HB 1363

1
A bill to be entitled
2An act relating to affordable housing; creating the
3Community Workforce Housing Innovation Program; providing
4the Florida Housing Finance Corporation with certain
5powers and responsibilities relating to the program;
6requiring the program to target certain entities;
7requiring the program to supplement existing affordable
8housing programs; providing incentives for program
9applicants; providing for funding and conditions for
10funding; providing requirements for applicants; requiring
11the corporation to establish a review committee for the
12application process; requiring the committee to establish
13certain criteria for applicants; requiring the corporation
14to develop certain guidelines and rules; authorizing the
15corporation to foreclose on certain mortgages and security
16interests or to commence certain legal actions; requiring
17the corporation to create a down payment assistance
18program; amending s. 189.4155, F.S.; authorizing special
19districts to provide housing and housing assistance for
20their employed personnel; amending s. 191.006, F.S.;
21authorizing an independent special fire control district
22to provide housing or housing assistance for its employed
23personnel; amending s. 193.017, F.S.; providing
24requirements for using a cap rate for assessing certain
25affordable housing properties; amending s. 196.1978, F.S.;
26specifying what constitutes a nonprofit entity for
27purposes of affordable housing property tax exemption;
28creating s. 196.1980, F.S.; providing that the actual
29rental income from certain rent-restricted units be
30recognized by property appraisers as the rents for
31assessment purposes; amending s. 201.15, F.S.; revising
32the distributions of portions of the excise tax on
33documents to the State Housing Trust Fund and the Local
34Government Housing Trust Fund for purposes of preserving
35the rights of holders of affordable housing guarantees;
36amending s. 420.507, F.S.; revising the rate of interest
37at which certain mortgage loans must be made available;
38amending s. 1001.42, F.S.; authorizing district school
39boards to provide affordable housing for certain teachers
40and other instructional personnel; providing effective
41dates.
42
43Be It Enacted by the Legislature of the State of Florida:
44
45     Section 1.  Community Workforce Housing Innovation
46Program.--
47     (1)  The Community Workforce Housing Innovation Program is
48created for the purpose of providing regulatory incentives and
49state and local funds to promote local public-private
50partnerships and leverage government and private resources to
51provide affordable rental and single-family housing for persons
52with medium incomes in high-cost counties in this state.
53     (2)  The Florida Housing Finance Corporation shall be
54responsible for implementing and creating an incentive program
55for the Community Workforce Housing Innovation Program by
56providing financial and regulatory incentives to the public and
57private sectors to develop and finance innovative rental and
58home-ownership housing solutions to meet the needs of eligible
59Floridians.
60     (3)  The corporation shall develop selection criteria by
61rule or by requests for proposal to provide funding for
62multifamily rental or single-family community workforce housing
63innovation projects in targeted high-cost counties or critical-
64concern areas of the state. The corporation shall provide
65incentives for local governments in high-cost counties to use
66local affordable housing State Housing Initiatives Partnership
67Program funds under s. 420.9072, Florida Statutes, for meeting
68the affordable housing needs of persons eligible under this
69program.
70     (4)  The Community Workforce Housing Innovation Program
71projects shall target:
72     (a)  Counties in high-cost areas of the state, which are
73defined as those counties in which the average median purchase
74price of a single-family home is above the state median purchase
75price of a single-family home, and areas of critical state
76concern designated under s. 380.05, Florida Statutes, for which
77the Legislature has declared its intent to provide affordable
78housing.
79     (b)  Project partnerships that include substantial
80involvement of public sector entities, such as local
81municipalities, counties, school districts, special districts,
82and other units of local government, and private sector entities
83that donate land or other tangible value worth at least 15
84percent of the project value.
85     (c)  Persons in households with income levels of up to 150
86percent of the adjusted median income in prioritized areas
87included in this subsection or a higher adjusted median income
88percentage in areas of critical state concern.
89     (d)  Persons in need of affordable housing who are employed
90in areas in which they are considered essential services
91personnel, such as teachers and educators, police and fire
92personnel, and health care personnel, and in other job
93categories in which the personnel are defined as essential
94services personnel within the annual local State Housing
95Initiatives Partnership Program under s. 420.9072, Florida
96Statutes.
97     (e)  Innovative projects that include new construction or
98rehabilitation of existing housing, mixed-income housing, or
99commercial and housing mixed-use elements.
100     (5)  The Community Workforce Housing Innovation Program
101shall supplement and not supplant the existing affordable
102housing programs funded under chapter 420, Florida Statutes.
