| 1 | A bill to be entitled |
| 2 | An act relating to the state housing strategy; amending s. |
| 3 | 420.0003, F.S.; revising policy guidelines of the state |
| 4 | housing strategy relating to new programs for housing |
| 5 | production or rehabilitation to provide that the |
| 6 | distribution of housing funds for multifamily rental |
| 7 | housing should be designed to address the housing needs of |
| 8 | persons most in need of housing and that a certain minimum |
| 9 | percentage of housing units funded should be targeted to |
| 10 | extremely low-income persons; amending s. 420.0004, F.S.; |
| 11 | defining the term "extremely low-income persons"; amending |
| 12 | ss. 163.31771, 196.1978, and 212.08, F.S.; conforming |
| 13 | cross-references to changes made by the act; providing an |
| 14 | effective date. |
| 15 |
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| 16 | Be It Enacted by the Legislature of the State of Florida: |
| 17 |
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| 18 | Section 1. Paragraph (e) of subsection (3) of section |
| 19 | 420.0003, Florida Statutes, is amended to read: |
| 20 | 420.0003 State housing strategy.-- |
| 21 | (3) POLICIES.-- |
| 22 | (e) Housing production or rehabilitation programs.--New |
| 23 | programs for housing production or rehabilitation shall be |
| 24 | developed in accordance with the following general guidelines as |
| 25 | appropriate for the purpose of the specific program: |
| 26 | 1. State and local governments shall provide incentives to |
| 27 | encourage the private sector to be the primary delivery vehicle |
| 28 | for the development of affordable housing. |
| 29 | 2. State funds should be heavily leveraged to achieve the |
| 30 | maximum local and private commitment of funds while achieving |
| 31 | the program objectives. |
| 32 | 3. To the maximum extent possible, state funds should be |
| 33 | expended to provide housing units rather than to support program |
| 34 | administration. |
| 35 | 4. State money should be used, when possible, as loans |
| 36 | rather than grants. |
| 37 | 5. State funds should be available only to local |
| 38 | governments that provide incentives or financial assistance for |
| 39 | housing. |
| 40 | 6. State funds should be made available only for projects |
| 41 | which are consistent with the local government comprehensive |
| 42 | plan. |
| 43 | 7. State funding for housing should not be made available |
| 44 | to local governments whose comprehensive plans have been found |
| 45 | not in compliance with chapter 163 and who have not entered into |
| 46 | a stipulated settlement agreement with the Department of |
| 47 | Community Affairs to bring the plan into compliance. |
| 48 | 8. Mixed income projects should be encouraged, to avoid a |
| 49 | concentration of low-income residents in one area or project. |
| 50 | 9. Distribution of state housing funds should be flexible |
| 51 | and consider the regional and local needs, resources, and |
| 52 | capabilities of housing producers. |
| 53 | 10. Income levels used to determine program eligibility |
| 54 | should be adjusted for family size in determining the |
| 55 | eligibility of specific beneficiaries. |
| 56 | 11. To the maximum extent possible, state-owned lands that |
| 57 | are appropriate for the development of affordable housing shall |
| 58 | be made available for that purpose. |
| 59 | 12. Distribution of housing funds for multifamily rental |
| 60 | housing should be designed to address the housing needs of |
| 61 | persons most in need of housing, as identified by current |
| 62 | housing needs data, and at least 30 percent of housing units |
| 63 | funded should be targeted to extremely low-income persons. In |
| 64 | order to reach this goal, the requirements to maximize leverage |
| 65 | pursuant to subparagraph 2. and limit assistance to loans |
| 66 | pursuant to subparagraph 4. shall be modified to encourage the |
| 67 | development of units targeting extremely low-income persons. |
| 68 | Section 2. Section 420.0004, Florida Statutes, is amended |
| 69 | to read: |
| 70 | 420.0004 Definitions.--As used in this part, unless the |
| 71 | context otherwise indicates: |
| 72 | (1) "Adjusted for family size" means adjusted in a manner |
| 73 | which results in an income eligibility level which is lower for |
| 74 | households with fewer than four people, or higher for households |
| 75 | with more than four people, than the base income eligibility |
| 76 | determined as provided in subsection (10) (9), subsection (11) |
| 77 | (10), or subsection (15) (14), based upon a formula as |
| 78 | established by the United States Department of Housing and Urban |
| 79 | Development. |
| 80 | (2) "Adjusted gross income" means all wages, assets, |
| 81 | regular cash or noncash contributions or gifts from persons |
| 82 | outside the household, and such other resources and benefits as |
| 83 | may be determined to be income by the United States Department |
| 84 | of Housing and Urban Development, adjusted for family size, less |
| 85 | deductions allowable under s. 62 of the Internal Revenue Code. |
| 86 | (3) "Affordable" means that monthly rents or monthly |
| 87 | mortgage payments including taxes, insurance, and utilities do |
| 88 | not exceed 30 percent of that amount which represents the |
| 89 | percentage of the median adjusted gross annual income for the |
| 90 | households as indicated in subsection (10) (9), subsection (11) |
