Florida Senate - 2008 PROPOSED COMMITTEE SUBSTITUTE

Bill No. SB 482

614646

CA.CA.05209

Proposed Committee Substitute by the Committee on Community

Affairs

A bill to be entitled

An act relating to affordable housing; amending s.

420.503, F.S.; defining the term "moderate rehabilitation"

for purposes of the Florida Housing Finance Corporation

Act; amending s. 420.5087, F.S.; revising purposes for

which State Apartment Incentive Loans may be used;

amending s. 420.9071, F.S.; defining the terms "assisted

housing," "assisted housing development," and

"preservation"; revising the definition of "eligible

housing," "local housing incentive strategies," and

"recaptured funds" for purposes of the State Housing

Initiatives Partnership Act; amending s. 420.9072, F.S.;

amending provisions related to the administration of

certain funds in the Local Government Housing Trust Fund;

amending s. 420.9073, F.S.; revising requirements for

distribution of funds in the Local Government Housing

Trust Fund; specifying purposes for which such withheld

funds may be used; clarifying purposes for which certain

local governments may expend funds from the Local

Government Housing Trust Fund; amending s. 420.9075, F.S.;

requiring that local housing assistance plans address the

special housing needs of persons with disabilities;

authorizing the Florida Housing Finance Corporation to

define "high-cost counties" by rule; authorizing high-cost

counties or certain municipalities to assist persons

meeting specific income requirements; revising

requirements to be included in the local housing

assistance plan; requiring counties and certain

municipalities to include certain strategies in the local

housing assistance plan; extending the expiration date of

an exemption from certain income requirements in specified

areas; authorizing the use of certain funds for

preconstruction activities; providing that certain costs

are a program expense; authorizing counties and certain

municipalities to award grant funds under certain

conditions; providing for the repayment of funds by

counties or certain municipalities; amending provisions

related to the administration of certain funds in the

Local Government Housing Trust Fund; amending s. 420.9076,

F.S.; revising appointments to a local affordable housing

advisory committee; deleting cross-references to conform

to changes made by the act; deleting provisions related to

the administration of certain funds by the Local

Government Housing Trust Fund; amending s. 421.08, F.S.;

limiting the authority of housing authorities in certain

circumstances; amending s. 159.807, F.S.; deleting an

exemption for the Florida Housing Finance Corporation from

the applicability of certain uses of the state allocation

pool; repealing s. 420.9078, F.S., relating to state

administration of funds remaining in the Local Government

Housing Trust Fund; amending ss. 212.08, 220.03, and

220.183, F.S.; conforming cross-references to changes made

by the act; amending s. 624.5105, F.S.; conforming cross-

references to changes made by the act; providing an

effective date.

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

Section 1. Present subsections (25) through (41) of section

420.503, Florida Statutes, are redesignated as subsections (26)

through (42), respectively, and a new subsection (25) is added to

that section, to read:

420.503 Definitions.--As used in this part, the term:

(25) "Moderate rehabilitation" means repair or restoration

of a dwelling unit when the value of such repair or restoration

is 40 percent or less of the value of the dwelling but not less

than $10,000.

Section 2. Paragraph (l) of subsection (6) of section

420.5087, Florida Statutes, is amended to read:

420.5087 State Apartment Incentive Loan Program.--There is

hereby created the State Apartment Incentive Loan Program for the

purpose of providing first, second, or other subordinated

mortgage loans or loan guarantees to sponsors, including for-

profit, nonprofit, and public entities, to provide housing

affordable to very-low-income persons.

(6) On all state apartment incentive loans, except loans

made to housing communities for the elderly to provide for

lifesafety, building preservation, health, sanitation, or

security-related repairs or improvements, the following

provisions shall apply:

(l) The proceeds of all loans shall be used for new

construction, moderate rehabilitation, or substantial

rehabilitation which creates or preserves affordable, safe, and

sanitary housing units.

Section 3. Section 420.9071, Florida Statutes, is amended

to read:

420.9071 Definitions.--As used in ss. 420.907-420.9079, the

term:

(1) "Adjusted for family size" means adjusted in a manner

that results in an income eligibility level that is lower for

households having fewer than four people, or higher for

households having more than four people, than the base income

eligibility determined as provided in subsection (20) (19),

subsection (21) (20), or subsection (30) (28), based upon a

formula established by the United States Department of Housing

and Urban Development.

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

mortgage payments including taxes and insurance do not exceed 30

percent of that amount which represents the percentage of the

100

median annual gross income for the households as indicated in

101

subsection (20) (19), subsection (21) (20), or subsection (30)

102

(28). However, it is not the intent to limit an individual

103

household's ability to devote more than 30 percent of its income

104

for housing, and housing for which a household devotes more than

105

30 percent of its income shall be deemed affordable if the first

106

institutional mortgage lender is satisfied that the household can

107

afford mortgage payments in excess of the 30 percent benchmark.

108

(3) "Affordable housing advisory committee" means the

109

committee appointed by the governing body of a county or eligible

110

municipality for the purpose of recommending specific initiatives

111

and incentives to encourage or facilitate affordable housing as

112

provided in s. 420.9076.

113

(4) "Annual gross income" means annual income as defined

114

under the Section 8 housing assistance payments programs in 24

115

C.F.R. part 5; annual income as reported under the census long

116

form for the recent available decennial census; or adjusted gross

117

income as defined for purposes of reporting under Internal

118

Revenue Service Form 1040 for individual federal annual income

119

tax purposes; or other method of verifying income as provided by

120

rule of the corporation. Counties and eligible municipalities

121

shall calculate income by annualizing verified sources of income

122

for the household as the amount of income to be received in a

123

household during the 12 months following the effective date of

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the determination.

125

(5) "Assisted housing" or "assisted housing development"

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means a rental housing development, including rental housing in a

127

mixed-use development, which has received or currently receives

128

funding from any federal or state housing program.

129

(6)(5) "Award" means a loan, grant, or subsidy funded

130

wholly or partially by the local housing assistance trust fund.

131

(7)(6) "Community-based organization" means a nonprofit

132

organization that has among its purposes the provision of

133

affordable housing to persons who have special needs or have very

134

low income, low income, or moderate income within a designated

135

area, which may include a municipality, a county, or more than

136

one municipality or county, and maintains, through a minimum of

137

one-third representation on the organization's governing board,

138

accountability to housing program beneficiaries and residents of

139

the designated area. A community housing development organization

140

established pursuant to 24 C.F.R. part 92.2 and a community

141

development corporation created pursuant to chapter 290 are

142

examples of community-based organizations.

143

(8)(7) "Corporation" means the Florida Housing Finance

144

Corporation.

145

(9)(8) "Eligible housing" means any real and personal

146

property located within the county or the eligible municipality

147

which is designed and intended for the primary purpose of

148

providing decent, safe, and sanitary residential units that are

149

designed to meet the standards of the Florida Building Code under

150

chapter 553, or manufactured housing constructed after June 1994

151

and installed in accordance with the installation standards for

152

mobile or manufactured homes contained in rules of the Department

153

of Highway Safety and Motor Vehicles if such manufactured housing

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is assessed as an improvement to real property for purposes of ad

155

valorem taxation, for home ownership or rental for eligible

156

persons as designated by each county or eligible municipality

157

participating in the State Housing Initiatives Partnership

158

Program.

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(10)(9) "Eligible municipality" means a municipality that

160

is eligible for federal community development block grant

161

entitlement moneys as an entitlement community identified in 24

162

C.F.R. s. 570, subpart D, Entitlement Grants, or a nonentitlement

163

municipality that is receiving local housing distribution funds

164

under an interlocal agreement that provides for possession and

165

administrative control of funds to be transferred to the

166

nonentitlement municipality. An eligible municipality that defers

167

its participation in community development block grants does not

168

affect its eligibility for participation in the State Housing

169

Initiatives Partnership Program.

