HB 699

1
A bill to be entitled
2An act relating to affordable housing; amending s.
3420.5061, F.S.; removing a provision requiring the Florida
4Housing Finance Corporation to transfer certain funds to
5the General Revenue Fund; amending s. 420.9071, F.S.;
6revising definitions; amending s. 420.9072, F.S.;
7conforming a cross-reference; amending s. 420.9073, F.S.;
8revising the frequency with which local housing
9distributions are to be made by the corporation; revising
10calculations used to determine the guaranteed distribution
11amounts; authorizing the corporation to withhold funds
12from the total distribution annually for specified
13purposes; requiring counties and eligible municipalities
14that receive local housing distributions to expend those
15funds in a specified manner; amending s. 420.9075, F.S.;
16requiring local housing assistance plans to include
17persons with disabilities; authorizing certain high-cost
18areas to include strategies to assist persons and
19households whose annual incomes are not more than 140
20percent of area median income; requiring local housing
21assistance plans to describe specified initiatives;
22extending the expiration date for an exemption of certain
23counties and municipalities that provide affordable
24housing from certain tenant-income requirements;
25authorizing counties and eligible municipalities to award
26funds as a grant for certain purposes; increasing the
27threshold amount used to determine which counties and
28municipalities may use up to 10 percent of program income
29for administrative costs; requiring the corporation to
30provide training for certain purposes; revising reporting
31requirements for counties and eligible municipalities;
32conforming cross-references; providing that the
33corporation shall require expended funds for an ineligible
34activity to be repaid into the local housing assistance
35trust fund; prohibiting repayment from being made with
36certain funds; amending s. 420.9076, F.S.; revising
37membership criteria for affordable housing advisory
38committees; revising notice requirements for public
39hearings of the advisory committee; requiring the
40committee's final report, evaluation, and recommendations
41to be submitted to the corporation; conforming a cross-
42reference; repealing s. 420.9078, F.S., relating to state
43administration of remaining local housing distribution
44funds; providing an effective date.
45
46Be It Enacted by the Legislature of the State of Florida:
47
48     Section 1.  Section 420.5061, Florida Statutes, is amended
49to read:
50     420.5061  Transfer of agency assets and liabilities.--The
51corporation is the legal successor in all respects to the
52agency, is obligated to the same extent as the agency under any
53agreements existing on December 31, 1997, and is entitled to any
54rights and remedies previously afforded the agency by law or
55contract, including specifically the rights of the agency under
56chapter 201 and part VI of chapter 159. Effective January 1,
571998, all references under Florida law to the agency are deemed
58to mean the corporation. The corporation shall transfer to the
59General Revenue Fund an amount which otherwise would have been
60deducted as a service charge pursuant to s. 215.20(1) if the
61Florida Housing Finance Corporation Fund established by s.
62420.508(5), the State Apartment Incentive Loan Fund established
63by s. 420.5087(7), the Florida Homeownership Assistance Fund
64established by s. 420.5088(4), the HOME Investment Partnership
65Fund established by s. 420.5089(1), and the Housing
66Predevelopment Loan Fund established by s. 420.525(1) were each
67trust funds. For purposes of s. 112.313, the corporation is
68deemed to be a continuation of the agency, and the provisions
69thereof are deemed to apply as if the same entity remained in
70place. Any employees of the agency and agency board members
71covered by s. 112.313(9)(a)6. shall continue to be entitled to
72the exemption in that subparagraph, notwithstanding being hired
73by the corporation or appointed as board members of the
74corporation.
75     Section 2.  Subsections (4), (8), (16), and (25) of section
76420.9071, Florida Statutes, are amended to read:
77     420.9071  Definitions.--As used in ss. 420.907-420.9079,
78the term:
79     (4)  "Annual gross income" means annual income as defined
80under the Section 8 housing assistance payments programs in 24
81C.F.R. part 5; annual income as reported under the census long
82form for the recent available decennial census; or adjusted
83gross income as defined for purposes of reporting under Internal
84Revenue Service Form 1040 for individual federal annual income
85tax purposes; or other methods of verifying income provided by
86rule of the corporation. Counties and eligible municipalities
87shall calculate income by annualizing verified sources of income
88for the household as the amount of income to be received in a
89household during the 12 months following the effective date of
90the determination.
