Florida Senate - 2009 CS for SB 2314
By the Committee on Community Affairs; and Senator Wise
578-04360A-09 20092314c1
1 A bill to be entitled
2 An act relating to affordable housing; amending s.
3 420.0003, F.S.; providing additional policy guidelines
4 under the state housing strategy for the development
5 of programs for housing production or rehabilitation;
6 including the needs of persons with special needs in
7 the strategy’s periodic review and report; amending s.
8 420.0004, F.S.; defining the terms “disabling
9 condition” and “person with special needs”; conforming
10 cross-references; amending s. 420.507, F.S.; requiring
11 certain rates of interest to be made available to
12 sponsors of housing projects for persons with special
13 needs; conforming a cross-reference; amending s.
14 420.5087, F.S.; limiting a portion of the reservation
15 of funds within each notice of fund availability to
16 sponsors of housing projects for the persons with
17 special needs tenant group; including persons with
18 special needs as a tenant group for specified purposes
19 of the State Apartment Incentive Loan Program;
20 requiring a specified review committee to include
21 projects that reserve units for persons with special
22 needs in its evaluation and competitive ranking of
23 applications for the State Apartment Incentive Loan
24 Program; conforming a cross-reference; amending ss.
25 163.31771, 196.1978, 212.08, 215.5586, and 420.503,
26 F.S.; conforming cross-references; providing an
27 effective date.
28
29 Be It Enacted by the Legislature of the State of Florida:
30
31 Section 1. Paragraph (e) of subsection (3) and paragraph
32 (c) of subsection (4) of section 420.0003, Florida Statutes, are
33 amended to read:
34 420.0003 State housing strategy.—
35 (3) POLICIES.—
36 (e) Housing production or rehabilitation programs.—New
37 programs for housing production or rehabilitation shall be
38 developed in accordance with the following general guidelines as
39 appropriate for the purpose of the specific program:
40 1. State and local governments shall provide incentives to
41 encourage the private sector to be the primary delivery vehicle
42 for the development of affordable housing.
43 2. State funds should be heavily leveraged to achieve the
44 maximum local and private commitment of funds while achieving
45 the program objectives.
46 3. To the maximum extent possible, state funds should be
47 expended to provide housing units rather than to support program
48 administration.
49 4. State money should be used, when possible, as loans
50 rather than grants.
51 5. State funds should be available only to local
52 governments that provide incentives or financial assistance for
53 housing.
54 6. State funds should be made available only for projects
55 which are consistent with the local government comprehensive
56 plan.
57 7. State funding for housing should not be made available
58 to local governments whose comprehensive plans have been found
59 not in compliance with chapter 163 and who have not entered into
60 a stipulated settlement agreement with the Department of
61 Community Affairs to bring the plan into compliance.
62 8. Mixed income projects should be encouraged, to avoid a
63 concentration of low-income residents in one area or project.
64 9. Distribution of state housing funds should be flexible
65 and consider the regional and local needs, resources, and
66 capabilities of housing producers.
67 10. Distribution of housing funds for multifamily rental
68 housing should be administered to address the housing needs of
69 persons most in need of housing.
70 11.10. Income levels used to determine program eligibility
71 should be adjusted for family size in determining the
72 eligibility of specific beneficiaries.
73 12.11. To the maximum extent possible, state-owned lands
74 that are appropriate for the development of affordable housing
75 shall be made available for that purpose.
76 (4) IMPLEMENTATION.—The Department of Community Affairs and
77 the Florida Housing Finance Corporation in carrying out the
78 strategy articulated herein shall have the following duties:
79 (c) The Shimberg Center for Affordable Housing, in
80 consultation with the Department of Community Affairs and the
81 Florida Housing Finance Corporation, shall review and evaluate
82 existing housing rehabilitation, production, and finance
83 programs to determine their consistency with relevant policies
84 in this section and identify the needs of specific populations,
85 including, but not limited to, elderly persons, and handicapped
86 persons, and persons with special needs, and shall recommend
87 statutory modifications where appropriate. The Shimberg Center
88 for Affordable Housing, in consultation with the Department of
89 Community Affairs and the corporation, shall also evaluate the
90 degree of coordination between state housing programs, and
91 between state, federal, and local housing activities, and shall
92 recommend improved program linkages. The recommendations
93 required above and a report of any programmatic modifications
94 made as a result of these policies shall be included in the
95 housing report required by s. 420.6075, beginning December 31,
96 1991, and every 5 years thereafter.
