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A bill to be entitled

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An act relating to housing preservation; creating s.

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420.50945, F.S.; creating the Florida Housing Preservation

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Program; providing legislative findings and intent;

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providing definitions; directing the Florida Housing

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Finance Corporation to use state funds for loans and

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financing to preserve and rehabilitate affordable housing;

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requiring a community development financial institution to

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use allocated state funds to make specified types of

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loans; requiring that a community development financial

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institution meet certain criteria to be eligible to

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receive state funds; requiring the Florida Housing Finance

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Corporation to adopt procedures to select applicants for

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state funds; requiring successful applicants to enter into

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an agreement with the corporation; providing options for

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the corporation to exercise if a successful applicant

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engages in fraud, mismanagement, or fails to comply with

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applicable laws or rules; requiring that a successful

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applicant submit financial and performance data to the

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corporation; requiring the corporation to adopt rules;

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restricting the corporation to a specified percentage of

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appropriated funds for use to administer the program;

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providing an appropriation; providing an effective date.

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

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     Section 1.  Section 420.50945, Florida Statutes, is created

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to read:

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     420.50945 The Florida Housing Preservation Program.--

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     (1) The Legislature finds that preserving affordable

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multifamily rental and mobile home park housing for low-income,

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very-low-income, and extremely-low-income persons and families is

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essential to the economy of this state and the well-being of all

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of its residents. The Legislature also finds that the state lacks

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sufficient resources to preserve substantial numbers of the

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multifamily rental properties and mobile home parks that

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currently provide affordable housing to thousands of Floridians.

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The Legislature further finds that there are state and national

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community development financial institutions that have documented

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experience in securing and deploying public, private, and

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philanthropic capital to preserve affordable housing. It is the

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intent of the Legislature to use state funds to leverage public,

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private, and philanthropic capital to help preserve affordable,

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multifamily rental housing and mobile home parks.

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     (2) There is created the Florida Housing Preservation

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Program. The purpose of the program is to provide bridge loans,

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rehabilitation loans, and permanent financing in order to

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preserve affordable multifamily rental housing and mobile home

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parks for low-income, very-low-income, and extremely-low-income

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persons and families.

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     (3) As used in this section, the term:

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     (a) "Affordable" means that monthly rents or monthly

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mortgage payments, including taxes, insurance, and utilities, do

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not exceed 30 percent of that amount representing the percentage

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of the median adjusted gross annual income for the households.

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     (b) "Bridge loan" means short-term financing for a period

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of up to 3 years for the costs of acquisition, rehabilitation, or

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predevelopment which are necessary to stabilize or position a

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property for permanent financing.

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     (c) "Community development financial institution" means an

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entity certified as a Community Development Financial Institution

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by the Community Development Financial Institutions Fund of the

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United States Department of Treasury.

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     (d) "Corporation" means the Florida Housing Finance

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Corporation.

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     (e) "Eligible project" means an expiring-use property,

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mobile home park, or other nonregulated affordable multifamily

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property.

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     (f) "Expiring-use property" means a property that has

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income restrictions on its use in order to benefit low-income,

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very-low-income, and extremely-low-income persons and families

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and the restrictions will terminate within 2 years after the

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application for funding.

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     (g) "Low-income persons" means one or more natural persons

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or a family, the total annual adjusted gross household income of

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which does not exceed 80 percent of the median annual adjusted

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gross income for households within the state, or 80 percent of

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the median annual adjusted gross income for households within the

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metropolitan statistical area (MSA) or, if not within an MSA,

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within the county in which the person or family resides,

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whichever is greater.

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     (h) "Very-low-income persons" means one or more natural

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persons or a family, not including students, the total annual

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adjusted gross household income of which does not exceed 50

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percent of the median annual adjusted gross income for households

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within the state, or 50 percent of the median annual adjusted

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gross income for households within the metropolitan statistical

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area (MSA) or, if not within an MSA, within the county in which

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the person or family resides, whichever is greater.

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     (i) "Extremely-low-income" means one or more natural

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persons or a family whose total annual household income does not

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exceed 30 percent of the median annual adjusted gross income for

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households within the state.