170

(11)(10) "Eligible person" or "eligible household" means

171

one or more natural persons or a family determined by the county

172

or eligible municipality to be of very low income, low income, or

173

moderate income according to the income limits adjusted to family

174

size published annually by the United States Department of

175

Housing and Urban Development based upon the annual gross income

176

of the household.

177

(12)(11) "Eligible sponsor" means a person or a private or

178

public for-profit or not-for-profit entity that applies for an

179

award under the local housing assistance plan for the purpose of

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providing eligible housing for eligible persons.

181

(13)(12) "Grant" means an award from the local housing

182

assistance trust fund to an eligible sponsor or eligible person

183

to partially assist in the construction, rehabilitation, or

184

financing of eligible housing or to provide the cost of tenant or

185

ownership qualifications without requirement for repayment as

186

long as the condition of award is maintained.

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(14)(13) "Loan" means an award from the local housing

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assistance trust fund to an eligible sponsor or eligible person

189

to partially finance the acquisition, construction, or

190

rehabilitation of eligible housing with requirement for repayment

191

or provision for forgiveness of repayment if the condition of the

192

award is maintained.

193

(15)(14) "Local housing assistance plan" means a concise

194

description of the local housing assistance strategies and local

195

housing incentive strategies adopted by local government

196

resolution with an explanation of the way in which the program

197

meets the requirements of ss. 420.907-420.9079 and corporation

198

rule.

199

(16)(15) "Local housing assistance strategies" means the

200

housing construction, rehabilitation, repair, or finance program

201

implemented by a participating county or eligible municipality

202

with the local housing distribution or other funds deposited into

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the local housing assistance trust fund.

204

(17)(16) "Local housing incentive strategies" means local

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regulatory reform or incentive programs to encourage or

206

facilitate affordable housing production, which include at a

207

minimum, assurance that permits as defined in s. 163.3164(7) and

208

(8) for affordable housing projects are expedited to a greater

209

degree than other projects; an ongoing process for review of

210

local policies, ordinances, regulations, and plan provisions that

211

increase the cost of housing prior to their adoption; and a

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schedule for implementing the incentive strategies. Local housing

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incentive strategies may also include other regulatory reforms,

214

such as those enumerated in s. 420.9076 or those recommended by

215

the affordable housing advisory committee in its triennial

216

evaluation of the implementation of affordable housing

217

incentives, and adopted by the local governing body.

218

(18)(17) "Local housing distributions" means the proceeds

219

of the taxes collected under chapter 201 deposited into the Local

220

Government Housing Trust Fund and distributed to counties and

221

eligible municipalities participating in the State Housing

222

Initiatives Partnership Program pursuant to s. 420.9073.

223

(19)(18) "Local housing partnership" means the

224

implementation of the local housing assistance plan in a manner

225

that involves the applicable county or eligible municipality,

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lending institutions, housing builders and developers, real

227

estate professionals, advocates for low-income persons,

228

community-based housing and service organizations, and providers

229

of professional services relating to affordable housing. The term

230

includes initiatives to provide support services for housing

231

program beneficiaries such as training to prepare persons for the

232

responsibility of homeownership, counseling of tenants, and the

233

establishing of support services such as day care, health care,

234

and transportation.

235

(20)(19) "Low-income person" or "low-income household"

236

means one or more natural persons or a family that has a total

237

annual gross household income that does not exceed 80 percent of

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the median annual income adjusted for family size for households

239

within the metropolitan statistical area, the county, or the

240

nonmetropolitan median for the state, whichever amount is

241

greatest. With respect to rental units, the low-income

242

household's annual income at the time of initial occupancy may

243

not exceed 80 percent of the area's median income adjusted for

244

family size. While occupying the rental unit, a low-income

245

household's annual income may increase to an amount not to exceed

246

140 percent of 80 percent of the area's median income adjusted

247

for family size.

248

(21)(20) "Moderate-income person" or "moderate-income

249

household" means one or more natural persons or a family that has

250

a total annual gross household income that does not exceed 120

251

percent of the median annual income adjusted for family size for

252

households within the metropolitan statistical area, the county,

253

or the nonmetropolitan median for the state, whichever is

254

greatest. With respect to rental units, the moderate-income

255

household's annual income at the time of initial occupancy may

256

not exceed 120 percent of the area's median income adjusted for

257

family size. While occupying the rental unit, a moderate-income

258

household's annual income may increase to an amount not to exceed

259

140 percent of 120 percent of the area's median income adjusted

260

for family size.

261

(22)(21) "Personal property" means major appliances,

262

including a freestanding refrigerator or stove, to be identified

263

on the encumbering documents.

264

(23)(22) "Plan amendment" means the addition or deletion of

265

a local housing assistance strategy or local housing incentive

266

strategy. Plan amendments must at all times maintain consistency

267

with program requirements and must be submitted to the

268

corporation for review pursuant to s. 420.9072(3). Technical or

269

clarifying revisions may not be considered plan amendments but

270

must be transmitted to the corporation for purposes of

271

notification.

272

(24) "Preservation" means efforts taken to keep rents in

273

existing assisted housing or existing assisted housing

274

developments affordable for extremely low, very-low, low, and

275

moderate-income households while ensuring that such property

276

stays in good physical and financial condition for an extended

277

period.

278

(25)(23) "Population" means the latest official state

279

estimate of population certified pursuant to s. 186.901 prior to

280

the beginning of the state fiscal year.

281

(26)(24) "Program income" means the proceeds derived from

282

interest earned on or investment of the local housing

283

distribution and other funds deposited into the local housing

284

assistance trust fund, proceeds from loan repayments, recycled

285

funds, and all other income derived from use of funds deposited

286

in the local housing assistance trust fund. It does not include

287

recaptured funds as defined in subsection (27) (25).

288

(27)(25) "Recaptured funds" means funds that are recouped

289

by a county or eligible municipality in accordance with the

290

recapture provisions of its local housing assistance plan

291

pursuant to s. 420.9075(5)(g) from eligible persons or eligible

292

sponsors where the funds were not used for assistance to an

293

eligible household for an eligible activity, or where there is a

294

who default on the terms of a grant award or loan award.

295

(28)(26) "Rent subsidies" means ongoing monthly rental

296

assistance. The term does not include initial assistance to

297

tenants, such as grants or loans for security and utility

298

deposits.

299

(29)(27) "Sales price" or "value" means, in the case of

300

acquisition of an existing or newly constructed unit, the amount

301

on the executed sales contract. For eligible persons who are

302

building a unit on land that they own, the sales price is

303

determined by an appraisal performed by a state-certified

304

appraiser. The appraisal must include the value of the land and

305

the improvements using the after-construction value of the

306

property and must be dated within 12 months of the date

307

construction is to commence. The sales price of any unit must

308

include the value of the land in order to qualify as eligible

309

housing as defined in subsection (9) (8). In the case of

310

rehabilitation or emergency repair of an existing unit that does

311

not create additional living space, sales price or value means

312

the value of the real property, as determined by an appraisal

313

performed by a state-certified appraiser and dated within 12

314

months of the date construction is to commence or the assessed

315

value of the real property as determined by the county property

316

appraiser. In the case of rehabilitation of an existing unit that

317

includes the addition of new living space, sales price or value

318

means the value of the real property, as determined by an

319

appraisal performed by a state-certified appraiser and dated

320

within 12 months of the date construction is to commence or the

321

assessed value of the real property as determined by the county

322

property appraiser, plus the cost of the improvements in either

323

case.

324

(30)(28) "Very-low-income person" or "very-low-income

325

household" means one or more natural persons or a family that has

326

a total annual gross household income that does not exceed 50

327

percent of the median annual income adjusted for family size for

328

households within the metropolitan statistical area, the county,

329

or the nonmetropolitan median for the state, whichever is

330

greatest. With respect to rental units, the very-low-income

331

household's annual income at the time of initial occupancy may

332

not exceed 50 percent of the area's median income adjusted for

333

family size. While occupying the rental unit, a very-low-income

334

household's annual income may increase to an amount not to exceed

335

140 percent of 50 percent of the area's median income adjusted

336

for family size.

