Senate Bill sb2364c1

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    Florida Senate - 2006                           CS for SB 2364

    By the Committee on Community Affairs; and Senator Baker





    578-2166-06

  1                      A bill to be entitled

  2         An act relating to community redevelopment;

  3         amending s. 163.340, F.S.; revising a

  4         definition; defining the term "taxing

  5         authority"; amending s. 163.346, F.S.; revising

  6         criteria for a notice to taxing authorities;

  7         creating s. 163.354, F.S.; authorizing a local

  8         governing body to adopt a resolution

  9         establishing a slum and blight study area under

10         certain circumstances; amending s. 163.360,

11         F.S.; specifying additional procedures required

12         for adoption of community redevelopment plans

13         by the governing body of certain counties for

14         certain community redevelopment agencies;

15         amending s. 163.361, F.S.; specifying

16         additional procedures required for adoption of

17         a modified community redevelopment plan by a

18         governing body of certain counties for certain

19         community redevelopment agencies; amending s.

20         163.387, F.S.; revising provisions relating to

21         redevelopment trust funds; providing

22         limitations on the amount of tax increment

23         contributions by a taxing authority; providing

24         for alternative methods for determining tax

25         increment requirements by interlocal agreement;

26         amending s. 163.410, F.S.; providing additional

27         requirements for requests for information

28         relating to requests for delegation of certain

29         powers; providing an effective date.

30  

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

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 1         Section 1.  Subsection (2) of section 163.340, Florida

 2  Statutes, is amended, and subsection (24) is added to that

 3  section, to read:

 4         163.340  Definitions.--The following terms, wherever

 5  used or referred to in this part, have the following meanings:

 6         (2)  "Public body" or "taxing authority" means the

 7  state or any county, municipality, authority, special district

 8  as defined in s. 165.031(5), or other public body of the

 9  state, except a school district.

10         (24)  "Taxing authority" means any public body other

11  than a school district that levies ad valorem millage against

12  the property within a community redevelopment area.

13         Section 2.  Section 163.346, Florida Statutes, is

14  amended to read:

15         163.346  Notice to taxing authorities.--Before the

16  governing body adopts any resolution or enacts any ordinance

17  required under s. 163.354, s. 163.355, s. 163.356, s. 163.357,

18  or s. 163.387; establishes a study area; creates a community

19  redevelopment agency; approves, adopts, or amends a community

20  redevelopment plan; or issues redevelopment revenue bonds

21  under s. 163.385, the governing body must provide public

22  notice of such proposed action pursuant to s. 125.66(2) or s.

23  166.041(3)(a) and, at least 15 days before such proposed

24  action, mail by registered mail a notice to each taxing

25  authority which levies ad valorem taxes on taxable real

26  property contained within the geographic boundaries of the

27  redevelopment area.

28         Section 3.  Section 163.354, Florida Statutes, is

29  created to read:

30         163.354  Development of study area.--Prior to adopting

31  a resolution making a finding of necessity required by s.

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 1  163.355, the governing body may adopt a resolution

 2  establishing a slum and blight study area.

 3         Section 4.  Subsections (2) and (6) of section 163.360,

 4  Florida Statutes, are amended to read:

 5         163.360  Community redevelopment plans.--

 6         (2)(a)  The community redevelopment plan shall:

 7         1.(a)  Conform to the comprehensive plan for the county

 8  or municipality as prepared by the local planning agency under

 9  the Local Government Comprehensive Planning and Land

10  Development Regulation Act.

11         2.(b)  Be sufficiently complete to indicate such land

12  acquisition, demolition and removal of structures,

13  redevelopment, improvements, and rehabilitation as may be

14  proposed to be carried out in the community redevelopment

15  area; zoning and planning changes, if any; land uses; maximum

16  densities; and building requirements.

17         3.(c)  Provide for the development of affordable

18  housing in the area, or state the reasons for not addressing

19  in the plan the development of affordable housing in the area.

20  The county, municipality, or community redevelopment agency

21  shall coordinate with each housing authority or other

22  affordable housing entities functioning within the geographic

23  boundaries of the redevelopment area, concerning the

24  development of affordable housing in the area.