103     (6)  On an annual basis, the corporation shall review the
104success of the Community Workforce Housing Innovation Program to
105determine how the program supports traditional affordable
106housing programs as defined in chapter 420, Florida Statutes,
107and to ascertain whether the program is meeting the housing
108needs of high-cost counties. The corporation shall submit any
109recommendations for strengthening the program to the Governor,
110the Speaker of the House of Representatives, and the President
111of the Senate by January 1 of each year.
112     (7)  On an annual basis, the corporation shall review ways
113to improve public and private sector incentives and barriers to
114affordable and community workforce housing and make any
115recommendations necessary to improve these incentives in a
116report to the Governor, the Speaker of the House of
117Representatives, and the President of the Senate by January 1 of
118each year. The corporation may request the assistance of the
119Department of Community Affairs or the Affordable Housing Study
120Commission in these efforts.
121     (8)(a)  Applicants whose projects are approved or funded by
122the Community Workforce Housing Innovation Program as Community
123Workforce Housing Innovation Program projects shall be eligible
124for the following workforce housing incentives to ensure the
125financial viability, successful development, and ongoing
126maintenance of these housing developments:
127     1.  The processing of approvals of development orders or
128development permits, as defined in s. 163.3164(7) and (8),
129Florida Statutes, for affordable housing projects shall be
130expedited to a greater degree than other projects.
131     2.  Impact fees shall be reduced by 50 percent or may be
132waived entirely by the local governments, or applicants shall be
133provided with an alternative method of fee payment.
134     3.  Increased density levels of up to 16 units or higher
135density per acre shall be allowed, except in coastal high-hazard
136areas, if approved by the local government, for community
137workforce housing.
138     4.  The infrastructure capacity in the local comprehensive
139plan for affordable housing shall be reserved for these
140communities.
141     5.  Additional affordable residential units in residential
142zoning districts shall be allowed.
143     6.  Open space and setback requirements for affordable
144housing shall be reduced by 50 percent.
145     7.  Zero-lot-line configurations shall be allowed.
146     8.  Traffic concurrency requirements shall be modified or
147reduced by up to 25 percent.
148     9.  Local transportation infrastructure funding shall have
149priority eligibility from metropolitan planning organizations.
150     (b)  The regulatory incentives for approved Community
151Workforce Housing Innovation Program projects shall be
152considered acceptable by the respective local government
153maintaining jurisdiction over the site of the project, if:
154     1.  The applicant receives a letter of support from the
155local government for the project application submitted to the
156corporation; or
157     2.  Within 60 days after receipt of the applicant's plan by
158the local government, no formal vote is taken by that body to
159object to the project.
160
161However, if that local government entity votes not to accept the
162Community Workforce Housing Innovation Program project in its
163county, the corporation shall remove the application from the
164project approval list.
165     Section 2.  Program funding.--
166     (1)  Subject to the availability of funds appropriated by
167the Legislature to fund the Community Workforce Housing
168Innovation Program, the Florida Housing Finance Corporation
169shall have the authority to provide Community Workforce Housing
170Innovation Program grants to an applicant for construction or
171rehabilitation of rental or single-family community workforce
172housing, provided the sponsor of such appropriation:
173     (a)  Sets aside at least 80 percent of the units for
174eligible persons whose household income does not exceed 150
175percent of the adjusted local median income;
176     (b)  Sets aside up to 60 percent of the units as
177prioritized for households whose family members are employed in
178areas deemed essential public service, such as education, health
179care, and other areas defined by the local community in its
180State Housing Initiatives Partnership Program plan. Such
181projects shall identify sales and leasing strategies to
182accomplish this set-aside priority for essential services
183personnel as well as alternative strategies to sell or lease
184units to other qualified individuals if essential services
185personnel are not immediately available or qualified for the
186units;
187     (c)  For rental projects, limits rents to no more than 30
188percent of the maximum household income adjusted to unit size;
189or
190     (d)  For home ownership, limits the sales price to the
191price for which an eligible applicant at 150 percent of the
192average median income may qualify.
193     (2)  The corporation shall issue a request for proposals to
194solicit applications for program approval and grants offered
195under this section and shall establish a funding process to
196distribute funds under this section. The corporation may approve
197a project under this program that does not require grant
198funding. Grant funding shall be based on demonstrated financial
199need of the project. The corporation shall prioritize projects
200in those high-cost counties with the highest real estate cost
201burdens for housing, including those counties with designated
202areas of critical state concern and those counties with the
203highest average median price of single-family homes.
204     (3)  All eligible applications shall:
205     (a)  Demonstrate that the program applicant consists of a
206public-private partnership of at least one local government or
207special district public entity and one private not-for-profit or
208for-profit development partner.