337

Section 4. Subsection (6) of section 420.9072, Florida

338

Statutes, is amended to read:

339

420.9072 State Housing Initiatives Partnership

340

Program.--The State Housing Initiatives Partnership Program is

341

created for the purpose of providing funds to counties and

342

eligible municipalities as an incentive for the creation of local

343

housing partnerships, to expand production of and preserve

344

affordable housing, to further the housing element of the local

345

government comprehensive plan specific to affordable housing, and

346

to increase housing-related employment.

347

(6) The moneys that otherwise would be distributed pursuant

348

to s. 420.9073 to a local government that does not meet the

349

program's requirements for receipts of such distributions shall

350

remain in the Local Government Housing Trust Fund to be

351

administered by the corporation pursuant to s. 420.9078.

352

Section 5. Subsections (1), (2), and (3) of section

353

420.9073, Florida Statutes, are amended, and subsections (5),

354

(6), and (7) are added to that section, to read:

355

420.9073 Local housing distributions.--

356

(1) Subject to the availability of funds, distributions

357

calculated in this subsection section shall be disbursed on a

358

quarterly or more frequent monthly basis by the corporation

359

beginning the first day of the month after program approval

360

pursuant to s. 420.9072. Each county's share of the funds to be

361

distributed from the portion of the funds in the Local Government

362

Housing Trust Fund received pursuant to s. 201.15(9) shall be

363

calculated by the corporation for each fiscal year as follows:

364

(a) Each county other than a county that has implemented

365

the provisions of chapter 83-220, Laws of Florida, as amended by

366

chapters 84-270, 86-152, and 89-252, Laws of Florida, shall

367

receive the guaranteed amount for each fiscal year.

368

(b) Each county other than a county that has implemented

369

the provisions of chapter 83-220, Laws of Florida, as amended by

370

chapters 84-270, 86-152, and 89-252, Laws of Florida, may receive

371

an additional share calculated as follows:

372

1. Multiply each county's percentage of the total state

373

population excluding the population of any county that has

374

implemented the provisions of chapter 83-220, Laws of Florida, as

375

amended by chapters 84-270, 86-152, and 89-252, Laws of Florida,

376

by the total funds to be distributed.

377

2. If the result in subparagraph 1. is less than the

378

guaranteed amount as determined in subsection (3), that county's

379

additional share shall be zero.

380

3. For each county in which the result in subparagraph 1.

381

is greater than the guaranteed amount as determined in subsection

382

(3), the amount calculated in subparagraph 1. shall be reduced by

383

the guaranteed amount. The result for each such county shall be

384

expressed as a percentage of the amounts so determined for all

385

counties. Each such county shall receive an additional share

386

equal to such percentage multiplied by the total funds received

387

by the Local Government Housing Trust Fund pursuant to s.

388

201.15(9) reduced by the guaranteed amount paid to all counties.

389

(2) Subject to the availability of funds Effective July 1,

390

1995, distributions calculated in this subsection section shall

391

be disbursed on a quarterly or more frequent monthly basis by the

392

corporation beginning the first day of the month after program

393

approval pursuant to s. 420.9072. Each county's share of the

394

funds to be distributed from the portion of the funds in the

395

Local Government Housing Trust Fund received pursuant to s.

396

201.15(10) shall be calculated by the corporation for each fiscal

397

year as follows:

398

(a) Each county shall receive the guaranteed amount for

399

each fiscal year.

400

(b) Each county may receive an additional share calculated

401

as follows:

402

1. Multiply each county's percentage of the total state

403

population, by the total funds to be distributed.

404

2. If the result in subparagraph 1. is less than the

405

guaranteed amount as determined in subsection (3), that county's

406

additional share shall be zero.

407

3. For each county in which the result in subparagraph 1.

408

is greater than the guaranteed amount, the amount calculated in

409

subparagraph 1. shall be reduced by the guaranteed amount. The

410

result for each such county shall be expressed as a percentage of

411

the amounts so determined for all counties. Each such county

412

shall receive an additional share equal to this percentage

413

multiplied by the total funds received by the Local Government

414

Housing Trust Fund pursuant to s. 201.15(10) as reduced by the

415

guaranteed amount paid to all counties.

416

(3) Calculation of guaranteed amounts:

417

(a) The guaranteed amount under subsection (1) shall be

418

calculated for each state fiscal year by multiplying $350,000 by

419

a fraction, the numerator of which is the amount of funds

420

distributed to the Local Government Housing Trust Fund pursuant

421

to s. 201.15(9) and the denominator of which is the total amount

422

of funds distributed to the Local Government Housing Trust Fund

423

pursuant to s. 201.15 less the total amount withheld, but not

424

more than $10 million as provided in subsections (5) and (6).

425

(b) The guaranteed amount under subsection (2) shall be

426

calculated for each state fiscal year by multiplying $350,000 by

427

a fraction, the numerator of which is the amount of funds

428

distributed to the Local Government Housing Trust Fund pursuant

429

to s. 201.15(10) and the denominator of which is the total amount

430

of funds distributed to the Local Government Housing Trust Fund

431

pursuant to s. 201.15 less the total amount withheld, but not

432

more than $10 million as provided in subsections (5) and (6).

433

(5) Notwithstanding subsections (1)-(4), the corporation

434

may withhold up to $5 million of the total amount distributed

435

each fiscal year from the Local Government Housing Trust Fund to

436

provide additional funding to counties and eligible

437

municipalities where a state of emergency has been declared by

438

the Governor under chapter 252. Any portion of the withheld funds

439

not distributed by the end of the fiscal year shall be

440

distributed as provided in subsections (1) and (2).

441

(6) Notwithstanding subsections (1)-(4), the corporation

442

may withhold up to $5 million of the total amount distributed

443

each fiscal year from the Local Government Housing Trust Fund to

444

provide funding to counties and eligible municipalities to

445

purchase properties subject to a State Housing Initiatives

446

Partnership Program lien and on which foreclosure proceedings

447

have been instituted by a mortgagee. Each county and eligible

448

municipality receiving funds under this subsection shall repay

449

such funds to the corporation on or before the expenditure

450

deadline for the fiscal year in which the funds were awarded.

451

Amounts not repaid by the county or eligible municipality shall

452

be withheld from the subsequent year's distribution under

453

subsections (1) and (2). Any portion of such funds not

454

distributed under this subsection by the end of the fiscal year

455

shall be distributed as provided in subsections (1) and (2).

456

(7) A county receiving local housing distributions under

457

this section or an eligible municipality receiving local housing

458

distributions under an interlocal agreement shall expend those

459

funds in accordance with the provisions of ss. 420.907-420.9079,

460

rules of the corporation, and the county's local housing

461

assistance plan.

462

Section 6. Subsections (1), (3), (5), (7), (8), paragraphs

463

(a) and (h) of subsection (10), and paragraph (b) of subsection

464

(13) of section 420.9075, Florida Statutes, are amended, and

465

subsection (14) is added to that section, to read:

466

420.9075 Local housing assistance plans; partnerships.--

467

(1)(a) Each county or eligible municipality participating

468

in the State Housing Initiatives Partnership Program shall

469

develop and implement a local housing assistance plan created to

470

make affordable residential units available to persons of very

471

low income, low income, or moderate income and to persons who

472

have special housing needs, including, but not limited to,

473

homeless people, the elderly, and migrant farmworkers, and

474

persons with disabilities. High-cost counties as defined by rule

475

of the corporation or eligible municipalities may include

476

strategies to assist persons and households having annual incomes

477

of not more than 140 percent of area median income. The plans are

478

intended to increase the availability of affordable residential

479

units by combining local resources and cost-saving measures into

480

a local housing partnership and using private and public funds to

481

reduce the cost of housing.

482

(b) Local housing assistance plans may allocate funds to:

483

1. Implement local housing assistance strategies for the

484

provision of affordable housing.

