HB 1009

1	A bill to be entitled
2	An act relating to affordable housing; amending s. 201.15,
3	F.S.; providing criteria relating to distribution of
4	proceeds from the excise tax on documents to increase
5	housing accessibility for persons with special needs;
6	amending s. 420.0003, F.S.; providing additional policy
7	guidelines under the state housing strategy for the
8	development of programs for housing production or
9	rehabilitation; including the needs of persons with
10	special needs in the strategy's periodic review and
11	report; amending s. 420.0004, F.S.; defining the terms
12	"disabling condition" and "person with special needs";
13	conforming cross-references; amending s. 420.5087, F.S.;
14	including persons with special needs as a tenant group for
15	specified purposes of the State Apartment Incentive Loan
16	Program; amending ss. 163.31771, 196.1978, 212.08,
17	215.5586, and 420.507, F.S.; conforming cross-references;
18	providing an effective date.
19
20	Be It Enacted by the Legislature of the State of Florida:
21
22	Section 1.  Subsection (16) of section 201.15, Florida
23	Statutes, is renumbered as subsection (17), and a new subsection
24	(16) is added to that section to read:
25	201.15  Distribution of taxes collected.--All taxes
26	collected under this chapter are subject to the service charge
27	imposed in s. 215.20(1). Prior to distribution under this
28	section, the Department of Revenue shall deduct amounts
29	necessary to pay the costs of the collection and enforcement of
30	the tax levied by this chapter. Such costs and the service
31	charge may not be levied against any portion of taxes pledged to
32	debt service on bonds to the extent that the costs and service
33	charge are required to pay any amounts relating to the bonds.
34	All taxes remaining after deduction of costs and the service
35	charge shall be distributed as follows:
36	(16)  In order to increase the financial feasibility and
37	accessibility of housing funded by the Florida Housing Finance
38	Corporation for persons with special needs, 10 percent of funds
39	generated that exceed the limits in subsections (9) and (10)
40	shall be distributed to the State Housing Trust Fund for use by
41	the Department of Community Affairs and the Florida Housing
42	Finance Corporation to assist in the production costs, operating
43	costs, or a rent assistance program to increase access to units
44	that are affordable to persons with special needs, as defined in
45	s. 420.004(13). Individuals receiving funding from these sources
46	for affordable housing are restricted to persons who meet the
47	definition of persons with special needs under s. 420.004(13)
48	and whose total annual adjusted gross household income does not
49	exceed the supplemental security income (SSI). An individual may
50	not be excluded from eligibility for a unit or assistance due to
51	part-time supplemental employment income that does not exceed
52	SSI eligibility requirements. This distribution is intended to
53	increase accessibility of housing for persons with special needs
54	and to supplement but not supplant existing similar efforts.
55	Section 2.  Paragraph (e) of subsection (3) and paragraph
56	(c) of subsection (4) of section 420.0003, Florida Statutes, are
57	amended to read:
58	420.0003  State housing strategy.--
59	(3)  POLICIES.--
60	(e)  Housing production or rehabilitation programs.--New
61	programs for housing production or rehabilitation shall be
62	developed in accordance with the following general guidelines as
63	appropriate for the purpose of the specific program:
64	1.  State and local governments shall provide incentives to
65	encourage the private sector to be the primary delivery vehicle
66	for the development of affordable housing.
67	2.  State funds should be heavily leveraged to achieve the
68	maximum local and private commitment of funds while achieving
69	the program objectives.
70	3.  To the maximum extent possible, state funds should be
71	expended to provide housing units rather than to support program
72	administration.
73	4.  State money should be used, when possible, as loans
74	rather than grants.
75	5.  State funds should be available only to local
76	governments that provide incentives or financial assistance for
77	housing.
78	6.  State funds should be made available only for projects
79	which are consistent with the local government comprehensive
80	plan.
81	7.  State funding for housing should not be made available
82	to local governments whose comprehensive plans have been found
83	not in compliance with chapter 163 and who have not entered into
84	a stipulated settlement agreement with the Department of
85	Community Affairs to bring the plan into compliance.
86	8.  Mixed income projects should be encouraged, to avoid a
87	concentration of low-income residents in one area or project.