91     (8)  "Eligible housing" means any real and personal
92property located within the county or the eligible municipality
93which is designed and intended for the primary purpose of
94providing decent, safe, and sanitary residential units that are
95designed to meet the standards of the Florida Building Code
96adopted under chapter 553, or manufactured housing constructed
97after June 1994 and installed in accordance with mobile home
98installation standards of the Department of Highway Safety and
99Motor Vehicles, for home ownership or rental for eligible
100persons as designated by each county or eligible municipality
101participating in the State Housing Initiatives Partnership
102Program.
103     (16)  "Local housing incentive strategies" means local
104regulatory reform or incentive programs to encourage or
105facilitate affordable housing production, which include at a
106minimum, assurance that permits as defined in s. 163.3164(7) and
107(8) for affordable housing projects are expedited to a greater
108degree than other projects; an ongoing process for review of
109local policies, ordinances, regulations, and plan provisions
110that increase the cost of housing prior to their adoption; and a
111schedule for implementing the incentive strategies. Local
112housing incentive strategies may also include other regulatory
113reforms, such as those enumerated in s. 420.9076 or those
114recommended by the affordable housing advisory committee in its
115triennial evaluation and adopted by the local governing body.
116     (25)  "Recaptured funds" means funds that are recouped by a
117county or eligible municipality in accordance with the recapture
118provisions of its local housing assistance plan pursuant to s.
119420.9075(5)(g) from eligible persons or eligible sponsors, which
120funds were not used for assistance to an eligible household for
121an eligible activity, when there is a who default on the terms
122of a grant award or loan award.
123     Section 3.  Subsection (6) of section 420.9072, Florida
124Statutes, is amended to read:
125     420.9072  State Housing Initiatives Partnership
126Program.--The State Housing Initiatives Partnership Program is
127created for the purpose of providing funds to counties and
128eligible municipalities as an incentive for the creation of
129local housing partnerships, to expand production of and preserve
130affordable housing, to further the housing element of the local
131government comprehensive plan specific to affordable housing,
132and to increase housing-related employment.
133     (6)  The moneys that otherwise would be distributed
134pursuant to s. 420.9073 to a local government that does not meet
135the program's requirements for receipts of such distributions
136shall remain in the Local Government Housing Trust Fund to be
137administered by the corporation pursuant to s. 420.9078.
138     Section 4.  Section 420.9073, Florida Statutes, is amended
139to read:
140     420.9073  Local housing distributions.--
141     (1)  Distributions calculated in this section shall be
142disbursed on a quarterly or more frequent monthly basis by the
143corporation beginning the first day of the month after program
144approval pursuant to s. 420.9072, subject to availability of
145funds. Each county's share of the funds to be distributed from
146the portion of the funds in the Local Government Housing Trust
147Fund received pursuant to s. 201.15(9) shall be calculated by
148the corporation for each fiscal year as follows:
149     (a)  Each county other than a county that has implemented
150the provisions of chapter 83-220, Laws of Florida, as amended by
151chapters 84-270, 86-152, and 89-252, Laws of Florida, shall
152receive the guaranteed amount for each fiscal year.
153     (b)  Each county other than a county that has implemented
154the provisions of chapter 83-220, Laws of Florida, as amended by
155chapters 84-270, 86-152, and 89-252, Laws of Florida, may
156receive an additional share calculated as follows:
157     1.  Multiply each county's percentage of the total state
158population excluding the population of any county that has
159implemented the provisions of chapter 83-220, Laws of Florida,
160as amended by chapters 84-270, 86-152, and 89-252, Laws of
161Florida, by the total funds to be distributed.
162     2.  If the result in subparagraph 1. is less than the
163guaranteed amount as determined in subsection (3), that county's
164additional share shall be zero.
