Senate Bill sb0724

CODING: Words stricken are deletions; words underlined are additions.
    Florida Senate - 2005                                   SB 724

    By Senator Margolis





    35-791-05                                           See HB 287

  1                      A bill to be entitled

  2         An act relating to affordable housing for the

  3         elderly; amending s. 420.5087, F.S.; increasing

  4         the cap on certain loan amounts available to

  5         sponsors of housing for the elderly; providing

  6         an effective date.

  7  

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

  9  

10         Section 1.  Paragraph (d) of subsection (3) of section

11  420.5087, Florida Statutes, is amended to read:

12         420.5087  State Apartment Incentive Loan

13  Program.--There is hereby created the State Apartment

14  Incentive Loan Program for the purpose of providing first,

15  second, or other subordinated mortgage loans or loan

16  guarantees to sponsors, including for-profit, nonprofit, and

17  public entities, to provide housing affordable to

18  very-low-income persons.

19         (3)  During the first 6 months of loan or loan

20  guarantee availability, program funds shall be reserved for

21  use by sponsors who provide the housing set-aside required in

22  subsection (2) for the tenant groups designated in this

23  subsection. The reservation of funds to each of these groups

24  shall be determined using the most recent statewide

25  very-low-income rental housing market study available at the

26  time of publication of each notice of fund availability

27  required by paragraph (6)(b). The reservation of funds within

28  each notice of fund availability to the tenant groups in

29  paragraphs (a), (b), and (d) may not be less than 10 percent

30  of the funds available at that time. Any increase in funding

31  required to reach the 10-percent minimum shall be taken from

                                  1

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






    Florida Senate - 2005                                   SB 724
    35-791-05                                           See HB 287




 1  the tenant group that has the largest reservation. The

 2  reservation of funds within each notice of fund availability

 3  to the tenant group in paragraph (c) may not be less than 5

 4  percent of the funds available at that time. The tenant groups

 5  are:

 6         (d)  Elderly persons. Ten percent of the amount

 7  reserved for the elderly shall be reserved to provide loans to

 8  sponsors of housing for the elderly for the purpose of making

 9  building preservation, health, or sanitation repairs or

10  improvements which are required by federal, state, or local

11  regulation or code, or lifesafety or security-related repairs

12  or improvements to such housing. Such a loan may not exceed

13  $750,000 $200,000 per housing community for the elderly. In

14  order to receive the loan, the sponsor of the housing

15  community must make a commitment to match at least 15 percent

16  of the loan amount to pay the cost of such repair or

17  improvement. The corporation shall establish the rate of

18  interest on the loan, which may not exceed 3 percent, and the

19  term of the loan, which may not exceed 15 years. The term of

20  the loan shall be established on the basis of a credit

21  analysis of the applicant. The corporation shall establish, by

22  rule, the procedure and criteria for receiving, evaluating,

23  and competitively ranking all applications for loans under

24  this paragraph. A loan application must include evidence of

25  the first mortgagee's having reviewed and approved the

26  sponsor's intent to apply for a loan. A nonprofit organization

27  or sponsor may not use the proceeds of the loan to pay for

28  administrative costs, routine maintenance, or new

29  construction.

30         Section 2.  This act shall take effect July 1, 2005.

31  

                                  2

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