88	9.  Distribution of state housing funds should be flexible
89	and consider the regional and local needs, resources, and
90	capabilities of housing producers.
91	10.  Income levels used to determine program eligibility
92	should be adjusted for family size in determining the
93	eligibility of specific beneficiaries.
94	11.  To the maximum extent possible, state-owned lands that
95	are appropriate for the development of affordable housing shall
96	be made available for that purpose.
97	12.  Distribution of housing funds for multifamily rental
98	housing should be administered to address the housing needs of
99	persons most in need of housing, including persons with special
100	needs, as defined in s. 420.004(13).
101	13.  Unit distribution of mixed-income projects funded or
102	administered by the state through the State Apartment Incentive
103	Loan Program, the HOME Investment Partnership Program, or the
104	federal low-income housing tax credit program, shall be as
105	follows:
106	a.  The percentage distribution of units targeted for
107	extremely-low-income persons shall mirror the percentage
108	distribution of current housing needs data of extremely-low-
109	income persons and may not be less than 20 percent of the units.
110	b.  At least half of the units designated for extremely-
111	low-income persons, not less than 10 percent of the project's
112	total units, must be reserved for persons with special needs, as
113	defined in s. 420.0004(13).
114	(4)  IMPLEMENTATION.--The Department of Community Affairs
115	and the Florida Housing Finance Corporation in carrying out the
116	strategy articulated herein shall have the following duties:
117	(c)  The Shimberg Center for Affordable Housing, in
118	consultation with the Department of Community Affairs and the
119	Florida Housing Finance Corporation, shall review and evaluate
120	existing housing rehabilitation, production, and finance
121	programs to determine their consistency with relevant policies
122	in this section and identify the needs of specific populations,
123	including, but not limited to, elderly persons, and handicapped
124	persons, and persons with special needs, and shall recommend
125	statutory modifications where appropriate. The Shimberg Center
126	for Affordable Housing, in consultation with the Department of
127	Community Affairs and the corporation, shall also evaluate the
128	degree of coordination between state housing programs, and
129	between state, federal, and local housing activities, and shall
130	recommend improved program linkages. The recommendations
131	required above and a report of any programmatic modifications
132	made as a result of these policies shall be included in the
133	housing report required by s. 420.6075, beginning December 31,
134	1991, and every 5 years thereafter.
135	Section 3.  Section 420.0004, Florida Statutes, is amended
136	to read:
137	420.0004  Definitions.--As used in this part, unless the
138	context otherwise indicates:
139	(1)  "Adjusted for family size" means adjusted in a manner
140	which results in an income eligibility level which is lower for
141	households with fewer than four people, or higher for households
142	with more than four people, than the base income eligibility
143	determined as provided in subsection (9) (8), subsection (11)
144	(10), subsection (12) (11), or subsection (17) (15), based upon
145	a formula as established by the United States Department of
146	Housing and Urban Development.
147	(2)  "Adjusted gross income" means all wages, assets,
148	regular cash or noncash contributions or gifts from persons
149	outside the household, and such other resources and benefits as
150	may be determined to be income by the United States Department
151	of Housing and Urban Development, adjusted for family size, less
152	deductions allowable under s. 62 of the Internal Revenue Code.
153	(3)  "Affordable" means that monthly rents or monthly
154	mortgage payments including taxes, insurance, and utilities do
155	not exceed 30 percent of that amount which represents the
156	percentage of the median adjusted gross annual income for the
157	households as indicated in subsection (9) (8), subsection (11)
158	(10), subsection (12) (11), or subsection (17) (15).
159	(4)  "Corporation" means the Florida Housing Finance
160	Corporation.
161	(5)  "Community-based organization" or "nonprofit
162	organization" means a private corporation organized under
163	chapter 617 to assist in the provision of housing and related
164	services on a not-for-profit basis and which is acceptable to
165	federal and state agencies and financial institutions as a
166	sponsor of low-income housing.