165     3.  For each county in which the result in subparagraph 1.
166is greater than the guaranteed amount as determined in
167subsection (3), the amount calculated in subparagraph 1. shall
168be reduced by the guaranteed amount. The result for each such
169county shall be expressed as a percentage of the amounts so
170determined for all counties. Each such county shall receive an
171additional share equal to such percentage multiplied by the
172total funds received by the Local Government Housing Trust Fund
173pursuant to s. 201.15(9) reduced by the guaranteed amount paid
174to all counties.
175     (2)  Effective July 1, 1995, Distributions calculated in
176this section shall be disbursed on a quarterly or more frequent
177monthly basis by the corporation beginning the first day of the
178month after program approval pursuant to s. 420.9072, subject to
179availability of funds. Each county's share of the funds to be
180distributed from the portion of the funds in the Local
181Government Housing Trust Fund received pursuant to s. 201.15(10)
182shall be calculated by the corporation for each fiscal year as
183follows:
184     (a)  Each county shall receive the guaranteed amount for
185each fiscal year.
186     (b)  Each county may receive an additional share calculated
187as follows:
188     1.  Multiply each county's percentage of the total state
189population, by the total funds to be distributed.
190     2.  If the result in subparagraph 1. is less than the
191guaranteed amount as determined in subsection (3), that county's
192additional share shall be zero.
193     3.  For each county in which the result in subparagraph 1.
194is greater than the guaranteed amount, the amount calculated in
195subparagraph 1. shall be reduced by the guaranteed amount. The
196result for each such county shall be expressed as a percentage
197of the amounts so determined for all counties. Each such county
198shall receive an additional share equal to this percentage
199multiplied by the total funds received by the Local Government
200Housing Trust Fund pursuant to s. 201.15(10) as reduced by the
201guaranteed amount paid to all counties.
202     (3)  Calculation of guaranteed amounts:
203     (a)  The guaranteed amount under subsection (1) shall be
204calculated for each state fiscal year by multiplying $500,000
205$350,000 by a fraction, the numerator of which is the amount of
206funds distributed to the Local Government Housing Trust Fund
207pursuant to s. 201.15(9) and the denominator of which is the
208total amount of funds distributed to the Local Government
209Housing Trust Fund pursuant to s. 201.15.
210     (b)  The guaranteed amount under subsection (2) shall be
211calculated for each state fiscal year by multiplying $500,000
212$350,000 by a fraction, the numerator of which is the amount of
213funds distributed to the Local Government Housing Trust Fund
214pursuant to s. 201.15(10) and the denominator of which is the
215total amount of funds distributed to the Local Government
216Housing Trust Fund pursuant to s. 201.15.
217     (4)  Funds distributed pursuant to this section may not be
218pledged to pay debt service on any bonds.
219     (5)  Notwithstanding subsections (1)-(4), the corporation
220is authorized to withhold up to $5 million from the total
221distribution each fiscal year to provide additional funding to
222counties and eligible municipalities in which a state of
223emergency has been declared by the Governor pursuant to chapter
224252. Any portion of such funds not distributed under this
225subsection by the end of the fiscal year shall be distributed as
226provided in this section.
227     (6)  Notwithstanding subsections (1)-(4), the corporation
228is authorized to withhold up to $5 million from the total
229distribution each fiscal year to provide funding to counties and
230eligible municipalities to purchase properties subject to a
231State Housing Initiative Partnership Program lien and on which
232foreclosure proceedings have been initiated by any mortgagee.
233Each county and eligible municipality that receives funds under
234this subsection shall repay such funds to the corporation not
235later than the expenditure deadline for the fiscal year in which
236the funds were awarded. Amounts not repaid shall be withheld
237from the subsequent year's distribution. Any portion of such
238funds not distributed under this subsection by the end of the
239fiscal year shall be distributed as provided in this section.
240     (7)  A county or eligible municipality that receives local
241housing distributions pursuant to this section shall expend
242those funds in accordance with the provisions of ss. 420.907-
243420.9079, corporation rule, and its local housing assistance
244plan.