209     (b)  Demonstrate how the applicant will use the regulatory
210incentives outlined in subsection (8) of section 1 and include,
211if available, any letters of support from the local government
212partner for the incentives.
213     (c)  Demonstrate that the applicant possesses title to or
214firm site control of land and evidences availability of required
215infrastructure.
216     (d)  Provide any research or facts available supporting the
217demand and need for rental or home ownership workforce housing
218for qualified workforce residents in the county in which the
219project is proposed.
220     (e)  Have grants, donations of land, or contributions from
221other sources collectively totaling at least 15 percent of the
222total development cost. Such grants, donations of land, or
223contributions must only be evidenced by a letter of commitment
224at the time of application.
225     (f)  Demonstrate accessibility to commercial businesses,
226services, and employment opportunities needed to serve the needs
227of the residents or include a viable plan to provide
228transportation access to those commercial businesses, services,
229and jobs.
230     (g)  Demonstrate a marketing and sales plan to ensure that
231residents fit the income requirements and workforce employment
232demand for essential services.
233     (h)  Provide a viable pro forma financial statement for the
234development costs and revenues for the project.
235     (4)  The corporation shall establish a review committee
236composed of staff of the corporation and shall establish a
237scoring system for evaluation and competitive ranking of
238applications submitted to the program.
239     (5)  The corporation shall develop evaluation and ranking
240criteria that use the eligibility criteria of subsection (3) and
241emphasize the following: innovative planning concepts,
242innovative building design, local government participation,
243public-private partnerships, the ability to proceed with
244construction, the feasibility and economic viability of the
245project, the applicant's affordable housing development and
246management experience, the ability to meet essential service
247personnel needs, a management plan to attract, serve, and keep
248eligible workforce tenants and ensure the long-term
249affordability of the rental or ownership units, and the quality
250of project design.
251     (6)  The corporation shall develop rules and procedures for
252the awarding and accountability of Community Workforce Housing
253Innovation Program grants to selected applicants. Grants may be
254used with other corporation and private-sector resources. The
255proceeds of all grants shall be used for new construction or
256substantial rehabilitation that creates affordable, safe, and
257sanitary rental or ownership workforce housing units. The
258corporation shall expedite the review, evaluation, and awarding
259of program grants.
260     (7)  If a default on a grant occurs, the corporation may
261foreclose on any mortgage or security interest or commence any
262legal action to protect the interest of the corporation and
263recover the amount of the grant principal, accrued interest, and
264fees. The corporation may acquire real or personal property or
265any interest in such property when that acquisition is necessary
266or appropriate to protect any grant or sell, transfer, and
267convey any such property to a buyer without regard to the
268provisions of chapters 253 and 270, Florida Statutes.
269     (8)  The corporation shall develop and implement a
270Community Workforce Housing Innovation Program down payment
271assistance program with available funds consistent with all the
272requisite financial guidelines to meet the needs of eligible
273individuals to purchase workforce housing. The corporation shall
274encourage local governments to accomplish the same goals through
275their housing assistance plans provided in s. 420.9075, Florida
276Statutes.
277     (9)(a)  The corporation shall develop guidelines and rules
278for providing for the conversion of existing affordable
279multifamily rental apartments to affordable home ownership units
280for projects in high-cost counties and counties with areas
281designated as areas of critical state concern. Eligible
282conversion projects must:
283     1.  Have been in operation and in compliance with the
284corporation's rules for at least 5 years.
285     2.  Demonstrate the guarantee of a term of affordability
286for home ownership in the deed restrictions or financing
287restrictions equal to the term of affordability provided under
288the rental agreement.
289     3.  Demonstrate an affordable home ownership purchase price
290approved by the corporation based on the average median purchase
291price of a home in the counties for persons whose incomes do not
292exceed 150 percent of the average median income in the county.
293     4.  Provide current renters of apartments the first
294opportunity to purchase converted home ownership units.
295     (b)  The corporation may approve only 15 percent of the
296available affordable rental projects as eligible for conversion
297to affordable home ownership in any eligible high-cost county in
298any one year. Priority must be given to replacing the stock of
299rental units converted to affordable home ownership within these
300counties with new rental units in the corporation's annual
301funding cycle.
302     (10)  The corporation shall require all program applicants
303to obtain and document local public input on the proposed
304project. The corporation shall establish criteria for what local
305public input the applicants shall be required to obtain.
306     Section 3.  Subsection (6) is added to section 189.4155,
307Florida Statutes, to read:
308     189.4155  Activities of special districts; local government
309comprehensive planning.--
310     (6)  Any independent district created pursuant to special
311act or general law, including, but not limited to, chapters 189,
312190, 191, and 298, for the purpose of providing urban
313infrastructure of services, is authorized to provide housing and
314housing assistance for its employed personnel.