485

2. Supplement funds available to the corporation to provide

486

enhanced funding of state housing programs within the county or

487

the eligible municipality.

488

3. Provide the local matching share of federal affordable

489

housing grants or programs.

490

4. Fund emergency repairs, including, but not limited to,

491

repairs performed by existing service providers under

492

weatherization assistance programs under ss. 409.509-409.5093.

493

5. Further the housing element of the local government

494

comprehensive plan adopted pursuant to s. 163.3184, specific to

495

affordable housing.

496

(3)(a) Each local housing assistance plan shall include a

497

definition of essential service personnel for the county or

498

eligible municipality, including, but not limited to, teachers

499

and educators, other school district, community college, and

500

university employees, police and fire personnel, health care

501

personnel, skilled building trades personnel, and other job

502

categories.

503

(b) Each county and each eligible municipality is

504

encouraged to develop a strategy within its local housing

505

assistance plan that emphasizes the recruitment and retention of

506

essential service personnel. The local government is encouraged

507

to involve public and private sector employers. Compliance with

508

the eligibility criteria established under this strategy shall be

509

verified by the county or eligible municipality.

510

511

encouraged to develop a strategy within its local housing

512

assistance plan that addresses the needs of persons who are

513

deprived of affordable housing due to the closure of a mobile

514

home park or the conversion of affordable rental units to

515

condominiums.

516

(d) Each county and each eligible municipality shall

517

describe initiatives in the local housing assistance plan to

518

encourage or require innovative design, green building

519

principles, storm-resistant construction, or other elements that

520

reduce long-term costs relating to maintenance, utilities, or

521

insurance.

522

(e) Each county and each eligible municipality is

523

encouraged to develop a strategy within its local housing

524

assistance plan which provides program funds for the preservation

525

of assisted housing or assisted housing developments.

526

(5) The following criteria apply to awards made to eligible

527

sponsors or eligible persons for the purpose of providing

528

eligible housing:

529

(a) At least 65 percent of the funds made available in each

530

county and eligible municipality from the local housing

531

distribution must be reserved for home ownership for eligible

532

persons.

533

(b) At least 75 percent of the funds made available in each

534

county and eligible municipality from the local housing

535

distribution must be reserved for construction, rehabilitation,

536

or emergency repair of affordable, eligible housing.

537

538

housing may not exceed 90 percent of the average area purchase

539

price in the statistical area in which the eligible housing is

540

located. Such average area purchase price may be that calculated

541

for any 12-month period beginning not earlier than the fourth

542

calendar year prior to the year in which the award occurs or as

543

otherwise established by the United States Department of the

544

Treasury.

545

(d)1. All units constructed, rehabilitated, or otherwise

546

assisted with the funds provided from the local housing

547

assistance trust fund must be occupied by very-low-income

548

persons, low-income persons, and moderate-income persons except

549

as otherwise provided in this section.

550

2. At least 30 percent of the funds deposited into the

551

local housing assistance trust fund must be reserved for awards

552

to very-low-income persons or eligible sponsors who will serve

553

very-low-income persons and at least an additional 30 percent of

554

the funds deposited into the local housing assistance trust fund

555

must be reserved for awards to low-income persons or eligible

556

sponsors who will serve low-income persons. This subparagraph

557

does not apply to a county or an eligible municipality that

558

includes, or has included within the previous 5 years, an area of

559

critical state concern designated or ratified by the Legislature

560

for which the Legislature has declared its intent to provide

561

affordable housing. The exemption created by this act expires on

562

July 1, 2013 2008.

563

(e) Loans shall be provided for periods not exceeding 30

564

years, except for deferred payment loans or loans that extend

565

beyond 30 years which continue to serve eligible persons.

566

(f) Loans or grants for eligible rental housing

567

constructed, rehabilitated, or otherwise assisted from the local

568

housing assistance trust fund must be subject to recapture

569

requirements as provided by the county or eligible municipality

570

in its local housing assistance plan unless reserved for eligible

571

persons for 15 years or the term of the assistance, whichever

572

period is longer. Eligible sponsors that offer rental housing for

573

sale before 15 years or that have remaining mortgages funded

574

under this program must give a first right of refusal to eligible

575

nonprofit organizations for purchase at the current market value

576

for continued occupancy by eligible persons.

577

(g) Loans or grants for eligible owner-occupied housing

578

constructed, rehabilitated, or otherwise assisted from proceeds

579

provided from the local housing assistance trust fund shall be

580

subject to recapture requirements as provided by the county or

581

eligible municipality in its local housing assistance plan.

582

(h) The total amount of monthly mortgage payments or the

583

amount of monthly rent charged by the eligible sponsor or her or

584

his designee must be made affordable.

585

(i) The maximum sales price or value per unit and the

586

maximum award per unit for eligible housing benefiting from

587

awards made pursuant to this section must be established in the

588

local housing assistance plan.

589

(j) The benefit of assistance provided through the State

590

Housing Initiatives Partnership Program must accrue to eligible

591

persons occupying eligible housing. This provision shall not be

592

construed to prohibit use of the local housing distribution funds

593

for a mixed income rental development.

594

(k) Funds from the local housing distribution not used to

595

meet the criteria established in paragraph (a) or paragraph (b)

596

or not used for the administration of a local housing assistance

597

plan must be used for housing production and finance activities,

598

including, but not limited to, financing preconstruction

599

activities, the purchase of existing units, providing rental

600

housing, and providing home ownership training to prospective

601

home buyers and owners of homes assisted through the local

602

housing assistance plan.

603

1. Notwithstanding the provisions of paragraphs (a) and

604

(b), program income as defined in s. 420.9071(24) may also be

605

used to fund activities described in this paragraph.

606

2. Where preconstruction due diligence activities conducted

607

as part of a preservation strategy show that preservation of the

608

units is not feasible and will not result in the production of an

609

eligible unit, such costs shall be deemed a program expense

610

rather than an administrative expense if such program expenses do

611

not exceed 3 percent of the annual local housing distribution.

612

(l) Each county and each eligible municipality may award

613

funds as a grant for construction, rehabilitation, or repair as

614

part of disaster recovery or emergency repairs or to remedy

615

accessibility or health and safety deficiencies. Any other grants

616

must be approved as part of the local housing assistance plan.

617

618

If both an award under the local housing assistance plan and

619

federal low-income housing tax credits are used to assist a

620

project and there is a conflict between the criteria prescribed

621

in this subsection and the requirements of s. 42 of the Internal

622

Revenue Code of 1986, as amended, the county or eligible

623

municipality may resolve the conflict by giving precedence to the

624

requirements of s. 42 of the Internal Revenue Code of 1986, as

625

amended, in lieu of following the criteria prescribed in this

626

subsection with the exception of paragraphs (a) and (d) of this

627

subsection.

628

(7) The moneys deposited in the local housing assistance

629

trust fund shall be used to administer and implement the local

630

housing assistance plan. The cost of administering the plan may

631

not exceed 5 percent of the local housing distribution moneys and

632

program income deposited into the trust fund. A county or an

633

eligible municipality may not exceed the 5-percent limitation on

634

administrative costs, unless its governing body finds, by

635

resolution, that 5 percent of the local housing distribution plus

636

5 percent of program income is insufficient to adequately pay the

637

necessary costs of administering the local housing assistance

638

plan. The cost of administering the program may not exceed 10

639

percent of the local housing distribution plus 10 5 percent of

640

program income deposited into the trust fund, except that small

641

counties, as defined in s. 120.52(17), and eligible

642

municipalities receiving a local housing distribution of up to

643

$350,000 may use up to 10 percent of program income for

644

administrative costs.

645

(8) Pursuant to s. 420.531, the corporation shall provide

646

training and technical assistance to local governments regarding

647

the creation of partnerships, the design of local housing

648

assistance strategies, the implementation of local housing

649

incentive strategies, and the provision of support services.

