Senate Bill sb1048

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    Florida Senate - 2006                                  SB 1048

    By Senator Sebesta





    16-647-06

  1                      A bill to be entitled

  2         An act relating to affordable housing;

  3         repealing s. 420.37, F.S., relating to certain

  4         powers of the Florida Housing Finance

  5         Corporation; amending s. 420.503, F.S.;

  6         redefining the term "farmworker" for purposes

  7         of the use of certain federal funds by the

  8         corporation; amending s. 420.5087, F.S.;

  9         revising the population numbers for the

10         categories used to allocate funds to counties

11         under the State Apartment Incentive Loan

12         Program; amending s. 420.5088, F.S.; increasing

13         the percentage of the state or local median

14         income below which personal or family income

15         must fall in order to purchase a home under the

16         Florida Homeownership Assistance Program;

17         amending s. 420.9075, F.S.; providing for

18         calculating the average area purchase price for

19         eligible housing under the State Housing

20         Initiatives Partnership Act in the manner

21         established by the United States Department of

22         Treasury; providing an effective date.

23  

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

25  

26         Section 1.  Section 420.37, Florida Statutes, is

27  repealed.

28         Section 2.  Subsection (18) of section 420.503, Florida

29  Statutes, is amended to read:

30         420.503  Definitions.--As used in this part, the term:

31  

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    Florida Senate - 2006                                  SB 1048
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 1         (18)  "Farmworker" means a laborer who is employed on a

 2  seasonal, temporary, or permanent basis in the planting,

 3  cultivating, harvesting, or processing of agricultural or

 4  aquacultural products and who derived at least 50 percent of

 5  her or his income in the immediately preceding 12 months from

 6  such employment. "Farmworker" also includes a person who has

 7  retired as a laborer due to age, disability, or illness.  In

 8  order to be considered retired as a farmworker due to age

 9  under this part, a person must be 50 years of age or older and

10  must have been employed for a minimum of 5 years as a

11  farmworker before retirement.  In order to be considered

12  retired as a farmworker due to disability or illness, a person

13  must:

14         (a)  Establish medically that she or he is unable to be

15  employed as a farmworker due to that disability or illness;

16  and.

17         (b)  Establish that she or he was previously employed

18  as a farmworker.

19  

20  Notwithstanding the provisions of this subsection, when funds

21  that are administered by the corporation are used in

22  conjunction with funds from the Rural Development Agency of

23  the United States Department of Agriculture, the term

24  "farmworker" may mean a laborer who meets, at a minimum, the

25  definition of "domestic farm laborer" as found in 7 C.F.R. s.

26  3560.11. The corporation may by rule establish additional

27  criteria.

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

29  Statutes, is amended to read:

30         420.5087  State Apartment Incentive Loan

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

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    Florida Senate - 2006                                  SB 1048
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 1  Incentive Loan Program for the purpose of providing first,

 2  second, or other subordinated mortgage loans or loan

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

 4  public entities, to provide housing affordable to

 5  very-low-income persons.

 6         (1)  Program funds shall be distributed over successive

 7  3-year periods in a manner that meets the need and demand for

 8  very-low-income housing throughout the state.  That need and

 9  demand must be determined by using the most recent statewide

10  low-income rental housing market studies available at the

11  beginning of each 3-year period.  However, at least 10 percent

12  of the program funds distributed during a 3-year period must

13  be allocated to each of the following categories of counties,

14  as determined by using the population statistics published in

15  the most recent edition of the Florida Statistical Abstract:

16         (a)  Counties that have a population of 825,000 or more

17  than 500,000 people;

18         (b)  Counties that have a population between 100,000

19  and 825,000 500,000 people; and

20         (c)  Counties that have a population of 100,000 or

21  fewer less.

22  

23  Any increase in funding required to reach the 10-percent

24  minimum shall be taken from the county category that has the

25  largest allocation. The corporation shall adopt rules which

26  establish an equitable process for distributing any portion of

27  the 10 percent of program funds allocated to the county

28  categories specified in this subsection which remains

29  unallocated at the end of a 3-year period.  Counties that have

30  a population of 100,000 or less shall be given preference

31  under these rules.

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    Florida Senate - 2006                                  SB 1048
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 1         Section 4.  Paragraph (e) of subsection (2) of section

 2  420.5088, Florida Statutes, is amended to read:

 3         420.5088  Florida Homeownership Assistance

 4  Program.--There is created the Florida Homeownership

 5  Assistance Program for the purpose of assisting low-income

 6  persons in purchasing a home by reducing the cost of the home

 7  with below-market construction financing, by reducing the

 8  amount of down payment and closing costs paid by the borrower

 9  to a maximum of 5 percent of the purchase price, or by

10  reducing the monthly payment to an affordable amount for the

11  purchaser. Loans shall be made available at an interest rate

12  that does not exceed 3 percent. The balance of any loan is due

13  at closing if the property is sold or transferred.

14         (2)  For loans made pursuant to s. 420.507(23)(a)3.:

15         (e)  At least 30 percent of the units in a project

16  financed pursuant to this subsection must be sold to persons

17  or families who have incomes that do not exceed 80 percent of

18  the state or local median income, whichever amount is greater,

19  adjusted for family size; and at least another 30 percent of

20  the units in a project financed pursuant to this subsection

21  must be sold to persons or families who have incomes that do

22  not exceed 65 50 percent of the state or local median income,

23  whichever amount is greater, adjusted for family size.