315     Section 4.  Subsection (19) is added to section 191.006,
316Florida Statutes, to read:
317     191.006  General powers.--The district shall have, and the
318board may exercise by majority vote, the following powers:
319     (19)  To provide housing or housing assistance for its
320employed personnel.
321     Section 5.  Subsection (5) is added to section 193.017,
322Florida Statutes, to read:
323     193.017  Low-income housing tax credit.--Property used for
324affordable housing which has received a low-income housing tax
325credit from the Florida Housing Finance Corporation, as
326authorized by s. 420.5099, shall be assessed under s. 193.011
327and, consistent with s. 420.5099(5) and (6), pursuant to this
328section.
329     (5)  If a cap rate is used to assess just valuation for the
330property, the appraiser shall use a cap rate calculated annually
331for affordable housing properties authorized by the Florida
332Housing Finance Corporation and approved by the Department of
333Revenue.
334     Section 6.  Section 196.1978, Florida Statutes, is amended
335to read:
336     196.1978  Affordable housing property exemption.--Property
337used to provide affordable housing serving eligible persons as
338defined by s. 159.603(7) and persons meeting income limits
339specified in s. 420.0004(9), (10), and (14), which property is
340owned entirely by a nonprofit entity which is qualified as
341charitable under s. 501(c)(3) of the Internal Revenue Code and
342which complies with Rev. Proc. 96-32, 1996-1 C.B. 717, shall be
343considered property owned by an exempt entity and used for a
344charitable purpose, and those portions of the affordable housing
345property which provide housing to individuals with incomes as
346defined in s. 420.0004(9) and (14) shall be exempt from ad
347valorem taxation to the extent authorized in s. 196.196. For the
348purposes of this section, ownership by a nonprofit entity is
349classified as ownership by a corporation not for profit, a
350Florida limited partnership the sole general partner of which is
351a corporation not for profit, or a Florida limited liability
352corporation the sole member of which is a corporation not for
353profit. All property identified in this section shall comply
354with the criteria for determination of exempt status to be
355applied by property appraisers on an annual basis as defined in
356s. 196.195. The Legislature intends that any property owned by a
357limited liability company which is disregarded as an entity for
358federal income tax purposes pursuant to Treasury Regulation
359301.7701-3(b)(1)(ii) shall be treated as owned by its sole
360member.
361     Section 7.  Section 196.1980, Florida Statutes, is created
362to read:
363     196.1980  Affordable housing property exemption.--For the
364purpose of assessing just valuation of affordable housing
365properties used by persons with income limits defined as low,
366moderate, and very low, as specified in s. 420.0004(9), (10),
367and (14), the actual rental income from rent-restricted units in
368such a property shall be recognized by the property appraiser
369for assessment purposes, and an income approach shall be used
370for assessment of the rents for the following properties:
371     (1)  Property that is funded by the United States
372Department of Housing and Urban Development under s. 8 of the
373United States Housing Act of 1937, that is used to provide
374affordable housing serving eligible persons as defined by s.
375159.603(7), and elderly and very-low-income persons as defined
376by s. 420.0004(7) and (14), and that has undergone financial
377restructuring as provided in s. 501, Title V, Subtitle A of the
378Multifamily Assisted Housing Reform and Affordability Act of
3791997.
380     (2)  Multifamily, farmworker, or elderly rental properties
381that are funded by the Florida Housing Finance Corporation under
382ss. 420.5087 and 420.5089 and the State Housing Incentives
383Partnership Program under ss. 420.9072 and 420.9075.
384     Section 8.  Effective July 1, 2007, subsections (9) and
385(10) of section 201.15, Florida Statutes, as amended by chapter
3862005-92, Laws of Florida, are amended to read:
387     201.15  Distribution of taxes collected.--All taxes
388collected under this chapter shall be distributed as follows and
389shall be subject to the service charge imposed in s. 215.20(1),
390except that such service charge shall not be levied against any
391portion of taxes pledged to debt service on bonds to the extent
392that the amount of the service charge is required to pay any
393amounts relating to the bonds:
394     (9)  The lesser of Seven and fifty-three hundredths percent
395of the remaining taxes collected under this chapter or $107
396million in each fiscal year shall be paid into the State
397Treasury to the credit of the State Housing Trust Fund and shall
398be used as follows:
399     (a)  Half of that amount shall be used for the purposes for
400which the State Housing Trust Fund was created and exists by
401law.