650

(10) Each county or eligible municipality shall submit to

651

the corporation by September 15 of each year a report of its

652

affordable housing programs and accomplishments through June 30

653

immediately preceding submittal of the report. The report shall

654

be certified as accurate and complete by the local government's

655

chief elected official or his or her designee. Transmittal of the

656

annual report by a county's or eligible municipality's chief

657

elected official, or his or her designee, certifies that the

658

local housing incentive strategies, or, if applicable, the local

659

housing incentive plan, have been implemented or are in the

660

process of being implemented pursuant to the adopted schedule for

661

implementation. The report must include, but is not limited to:

662

(a) The number of households served by income category,

663

age, family size, and race, and data regarding any special needs

664

populations such as farmworkers, homeless persons, persons with

665

disabilities, and the elderly. Counties shall report this

666

information separately for households served in the

667

unincorporated area and each municipality within the county.

668

(h) Such other data or affordable housing accomplishments

669

considered significant by the reporting county or eligible

670

municipality or by the corporation.

671

(13)

672

(b) If, as a result of its review of the annual report, the

673

corporation determines that a county or eligible municipality has

674

failed to implement a local housing incentive strategy, or, if

675

applicable, a local housing incentive plan, it shall send a

676

notice of termination of the local government's share of the

677

local housing distribution by certified mail to the affected

678

county or eligible municipality.

679

1. The notice must specify a date of termination of the

680

funding if the affected county or eligible municipality does not

681

implement the plan or strategy and provide for a local response.

682

A county or eligible municipality shall respond to the

683

corporation within 30 days after receipt of the notice of

684

termination.

685

2. The corporation shall consider the local response that

686

extenuating circumstances precluded implementation and grant an

687

extension to the timeframe for implementation. Such an extension

688

shall be made in the form of an extension agreement that provides

689

a timeframe for implementation. The chief elected official of a

690

county or eligible municipality or his or her designee shall have

691

the authority to enter into the agreement on behalf of the local

692

government.

693

3. If the county or the eligible municipality has not

694

implemented the incentive strategy or entered into an extension

695

agreement by the termination date specified in the notice, the

696

local housing distribution share terminates, and any uncommitted

697

local housing distribution funds held by the affected county or

698

eligible municipality in its local housing assistance trust fund

699

shall be transferred to the Local Government Housing Trust Fund

700

to the credit of the corporation to administer pursuant to s.

701

420.9072 420.9078.

702

4.a. If the affected local government fails to meet the

703

timeframes specified in the agreement, the corporation shall

704

terminate funds. The corporation shall send a notice of

705

termination of the local government's share of the local housing

706

distribution by certified mail to the affected local government.

707

The notice shall specify the termination date, and any

708

uncommitted funds held by the affected local government shall be

709

transferred to the Local Government Housing Trust Fund to the

710

credit of the corporation to administer pursuant to s. 420.9072

711

420.9078.

712

b. If the corporation terminates funds to a county, but an

713

eligible municipality receiving a local housing distribution

714

pursuant to an interlocal agreement maintains compliance with

715

program requirements, the corporation shall thereafter distribute

716

directly to the participating eligible municipality its share

717

calculated in the manner provided in s. 420.9072.

718

c. Any county or eligible municipality whose local

719

distribution share has been terminated may subsequently elect to

720

receive directly its local distribution share by adopting the

721

ordinance, resolution, and local housing assistance plan in the

722

manner and according to the procedures provided in ss. 420.907-

723

420.9079.

724

(14) If the corporation determines that a county or

725

eligible municipality has expended program funds for an

726

ineligible activity, the corporation shall require such funds to

727

be repaid to the Local Housing Assistance Trust Fund. Such

728

repayment may not be made with funds from the State Housing

729

Initiatives Partnership Program.

730

Section 7. Subsections (2), (5), and (6), and paragraph (a)

731

of subsection (7) of section 420.9076, Florida Statutes, are

732

amended to read:

733

420.9076 Adoption of affordable housing incentive

734

strategies; committees.--

735

(2) The governing board of a county or municipality shall

736

appoint the members of the affordable housing advisory committee

737

by resolution. Pursuant to the terms of any interlocal agreement,

738

a county and municipality may create and jointly appoint an

739

advisory committee to prepare a joint plan. The ordinance adopted

740

pursuant to s. 420.9072 which creates the advisory committee or

741

the resolution appointing the advisory committee members must

742

provide for 11 committee members and their terms. The committee

743

must include:

744

(a) One citizen who is actively engaged in the residential

745

home building industry in connection with affordable housing.

746

(b) One citizen who is actively engaged in the banking or

747

mortgage banking industry in connection with affordable housing.

748

749

labor actively engaged in home building in connection with

750

affordable housing.

751

(d) One citizen who is actively engaged as an advocate for

752

low-income persons in connection with affordable housing.

753

(e) One citizen who is actively engaged as a for-profit

754

provider of affordable housing.

755

(f) One citizen who is actively engaged as a not-for-profit

756

provider of affordable housing.

757

(g) One citizen who is actively engaged as a real estate

758

professional in connection with affordable housing.

759

(h) One citizen who actively serves on the local planning

760

agency pursuant to s. 163.3174. If the local planning agency is

761

comprised of the county or municipality governing body, the

762

governing body may appoint a designee who is knowledgeable in the

763

local planning process.

764

(i) One citizen who resides within the jurisdiction of the

765

local governing body making the appointments.

766

(j) One citizen who represents employers within the

767

jurisdiction.

768

(k) One citizen who represents essential services

769

personnel, as defined in the local housing assistance plan.

770

771

If a county or eligible municipality whether due to its small

772

size, the presence of a conflict of interest by prospective

773

appointees, or other reasonable factor, is unable to appoint a

774

citizen actively engaged in these activities in connection with

775

affordable housing, a citizen engaged in the activity without

776

regard to affordable housing may be appointed. Local governments

777

that receive the minimum allocation under the State Housing

778

Initiatives Partnership Program may elect to appoint an

779

affordable housing advisory committee with fewer than 11

780

representatives if they are unable to find representatives who

781

meet the criteria of paragraphs (a)-(k).

782

(5) The approval by the advisory committee of its local

783

housing incentive strategies recommendations and its review of

784

local government implementation of previously recommended

785

strategies must be made by affirmative vote of a majority of the

786

membership of the advisory committee taken at a public hearing.

787

Notice of the time, date, and place of the public hearing of the

788

advisory committee to adopt its evaluation and final local

789

housing incentive strategies recommendations must be published in

790

a newspaper of general paid circulation in the county. The notice

791

must contain a short and concise summary of the evaluation and

792

local housing incentives strategies recommendations to be

793

considered by the advisory committee. The notice must state the

794

public place where a copy of the evaluation and tentative

795

advisory committee recommendations can be obtained by interested

796

persons. The final report, evaluation, and recommendations shall

797

be submitted to the corporation.

798

(6) Within 90 days after the date of receipt of the

799

evaluation and local housing incentive strategies recommendations

800

from the advisory committee, the governing body of the appointing

801

local government shall adopt an amendment to its local housing

802

assistance plan to incorporate the local housing incentive

803

strategies it will implement within its jurisdiction. The

804

amendment must include, at a minimum, the local housing incentive

805

strategies required under s. 420.9071(16). The local government

806

must consider the strategies specified in paragraphs (4)(a)-(k)

807

as recommended by the advisory committee.

808

(7) The governing board of the county or the eligible

809

municipality shall notify the corporation by certified mail of

810

its adoption of an amendment of its local housing assistance plan

811

to incorporate local housing incentive strategies. The notice

812

must include a copy of the approved amended plan.