25         (b)  The agency may contract with qualified nonprofit

26  organizations, faith-based organizations, or other entities to

27  develop and provide affordable and workforce housing in the

28  redevelopment area and use tax increment dollars to offer

29  incentives for such development, including, but not limited

30  to, low interest or no interest loans through qualified

31  lenders or the agency itself; revolving loans; facade

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 1  improvement loans or grants; matching, seed, or leverage

 2  dollars for loans or grants; developer subsidies; and any

 3  other incentives determined to be needed by the agency. For

 4  purposes of this paragraph, the term "affordable housing"

 5  means housing that meets the definition of affordable under s.

 6  420.0004(3) and the term "workforce housing" means housing for

 7  which the monthly rents or monthly mortgage payments,

 8  including taxes, insurance, and utilities, do not exceed 30

 9  percent of that amount which represents the percentage of the

10  median adjusted gross annual income for the households whose

11  income is 150 percent of the median income of the area.

12         (6)(a)  The governing body shall hold a public hearing

13  on a community redevelopment plan after public notice thereof

14  by publication in a newspaper having a general circulation in

15  the area of operation of the county or municipality. The

16  notice shall describe the time, date, place, and purpose of

17  the hearing, identify generally the community redevelopment

18  area covered by the plan, and outline the general scope of the

19  community redevelopment plan under consideration.

20         (b)  For any community redevelopment agency created

21  after October 1, 2006, that was not created pursuant to a

22  delegation of authority under s. 163.410 by a county that has

23  adopted a home rule charter, the following additional

24  procedures are required prior to adoption by the governing

25  body of a community redevelopment plan under subsection (7):

26         1.  Within 30 days after receipt of any community

27  redevelopment plan recommended by a community redevelopment

28  agency under subsection (5), the county may provide written

29  notice to the governing body of the municipality that the

30  county has competing policy goals and plans for the public

31  

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 1  funds the county would be required to contribute to the tax

 2  increment under the proposed community redevelopment plan.

 3         2.  If the notice required in subparagraph 1. is timely

 4  provided, the board of county commissioners and the governing

 5  body of the municipality that created the community

 6  redevelopment agency shall schedule and hold a joint hearing

 7  chaired by the county commission chair at which the competing

 8  policy goals for the public funds shall be discussed. Any such

 9  hearing must be held within 90 days after receipt by the

10  county of the recommended community redevelopment plan. Prior

11  to the joint public hearing, the county may propose an

12  alternative redevelopment plan to address the conditions

13  identified in the resolution making a finding of necessity

14  required by s. 163.355. If such an alternative modified

15  redevelopment plan is proposed by the county, such plan shall

16  be delivered to the governing body of the municipality that

17  created the community redevelopment agency at least 20 days

18  prior to holding the joint meeting.

19         3.  If the notice required in subparagraph 1. is timely

20  provided, the municipality may not proceed with the adoption

21  of the plan under subsection (7) until 30 days after the joint

22  hearing unless the board of county commissioners has failed to

23  schedule and attend the joint hearing within the required

24  90-day period.

25         4.  Notwithstanding the time requirements established

26  in subparagraphs 2. and 3., the county and the municipality

27  may at any time voluntarily use the dispute resolution process

28  established in chapter 164 to attempt to resolve any competing

29  policy goals between the county and municipality related to

30  the community redevelopment agency. Nothing in this

31  subparagraph grants the county or the municipality the

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 1  authority to require the other local government to participate

 2  in the dispute resolution process.

 3         Section 5.  Subsection (3) of section 163.361, Florida

 4  Statutes, is amended to read:

 5         163.361  Modification of community redevelopment

 6  plans.--

 7         (3)(a)  In addition to the requirements of s. 163.346,

 8  and prior to the adoption of any modification to a community

 9  redevelopment plan that expands the boundaries of the

10  community redevelopment area or extends the time certain set

11  forth in the redevelopment plan as required by s. 163.362(10),

12  the agency shall report such proposed modification to each

13  taxing authority in writing or by an oral presentation, or

14  both, regarding such proposed modification.