245     Section 5.  Paragraph (a) of subsection (1), paragraph (d)
246of subsection (5), subsections (7) and (8), paragraphs (a) and
247(h) of subsection (10), and paragraph (b) of subsection (13) of
248section 420.9075, Florida Statutes, are amended, paragraph (d)
249is added to subsection (3), paragraph (l) is added to subsection
250(5), and subsection (14) is added to that section, to read:
251     420.9075  Local housing assistance plans; partnerships.--
252     (1)(a)  Each county or eligible municipality participating
253in the State Housing Initiatives Partnership Program shall
254develop and implement a local housing assistance plan created to
255make affordable residential units available to persons of very
256low income, low income, or moderate income and to persons who
257have special housing needs, including, but not limited to,
258homeless people, the elderly, and migrant farmworkers, and
259persons with disabilities. High-cost counties, as defined by
260corporation rule, and eligible municipalities within such
261counties, may include strategies to assist persons and
262households whose annual incomes are not more than 140 percent of
263area median income. The plans are intended to increase the
264availability of affordable residential units by combining local
265resources and cost-saving measures into a local housing
266partnership and using private and public funds to reduce the
267cost of housing.
268     (3)
269     (d)  Each county and each eligible municipality shall
270describe initiatives in the local housing assistance plan that
271encourage or require innovative design, green building
272principles, storm-resistant construction, or other elements that
273reduce long-term costs relating to maintenance, utilities, or
274insurance.
275     (5)  The following criteria apply to awards made to
276eligible sponsors or eligible persons for the purpose of
277providing eligible housing:
278     (d)1.  All units constructed, rehabilitated, or otherwise
279assisted with the funds provided from the local housing
280assistance trust fund must be occupied by very-low-income
281persons, low-income persons, and moderate-income persons, except
282as otherwise provided in this section.
283     2.  At least 30 percent of the funds deposited into the
284local housing assistance trust fund must be reserved for awards
285to very-low-income persons or eligible sponsors who will serve
286very-low-income persons and at least an additional 30 percent of
287the funds deposited into the local housing assistance trust fund
288must be reserved for awards to low-income persons or eligible
289sponsors who will serve low-income persons. This subparagraph
290does not apply to a county or an eligible municipality that
291includes, or has included within the previous 5 years, an area
292of critical state concern designated or ratified by the
293Legislature for which the Legislature has declared its intent to
294provide affordable housing. The exemption created by this
295subparagraph act expires on July 1, 2013 2008.
296     (l)  Each county and eligible municipality may award funds
297as a grant for construction, rehabilitation, or repair as part
298of disaster recovery or emergency repairs or to remedy
299accessibility or health and safety deficiencies. Any other
300grants must be approved as part of the local housing assistance
301plan.
302
303If both an award under the local housing assistance plan and
304federal low-income housing tax credits are used to assist a
305project and there is a conflict between the criteria prescribed
306in this subsection and the requirements of s. 42 of the Internal
307Revenue Code of 1986, as amended, the county or eligible
308municipality may resolve the conflict by giving precedence to
309the requirements of s. 42 of the Internal Revenue Code of 1986,
310as amended, in lieu of following the criteria prescribed in this
311subsection with the exception of paragraphs (a) and (d) of this
312subsection.
313     (7)  The moneys deposited in the local housing assistance
314trust fund shall be used to administer and implement the local
315housing assistance plan. The cost of administering the plan may
316not exceed 5 percent of the local housing distribution moneys
317and program income deposited into the trust fund. A county or an
318eligible municipality may not exceed the 5-percent limitation on
319administrative costs, unless its governing body finds, by
320resolution, that 5 percent of the local housing distribution
321plus 5 percent of program income is insufficient to adequately
322pay the necessary costs of administering the local housing
323assistance plan. The cost of administering the program may not
324exceed 10 percent of the local housing distribution plus 5
325percent of program income deposited into the trust fund, except
326that small counties, as defined in s. 120.52(17), and eligible
327municipalities receiving a local housing distribution of up to
328$500,000 $350,000 may use up to 10 percent of program income for
329administrative costs.