813

(a) If the corporation fails to receive timely the approved

814

amended local housing assistance plan to incorporate local

815

housing incentive strategies, a notice of termination of its

816

share of the local housing distribution shall be sent by

817

certified mail by the corporation to the affected county or

818

eligible municipality. The notice of termination must specify a

819

date of termination of the funding if the affected county or

820

eligible municipality has not adopted an amended local housing

821

assistance plan to incorporate local housing incentive

822

strategies. If the county or the eligible municipality has not

823

adopted an amended local housing assistance plan to incorporate

824

local housing incentive strategies by the termination date

825

specified in the notice of termination, the local distribution

826

share terminates; and any uncommitted local distribution funds

827

held by the affected county or eligible municipality in its local

828

housing assistance trust fund shall be transferred to the Local

829

Government Housing Trust Fund to the credit of the corporation to

830

administer the local government housing program pursuant to s.

831

420.9072 420.9078.

832

Section 8. Subsection (6) of section 421.08, Florida

833

Statutes, is amended to read:

834

421.08 Powers of authority.--An authority shall constitute

835

a public body corporate and politic, exercising the public and

836

essential governmental functions set forth in this chapter, and

837

having all the powers necessary or convenient to carry out and

838

effectuate the purpose and provisions of this chapter, including

839

the following powers in addition to others herein granted:

840

(6) Within its area of operation: to investigate into

841

living, dwelling, and housing conditions and into the means and

842

methods of improving such conditions; to determine where slum

843

areas exist or where there is a shortage of decent, safe, and

844

sanitary dwelling accommodations for persons of low income; to

845

make studies and recommendations relating to the problem of

846

clearing, replanning, and reconstruction of slum areas and the

847

problem of providing dwelling accommodations for persons of low

848

income; to administer fair housing ordinances and other

849

ordinances as adopted by cities, counties, or other authorities

850

who wish to contract for administrative services and to cooperate

851

with the city, the county, the state or any political subdivision

852

thereof in action taken in connection with such problems; and to

853

engage in research, studies, and experimentation on the subject

854

of housing. However, the housing authority may not take action to

855

prohibit access to a housing project by a state or local elected

856

official or a candidate for state or local government office.

857

Section 9. Subsection (4) of section 159.807, Florida

858

Statutes, is amended to read:

859

159.807 State allocation pool.--

860

(4)(a) The state allocation pool shall also be used to

861

provide written confirmations for private activity bonds that are

862

to be issued by state agencies after June 1, which bonds,

863

notwithstanding any other provisions of this part, shall receive

864

priority in the use of the pool available at the time the notice

865

of intent to issue such bonds is filed with the division.

866

(b) This subsection does not apply to the Florida Housing

867

Finance Corporation:

868

1. Until its allocation pursuant to s. 159.804(3) has been

869

exhausted, is unavailable, or is inadequate to provide an

870

allocation pursuant to s. 159.804(3) and any carryforwards of

871

volume limitation from prior years for the same carryforward

872

purpose, as that term is defined in s. 146 of the Code, as the

873

bonds it intends to issue have been completely utilized or have

874

expired.

875

2. Prior to July 1 of any year, when housing bonds for

876

which the Florida Housing Finance Corporation has made an

877

assignment of its allocation permitted by s. 159.804(3)(c) have

878

not been issued.

879

Section 10. Section 420.9078, Florida Statutes, is repealed.

880

Section 11. Paragraph (p) of subsection (5) of section

881

212.08, Florida Statutes, is amended to read:

882

212.08 Sales, rental, use, consumption, distribution, and

883

storage tax; specified exemptions.--The sale at retail, the

884

rental, the use, the consumption, the distribution, and the

885

storage to be used or consumed in this state of the following are

886

hereby specifically exempt from the tax imposed by this chapter.

887

(5) EXEMPTIONS; ACCOUNT OF USE.--

888

(p) Community contribution tax credit for donations.--

889

1. Authorization.--Persons who are registered with the

890

department under s. 212.18 to collect or remit sales or use tax

891

and who make donations to eligible sponsors are eligible for tax

892

credits against their state sales and use tax liabilities as

893

provided in this paragraph:

894

a. The credit shall be computed as 50 percent of the

895

person's approved annual community contribution.

896

b. The credit shall be granted as a refund against state

897

sales and use taxes reported on returns and remitted in the 12

898

months preceding the date of application to the department for

899

the credit as required in sub-subparagraph 3.c. If the annual

900

credit is not fully used through such refund because of

901

insufficient tax payments during the applicable 12-month period,

902

the unused amount may be included in an application for a refund

903

made pursuant to sub-subparagraph 3.c. in subsequent years

904

against the total tax payments made for such year. Carryover

905

credits may be applied for a 3-year period without regard to any

906

time limitation that would otherwise apply under s. 215.26.

907

c. A person may not receive more than $200,000 in annual

908

tax credits for all approved community contributions made in any

909

one year.

910

d. All proposals for the granting of the tax credit require

911

the prior approval of the Office of Tourism, Trade, and Economic

912

Development.

913

e. The total amount of tax credits which may be granted for

914

all programs approved under this paragraph, s. 220.183, and s.

915

624.5105 is $10.5 million annually for projects that provide

916

homeownership opportunities for low-income or very-low-income

917

households as defined in s. 420.9071(20) and (30) s. 420.9071(19)

918

and (28) and $3.5 million annually for all other projects.

919

f. A person who is eligible to receive the credit provided

920

for in this paragraph, s. 220.183, or s. 624.5105 may receive the

921

credit only under the one section of the person's choice.

922

2. Eligibility requirements.--

923

a. A community contribution by a person must be in the

924

following form:

925

(I) Cash or other liquid assets;

926

(II) Real property;

927

(III) Goods or inventory; or

928

(IV) Other physical resources as identified by the Office

929

of Tourism, Trade, and Economic Development.

930

b. All community contributions must be reserved exclusively

931

for use in a project. As used in this sub-subparagraph, the term

932

"project" means any activity undertaken by an eligible sponsor

933

which is designed to construct, improve, or substantially

934

rehabilitate housing that is affordable to low-income or very-

935

low-income households as defined in s. 420.9071(20) and (30) s.

936

420.9071(19) and (28); designed to provide commercial,

937

industrial, or public resources and facilities; or designed to

938

improve entrepreneurial and job-development opportunities for

939

low-income persons. A project may be the investment necessary to

940

increase access to high-speed broadband capability in rural

941

communities with enterprise zones, including projects that result

942

in improvements to communications assets that are owned by a

943

business. A project may include the provision of museum

944

educational programs and materials that are directly related to

945

any project approved between January 1, 1996, and December 31,

946

1999, and located in an enterprise zone designated pursuant to s.

947

290.0065. This paragraph does not preclude projects that propose

948

to construct or rehabilitate housing for low-income or very-low-

949

income households on scattered sites. With respect to housing,

950

contributions may be used to pay the following eligible low-

951

income and very-low-income housing-related activities:

952

(I) Project development impact and management fees for low-

953

income or very-low-income housing projects;

954

(II) Down payment and closing costs for eligible persons,

955

as defined in s. 420.9071(20) and (30) s. 420.9071(19) and (28);

956

(III) Administrative costs, including housing counseling

957

and marketing fees, not to exceed 10 percent of the community

958

contribution, directly related to low-income or very-low-income

959

projects; and

960

(IV) Removal of liens recorded against residential property

961

by municipal, county, or special district local governments when

962

satisfaction of the lien is a necessary precedent to the transfer

963

of the property to an eligible person, as defined in s.

964

420.9071(20) and (30) s. 420.9071(19) and (28), for the purpose

965

of promoting home ownership. Contributions for lien removal must

966

be received from a nonrelated third party.

967

c. The project must be undertaken by an "eligible sponsor,"

968

which includes:

969

(I) A community action program;

970

(II) A nonprofit community-based development organization

971

whose mission is the provision of housing for low-income or very-

972

low-income households or increasing entrepreneurial and job-

973

development opportunities for low-income persons;

974

(III) A neighborhood housing services corporation;

975

(IV) A local housing authority created under chapter 421;

976

(V) A community redevelopment agency created under s.

977

163.356;

978

(VI) The Florida Industrial Development Corporation;

979

(VII) A historic preservation district agency or

980

organization;

981

(VIII) A regional workforce board;

982

(IX) A direct-support organization as provided in s.