167	(6)  "Department" means the Department of Community
168	Affairs.
169	(7)  "Disabling condition" means a diagnosable substance
170	abuse disorder, serious mental illness, developmental
171	disability, or chronic physical illness or disability, or the
172	co-occurrence of two or more of these conditions, and a
173	determination that the condition is:
174	(a)  Expected to be of long-continued and indefinite
175	duration;
176	(b)  Not expected to impair the ability of the person with
177	special needs to live independently with appropriate supports;
178	and
179	(c)  Of such a nature that such condition could be improved
180	by more suitable housing conditions.
181	(8)(7)  "Elderly" describes persons 62 years of age or
182	older.
183	(9)(8)  "Extremely-low-income persons" means one or more
184	natural persons or a family whose total annual household income
185	does not exceed 30 percent of the median annual adjusted gross
186	income for households within the state. The Florida Housing
187	Finance Corporation may adjust this amount annually by rule to
188	provide that in lower income counties, extremely low income may
189	exceed 30 percent of area median income and that in higher
190	income counties, extremely low income may be less than 30
191	percent of area median income.
192	(10)(9)  "Local public body" means any county,
193	municipality, or other political subdivision, or any housing
194	authority as provided by chapter 421, which is eligible to
195	sponsor or develop housing for farmworkers and very-low-income
196	and low-income persons within its jurisdiction.
197	(11)(10)  "Low-income persons" means one or more natural
198	persons or a family, the total annual adjusted gross household
199	income of which does not exceed 80 percent of the median annual
200	adjusted gross income for households within the state, or 80
201	percent of the median annual adjusted gross income for
202	households within the metropolitan statistical area (MSA) or, if
203	not within an MSA, within the county in which the person or
204	family resides, whichever is greater.
205	(12)(11)  "Moderate-income persons" means one or more
206	natural persons or a family, the total annual adjusted gross
207	household income of which is less than 120 percent of the median
208	annual adjusted gross income for households within the state, or
209	120 percent of the median annual adjusted gross income for
210	households within the metropolitan statistical area (MSA) or, if
211	not within an MSA, within the county in which the person or
212	family resides, whichever is greater.
213	(13)  "Person with special needs" means a person with a
214	disabling condition; a person receiving benefits under the
215	Social Security Disability Insurance (SSDI) program or the
216	Supplemental Security Income (SSI) program or from veterans'
217	disability benefits; a young adult, 22 years of age or younger,
218	exiting foster care; or a survivor of domestic violence or other
219	extremely-low-income household requiring independent living
220	services in order to maintain housing or develop independent
221	living skills.
222	(14)(12)  "Student" means any person not living with his or
223	her parent or guardian who is eligible to be claimed by his or
224	her parent or guardian as a dependent under the federal income
225	tax code and who is enrolled on at least a half-time basis in a
226	secondary school, career center, community college, college, or
227	university.
228	(15)(13)  "Substandard" means:
229	(a)  Any unit lacking complete plumbing or sanitary
230	facilities for the exclusive use of the occupants;
231	(b)  A unit which is in violation of one or more major
232	sections of an applicable housing code and where such violation
233	poses a serious threat to the health of the occupant; or
234	(c)  A unit that has been declared unfit for human
235	habitation but that could be rehabilitated for less than 50
236	percent of the property value.
237	(16)(14)  "Substantial rehabilitation" means repair or
238	restoration of a dwelling unit where the value of such repair or
239	restoration exceeds 40 percent of the value of the dwelling.
240	(17)(15)  "Very-low-income persons" means one or more
241	natural persons or a family, not including students, the total
242	annual adjusted gross household income of which does not exceed
243	50 percent of the median annual adjusted gross income for
244	households within the state, or 50 percent of the median annual
245	adjusted gross income for households within the metropolitan
246	statistical area (MSA) or, if not within an MSA, within the
247	county in which the person or family resides, whichever is
248	greater.