15         (b)  For any community redevelopment agency that was

16  not created pursuant to a delegation of authority under s.

17  163.410 by a county that has adopted a home rule charter and

18  that modifies its adopted community redevelopment plan in a

19  manner that expands the boundaries of the redevelopment area,

20  the following additional procedures are required prior to

21  adoption by the governing body of a modified community

22  redevelopment plan:

23         1.  Within 30 days after receipt of any report of a

24  proposed modification that expands the boundaries of the

25  redevelopment area, the county may provide notice to the

26  governing body of the municipality that the county has

27  competing policy goals and plans for the public funds the

28  county would be required to contribute to the tax increment

29  under the proposed modification to the community redevelopment

30  plan.

31  

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    Florida Senate - 2006                           CS for SB 2364
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 1         2.  If the notice required in subparagraph 1. is timely

 2  provided, the board of county commissioners and the governing

 3  body of the municipality that created the community

 4  redevelopment agency shall schedule and hold a joint hearing

 5  chaired by the county commission chair at which the competing

 6  policy goals for the public funds shall be discussed. Any such

 7  hearing shall be held within 90 days after receipt by the

 8  county of the recommended modification of the adopted

 9  community redevelopment plan. Prior to the joint public

10  hearing, the county may propose an alternative modified

11  community redevelopment plan to address the conditions

12  identified in the resolution making a finding of necessity

13  required under s. 163.355. If such an alternative modified

14  redevelopment plan is proposed by the county, such plan shall

15  be delivered to the governing body of the municipality that

16  created the community redevelopment agency at least 20 days

17  prior to holding the joint meeting.

18         3.  If the notice required in subparagraph 1. is timely

19  provided, the municipality may not proceed with the adoption

20  of the plan under s. 163.360(7) until 30 days after the joint

21  hearing unless the board of county commissioners has failed to

22  schedule and attend the joint hearing within the required

23  90-day period.

24         4.  Notwithstanding the time requirements established

25  in subparagraphs 2. and 3., the county and the municipality

26  may at any time voluntarily use the dispute resolution process

27  established in chapter 164 to attempt to resolve any competing

28  policy goals between the county and municipality related to

29  the expansion of the boundaries of the community redevelopment

30  agency. Nothing in this subparagraph grants the county or the

31  

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 1  municipality the authority to require the other local

 2  government to participate in the dispute resolution process.

 3         Section 6.  Subsection (1), paragraph (a) of subsection

 4  (2), and subsection (3) of section 163.387, Florida Statutes,

 5  are amended to read:

 6         163.387  Redevelopment trust fund.--

 7         (1)(a)  After approval of a community redevelopment

 8  plan, there shall be established for each community

 9  redevelopment agency created under s. 163.356 a redevelopment

10  trust fund. Funds allocated to and deposited into this fund

11  shall be used by the agency to finance or refinance any

12  community redevelopment it undertakes pursuant to the approved

13  community redevelopment plan. No community redevelopment

14  agency may receive or spend any increment revenues pursuant to

15  this section unless and until the governing body has, by

16  ordinance, provided for the funding of the redevelopment trust

17  fund for the duration of a community redevelopment plan. Such

18  ordinance may be adopted only after the governing body has

19  approved a community redevelopment plan. The annual funding of

20  the redevelopment trust fund shall be in an amount not less

21  than that increment in the income, proceeds, revenues, and

22  funds of each taxing authority derived from or held in

23  connection with the undertaking and carrying out of community

24  redevelopment under this part. Such increment shall be

25  determined annually and shall be that amount equal to 95

26  percent of the difference between:

27         1.(a)  The amount of ad valorem taxes levied each year

28  by each taxing authority, exclusive of any amount from any

29  debt service millage, on taxable real property contained

30  within the geographic boundaries of a community redevelopment

31  area as indicated by the preliminary assessment roll; and

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 1         2.(b)  The amount of ad valorem taxes which would have

 2  been produced by the rate upon which the tax is levied each

 3  year by or for each taxing authority, exclusive of any debt

 4  service millage, upon the total of the assessed value of the

 5  taxable real property in the community redevelopment area as

 6  shown upon the most recent assessment roll used in connection

 7  with the taxation of such property by each taxing authority

 8  prior to the effective date of the ordinance providing for the

 9  funding of the trust fund.

