| 1 | The Commerce Council recommends the following: |
| 2 |
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| 3 | Council/Committee Substitute |
| 4 | Remove the entire bill and insert: |
| 5 | A bill to be entitled |
| 6 | An act relating to affordable housing; amending s. 421.02, |
| 7 | F.S.; revising a legislative declaration relating to |
| 8 | blighted areas; amending s. 421.08, F.S.; authorizing |
| 9 | certain housing authorities to create business entities |
| 10 | for certain purposes; providing requirements and |
| 11 | limitations; ratifying and validating the creation of |
| 12 | certain business entities by housing authorities; |
| 13 | ratifying and validating certain proceedings or acts by |
| 14 | housing authorities or business entities; authorizing such |
| 15 | authorities to provide for per diem, travel, and other |
| 16 | expenses; amending s. 421.09, F.S.; providing |
| 17 | construction; amending s. 421.23, F.S.; revising a |
| 18 | limitation on financial liabilities of such authorities; |
| 19 | repealing s. 421.54, F.S., relating to limitations on |
| 20 | housing authorities in Orange and Seminole Counties; |
| 21 | providing an effective date. |
| 22 |
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| 23 | Be It Enacted by the Legislature of the State of Florida: |
| 24 |
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| 25 | Section 1. Subsection (2) of section 421.02, Florida |
| 26 | Statutes, is amended to read: |
| 27 | 421.02 Finding and declaration of necessity.--It is hereby |
| 28 | declared that: |
| 29 | (2) Blighted Slum areas in the state cannot be revitalized |
| 30 | cleared, nor can the shortage of safe and sanitary dwellings for |
| 31 | persons of low income be relieved, solely through the operation |
| 32 | of private enterprise, and that the construction of housing |
| 33 | projects for persons of low income, as herein defined, would |
| 34 | therefore not be competitive with private enterprise. |
| 35 | Section 2. Subsection (8) of section 421.08, Florida |
| 36 | Statutes, is renumbered as subsection (10), and new subsections |
| 37 | (8) and (9) are added to said section, to read: |
| 38 | 421.08 Powers of authority.--An authority shall constitute |
| 39 | a public body corporate and politic, exercising the public and |
| 40 | essential governmental functions set forth in this chapter, and |
| 41 | having all the powers necessary or convenient to carry out and |
| 42 | effectuate the purpose and provisions of this chapter, including |
| 43 | the following powers in addition to others herein granted: |
| 44 | (8)(a) To organize for the purpose of creating a for- |
| 45 | profit or not-for-profit corporation, limited liability company, |
| 46 | or other similar business entity pursuant to all applicable laws |
| 47 | of this state in which the housing authority may hold an |
| 48 | ownership interest or participate in its governance in order to |
| 49 | develop, acquire, lease, construct, rehabilitate, manage, or |
| 50 | operate multifamily or single-family residential projects. These |
| 51 | projects may include nonresidential uses and may use public and |
| 52 | private funds to serve individuals or families who meet the |
| 53 | applicable income requirements of the state or federal program |
| 54 | involved; whose income does not exceed 150 percent of the |
| 55 | applicable median income for the area, as established by the |
| 56 | United States Department of Housing and Urban Development; and |
| 57 | who, in the determination of the housing authority, lack |
| 58 | sufficient income or assets to enable them to purchase or rent a |
| 59 | decent, safe, and sanitary dwelling. These corporations, limited |
| 60 | liability companies, or other business entities may join |
| 61 | partnerships, joint ventures, or limited liability companies |
| 62 | pursuant to applicable laws or may otherwise engage with |
| 63 | business entities in order to develop, acquire, lease, |
| 64 | construct, rehabilitate, manage, or operate such projects. |
| 65 | (b) The creation by a housing authority of such a |
| 66 | corporation, limited liability company, or other business entity |
| 67 | that is properly registered pursuant to all applicable laws |
| 68 | before the effective date of this act is ratified and validated |
| 69 | if the creation of such corporation, limited liability company, |
| 70 | or other business entity would have been valid had this |
| 71 | subsection been in effect at the time such corporation, limited |
| 72 | liability company, or other business entity was created and |
| 73 | registered. |
| 74 | (c) Proceedings or acts performed by a housing authority |
| 75 | or a corporation, limited liability company, or other business |
| 76 | entity authorized pursuant to paragraph (b) are ratified and |
| 77 | validated if such proceedings or acts were in furtherance of the |
| 78 | purposes set forth in this chapter and would have been valid had |
| 79 | this subsection been in effect at the time such proceedings or |
| 80 | acts were performed. |
| 81 | (9) Notwithstanding the provisions for per diem and travel |
| 82 | expenses of public officers, employees, and authorized persons |
| 83 | set forth in s. 112.061, the governing board of an authority may |
| 84 | approve and implement policies for per diem, travel, and other |
| 85 | expenses of its officials, officers, board members, employees, |
| 86 | and authorized persons in a manner consistent with federal |
| 87 | guidelines. |
| 88 | Section 3. Section 421.09, Florida Statutes, is amended to |
| 89 | read: |
| 90 | 421.09 Operation not for profit.-- |
| 91 | (1) It is the policy of this state that each housing |
| 92 | authority shall manage and operate its housing projects in an |
| 93 | efficient manner so as to enable it to fix the rentals for |
| 94 | dwelling accommodations at the lowest possible rates consistent |
| 95 | with its providing decent, safe, and sanitary dwelling |
| 96 | accommodations, and that no housing authority shall construct or |
| 97 | operate any such project for profit, or as a source of revenue |
| 98 | to the city. To this end an authority shall fix the rentals for |
| 99 | dwellings in its project at no higher rate than it shall find to |
| 100 | be necessary in order to produce revenues which, together with |
| 101 | all other available moneys, revenue, income, and receipts of the |
| 102 | authority from whatever sources derived, will be sufficient: |
| 103 | (a)(1) To pay, as the same shall become due, the principal |
| 104 | and interest on the debentures of the authority; |
| 105 | (b)(2) To meet the cost of, and to provide for, |
| 106 | maintaining and operating the projects, including the cost of |
| 107 | any insurance, and the administrative expenses of the authority; |
| 108 | and |
| 109 | (c)(3) To create, during not less than the 6 years |
| 110 | immediately succeeding its issuance of any debentures, a reserve |
| 111 | sufficient to meet the largest principal and interest payments |
| 112 | which will be due on such debentures in any one year thereafter, |
| 113 | and to maintain such reserve. |
| 114 | (2) This section shall in no way prohibit or restrict the |
| 115 | activities or operations of the business entities created |
| 116 | pursuant to s. 421.08(8). |
| 117 | Section 4. Section 421.23, Florida Statutes, is amended to |
| 118 | read: |
| 119 | 421.23 Liabilities of authority.--In no event shall the |
| 120 | liabilities, whether ex contractu or ex delicto, of an authority |
| 121 | arising from the operation of its housing projects, be payable |
| 122 | from any funds other than the rents, fees, or revenues of such |
| 123 | projects and any grants or subsidies paid to such authority by |
| 124 | the Federal Government, unless such other funds are lawfully |
| 125 | pledged by the authority's governing board. |
| 126 | Section 5. Section 421.54, Florida Statutes, is repealed. |
| 127 | Section 6. This act shall take effect July 1, 2005. |