| 1 | A bill to be entitled |
| 2 | An act relating to affordable housing property tax |
| 3 | exemptions; amending s. 196.196, F.S.; providing |
| 4 | additional criteria for determining whether certain |
| 5 | affordable housing property owned by certain exempt |
| 6 | organizations is entitled to an exemption; providing a |
| 7 | definition; amending s. 196.1978, F.S.; specifying |
| 8 | criteria and requirements for revoking the affordable |
| 9 | housing property exemption; subjecting organizations |
| 10 | owning certain property to ad valorem taxation under |
| 11 | certain circumstances; providing for tax liens; providing |
| 12 | for penalties and interest; providing an exception; |
| 13 | providing notice requirements; providing an effective |
| 14 | date. |
| 15 |
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| 16 | Be It Enacted by the Legislature of the State of Florida: |
| 17 |
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| 18 | Section 1. Subsection (5) is added to section 196.196, |
| 19 | Florida Statutes, to read: |
| 20 | 196.196 Determining whether property is entitled to |
| 21 | charitable, religious, scientific, or literary exemption.-- |
| 22 | (5) Property owned by an exempt organization qualified as |
| 23 | charitable under s. 501(c)(3) of the Internal Revenue Code is |
| 24 | used for a charitable purpose if the organization has taken |
| 25 | affirmative steps to prepare the property to provide affordable |
| 26 | housing to persons or families who meet the extremely-low, very- |
| 27 | low, low, or moderate income limits, as specified in s. |
| 28 | 420.0004. The term "affirmative steps" means environmental or |
| 29 | land use permitting activities, creation of architectural plans |
| 30 | or schematic drawings, land clearing or site preparation, |
| 31 | construction or renovation activities, or other similar |
| 32 | activities that demonstrate a commitment of the property to |
| 33 | providing affordable housing. |
| 34 | Section 2. Section 196.1978, Florida Statutes, is amended |
| 35 | to read: |
| 36 | 196.1978 Affordable housing property exemption.-- |
| 37 | (1) Property used to provide affordable housing serving |
| 38 | eligible persons as defined by s. 159.603(7) and persons meeting |
| 39 | income limits specified in s. 420.0004(8), (10), (11), and (15), |
| 40 | which property is owned entirely by a nonprofit entity which is |
| 41 | qualified as charitable under s. 501(c)(3) of the Internal |
| 42 | Revenue Code and which complies with Rev. Proc. 96-32, 1996-1 |
| 43 | C.B. 717, shall be considered property owned by an exempt entity |
| 44 | and used for a charitable purpose, and those portions of the |
| 45 | affordable housing property which provide housing to individuals |
| 46 | with incomes as defined in s. 420.0004(10) and (15) shall be |
| 47 | exempt from ad valorem taxation to the extent authorized in s. |
| 48 | 196.196. All property identified in this section shall comply |
| 49 | with the criteria for determination of exempt status to be |
| 50 | applied by property appraisers on an annual basis as defined in |
| 51 | s. 196.195. The Legislature intends that any property owned by a |
| 52 | limited liability company which is disregarded as an entity for |
| 53 | federal income tax purposes pursuant to Treasury Regulation |
| 54 | 301.7701-3(b)(1)(ii) shall be treated as owned by its sole |
| 55 | member. |
| 56 | (2) If property owned by an organization granted an |
| 57 | exemption under s. 196.196(5) is transferred for a purpose other |
| 58 | than directly providing affordable homeownership or rental |
| 59 | housing to persons or families who meet the extremely-low, very- |
| 60 | low, low, or moderate income limits, as specified in s. |
| 61 | 420.0004, or is not in actual use to provide such affordable |
| 62 | housing within 5 years after the date the organization is |
| 63 | granted the exemption, the property appraiser making such |
| 64 | determination shall serve upon the organization that illegally |
| 65 | or improperly received the exemption a notice of intent to |
| 66 | record in the public records of the county a notice of tax lien |
| 67 | against any property owned by that organization in the county, |
| 68 | and such property shall be identified in the notice of tax lien. |
| 69 | The organization owning such property is subject to the taxes |
| 70 | otherwise due and owing as a result of the failure to use the |
| 71 | property to provide affordable housing plus 15 percent interest |
| 72 | per annum and a penalty of 50 percent of the taxes owed. Such |
| 73 | lien, when filed, attaches to any property identified in the |
| 74 | notice of tax lien owned by the organization that illegally or |
| 75 | improperly received the exemption. If such organization no |
| 76 | longer owns property in the county but owns property in any |
| 77 | other county in the state, the property appraiser shall record |
| 78 | in each such other county a notice of tax lien identifying the |
| 79 | property owned by such organization in such county which shall |
| 80 | become a lien against the identified property. If an exemption |
| 81 | is improperly granted as a result of a clerical mistake or an |
| 82 | omission by the property appraiser, the organization improperly |
| 83 | receiving the exemption shall not be assessed penalty and |
| 84 | interest. Before any such lien may be filed, the organization so |
| 85 | notified must be given 30 days to pay the taxes, penalties, and |
| 86 | interest. The 5-year limitation specified in this subsection may |
| 87 | be extended provided the holder of the exemption continues to |
| 88 | take affirmative steps to develop the property for the purposes |
| 89 | specified in this subsection. |
| 90 | Section 3. This act shall take effect upon becoming a law. |