10  

11  However, the governing body of any county as defined in s.

12  125.011(1) may, in the ordinance providing for the funding of

13  a trust fund established with respect to any community

14  redevelopment area created on or after July 1, 1994, determine

15  that the amount to be funded by each taxing authority annually

16  shall be less than 95 percent of the difference between

17  subparagraphs 1. and 2. paragraphs (a) and (b), but in no

18  event shall such amount be less than 50 percent of such

19  difference.

20         (b)1.  For any community redevelopment agency created

21  after October 1, 2006, that was not created pursuant to a

22  delegation of authority under s. 163.410 by a county that has

23  adopted a home rule charter, the amount of tax increment to be

24  contributed by any taxing authority shall be limited as

25  follows:

26         a.  If a taxing authority imposes a millage rate that

27  exceeds the millage rate imposed by the governing body that

28  created the trust fund, the amount of tax increment to be

29  contributed by the taxing authority imposing the higher

30  millage rate shall be calculated using the millage rate

31  imposed by the governing body that created the trust fund.

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 1  Nothing shall prohibit any taxing authority from voluntarily

 2  contributing a tax increment at a higher rate for a period of

 3  time as specified by interlocal agreement between the taxing

 4  authority and the community redevelopment agency.

 5         b.  At any time more than 19 years after the fiscal

 6  year in which a taxing authority made its first contribution

 7  to a redevelopment trust fund, by resolution effective no

 8  sooner than the next fiscal year and adopted by majority vote

 9  of the taxing authority's governing body at a public hearing

10  held not less than 30 or more than 45 days after written

11  notice delivered to the community redevelopment agency and

12  published in a newspaper of general circulation in the

13  redevelopment area, the taxing authority may limit the amount

14  of increment contributed by the taxing authority to the

15  redevelopment trust fund to the average annual amount the

16  taxing authority was obligated to contribute to the

17  redevelopment trust fund in the 3 fiscal years immediately

18  preceding the adoption of such resolution, plus any increase

19  in the increment after the adoption of the resolution computed

20  using the taxable values of any area which is subject to an

21  area reinvestment agreement. As used in this subparagraph, the

22  term "area reinvestment agreement" means an agreement between

23  the community redevelopment agency and a private party, with

24  or without additional parties, which provides that the

25  increment computed for a specific area shall be reinvested in

26  public infrastructure or services, or both, including debt

27  service, supporting one or more projects consistent with the

28  community redevelopment plan that is identified in the

29  agreement to be constructed within that area. Any such

30  reinvestment agreement must specify the estimated total amount

31  of public investment necessary to provide the public

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 1  infrastructure or services, or both, including any applicable

 2  debt service. The contribution to the redevelopment trust fund

 3  of the increase in the increment of any area that is subject

 4  to an area reinvestment agreement following the passage of a

 5  resolution as provided in this sub-subparagraph shall cease

 6  when the amount specified in the area reinvestment agreement

 7  as necessary to provide the public infrastructure or services,

 8  or both, including any applicable debt service, have been

 9  invested.

10         2.  For any community redevelopment agency that was not

11  created pursuant to a delegation of authority under s. 163.410

12  by a county that has adopted a home rule charter and that

13  modifies its adopted community redevelopment plan after

14  October 1, 2006, in a manner that expands the boundaries of

15  the redevelopment area, the amount of increment to be

16  contributed by any taxing authority with respect to the

17  expanded area shall be limited as set forth in

18  sub-subparagraphs 1.a. and b.

