not exceed 150 percent of the applicable area median |
| 53 | income as established by the United States Department of Housing |
| 54 | and Urban Development, and who, in the determination of the |
| 55 | housing authority, lack sufficient income or assets to enable |
| 56 | them to purchase or rent a decent, safe, and sanitary dwelling. |
| 57 | These for-profit and not-for-profit corporations, limited |
| 58 | liability companies, or other business entities are authorized |
| 59 | and empowered to join partnerships, joint ventures, and limited |
| 60 | liability companies pursuant to applicable laws or otherwise |
| 61 | engage with business entities in the development, acquisition, |
| 62 | leasing, construction, rehabilitation, management, or operation |
| 63 | of such projects. The creation of such corporations, limited |
| 64 | liability companies, or other business entities that are |
| 65 | properly registered pursuant to all applicable laws by housing |
| 66 | authorities for the purposes set forth in this chapter, together |
| 67 | with all proceedings, acts, and things theretofore undertaken, |
| 68 | performed, or done, are hereby validated, ratified, confirmed, |
| 69 | approved, and declared legal in all respects. |
| 70 | (9) Notwithstanding the provisions for per diem and travel |
| 71 | expenses of public officers, employees, and authorized persons |
| 72 | set forth in s. 112.061, the governing board of an authority may |
| 73 | approve and implement policies for per diem, travel, and other |
| 74 | expenses of its officials, officers, board members, employees, |
| 75 | and authorized persons in a manner consistent with federal |
| 76 | guidelines. |
| 77 | Section 3. Section 421.09, Florida Statutes, is amended to |
| 78 | read: |
| 79 | 421.09 Operation not for profit.-- |
| 80 | (1) It is the policy of this state that each housing |
| 81 | authority shall manage and operate its housing projects in an |
| 82 | efficient manner so as to enable it to fix the rentals for |
| 83 | dwelling accommodations at the lowest possible rates consistent |
| 84 | with its providing decent, safe, and sanitary dwelling |
| 85 | accommodations, and that no housing authority shall construct or |
| 86 | operate any such project for profit, or as a source of revenue |
| 87 | to the city. To this end an authority shall fix the rentals for |
| 88 | dwellings in its project at no higher rate than it shall find to |
| 89 | be necessary in order to produce revenues which, together with |
| 90 | all other available moneys, revenue, income, and receipts of the |
| 91 | authority from whatever sources derived, will be sufficient: |
| 92 | (a)(1) To pay, as the same shall become due, the principal |
| 93 | and interest on the debentures of the authority; |
| 94 | (b)(2) To meet the cost of, and to provide for, |
| 95 | maintaining and operating the projects, including the cost of |
| 96 | any insurance, and the administrative expenses of the authority; |
| 97 | and |
| 98 | (c)(3) To create, during not less than the 6 years |
| 99 | immediately succeeding its issuance of any debentures, a reserve |
| 100 | sufficient to meet the largest principal and interest payments |
| 101 | which will be due on such debentures in any one year thereafter, |
| 102 | and to maintain such reserve. |
| 103 | (2) This section shall in no way prohibit or restrict the |
| 104 | activities or operations of the business entities created |
| 105 | pursuant to s. 421.08(8). |
| 106 | Section 4. Section 421.23, Florida Statutes, is amended to |
| 107 | read: |
| 108 | 421.23 Liabilities of authority.--In no event shall the |
| 109 | liabilities, whether ex contractu or ex delicto, of an authority |
| 110 | arising from the operation of its housing projects, be payable |
| 111 | from any funds other than the rents, fees, or revenues of such |
| 112 | projects and any grants or subsidies paid to such authority by |
| 113 | the Federal Government, unless such other funds are lawfully |
| 114 | pledged by the authority's governing board. |
| 115 | Section 5. Section 421.54, Florida Statutes, is repealed. |
| 116 | Section 6. This act shall take effect July 1, 2005. |