| 91 | (10), or subsection (15) (14). |
| 92 | (4) "Corporation" means the Florida Housing Finance |
| 93 | Corporation. |
| 94 | (5) "Community-based organization" or "nonprofit |
| 95 | organization" means a private corporation organized under |
| 96 | chapter 617 to assist in the provision of housing and related |
| 97 | services on a not-for-profit basis and which is acceptable to |
| 98 | federal and state agencies and financial institutions as a |
| 99 | sponsor of low-income housing. |
| 100 | (6) "Department" means the Department of Community |
| 101 | Affairs. |
| 102 | (7) "Elderly" describes persons 62 years of age or older. |
| 103 | (8) "Extremely low-income persons" means one or more |
| 104 | natural persons or a family, not including students, the total |
| 105 | annual adjusted gross household income of which does not exceed |
| 106 | 30 percent of the median annual adjusted gross income for |
| 107 | households within the state or 30 percent of the median annual |
| 108 | adjusted gross income for households within the metropolitan |
| 109 | statistical area (MSA) or, if not within an MSA, within the |
| 110 | county in which the person or family resides, whichever is |
| 111 | greater. |
| 112 | (9)(8) "Local public body" means any county, municipality, |
| 113 | or other political subdivision, or any housing authority as |
| 114 | provided by chapter 421, which is eligible to sponsor or develop |
| 115 | housing for farmworkers and very-low-income and low-income |
| 116 | persons within its jurisdiction. |
| 117 | (10)(9) "Low-income persons" means one or more natural |
| 118 | persons or a family, the total annual adjusted gross household |
| 119 | income of which does not exceed 80 percent of the median annual |
| 120 | adjusted gross income for households within the state, or 80 |
| 121 | percent of the median annual adjusted gross income for |
| 122 | households within the metropolitan statistical area (MSA) or, if |
| 123 | not within an MSA, within the county in which the person or |
| 124 | family resides, whichever is greater. |
| 125 | (11)(10) "Moderate-income persons" means one or more |
| 126 | natural persons or a family, the total annual adjusted gross |
| 127 | household income of which is less than 120 percent of the median |
| 128 | annual adjusted gross income for households within the state, or |
| 129 | 120 percent of the median annual adjusted gross income for |
| 130 | households within the metropolitan statistical area (MSA) or, if |
| 131 | not within an MSA, within the county in which the person or |
| 132 | family resides, whichever is greater. |
| 133 | (12)(11) "Student" means any person not living with his or |
| 134 | her parent or guardian who is eligible to be claimed by his or |
| 135 | her parent or guardian as a dependent under the federal income |
| 136 | tax code and who is enrolled on at least a half-time basis in a |
| 137 | secondary school, career center, community college, college, or |
| 138 | university. |
| 139 | (13)(12) "Substandard" means: |
| 140 | (a) Any unit lacking complete plumbing or sanitary |
| 141 | facilities for the exclusive use of the occupants; |
| 142 | (b) A unit which is in violation of one or more major |
| 143 | sections of an applicable housing code and where such violation |
| 144 | poses a serious threat to the health of the occupant; or |
| 145 | (c) A unit that has been declared unfit for human |
| 146 | habitation but that could be rehabilitated for less than 50 |
| 147 | percent of the property value. |
| 148 | (14)(13) "Substantial rehabilitation" means repair or |
| 149 | restoration of a dwelling unit where the value of such repair or |
| 150 | restoration exceeds 40 percent of the value of the dwelling. |
| 151 | (15)(14) "Very-low-income persons" means one or more |
| 152 | natural persons or a family, not including students, the total |
| 153 | annual adjusted gross household income of which does not exceed |
| 154 | 50 percent of the median annual adjusted gross income for |
| 155 | households within the state, or 50 percent of the median annual |
| 156 | adjusted gross income for households within the metropolitan |
| 157 | statistical area (MSA) or, if not within an MSA, within the |
| 158 | county in which the person or family resides, whichever is |
| 159 | greater. |
| 160 | Section 3. Paragraphs (d), (e), and (f) of subsection (2) |
| 161 | of section 163.31771, Florida Statutes, are amended to read: |
| 162 | 163.31771 Accessory dwelling units.-- |
| 163 | (2) As used in this section, the term: |
| 164 | (d) "Low-income persons" has the same meaning as in s. |
| 165 | 420.0004(10)(9). |
| 166 | (e) "Moderate-income persons" has the same meaning as in |
| 167 | s. 420.0004(11)(10). |
| 168 | (f) "Very-low-income persons" has the same meaning as in |
| 169 | s. 420.0004(15)(14). |
| 170 | Section 4. Section 196.1978, Florida Statutes, is amended |
| 171 | to read: |
| 172 | 196.1978 Affordable housing property exemption.--Property |
| 173 | used to provide affordable housing serving eligible persons as |
| 174 | defined by s. 159.603(7) and persons meeting income limits |
| 175 | specified in s. 420.0004(10)(9), (11) (10), and (15) (14), which |
| 176 | property is owned entirely by a nonprofit entity which is |
| 177 | qualified as charitable under s. 501(c)(3) of the Internal |
| 178 | Revenue Code and which complies with Rev. Proc. 96-32, 1996-1 |
| 179 | C.B. 717, shall be considered property owned by an exempt entity |