249	Section 4.  Subsection (3) of section 420.5087, Florida
250	Statutes, is amended to read:
251	420.5087  State Apartment Incentive Loan Program.--There is
252	hereby created the State Apartment Incentive Loan Program for
253	the purpose of providing first, second, or other subordinated
254	mortgage loans or loan guarantees to sponsors, including for-
255	profit, nonprofit, and public entities, to provide housing
256	affordable to very-low-income persons.
257	(3)  During the first 6 months of loan or loan guarantee
258	availability, program funds shall be reserved for use by
259	sponsors who provide the housing set-aside required in
260	subsection (2) for the tenant groups designated in this
261	subsection. The reservation of funds to each of these groups
262	shall be determined using the most recent statewide very-low-
263	income rental housing market study available at the time of
264	publication of each notice of fund availability required by
265	paragraph (6)(b). The reservation of funds within each notice of
266	fund availability to the tenant groups in paragraphs (a), (b),
267	and (d), and (e) may not be less than 10 percent of the funds
268	available at that time. Any increase in funding required to
269	reach the 10-percent minimum must be taken from the tenant group
270	that has the largest reservation. The reservation of funds
271	within each notice of fund availability to the tenant group in
272	paragraph (c) may not be less than 5 percent of the funds
273	available at that time. The tenant groups are:
274	(a)  Commercial fishing workers and farmworkers;
275	(b)  Families;
276	(c)  Persons who are homeless; and
277	(d)  Elderly persons. Ten percent of the amount reserved
278	for the elderly shall be reserved to provide loans to sponsors
279	of housing for the elderly for the purpose of making building
280	preservation, health, or sanitation repairs or improvements
281	which are required by federal, state, or local regulation or
282	code, or lifesafety or security-related repairs or improvements
283	to such housing. Such a loan may not exceed $750,000 per housing
284	community for the elderly. In order to receive the loan, the
285	sponsor of the housing community must make a commitment to match
286	at least 5 percent of the loan amount to pay the cost of such
287	repair or improvement. The corporation shall establish the rate
288	of interest on the loan, which may not exceed 3 percent, and the
289	term of the loan, which may not exceed 15 years; however, if the
290	lien of the corporation's encumbrance is subordinate to the lien
291	of another mortgagee, then the term may be made coterminous with
292	the longest term of the superior lien. The term of the loan
293	shall be based on a credit analysis of the applicant. The
294	corporation may forgive indebtedness for a share of the loan
295	attributable to the units in a project reserved for extremely-
296	low-income elderly by nonprofit organizations, as defined in s.
297	420.0004(5), where the project has provided affordable housing
298	to the elderly for 15 years or more. The corporation shall
299	establish, by rule, the procedure and criteria for receiving,
300	evaluating, and competitively ranking all applications for loans
301	under this paragraph. A loan application must include evidence
302	of the first mortgagee's having reviewed and approved the
303	sponsor's intent to apply for a loan. A nonprofit organization
304	or sponsor may not use the proceeds of the loan to pay for
305	administrative costs, routine maintenance, or new construction.
306	(e)  Persons with special needs, as defined in s.
307	420.0004(13).
308	Section 5.  Paragraphs (d), (e), (f), and (g) of subsection
309	(2) of section 163.31771, Florida Statutes, are amended to read:
310	163.31771  Accessory dwelling units.--
311	(2)  As used in this section, the term:
312	(d)  "Low-income persons" has the same meaning as in s.
313	420.0004(11)(10).
314	(e)  "Moderate-income persons" has the same meaning as in
315	s. 420.0004(12)(11).
316	(f)  "Very-low-income persons" has the same meaning as in
317	s. 420.0004(17)(15).
318	(g)  "Extremely-low-income persons" has the same meaning as
319	in s. 420.0004(9)(8).
