| 1 | A bill to be entitled |
| 2 | An act relating to ad valorem taxation of property used to |
| 3 | provide affordable housing; creating s. 193.018, F.S.; |
| 4 | defining the term "community land trust"; providing |
| 5 | criteria by which the property appraiser must assess the |
| 6 | just value of improvements on certain lands that a |
| 7 | community land trust uses to provide affordable housing; |
| 8 | amending s. 196.1978, F.S.; providing for the exemption |
| 9 | from property tax for affordable housing to apply to |
| 10 | certain lands used by a community land trust for |
| 11 | affordable housing if the lands are subject to a long-term |
| 12 | lease; providing an effective date. |
| 13 |
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| 14 | Be It Enacted by the Legislature of the State of Florida: |
| 15 |
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| 16 | Section 1. Section 193.018, Florida Statutes, is created |
| 17 | to read: |
| 18 | 193.018 Assessment of improvements on lands used by a |
| 19 | community land trust to provide affordable housing.--As used in |
| 20 | this section, the term "community land trust" means a nonprofit |
| 21 | entity that is qualified as charitable under s. 501(c)(3) of the |
| 22 | Internal Revenue Code and has as one of its purposes the |
| 23 | acquisition of land to be held in perpetuity for the primary |
| 24 | purpose of providing affordable homeownership through the |
| 25 | conveyance of structural improvements located on such land, |
| 26 | subject to a ground lease having a term of 99 years, while |
| 27 | retaining a preemptive option to purchase any structural |
| 28 | improvements on the land at a price determined by a formula that |
| 29 | is designed to ensure that the improvements remain affordable to |
| 30 | persons who meet the income limits in s. 420.0004(8), (10), |
| 31 | (11), or (15). In assessing property for ad valorem taxation |
| 32 | under s. 193.011, an improvement used for affordable housing on |
| 33 | land owned by a community land trust and subject to such a |
| 34 | ground lease shall be assessed under the following criteria: |
| 35 | (1) The amount a willing purchaser would pay a willing |
| 36 | seller shall be limited to the amount determined by the formula |
| 37 | in the ground lease. |
| 38 | (2) If the ground lease and all amendments and supplements |
| 39 | thereto, or a memorandum documenting how such lease and |
| 40 | amendments or supplements restrict the price at which the |
| 41 | improvements may be sold, is recorded and filed in the official |
| 42 | public records of the county in which the leased land is |
| 43 | located, the lease and any amendments or supplements shall be |
| 44 | deemed a land use regulation during the term of the lease as |
| 45 | amended or supplemented. |
| 46 | Section 2. Section 196.1978, Florida Statutes, is amended |
| 47 | to read: |
| 48 | 196.1978 Affordable housing property exemption.--Property |
| 49 | used to provide affordable housing serving eligible persons as |
| 50 | defined by s. 159.603(7) and persons meeting income limits |
| 51 | specified in s. 420.0004(8), (10), (11), or and (15), which |
| 52 | property is owned entirely by a nonprofit entity that which is |
| 53 | qualified as charitable under s. 501(c)(3) of the Internal |
| 54 | Revenue Code and that which complies with Rev. Proc. 96-32, |
| 55 | 1996-1 C.B. 717, shall be considered property owned by an exempt |
| 56 | entity and used for a charitable purpose, and those portions of |
| 57 | the affordable housing property which provide housing to |
| 58 | individuals with incomes as defined in s. 420.0004(10) or and |
| 59 | (15) shall be exempt from ad valorem taxation to the extent |
| 60 | authorized in s. 196.196. All property identified in this |
| 61 | section shall comply with the criteria for determination of |
| 62 | exempt status to be applied by property appraisers on an annual |
| 63 | basis as defined in s. 196.195. The Legislature intends that any |
| 64 | property owned by a limited liability company which is |
| 65 | disregarded as an entity for federal income tax purposes |
| 66 | pursuant to Treasury Regulation 301.7701-3(b)(1)(ii) shall be |
| 67 | treated as owned by its sole member. The exemption provided in |
| 68 | this section extends to land that is owned by a community land |
| 69 | trust, as defined under s. 193.018, which is held in perpetuity |
| 70 | for the purpose of providing affordable housing to persons |
| 71 | meeting income limits specified in s. 420.0004(8), (10), (11), |
| 72 | or (15) and subject to a ground lease having a term of 99 years |
| 73 | for the purpose of providing such housing. |
| 74 | Section 3. This act shall take effect July 1, 2007. |