402     (b)  Half of that amount shall be paid into the State
403Treasury to the credit of the Local Government Housing Trust
404Fund and shall be used for the purposes for which the Local
405Government Housing Trust Fund was created and exists by law.
406     (10)  The lesser of Eight and sixty-six hundredths percent
407of the remaining taxes collected under this chapter or $136
408million in each fiscal year shall be paid into the State
409Treasury to the credit of the State Housing Trust Fund and shall
410be used as follows:
411     (a)  Twelve and one-half percent of that amount shall be
412deposited into the State Housing Trust Fund and be expended by
413the Department of Community Affairs and by the Florida Housing
414Finance Corporation for the purposes for which the State Housing
415Trust Fund was created and exists by law.
416     (b)  Eighty-seven and one-half percent of that amount shall
417be distributed to the Local Government Housing Trust Fund and
418shall be used for the purposes for which the Local Government
419Housing Trust Fund was created and exists by law. Funds from
420this category may also be used to provide for state and local
421services to assist the homeless.
422     Section 9.  Paragraph (a) of subsection (22) of section
423420.507, Florida Statutes, is amended to read:
424     420.507  Powers of the corporation.--The corporation shall
425have all the powers necessary or convenient to carry out and
426effectuate the purposes and provisions of this part, including
427the following powers which are in addition to all other powers
428granted by other provisions of this part:
429     (22)  To develop and administer the State Apartment
430Incentive Loan Program. In developing and administering that
431program, the corporation may:
432     (a)  Make first, second, and other subordinated mortgage
433loans including variable or fixed rate loans subject to
434contingent interest for all State Apartment Incentive Loans
435provided for in this chapter based upon available cash flow of
436the projects. The corporation shall make loans exceeding 25
437percent of project cost available only to nonprofit
438organizations and public bodies which are able to secure grants,
439donations of land, or contributions from other sources and to
440projects meeting the criteria of subparagraph 1. Mortgage loans
441shall be made available at the following rates of interest:
442     1.  Zero to 3 percent interest for sponsors of projects
443that maintain an 80 percent occupancy of residents qualifying as
444farmworkers as defined in s. 420.503(18), commercial fishing
445workers as defined in s. 420.503(5), or the homeless as defined
446in s. 420.621(4) over the life of the loan.
447     2.  One Three to 9 percent interest for sponsors of
448projects targeted at populations other than farmworkers,
449commercial fishing workers, and the homeless.
450     Section 10.  Paragraph (b) of subsection (9) of section
4511001.42, Florida Statutes, is amended to read:
452     1001.42  Powers and duties of district school board.--The
453district school board, acting as a board, shall exercise all
454powers and perform all duties listed below:
455     (9)  SCHOOL PLANT.--Approve plans for locating, planning,
456constructing, sanitating, insuring, maintaining, protecting, and
457condemning school property as prescribed in chapter 1013 and as
458follows:
459     (b)  Sites, buildings, and equipment.--
460     1.  Select and purchase school sites, playgrounds, and
461recreational areas located at centers at which schools are to be
462constructed, of adequate size to meet the needs of projected
463students to be accommodated.
464     2.  Approve the proposed purchase of any site, playground,
465or recreational area for which district funds are to be used.
466     3.  Expand existing sites.
467     4.  Rent buildings when necessary.
468     5.  Enter into leases or lease-purchase arrangements, in
469accordance with the requirements and conditions provided in s.
4701013.15(2), with private individuals or corporations for the
471rental of necessary grounds and educational facilities for
472school purposes or of educational facilities to be erected for
473school purposes. Current or other funds authorized by law may be
474used to make payments under a lease-purchase agreement.
475Notwithstanding any other statutes, if the rental is to be paid
476from funds received from ad valorem taxation and the agreement
477is for a period greater than 12 months, an approving referendum
478must be held. The provisions of such contracts, including
479building plans, shall be subject to approval by the Department
480of Education, and no such contract shall be entered into without
481such approval. As used in this section, "educational facilities"
482means the buildings and equipment that are built, installed, or
483established to serve educational purposes and that may lawfully
484be used. The State Board of Education may adopt such rules as
485are necessary to implement these provisions.
486     6.  Provide for the proper supervision of construction.
487     7.  Make or contract for additions, alterations, and
488repairs on buildings and other school properties.
489     8.  Ensure that all plans and specifications for buildings
490provide adequately for the safety and well-being of students, as
491well as for economy of construction.
492     9.  Provide affordable housing for teachers and other
493instructional personnel independently or in conjunction with
494other agencies as described in s. 1001.43(5).
495     Section 11.  Except as otherwise expressly provided in this
496act, this act shall take effect July 1, 2006.


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