983

1009.983;

984

(X) An enterprise zone development agency created under s.

985

290.0056;

986

(XI) A community-based organization incorporated under

987

chapter 617 which is recognized as educational, charitable, or

988

scientific pursuant to s. 501(c)(3) of the Internal Revenue Code

989

and whose bylaws and articles of incorporation include affordable

990

housing, economic development, or community development as the

991

primary mission of the corporation;

992

(XII) Units of local government;

993

(XIII) Units of state government; or

994

(XIV) Any other agency that the Office of Tourism, Trade,

995

and Economic Development designates by rule.

996

997

In no event may A contributing person may not have a financial

998

interest in the eligible sponsor.

999

d. The project must be located in an area designated an

1000

enterprise zone or a Front Porch Florida Community pursuant to s.

1001

20.18(6), unless the project increases access to high-speed

1002

broadband capability for rural communities with enterprise zones

1003

but is physically located outside the designated rural zone

1004

boundaries. Any project designed to construct or rehabilitate

1005

housing for low-income or very-low-income households as defined

1006

in s. 420.9071(20) and (30) s. 420.9071(19) and (28) is exempt

1007

from the area requirement of this sub-subparagraph.

1008

e.(I) If, during the first 10 business days of the state

1009

fiscal year, eligible tax credit applications for projects that

1010

provide homeownership opportunities for low-income or very-low-

1011

income households as defined in s. 420.9071(20) and (30) s.

1012

420.9071(19) and (28) are received for less than the annual tax

1013

credits available for those projects, the Office of Tourism,

1014

Trade, and Economic Development shall grant tax credits for those

1015

applications and shall grant remaining tax credits on a first-

1016

come, first-served basis for any subsequent eligible applications

1017

received before the end of the state fiscal year. If, during the

1018

first 10 business days of the state fiscal year, eligible tax

1019

credit applications for projects that provide homeownership

1020

opportunities for low-income or very-low-income households as

1021

defined in s. 420.9071(20) and (30) s. 420.9071(19) and (28) are

1022

received for more than the annual tax credits available for those

1023

projects, the office shall grant the tax credits for those

1024

applications as follows:

1025

(A) If tax credit applications submitted for approved

1026

projects of an eligible sponsor do not exceed $200,000 in total,

1027

the credits shall be granted in full if the tax credit

1028

applications are approved.

1029

(B) If tax credit applications submitted for approved

1030

projects of an eligible sponsor exceed $200,000 in total, the

1031

amount of tax credits granted pursuant to sub-sub-sub-

1032

subparagraph (A) shall be subtracted from the amount of available

1033

tax credits, and the remaining credits shall be granted to each

1034

approved tax credit application on a pro rata basis.

1035

(II) If, during the first 10 business days of the state

1036

fiscal year, eligible tax credit applications for projects other

1037

than those that provide homeownership opportunities for low-

1038

income or very-low-income households as defined in s.

1039

420.9071(20) and (30) s. 420.9071(19) and (28) are received for

1040

less than the annual tax credits available for those projects,

1041

the office shall grant tax credits for those applications and

1042

shall grant remaining tax credits on a first-come, first-served

1043

basis for any subsequent eligible applications received before

1044

the end of the state fiscal year. If, during the first 10

1045

business days of the state fiscal year, eligible tax credit

1046

applications for projects other than those that provide

1047

homeownership opportunities for low-income or very-low-income

1048

households as defined in s. 420.9071(20) and (30) s. 420.9071(19)

1049

and (28) are received for more than the annual tax credits

1050

available for those projects, the office shall grant the tax

1051

credits for those applications on a pro rata basis.

1052

3. Application requirements.--

1053

a. Any eligible sponsor seeking to participate in this

1054

program must submit a proposal to the Office of Tourism, Trade,

1055

and Economic Development which sets forth the name of the

1056

sponsor, a description of the project, and the area in which the

1057

project is located, together with such supporting information as

1058

is prescribed by rule. The proposal must also contain a

1059

resolution from the local governmental unit in which the project

1060

is located certifying that the project is consistent with local

1061

plans and regulations.

1062

b. Any person seeking to participate in this program must

1063

submit an application for tax credit to the office which sets

1064

forth the name of the sponsor, a description of the project, and

1065

the type, value, and purpose of the contribution. The sponsor

1066

shall verify the terms of the application and indicate its

1067

receipt of the contribution, which verification must be in

1068

writing and accompany the application for tax credit. The person

1069

must submit a separate tax credit application to the office for

1070

each individual contribution that it makes to each individual

1071

project.

1072

c. Any person who has received notification from the office

1073

that a tax credit has been approved must apply to the department

1074

to receive the refund. Application must be made on the form

1075

prescribed for claiming refunds of sales and use taxes and be

1076

accompanied by a copy of the notification. A person may submit

1077

only one application for refund to the department within any 12-

1078

month period.

1079

4. Administration.--

1080

a. The Office of Tourism, Trade, and Economic Development

1081

may adopt rules pursuant to ss. 120.536(1) and 120.54 necessary

1082

to administer this paragraph, including rules for the approval or

1083

disapproval of proposals by a person.

1084

b. The decision of the office must be in writing, and, if

1085

approved, the notification shall state the maximum credit

1086

allowable to the person. Upon approval, the office shall transmit

1087

a copy of the decision to the Department of Revenue.

1088

c. The office shall periodically monitor all projects in a

1089

manner consistent with available resources to ensure that

1090

resources are used in accordance with this paragraph; however,

1091

each project must be reviewed at least once every 2 years.

1092

d. The office shall, in consultation with the Department of

1093

Community Affairs and the statewide and regional housing and

1094

financial intermediaries, market the availability of the

1095

community contribution tax credit program to community-based

1096

organizations.

1097

5. Expiration.--This paragraph expires June 30, 2015;

1098

however, any accrued credit carryover that is unused on that date

1099

may be used until the expiration of the 3-year carryover period

1100

for such credit.

1101

Section 12. Paragraph (t) of subsection (1) of section

1102

220.03, Florida Statutes, is amended to read:

1103

220.03 Definitions.--

1104

(1) SPECIFIC TERMS.--When used in this code, and when not

1105

otherwise distinctly expressed or manifestly incompatible with

1106

the intent thereof, the following terms shall have the following

1107

meanings:

1108

(t) "Project" means any activity undertaken by an eligible

1109

sponsor, as defined in s. 220.183(2)(c), which is designed to

1110

construct, improve, or substantially rehabilitate housing that is

1111

affordable to low-income or very-low-income households as defined

1112

in s. 420.9071(20) and (30) s. 420.9071(19) and (28); designed to

1113

provide commercial, industrial, or public resources and

1114

facilities; or designed to improve entrepreneurial and job-

1115

development opportunities for low-income persons. A project may

1116

be the investment necessary to increase access to high-speed

1117

broadband capability in rural communities with enterprise zones,

1118

including projects that result in improvements to communications

1119

assets that are owned by a business. A project may include the

1120

provision of museum educational programs and materials that are

1121

directly related to any project approved between January 1, 1996,

1122

and December 31, 1999, and located in an enterprise zone

1123

designated pursuant to s. 290.0065. This paragraph does not

1124

preclude projects that propose to construct or rehabilitate low-

1125

income or very-low-income housing on scattered sites. With

1126

respect to housing, contributions may be used to pay the

1127

following eligible project-related activities:

1128

1. Project development, impact, and management fees for

1129

low-income or very-low-income housing projects;

1130

2. Down payment and closing costs for eligible persons, as

1131

defined in s. 420.9071(20) and (30) s. 420.9071(19) and (28);

1132

3. Administrative costs, including housing counseling and

1133

marketing fees, not to exceed 10 percent of the community

1134

contribution, directly related to low-income or very-low-income

1135

projects; and

1136

4. Removal of liens recorded against residential property

1137

by municipal, county, or special-district local governments when

1138

satisfaction of the lien is a necessary precedent to the transfer

1139

of the property to an eligible person, as defined in s.

