Senate Bill sb1022c1

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    Florida Senate - 2007                           CS for SB 1022

    By the Committee on Finance and Tax; and Senators Haridopolos,
    Atwater, Storms, Deutch and Geller




    593-2490-07

  1                      A bill to be entitled

  2         An act relating to affordable housing; amending

  3         s. 193.017, F.S.; requiring appraisers to use

  4         an income approach when assessing affordable

  5         housing property that has a low-income tax

  6         credit; creating s. 193.018, F.S.; providing

  7         for the just valuation of affordable housing

  8         property; requiring property appraisers to use

  9         an income approach when assessing such

10         property; specifying the kinds of property

11         subject to the assessment; providing an

12         effective date.

13  

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

15  

16         Section 1.  Section 193.017, Florida Statutes, is

17  amended to read:

18         193.017  Low-income housing tax credit.--Property used

19  for affordable housing which has received a low-income housing

20  tax credit from the Florida Housing Finance Corporation, as

21  authorized by s. 420.5099, shall be assessed under s. 193.011

22  using an income approach and, consistent with s. 420.5099(5)

23  and (6), pursuant to this section.

24         (1)  The tax credits granted and the financing

25  generated by the tax credits may not be considered as income

26  to the property.

27         (2)  The actual rental income from rent-restricted

28  units in such a property shall be recognized by the property

29  appraiser.

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    Florida Senate - 2007                           CS for SB 1022
    593-2490-07




 1         (3)  Any costs paid for by tax credits and costs paid

 2  for by additional financing proceeds received under chapter

 3  420 may not be included in the valuation of the property.

 4         (4)  If an extended low-income housing agreement is

 5  filed in the official public records of the county in which

 6  the property is located, the agreement, and any recorded

 7  amendment or supplement thereto, shall be considered a

 8  land-use regulation and a limitation on the highest and best

 9  use of the property during the term of the agreement,

10  amendment, or supplement.

11         Section 2.  Section 193.018, Florida Statutes, is

12  created to read:

13         193.018  Just valuation for affordable housing.--For

14  the purpose of securing the just valuation of property under

15  s. 193.011 which is subject to a land use agreement or other

16  agreement that restricts the use of the property to affordable

17  housing for a period of 20 years and that is recorded in the

18  official public records of the county in which the property is

19  located, the property appraiser shall use an income approach

20  based on the actual rental income from the rent-restricted

21  units on the property for calculating the assessment of the

22  following property:

23         (1)  Property that is funded and the rent restricted by

24  the United States Department of Housing and Urban Development

25  under s. 8 of the United States Housing Act of 1937; that

26  provides affordable housing for eligible persons as defined by

27  s. 159.603, the elderly, extremely-low-income persons, or

28  very-low-income persons as defined by s. 420.0004, and that

29  has undergone financial restructuring as provided in s. 501,

30  Title V, Subtitle A of the Multifamily Assisted Housing Reform

31  and Affordability Act of 1997.

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    Florida Senate - 2007                           CS for SB 1022
    593-2490-07




 1         (2)  Rental property for multifamily housing,

 2  farmworkers, or the elderly which is funded and the rent

 3  restricted by the Florida Housing Finance Corporation under s.

 4  420.5087, s. 420.5089, or s. 420.5095, the State Housing

 5  Initiatives Partnership Program under s. 420.9072, s.

 6  420.9075, or s. 42 of the Internal Revenue Code, 26 U.S.C. s.

 7  42; the HOME Investment Partnership Program under the

 8  Cranston-Gonzalez National Affordable Housing Act, 42 U.S.C.

 9  ss. 12741 et seq.; or the Federal Home Loan Bank's Affordable

10  Housing Program established pursuant to the Financial

11  Institutions Reform, Recovery and Enforcement Act of 1989,

12  Pub. L. No. 101-73.

13         (3)  Multifamily residential rental property of 10 or

14  more units which is certified as being deed restricted by the

15  public local housing agency as having 100 percent of its units

16  used for affordable housing for extremely-low-income persons,

17  very-low-income persons, low-income persons, or

18  moderate-income persons, as defined by s. 420.0004.

19         Section 3.  This act shall take effect July 1, 2007.

20  

21          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
22                             SB 1022

23                                 

24  The committee substitute provides that certain affordable
    housing properties must be assessed on the basis of their
25  actual rental income.

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