| 180 | and used for a charitable purpose, and those portions of the |
| 181 | affordable housing property which provide housing to individuals |
| 182 | with incomes as defined in s. 420.0004(10)(9) and (15) (14) |
| 183 | shall be exempt from ad valorem taxation to the extent |
| 184 | authorized in s. 196.196. All property identified in this |
| 185 | section shall comply with the criteria for determination of |
| 186 | exempt status to be applied by property appraisers on an annual |
| 187 | basis as defined in s. 196.195. The Legislature intends that any |
| 188 | property owned by a limited liability company which is |
| 189 | disregarded as an entity for federal income tax purposes |
| 190 | pursuant to Treasury Regulation 301.7701-3(b)(1)(ii) shall be |
| 191 | treated as owned by its sole member. |
| 192 | Section 5. Paragraph (o) of subsection (5) of section |
| 193 | 212.08, Florida Statutes, is amended to read: |
| 194 | 212.08 Sales, rental, use, consumption, distribution, and |
| 195 | storage tax; specified exemptions.--The sale at retail, the |
| 196 | rental, the use, the consumption, the distribution, and the |
| 197 | storage to be used or consumed in this state of the following |
| 198 | are hereby specifically exempt from the tax imposed by this |
| 199 | chapter. |
| 200 | (5) EXEMPTIONS; ACCOUNT OF USE.-- |
| 201 | (o) Building materials in redevelopment projects.-- |
| 202 | 1. As used in this paragraph, the term: |
| 203 | a. "Building materials" means tangible personal property |
| 204 | that becomes a component part of a housing project or a mixed- |
| 205 | use project. |
| 206 | b. "Housing project" means the conversion of an existing |
| 207 | manufacturing or industrial building to housing units in an |
| 208 | urban high-crime area, enterprise zone, empowerment zone, Front |
| 209 | Porch Community, designated brownfield area, or urban infill |
| 210 | area and in which the developer agrees to set aside at least 20 |
| 211 | percent of the housing units in the project for low-income and |
| 212 | moderate-income persons or the construction in a designated |
| 213 | brownfield area of affordable housing for persons described in |
| 214 | s. 420.0004(10)(9), (11) (10), or (15) (14), or in s. |
| 215 | 159.603(7). |
| 216 | c. "Mixed-use project" means the conversion of an existing |
| 217 | manufacturing or industrial building to mixed-use units that |
| 218 | include artists' studios, art and entertainment services, or |
| 219 | other compatible uses. A mixed-use project must be located in an |
| 220 | urban high-crime area, enterprise zone, empowerment zone, Front |
| 221 | Porch Community, designated brownfield area, or urban infill |
| 222 | area, and the developer must agree to set aside at least 20 |
| 223 | percent of the square footage of the project for low-income and |
| 224 | moderate-income housing. |
| 225 | d. "Substantially completed" has the same meaning as |
| 226 | provided in s. 192.042(1). |
| 227 | 2. Building materials used in the construction of a |
| 228 | housing project or mixed-use project are exempt from the tax |
| 229 | imposed by this chapter upon an affirmative showing to the |
| 230 | satisfaction of the department that the requirements of this |
| 231 | paragraph have been met. This exemption inures to the owner |
| 232 | through a refund of previously paid taxes. To receive this |
| 233 | refund, the owner must file an application under oath with the |
| 234 | department which includes: |
| 235 | a. The name and address of the owner. |
| 236 | b. The address and assessment roll parcel number of the |
| 237 | project for which a refund is sought. |
| 238 | c. A copy of the building permit issued for the project. |
| 239 | d. A certification by the local building code inspector |
| 240 | that the project is substantially completed. |
| 241 | e. A sworn statement, under penalty of perjury, from the |
| 242 | general contractor licensed in this state with whom the owner |
| 243 | contracted to construct the project, which statement lists the |
| 244 | building materials used in the construction of the project and |
| 245 | the actual cost thereof, and the amount of sales tax paid on |
| 246 | these materials. If a general contractor was not used, the owner |
| 247 | shall provide this information in a sworn statement, under |
| 248 | penalty of perjury. Copies of invoices evidencing payment of |
| 249 | sales tax must be attached to the sworn statement. |
| 250 | 3. An application for a refund under this paragraph must |
| 251 | be submitted to the department within 6 months after the date |
| 252 | the project is deemed to be substantially completed by the local |
| 253 | building code inspector. Within 30 working days after receipt of |
| 254 | the application, the department shall determine if it meets the |
| 255 | requirements of this paragraph. A refund approved pursuant to |
| 256 | this paragraph shall be made within 30 days after formal |
| 257 | approval of the application by the department. The provisions of |
| 258 | s. 212.095 do not apply to any refund application made under |
| 259 | this paragraph. |
| 260 | 4. The department shall establish by rule an application |
| 261 | form and criteria for establishing eligibility for exemption |
| 262 | under this paragraph. |
| 263 | 5. The exemption shall apply to purchases of materials on |
| 264 | or after July 1, 2000. |
| 265 | Section 6. This act shall take effect July 1, 2006. |