330     (8)  Pursuant to s. 420.531, the corporation shall provide
331training and technical assistance to local governments regarding
332the creation of partnerships, the design of local housing
333assistance strategies, the implementation of local housing
334incentive strategies, and the provision of support services.
335     (10)  Each county or eligible municipality shall submit to
336the corporation by September 15 of each year a report of its
337affordable housing programs and accomplishments through June 30
338immediately preceding submittal of the report. The report shall
339be certified as accurate and complete by the local government's
340chief elected official or his or her designee. Transmittal of
341the annual report by a county's or eligible municipality's chief
342elected official, or his or her designee, certifies that the
343local housing incentive strategies, or, if applicable, the local
344housing incentive plan, have been implemented or are in the
345process of being implemented pursuant to the adopted schedule
346for implementation. The report must include, but is not limited
347to:
348     (a)  The number of households served by income category,
349age, family size, and race, and data regarding any special needs
350populations such as farmworkers, homeless persons, and the
351elderly, and persons with disabilities. Counties shall report
352this information separately for households served in the
353unincorporated area and each municipality within the county.
354     (h)  Such other data or affordable housing accomplishments
355considered significant by the reporting county or eligible
356municipality or the corporation.
357     (13)
358     (b)  If, as a result of its review of the annual report,
359the corporation determines that a county or eligible
360municipality has failed to implement a local housing incentive
361strategy, or, if applicable, a local housing incentive plan, it
362shall send a notice of termination of the local government's
363share of the local housing distribution by certified mail to the
364affected county or eligible municipality.
365     1.  The notice must specify a date of termination of the
366funding if the affected county or eligible municipality does not
367implement the plan or strategy and provide for a local response.
368A county or eligible municipality shall respond to the
369corporation within 30 days after receipt of the notice of
370termination.
371     2.  The corporation shall consider the local response that
372extenuating circumstances precluded implementation and grant an
373extension to the timeframe for implementation. Such an extension
374shall be made in the form of an extension agreement that
375provides a timeframe for implementation. The chief elected
376official of a county or eligible municipality or his or her
377designee shall have the authority to enter into the agreement on
378behalf of the local government.
379     3.  If the county or the eligible municipality has not
380implemented the incentive strategy or entered into an extension
381agreement by the termination date specified in the notice, the
382local housing distribution share terminates, and any uncommitted
383local housing distribution funds held by the affected county or
384eligible municipality in its local housing assistance trust fund
385shall be transferred to the Local Government Housing Trust Fund
386to the credit of the corporation to administer pursuant to s.
387420.9078.
388     4.a.  If the affected local government fails to meet the
389timeframes specified in the agreement, the corporation shall
390terminate funds. The corporation shall send a notice of
391termination of the local government's share of the local housing
392distribution by certified mail to the affected local government.
393The notice shall specify the termination date, and any
394uncommitted funds held by the affected local government shall be
395transferred to the Local Government Housing Trust Fund to the
396credit of the corporation to administer pursuant to s. 420.9078.
397     b.  If the corporation terminates funds to a county, but an
398eligible municipality receiving a local housing distribution
399pursuant to an interlocal agreement maintains compliance with
400program requirements, the corporation shall thereafter
401distribute directly to the participating eligible municipality
402its share calculated in the manner provided in s. 420.9072.
403     c.  Any county or eligible municipality whose local
404distribution share has been terminated may subsequently elect to
405receive directly its local distribution share by adopting the
406ordinance, resolution, and local housing assistance plan in the
407manner and according to the procedures provided in ss. 420.907-
408420.9079.
409     (14)  If the corporation determines that a county or
410eligible municipality has expended program funds for an
411ineligible activity, the corporation shall require such funds to
412be repaid to the local housing assistance trust fund. Such
413repayment shall not be made from State Housing Initiative
414Partnership Program funds.