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     (4) The corporation shall use state funds to:

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     (a) Provide rehabilitation loans, permanent financing, or

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both to preserve multifamily affordable rental properties that

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are 15 years old or older; and

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     (b) Establish a program for community development financial

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institutions to provide bridge loans to acquire and rehabilitate

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expiring-use properties on a permanent and perpetual revolving

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basis.

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     (5) A community development financial institution that

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receives state funds under this section must use the state funds

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to:

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     (a) Leverage additional private and philanthropic capital

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on a minimum $1 to $4 matching ratio to create a permanent

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revolving preservation-bridge loan program;

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     (b) Manage and use public, private, and philanthropic

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capital to make preservation-bridge loans; and

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     (c) Make bridge loans to eligible projects and multifamily

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affordable rental properties that are affordable to low-income

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persons and families without rental restrictions, but that will

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institute rental restrictions as a condition of this funding.

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Such bridge loans may be made only after expiring-use properties

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and mobile home park projects are funded first.

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     (6) In order for a community development financial

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institution to be eligible to receive state funds, the community

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development financial institution must:

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     (a) Be certified by the Community Development Financial

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Institutions Fund of the United States Department of Treasury as

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a community development financial institution;

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     (b) Be qualified as a not-for-profit organization under s.

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501(c)(3) of the Internal Revenue Code;

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     (c) Possess a demonstrated record and ability to

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effectively deploy financing for community development purposes;

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     (d) Demonstrate knowledge and experience in lending to

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acquire, develop, and rehabilitate affordable housing;

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     (e) Demonstrate knowledge and experience in raising

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matching capital from private, public, and philanthropic sources;

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     (f) Have statewide lending operations in this state;

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     (g) Demonstrate experience and capacity to provide directly

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or through contracts with other entities technical assistance to

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developers;

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     (h) Document established and proven underwriting policies,

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risk ratings, portfolio management and servicing systems;

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     (i) Have an independent financial audit for each

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requirement for a minimum of 5 years; and

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     (j) Meet the requirements adopted by the corporation by

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rule.

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     (7) The corporation:

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     (a) Shall adopt a rule creating selection criteria to

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choose:

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     1. Community development financial institutions applying to

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leverage private and philanthropic capital, manage and make

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bridge loans to expiring-use properties and mobile home park

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projects; and

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     2. Multifamily affordable rental properties in need of

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rehabilitation or permanent financing to preserve the properties

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that are 15 years old or older.

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     (b) May reject any and all entities or applicants.

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     (c) May establish a review committee to make

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recommendations to the corporation's board regarding selecting

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applicants for program participation. The board shall determine

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the final ranking for applicants based on the scores received in

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the ranking, further review of the applications, and the

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recommendations of the review committee. The board shall approve

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or reject applicants and shall determine the tentative funding

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amount available to each applicant.

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     (8) Before providing any financial assistance, the

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corporation and the successful applicant must execute an

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agreement that requires multifamily affordable rental properties

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to comply with all other terms and conditions of assistance,

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which may be modified at any time by the corporation.

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     (9) If a successful applicant engages in fraud,

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mismanagement, or does not comply with the applicable statutes,

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rules, or terms and conditions of the agreement, the corporation

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may:

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     (a) Require changes in the agreement;

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     (b) Reduce or terminate the funding;

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     (c) Require repayment of any funding that has been

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distributed;

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     (d) Remove the applicant from further participation in the

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program; or

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     (e) Take such other actions that the corporation considers

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appropriate.

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     (10) A successful applicant must submit financial and

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activity reports and data at such times and in such forms as

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required by the corporation to ensure compliance with program

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requirements and to evaluate the applicant's performance in the

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program.

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     (11) The corporation shall adopt rules pursuant to ss.

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120.536(1) and 120.54 to administer this section.

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     (12) The corporation may use no more than 2 percent of the

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annual appropriation for administration and compliance

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monitoring.

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     Section 2. The sum of $50 million in nonrecurring funds is

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appropriated from the State Housing Trust Fund to the Florida

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Housing Finance Corporation within the Department of Community

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Affairs for the 2008-2009 fiscal year for the purpose of

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implementing this act. The sum of $25 million shall be used to

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provide bridge loans and the sum of $25 million shall be used to

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preserve affordable, multiunit properties 15 years old or older.

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     Section 3.  This act shall take effect July 1, 2008.