24         Section 5.  Subsection (4) of section 420.9075, Florida

25  Statutes, is amended to read:

26         420.9075  Local housing assistance plans;

27  partnerships.--

28         (4)  The following criteria apply to awards made to

29  eligible sponsors or eligible persons for the purpose of

30  providing eligible housing:

31  

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    Florida Senate - 2006                                  SB 1048
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 1         (a)  At least 65 percent of the funds made available in

 2  each county and eligible municipality from the local housing

 3  distribution must be reserved for home ownership for eligible

 4  persons.

 5         (b)  At least 75 percent of the funds made available in

 6  each county and eligible municipality from the local housing

 7  distribution must be reserved for construction,

 8  rehabilitation, or emergency repair of affordable, eligible

 9  housing.

10         (c)  The sales price or value of new or existing

11  eligible housing may not exceed 90 percent of the average area

12  purchase price in the statistical area in which the eligible

13  housing is located. The Such average area purchase price may

14  be that calculated for any 12-month period beginning not

15  earlier than the fourth calendar year prior to the year in

16  which the award occurs or as established by the United States

17  Department of Treasury.

18         (d)1.  All units constructed, rehabilitated, or

19  otherwise assisted with the funds provided from the local

20  housing assistance trust fund must be occupied by

21  very-low-income persons, low-income persons, and

22  moderate-income persons.

23         2.  At least 30 percent of the funds deposited into the

24  local housing assistance trust fund must be reserved for

25  awards to very-low-income persons or eligible sponsors who

26  will serve very-low-income persons and at least an additional

27  30 percent of the funds deposited into the local housing

28  assistance trust fund must be reserved for awards to

29  low-income persons or eligible sponsors who will serve

30  low-income persons. This subparagraph does not apply to a

31  county or an eligible municipality that includes, or has

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    Florida Senate - 2006                                  SB 1048
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 1  included within the previous 5 years, an area of critical

 2  state concern designated or ratified by the Legislature for

 3  which the Legislature has declared its intent to provide

 4  affordable housing. The exemption created by this act expires

 5  on July 1, 2008.

 6         (e)  Loans shall be provided for periods not exceeding

 7  30 years, except for deferred payment loans or loans that

 8  extend beyond 30 years which continue to serve eligible

 9  persons.

10         (f)  Loans or grants for eligible rental housing

11  constructed, rehabilitated, or otherwise assisted from the

12  local housing assistance trust fund must be subject to

13  recapture requirements as provided by the county or eligible

14  municipality in its local housing assistance plan unless

15  reserved for eligible persons for 15 years or the term of the

16  assistance, whichever period is longer. Eligible sponsors that

17  offer rental housing for sale before 15 years or that have

18  remaining mortgages funded under this program must give a

19  first right of refusal to eligible nonprofit organizations for

20  purchase at the current market value for continued occupancy

21  by eligible persons.

22         (g)  Loans or grants for eligible owner-occupied

23  housing constructed, rehabilitated, or otherwise assisted from

24  proceeds provided from the local housing assistance trust fund

25  shall be subject to recapture requirements as provided by the

26  county or eligible municipality in its local housing

27  assistance plan.

28         (h)  The total amount of monthly mortgage payments or

29  the amount of monthly rent charged by the eligible sponsor or

30  her or his designee must be made affordable.

31  

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    Florida Senate - 2006                                  SB 1048
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 1         (i)  The maximum sales price or value per unit and the

 2  maximum award per unit for eligible housing benefiting from

 3  awards made pursuant to this section must be established in

 4  the local housing assistance plan.

 5         (j)  The benefit of assistance provided through the

 6  State Housing Initiatives Partnership Program must accrue to

 7  eligible persons occupying eligible housing. This provision

 8  shall not be construed to prohibit use of the local housing

 9  distribution funds for a mixed income rental development.

10         (k)  Funds from the local housing distribution not used

11  to meet the criteria established in paragraph (a) or paragraph

12  (b) or not used for the administration of a local housing

13  assistance plan must be used for housing production and

14  finance activities, including, but not limited to, financing

15  the purchase of existing units, providing rental housing, and

16  providing home ownership training to prospective home buyers

17  and owners of homes assisted through the local housing

18  assistance plan. Notwithstanding the provisions of paragraphs

19  (a) and (b), program income as defined in s. 420.9071(24) may

20  also be used to fund activities described in this paragraph.

21  

22  If both an award under the local housing assistance plan and

23  federal low-income housing tax credits are used to assist a

24  project and there is a conflict between the criteria

25  prescribed in this subsection and the requirements of s. 42 of

26  the Internal Revenue Code of 1986, as amended, the county or

27  eligible municipality may resolve the conflict by giving

28  precedence to the requirements of s. 42 of the Internal

29  Revenue Code of 1986, as amended, in lieu of following the

30  criteria prescribed in this subsection with the exception of

31  paragraphs (a) and (d) of this subsection.

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    Florida Senate - 2006                                  SB 1048
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 1         Section 6.  This act shall take effect upon becoming a

 2  law.

 3  

 4            *****************************************

 5                          SENATE SUMMARY

 6    Repeals a provision relating to powers of the Florida
      Housing Finance Corporation. Provides that the meaning of
 7    the term "farmworker" varies under certain circumstances.
      Changes the population numbers for categories of counties
 8    under the State Apartment Incentive Loan Program.
      Increases the percentage of the state or local median
 9    income below which a personal or family income must fall
      in order to purchase a home under the Florida
10    Homeownership Assistance Program. Provides that the time
      period established by the United States Department of
11    Treasury may be used for calculating the average area
      purchase price for eligible housing.
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