320	Section 6.  Section 196.1978, Florida Statutes, is amended
321	to read:
322	196.1978  Affordable housing property exemption.--Property
323	used to provide affordable housing serving eligible persons as
324	defined by s. 159.603(7) and persons meeting income limits
325	specified in s. 420.0004(9)(8), (11)(10), (12)(11), and
326	(17)(15), which property is owned entirely by a nonprofit entity
327	which is qualified as charitable under s. 501(c)(3) of the
328	Internal Revenue Code and which complies with Rev. Proc. 96-32,
329	1996-1 C.B. 717, shall be considered property owned by an exempt
330	entity and used for a charitable purpose, and those portions of
331	the affordable housing property which provide housing to
332	individuals with incomes as defined in s. 420.0004(11)(10) and
333	(17)(15) shall be exempt from ad valorem taxation to the extent
334	authorized in s. 196.196. All property identified in this
335	section shall comply with the criteria for determination of
336	exempt status to be applied by property appraisers on an annual
337	basis as defined in s. 196.195. The Legislature intends that any
338	property owned by a limited liability company which is
339	disregarded as an entity for federal income tax purposes
340	pursuant to Treasury Regulation 301.7701-3(b)(1)(ii) shall be
341	treated as owned by its sole member.
342	Section 7.  Paragraph (o) of subsection (5) of section
343	212.08, Florida Statutes, is amended to read:
344	212.08  Sales, rental, use, consumption, distribution, and
345	storage tax; specified exemptions.--The sale at retail, the
346	rental, the use, the consumption, the distribution, and the
347	storage to be used or consumed in this state of the following
348	are hereby specifically exempt from the tax imposed by this
349	chapter.
350	(5)  EXEMPTIONS; ACCOUNT OF USE.--
351	(o)  Building materials in redevelopment projects.--
352	1.  As used in this paragraph, the term:
353	a.  "Building materials" means tangible personal property
354	that becomes a component part of a housing project or a mixed-
355	use project.
356	b.  "Housing project" means the conversion of an existing
357	manufacturing or industrial building to housing units in an
358	urban high-crime area, enterprise zone, empowerment zone, Front
359	Porch Community, designated brownfield area, or urban infill
360	area and in which the developer agrees to set aside at least 20
361	percent of the housing units in the project for low-income and
362	moderate-income persons or the construction in a designated
363	brownfield area of affordable housing for persons described in
364	s. 420.0004(9)(8), (11)(10), (12)(11), or (17)(15) or in s.
365	159.603(7).
366	c.  "Mixed-use project" means the conversion of an existing
367	manufacturing or industrial building to mixed-use units that
368	include artists' studios, art and entertainment services, or
369	other compatible uses. A mixed-use project must be located in an
370	urban high-crime area, enterprise zone, empowerment zone, Front
371	Porch Community, designated brownfield area, or urban infill
372	area, and the developer must agree to set aside at least 20
373	percent of the square footage of the project for low-income and
374	moderate-income housing.
375	d.  "Substantially completed" has the same meaning as
376	provided in s. 192.042(1).
377	2.  Building materials used in the construction of a
378	housing project or mixed-use project are exempt from the tax
379	imposed by this chapter upon an affirmative showing to the
380	satisfaction of the department that the requirements of this
381	paragraph have been met. This exemption inures to the owner
382	through a refund of previously paid taxes. To receive this
383	refund, the owner must file an application under oath with the
384	department which includes:
385	a.  The name and address of the owner.
386	b.  The address and assessment roll parcel number of the
387	project for which a refund is sought.
388	c.  A copy of the building permit issued for the project.
389	d.  A certification by the local building code inspector
390	that the project is substantially completed.
391	e.  A sworn statement, under penalty of perjury, from the
392	general contractor licensed in this state with whom the owner
393	contracted to construct the project, which statement lists the
394	building materials used in the construction of the project and
395	the actual cost thereof, and the amount of sales tax paid on
396	these materials. If a general contractor was not used, the owner
397	shall provide this information in a sworn statement, under
398	penalty of perjury. Copies of invoices evidencing payment of
399	sales tax must be attached to the sworn statement.