415     Section 6.  Paragraph (h) of subsection (2), subsections
416(5) and (6), and paragraph (a) of subsection (7) of section
417420.9076, Florida Statutes, are amended to read:
418     420.9076  Adoption of affordable housing incentive
419strategies; committees.--
420     (2)  The governing board of a county or municipality shall
421appoint the members of the affordable housing advisory committee
422by resolution. Pursuant to the terms of any interlocal
423agreement, a county and municipality may create and jointly
424appoint an advisory committee to prepare a joint plan. The
425ordinance adopted pursuant to s. 420.9072 which creates the
426advisory committee or the resolution appointing the advisory
427committee members must provide for 11 committee members and
428their terms. The committee must include:
429     (h)  One citizen who actively serves on the local planning
430agency pursuant to s. 163.3174. When the local planning agency
431is comprised of the governing board of the county or
432municipality, the governing board may appoint a designee who is
433knowledgeable in the local planning process.
434
435If a county or eligible municipality whether due to its small
436size, the presence of a conflict of interest by prospective
437appointees, or other reasonable factor, is unable to appoint a
438citizen actively engaged in these activities in connection with
439affordable housing, a citizen engaged in the activity without
440regard to affordable housing may be appointed. Local governments
441that receive the minimum allocation under the State Housing
442Initiatives Partnership Program may elect to appoint an
443affordable housing advisory committee with fewer than 11
444representatives if they are unable to find representatives who
445meet the criteria of paragraphs (a)-(k).
446     (5)  The approval by the advisory committee of its local
447housing incentive strategies recommendations and its review of
448local government implementation of previously recommended
449strategies must be made by affirmative vote of a majority of the
450membership of the advisory committee taken at a public hearing.
451Notice of the time, date, and place of the public hearing of the
452advisory committee to adopt its evaluation and final local
453housing incentive strategies recommendations must be published
454in a newspaper of general paid circulation in the county. The
455notice must contain a short and concise summary of the
456evaluation and local housing incentives strategies
457recommendations to be considered by the advisory committee. The
458notice must state the public place where a copy of the tentative
459advisory committee recommendations can be obtained by interested
460persons. The final report, evaluation, and recommendations shall
461be submitted to the corporation.
462     (6)  Within 90 days after the date of receipt of the
463evaluation and local housing incentive strategies
464recommendations from the advisory committee, the governing body
465of the appointing local government shall adopt an amendment to
466its local housing assistance plan to incorporate the local
467housing incentive strategies it will implement within its
468jurisdiction. The amendment must include, at a minimum, the
469local housing incentive strategies required under s.
470420.9071(16). The local government must consider the strategies
471specified in paragraphs (4)(a)-(k) as recommended by the
472advisory committee.
473     (7)  The governing board of the county or the eligible
474municipality shall notify the corporation by certified mail of
475its adoption of an amendment of its local housing assistance
476plan to incorporate local housing incentive strategies. The
477notice must include a copy of the approved amended plan.
478     (a)  If the corporation fails to receive timely the
479approved amended local housing assistance plan to incorporate
480local housing incentive strategies, a notice of termination of
481its share of the local housing distribution shall be sent by
482certified mail by the corporation to the affected county or
483eligible municipality. The notice of termination must specify a
484date of termination of the funding if the affected county or
485eligible municipality has not adopted an amended local housing
486assistance plan to incorporate local housing incentive
487strategies. If the county or the eligible municipality has not
488adopted an amended local housing assistance plan to incorporate
489local housing incentive strategies by the termination date
490specified in the notice of termination, the local distribution
491share terminates; and any uncommitted local distribution funds
492held by the affected county or eligible municipality in its
493local housing assistance trust fund shall be transferred to the
494Local Government Housing Trust Fund to the credit of the
495corporation to administer the local government housing program
496pursuant to s. 420.9078.
497     Section 7.  Section 420.9078, Florida Statutes, is
498repealed.
499     Section 8.  This act shall take effect July 1, 2008.


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