Senate Bill sb1032

    Florida Senate - 2006                                  SB 1032

    By Senator Margolis





    35-821-06

  1                      A bill to be entitled

  2         An act relating to affordable housing; amending

  3         s. 420.5087, F.S.; reducing the percentage of

  4         the loan amount which the sponsor of a housing

  5         community for the elderly must commit to match

  6         in order to receive the loan under the State

  7         Apartment Incentive Loan Program; providing an

  8         effective date.

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

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12         Section 1.  Subsection (3) of section 420.5087, Florida

13  Statutes, is amended to read:

14         420.5087  State Apartment Incentive Loan

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

16  Incentive Loan Program for the purpose of providing first,

17  second, or other subordinated mortgage loans or loan

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

19  public entities, to provide housing affordable to

20  very-low-income persons.

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

22  guarantee availability, program funds shall be reserved for

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

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

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

26  shall be determined using the most recent statewide

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

28  time of publication of each notice of fund availability

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

30  each notice of fund availability to the tenant groups in

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

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    Florida Senate - 2006                                  SB 1032
    35-821-06




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

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

 3  the tenant group that has the largest reservation. The

 4  reservation of funds within each notice of fund availability

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

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

 7  are:

 8         (a)  Commercial fishing workers and farmworkers;

 9         (b)  Families;

10         (c)  Persons who are homeless; and

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

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

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

14  building preservation, health, or sanitation repairs or

15  improvements that which are required by federal, state, or

16  local regulation or code, or lifesafety or security-related

17  repairs or improvements to the such housing. The Such a loan

18  may not exceed $750,000 per housing community for the elderly.

19  In order to receive the loan, the sponsor of the housing

20  community must make a commitment to match at least 5 15

21  percent of the loan amount to pay the cost of the such repair

22  or improvement. The corporation shall establish the rate of

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

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

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

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

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

28  and competitively ranking all applications for loans under

29  this paragraph.  A loan application must include evidence of

30  the first mortgagee's having reviewed and approved the

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

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    Florida Senate - 2006                                  SB 1032
    35-821-06




 1  organization or sponsor may not use the proceeds of the loan

 2  to pay for administrative costs, routine maintenance, or new

 3  construction.

 4         Section 2.  This act shall take effect upon becoming a

 5  law.

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 8                          SENATE SUMMARY

 9    Reduces the percentage of the loan amount which the
      sponsor of a housing community for the elderly must
10    commit to match in order to receive the loan under the
      State Apartment Incentive Loan Program.
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CODING: Words stricken are deletions; words underlined are additions.