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A bill to be entitled

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An act relating to affordable housing property tax

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exemptions; amending s. 196.196, F.S.; providing

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additional criteria for determining whether certain

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affordable housing property owned by certain exempt

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organizations is entitled to an exemption; providing a

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definition; amending s. 196.1978, F.S.; specifying

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criteria and requirements for revoking the affordable

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housing property exemption; subjecting organizations

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owning certain property to ad valorem taxation under

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certain circumstances; providing for tax liens; providing

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for penalties and interest; providing an exception;

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providing notice requirements; providing an effective

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date.

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

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     Section 1.  Subsection (5) is added to section 196.196,

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Florida Statutes, to read:

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     196.196  Determining whether property is entitled to

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charitable, religious, scientific, or literary exemption.--

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     (5) Property owned by an exempt organization qualified as

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charitable under s. 501(c)(3) of the Internal Revenue Code is

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used for a charitable purpose if the organization has taken

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affirmative steps to prepare the property to provide affordable

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housing to persons or families who meet the extremely-low, very-

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low, low, or moderate income limits, as specified in s. 420.0004.

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The term "affirmative steps" means environmental or land use

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permitting activities, creation of architectural plans or

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schematic drawings, land clearing or site preparation,

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construction or renovation activities, or other similar

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activities that demonstrate a commitment of the property to

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providing affordable housing.

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     Section 2.  Section 196.1978, Florida Statutes, is amended

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to read:

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     196.1978  Affordable housing property exemption.--

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     (1) Property used to provide affordable housing serving

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eligible persons as defined by s. 159.603(7) and persons meeting

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income limits specified in s. 420.0004(8), (10), (11), and (15),

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which property is owned entirely by a nonprofit entity which is

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qualified as charitable under s. 501(c)(3) of the Internal

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Revenue Code and which complies with Rev. Proc. 96-32, 1996-1

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C.B. 717, shall be considered property owned by an exempt entity

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and used for a charitable purpose, and those portions of the

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affordable housing property which provide housing to individuals

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with incomes as defined in s. 420.0004(10) and (15) shall be

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exempt from ad valorem taxation to the extent authorized in s.

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196.196. All property identified in this section shall comply

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with the criteria for determination of exempt status to be

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applied by property appraisers on an annual basis as defined in

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s. 196.195. The Legislature intends that any property owned by a

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limited liability company which is disregarded as an entity for

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federal income tax purposes pursuant to Treasury Regulation

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301.7701-3(b)(1)(ii) shall be treated as owned by its sole

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member.

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     (2) If property owned by an organization granted an

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exemption under s. 196.196(5) is transferred for a purpose other

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than directly providing affordable homeownership or rental

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housing to persons or families who meet the extremely-low, very-

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low, low, or moderate income limits, as specified in s. 420.0004,

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or is not in actual use to provide such affordable housing within

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5 years after the date the organization is granted the exemption,

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the property appraiser making such determination shall serve upon

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the organization that illegally or improperly received the

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exemption a notice of intent to record in the public records of

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the county a notice of tax lien against any property owned by

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that organization in the county, and such property shall be

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identified in the notice of tax lien. The organization owning

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such property is subject to the taxes otherwise due and owing as

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a result of the failure to use the property to provide affordable

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housing plus 15 percent interest per annum and a penalty of 50

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percent of the taxes owed. Such lien, when filed, attaches to any

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property identified in the notice of tax lien owned by the

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organization that illegally or improperly received the exemption.

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If such organization no longer owns property in the county but

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owns property in any other county in the state, the property

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appraiser shall record in each such other county a notice of tax

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lien identifying the property owned by such organization in such

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county which shall become a lien against the identified property.

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If an exemption is improperly granted as a result of a clerical

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mistake or an omission by the property appraiser, the

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organization improperly receiving the exemption shall not be

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assessed penalty and interest. Before any such lien may be filed,

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the organization so notified must be given 30 days to pay the

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taxes, penalties, and interest. The 5-year limitation specified

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in this subsection may be extended provided the holder of the

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exemption continues to take affirmative steps to develop the

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property for the purposes specified in this subsection.

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     Section 3.  This act shall take effect upon becoming a law.