1140

420.9071(20) and (30) s. 420.9071(19) and (28), for the purpose

1141

of promoting home ownership. Contributions for lien removal must

1142

be received from a nonrelated third party.

1143

1144

The provisions of this paragraph shall expire and be void on June

1145

30, 2015.

1146

Section 13. Paragraph (c) of subsection (1) and paragraphs

1147

(b) and (d) of subsection (2) of section 220.183, Florida

1148

Statutes, are amended to read:

1149

220.183 Community contribution tax credit.--

1150

(1) AUTHORIZATION TO GRANT COMMUNITY CONTRIBUTION TAX

1151

CREDITS; LIMITATIONS ON INDIVIDUAL CREDITS AND PROGRAM

1152

SPENDING.--

1153

1154

all programs approved under this section, s. 212.08(5)(p), and s.

1155

624.5105 is $10.5 million annually for projects that provide

1156

homeownership opportunities for low-income or very-low-income

1157

households as defined in s. 420.9071(20) and (30) s. 420.9071(19)

1158

and (28) and $3.5 million annually for all other projects.

1159

(2) ELIGIBILITY REQUIREMENTS.--

1160

(b)1. All community contributions must be reserved

1161

exclusively for use in projects as defined in s. 220.03(1)(t).

1162

2. If, during the first 10 business days of the state

1163

fiscal year, eligible tax credit applications for projects that

1164

provide homeownership opportunities for low-income or very-low-

1165

income households as defined in s. 420.9071(20) and (30) s.

1166

420.9071(19) and (28) are received for less than the annual tax

1167

credits available for those projects, the Office of Tourism,

1168

Trade, and Economic Development shall grant tax credits for those

1169

applications and shall grant remaining tax credits on a first-

1170

come, first-served basis for any subsequent eligible applications

1171

received before the end of the state fiscal year. If, during the

1172

first 10 business days of the state fiscal year, eligible tax

1173

credit applications for projects that provide homeownership

1174

opportunities for low-income or very-low-income households as

1175

defined in s. 420.9071(20) and (30) s. 420.9071(19) and (28) are

1176

received for more than the annual tax credits available for those

1177

projects, the office shall grant the tax credits for those

1178

applications as follows:

1179

a. If tax credit applications submitted for approved

1180

projects of an eligible sponsor do not exceed $200,000 in total,

1181

the credit shall be granted in full if the tax credit

1182

applications are approved.

1183

b. If tax credit applications submitted for approved

1184

projects of an eligible sponsor exceed $200,000 in total, the

1185

amount of tax credits granted under sub-subparagraph a. shall be

1186

subtracted from the amount of available tax credits, and the

1187

remaining credits shall be granted to each approved tax credit

1188

application on a pro rata basis.

1189

3. If, during the first 10 business days of the state

1190

fiscal year, eligible tax credit applications for projects other

1191

than those that provide homeownership opportunities for low-

1192

income or very-low-income households as defined in s.

1193

420.9071(20) and (30) s. 420.9071(19) and (28) are received for

1194

less than the annual tax credits available for those projects,

1195

the office shall grant tax credits for those applications and

1196

shall grant remaining tax credits on a first-come, first-served

1197

basis for any subsequent eligible applications received before

1198

the end of the state fiscal year. If, during the first 10

1199

business days of the state fiscal year, eligible tax credit

1200

applications for projects other than those that provide

1201

homeownership opportunities for low-income or very-low-income

1202

households as defined in s. 420.9071(20) and (30) s. 420.9071(19)

1203

and (28) are received for more than the annual tax credits

1204

available for those projects, the office shall grant the tax

1205

credits for those applications on a pro rata basis.

1206

(d) The project shall be located in an area designated as

1207

an enterprise zone or a Front Porch Florida Community pursuant to

1208

s. 20.18(6). Any project designed to construct or rehabilitate

1209

housing for low-income or very-low-income households as defined

1210

in s. 420.9071(20) and (30) s. 420.9071(19) and (28) is exempt

1211

from the area requirement of this paragraph. This section does

1212

not preclude projects that propose to construct or rehabilitate

1213

housing for low-income or very-low-income households on scattered

1214

sites. Any project designed to provide increased access to high-

1215

speed broadband capabilities which includes coverage of a rural

1216

enterprise zone may locate the project's infrastructure in any

1217

area of a rural county.

1218

Section 14. Paragraph (c) of subsection (1) and paragraphs

1219

(d) and (e) of subsection (2) of section 624.5105, Florida

1220

Statutes, are amended to read:

1221

624.5105 Community contribution tax credit; authorization;

1222

limitations; eligibility and application requirements;

1223

administration; definitions; expiration.--

1224

(1) AUTHORIZATION TO GRANT TAX CREDITS; LIMITATIONS.--

1225

1226

all programs approved under this section and ss. 212.08(5)(p) and

1227

220.183 is $10.5 million annually for projects that provide

1228

homeownership opportunities for low-income or very-low-income

1229

households as defined in s. 420.9071(20) and (30) s. 420.9071(19)

1230

and (28) and $3.5 million annually for all other projects.

1231

(2) ELIGIBILITY REQUIREMENTS.--

1232

(d) The project shall be located in an area designated as

1233

an enterprise zone or a Front Porch Community pursuant to s.

1234

20.18(6). Any project designed to construct or rehabilitate

1235

housing for low-income or very-low-income households as defined

1236

in s. 420.9071(20) and (30) s. 420.9071(19) and (28) is exempt

1237

from the area requirement of this paragraph.

1238

(e)1. If, during the first 10 business days of the state

1239

fiscal year, eligible tax credit applications for projects that

1240

provide homeownership opportunities for low-income or very-low-

1241

income households as defined in s. 420.9071(20) and (30) s.

1242

420.9071(19) and (28) are received for less than the annual tax

1243

credits available for those projects, the Office of Tourism,

1244

Trade, and Economic Development shall grant tax credits for those

1245

applications and shall grant remaining tax credits on a first-

1246

come, first-served basis for any subsequent eligible applications

1247

received before the end of the state fiscal year. If, during the

1248

first 10 business days of the state fiscal year, eligible tax

1249

credit applications for projects that provide homeownership

1250

opportunities for low-income or very-low-income households as

1251

defined in s. 420.9071(20) and (30) s. 420.9071(19) and (28) are

1252

received for more than the annual tax credits available for those

1253

projects, the office shall grant the tax credits for those

1254

applications as follows:

1255

a. If tax credit applications submitted for approved

1256

projects of an eligible sponsor do not exceed $200,000 in total,

1257

the credits shall be granted in full if the tax credit

1258

applications are approved.

1259

b. If tax credit applications submitted for approved

1260

projects of an eligible sponsor exceed $200,000 in total, the

1261

amount of tax credits granted under sub-subparagraph a. shall be

1262

subtracted from the amount of available tax credits, and the

1263

remaining credits shall be granted to each approved tax credit

1264

application on a pro rata basis.

1265

2. If, during the first 10 business days of the state

1266

fiscal year, eligible tax credit applications for projects other

1267

than those that provide homeownership opportunities for low-

1268

income or very-low-income households as defined in s.

1269

420.9071(20) and (30) s. 420.9071(19) and (28) are received for

1270

less than the annual tax credits available for those projects,

1271

the office shall grant tax credits for those applications and

1272

shall grant remaining tax credits on a first-come, first-served

1273

basis for any subsequent eligible applications received before

1274

the end of the state fiscal year. If, during the first 10

1275

business days of the state fiscal year, eligible tax credit

1276

applications for projects other than those that provide

1277

homeownership opportunities for low-income or very-low-income

1278

households as defined in s. 420.9071(20) and (30) s. 420.9071(19)

1279

and (28) are received for more than the annual tax credits

1280

available for those projects, the office shall grant the tax

1281

credits for those applications on a pro rata basis.

1282

Section 15. This act shall take effect July 1, 2008.