CS/HB 1151

1
A bill to be entitled
2An act relating to ad valorem taxation of property used to
3provide affordable housing; creating s. 193.018, F.S.;
4defining the term "community land trust"; authorizing a
5community land trust to make certain conveyances;
6specifying that a community land trust retains certain
7preemptive purchase options; providing criteria by which
8the property appraiser must assess the just value of
9improvements on certain lands that a community land trust
10uses to provide affordable housing; amending s. 196.1978,
11F.S.; providing for the exemption from property tax for
12affordable housing to apply to certain lands used by a
13community land trust for affordable housing if the lands
14are subject to a long-term lease; providing an effective
15date.
16
17Be It Enacted by the Legislature of the State of Florida:
18
19     Section 1.  Section 193.018, Florida Statutes, is created
20to read:
21     193.018  Assessment of improvements on lands used by a
22community land trust to provide affordable housing.--As used in
23this section, the term "community land trust" means a nonprofit
24entity that is qualified as charitable under s. 501(c)(3) of the
25Internal Revenue Code and has as one of its purposes the
26acquisition of land to be held in perpetuity for the primary
27purpose of providing affordable homeownership. The community
28land trust may convey structural improvements located on
29specific parcels of such land, which are identified by a legal
30description contained in and subject to a ground lease having a
31term of 99 years. The community land trust shall retain a
32preemptive option to purchase any structural improvements on the
33land at a price determined by a formula that is designed to
34ensure that the improvements remain affordable to persons who
35meet the income limits in s. 420.0004(8), (10), (11), or (15).
36In assessing property for ad valorem taxation under s. 193.011,
37an improvement used for affordable housing on land owned by a
38community land trust and subject to such a ground lease shall be
39assessed under the following criteria:
40     (1)  The amount a willing purchaser would pay a willing
41seller shall be limited to the amount determined by the formula
42in the ground lease.
43     (2)  If the ground lease and all amendments and supplements
44thereto, or a memorandum documenting how such lease and
45amendments or supplements restrict the price at which the
46improvements may be sold, is recorded and filed in the official
47public records of the county in which the leased land is
48located, the lease and any amendments or supplements shall be
49deemed a land use regulation during the term of the lease as
50amended or supplemented.
51     Section 2.  Section 196.1978, Florida Statutes, is amended
52to read:
53     196.1978  Affordable housing property exemption.--Property
54used to provide affordable housing serving eligible persons as
55defined by s. 159.603(7) and persons meeting income limits
56specified in s. 420.0004(8), (10), (11), or and (15), which
57property is owned entirely by a nonprofit entity that which is
58qualified as charitable under s. 501(c)(3) of the Internal
59Revenue Code and that which complies with Rev. Proc. 96-32,
601996-1 C.B. 717, shall be considered property owned by an exempt
61entity and used for a charitable purpose, and those portions of
62the affordable housing property which provide housing to
63individuals with incomes as defined in s. 420.0004(10) or and
64(15) shall be exempt from ad valorem taxation to the extent
65authorized in s. 196.196. All property identified in this
66section shall comply with the criteria for determination of
67exempt status to be applied by property appraisers on an annual
68basis as defined in s. 196.195. The Legislature intends that any
69property owned by a limited liability company which is
70disregarded as an entity for federal income tax purposes
71pursuant to Treasury Regulation 301.7701-3(b)(1)(ii) shall be
72treated as owned by its sole member. The exemption provided in
73this section extends to land that is owned by a community land
74trust, as defined under s. 193.018, which is held in perpetuity
75for the purpose of providing affordable housing to persons
76meeting income limits specified in s. 420.0004(8), (10), (11),
77or (15) and subject to a ground lease having a term of 99 years
78for the purpose of providing such housing.
79     Section 3.  This act shall take effect July 1, 2007.


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