19         (2)(a)  Except for the purpose of funding the trust

20  fund pursuant to subsection (3), upon the adoption of an

21  ordinance providing for funding of the redevelopment trust

22  fund as provided in this section, each taxing authority shall,

23  by January 1 of each year, appropriate to the trust fund for

24  so long as any indebtedness pledging increment revenues to the

25  payment thereof is outstanding (but not to exceed 30 years) a

26  sum that is no less than the increment as defined and

27  determined in subsection (1) or paragraph (3)(b) accruing to

28  such taxing authority. If the community redevelopment plan is

29  amended or modified pursuant to s. 163.361(1), each such

30  taxing authority shall make the annual appropriation for a

31  period not to exceed 30 years after the date the governing

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 1  body amends the plan. However, for any agency created on or

 2  after July 1, 2002, each taxing authority shall make the

 3  annual appropriation for a period not to exceed 40 years after

 4  the fiscal year in which the initial community redevelopment

 5  plan is approved or adopted.

 6         (3)(a)  Notwithstanding the provisions of subsection

 7  (2), the obligation of the governing body which established

 8  the community redevelopment agency to fund the redevelopment

 9  trust fund annually shall continue until all loans, advances,

10  and indebtedness, if any, and interest thereon, of a community

11  redevelopment agency incurred as a result of redevelopment in

12  a community redevelopment area have been paid.

13         (b)  Notwithstanding the provisions of subsections (1)

14  and (2), an alternative method of determining the amount and

15  time or times of payment of, and rate of interest upon, tax

16  increments contributed to the redevelopment trust fund,

17  including formulae and limits different than those specified

18  in subsection (1), may be enacted by interlocal agreement

19  between any of the other taxing authorities required to

20  contribute a tax increment to the redevelopment trust fund and

21  the governing body that created the community redevelopment

22  agency.

23         Section 7.  Section 163.410, Florida Statutes, is

24  amended to read:

25         163.410  Exercise of powers in counties with home rule

26  charters.--In any county which has adopted a home rule

27  charter, the powers conferred by this part shall be exercised

28  exclusively by the governing body of such county. However, the

29  governing body of any such county which has adopted a home

30  rule charter may, in its discretion, by resolution delegate

31  the exercise of the powers conferred upon the county by this

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 1  part within the boundaries of a municipality to the governing

 2  body of such a municipality. Such a delegation to a

 3  municipality shall confer only such powers upon a municipality

 4  as shall be specifically enumerated in the delegating

 5  resolution. Any power not specifically delegated shall be

 6  reserved exclusively to the governing body of the county. This

 7  section does not affect any community redevelopment agency

 8  created by a municipality prior to the adoption of a county

 9  home rule charter. Unless otherwise provided by an existing

10  ordinance, resolution, or interlocal agreement between any

11  such county and a municipality, the governing body of the

12  county that has adopted a home rule charter shall approve or

13  deny act on any request from a municipality for a delegation

14  of powers or a change in an existing delegation of powers

15  within 120 days after the receipt of all required

16  documentation or such request shall be deemed approved. Any

17  request by the county for additional documentation or other

18  information shall be made in writing to the municipality. The

19  county shall notify the municipality in writing within 30 days

20  after receiving all the required documentation and other

21  requested information that such information is complete. If

22  the meeting of the county commission at which the request for

23  a delegation of powers or a change in an existing delegation

24  of powers is unable to be held due to events beyond the

25  control of the county, the request shall be acted upon at the

26  next regularly scheduled meeting of the county commission

27  without regard to the 120-day limitation. If the county does

28  not act upon the request at the next regularly scheduled

29  meeting, the request shall be deemed approved immediately sent

30  to the governing body for consideration.

31         Section 8.  This act shall take effect October 1, 2006.

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 1          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
 2                         Senate Bill 2364

 3                                 

 4  The committee substitute (CS) authorizes a community
    redevelopment agency (CRA) to contract with qualified
 5  nonprofit corporations to develop and provide affordable
    housing and workforce housing in the redevelopment area. It
 6  also extends the date that determines which CRAs are subject
    to certain provisions of this bill. The CS specifies that a
 7  county proposing an alternative redevelopment plan must send
    the plan to a municipality at least 20 days before their joint
 8  public hearing.

 9  This CS also reduces the waiting period for adopting a
    redevelopment plan after the required joint public hearing to
10  30 days. It deletes language affecting CRAs that extend their
    redevelopment plan beyond a certain time frame. The CS extends
11  the effective date of the bill to October 1, 2006.

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