400	3.  An application for a refund under this paragraph must
401	be submitted to the department within 6 months after the date
402	the project is deemed to be substantially completed by the local
403	building code inspector. Within 30 working days after receipt of
404	the application, the department shall determine if it meets the
405	requirements of this paragraph. A refund approved pursuant to
406	this paragraph shall be made within 30 days after formal
407	approval of the application by the department.
408	4.  The department shall establish by rule an application
409	form and criteria for establishing eligibility for exemption
410	under this paragraph.
411	5.  The exemption shall apply to purchases of materials on
412	or after July 1, 2000.
413	Section 8.  Paragraphs (a) and (g) of subsection (2) of
414	section 215.5586, Florida Statutes, are amended to read:
415	215.5586  My Safe Florida Home Program.--There is
416	established within the Department of Financial Services the My
417	Safe Florida Home Program. The department shall provide fiscal
418	accountability, contract management, and strategic leadership
419	for the program, consistent with this section. This section does
420	not create an entitlement for property owners or obligate the
421	state in any way to fund the inspection or retrofitting of
422	residential property in this state. Implementation of this
423	program is subject to annual legislative appropriations. It is
424	the intent of the Legislature that the My Safe Florida Home
425	Program provide inspections for at least 400,000 site-built,
426	single-family, residential properties and provide grants to at
427	least 35,000 applicants before June 30, 2009. The program shall
428	develop and implement a comprehensive and coordinated approach
429	for hurricane damage mitigation that shall include the
430	following:
431	(2)  MITIGATION GRANTS.--Financial grants shall be used to
432	encourage single-family, site-built, owner-occupied, residential
433	property owners to retrofit their properties to make them less
434	vulnerable to hurricane damage.
435	(a)  To be eligible for a grant for persons who have
436	obtained a completed inspection after May 1, 2007, a residential
437	property must:
438	1.  Have been granted a homestead exemption under chapter
439	196.
440	2.  Be a dwelling with an insured value of $300,000 or
441	less. Homeowners who are low-income persons, as defined in s.
442	420.0004(11)(10), are exempt from this requirement.
443	3.  Have undergone an acceptable hurricane mitigation
444	inspection.
445	4.  Be located in the "wind-borne debris region" as that
446	term is defined in s. 1609.2, International Building Code
447	(2006).
448	5.  Be a home for which the building permit application for
449	initial construction was made before March 1, 2002.
450
451	An application for a grant must contain a signed or
452	electronically verified statement made under penalty of perjury
453	that the applicant has submitted only a single application and
454	must have attached documents demonstrating the applicant meets
455	the requirements of this paragraph.
456	(g)  Low-income homeowners, as defined in s.
457	420.0004(11)(10), who otherwise meet the requirements of
458	paragraphs (a), (c), (e), and (f) are eligible for a grant of up
459	to $5,000 and are not required to provide a matching amount to
460	receive the grant. Additionally, for low-income homeowners,
461	grant funding may be used for repair to existing structures
462	leading to any of the mitigation improvements provided in
463	paragraph (e), limited to 20 percent of the grant value. The
464	program may accept a certification directly from a low-income
465	homeowner that the homeowner meets the requirements of s.
466	420.0004(11)(10) if the homeowner provides such certification in
467	a signed or electronically verified statement made under penalty
468	of perjury.
469	Section 9.  Subsection (46) of section 420.507, Florida
470	Statutes, is amended to read:
471	420.507  Powers of the corporation.--The corporation shall
472	have all the powers necessary or convenient to carry out and
473	effectuate the purposes and provisions of this part, including
474	the following powers which are in addition to all other powers
475	granted by other provisions of this part:
476	(46)  To require, as a condition of financing a multifamily
477	rental project, that an agreement be recorded in the official
478	records of the county where the real property is located, which
479	requires that the project be used for housing defined as
480	affordable in s. 420.0004(3) by persons defined in s.
481	420.0004(9)(8), (11)(10), (12)(11), and (17)(15). Such an
482	agreement is a state land use regulation that limits the highest
483	and best use of the property within the meaning of s.
484	193.011(2).
485	Section 10.  This act shall take effect July 1, 2009.

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