97 Section 2. Section 420.0004, Florida Statutes, is amended
98 to read:
99 420.0004 Definitions.—As used in this part, unless the
100 context otherwise indicates:
101 (1) “Adjusted for family size” means adjusted in a manner
102 which results in an income eligibility level which is lower for
103 households with fewer than four people, or higher for households
104 with more than four people, than the base income eligibility
105 determined as provided in subsection (9) (8), subsection (11)
106 (10), subsection (12) (11), or subsection (17) (15), based upon
107 a formula as established by the United States Department of
108 Housing and Urban Development.
109 (2) “Adjusted gross income” means all wages, assets,
110 regular cash or noncash contributions or gifts from persons
111 outside the household, and such other resources and benefits as
112 may be determined to be income by the United States Department
113 of Housing and Urban Development, adjusted for family size, less
114 deductions allowable under s. 62 of the Internal Revenue Code.
115 (3) “Affordable” means that monthly rents or monthly
116 mortgage payments including taxes, insurance, and utilities do
117 not exceed 30 percent of that amount which represents the
118 percentage of the median adjusted gross annual income for the
119 households as indicated in subsection (9) (8), subsection (11)
120 (10), subsection (12) (11), or subsection (17) (15).
121 (4) “Corporation” means the Florida Housing Finance
122 Corporation.
123 (5) “Community-based organization” or “nonprofit
124 organization” means a private corporation organized under
125 chapter 617 to assist in the provision of housing and related
126 services on a not-for-profit basis and which is acceptable to
127 federal and state agencies and financial institutions as a
128 sponsor of low-income housing.
129 (6) “Department” means the Department of Community Affairs.
130 (7) “Disabling condition” means a diagnosable substance
131 abuse disorder, serious mental illness, developmental
132 disability, or chronic physical illness or disability, or the
133 co-occurrence of two or more of these conditions, and a
134 determination that the condition is:
135 (a) Expected to be of long-continued and indefinite
136 duration; and
137 (b) Not expected to impair the ability of the person with
138 special needs to live independently with appropriate supports.
139 (8)(7) “Elderly” describes persons 62 years of age or
140 older.
141 (9)(8) “Extremely-low-income persons” means one or more
142 natural persons or a family whose total annual household income
143 does not exceed 30 percent of the median annual adjusted gross
144 income for households within the state. The Florida Housing
145 Finance Corporation may adjust this amount annually by rule to
146 provide that in lower income counties, extremely low income may
147 exceed 30 percent of area median income and that in higher
148 income counties, extremely low income may be less than 30
149 percent of area median income.
150 (10)(9) “Local public body” means any county, municipality,
151 or other political subdivision, or any housing authority as
152 provided by chapter 421, which is eligible to sponsor or develop
153 housing for farmworkers and very-low-income and low-income
154 persons within its jurisdiction.
155 (11)(10) “Low-income persons” means one or more natural
156 persons or a family, the total annual adjusted gross household
157 income of which does not exceed 80 percent of the median annual
158 adjusted gross income for households within the state, or 80
159 percent of the median annual adjusted gross income for
160 households within the metropolitan statistical area (MSA) or, if
161 not within an MSA, within the county in which the person or
162 family resides, whichever is greater.
163 (12)(11) “Moderate-income persons” means one or more
164 natural persons or a family, the total annual adjusted gross
165 household income of which is less than 120 percent of the median
166 annual adjusted gross income for households within the state, or
167 120 percent of the median annual adjusted gross income for
168 households within the metropolitan statistical area (MSA) or, if
169 not within an MSA, within the county in which the person or
170 family resides, whichever is greater.
171 (13) “Person with special needs” means an adult person
172 requiring independent living services in order to maintain
173 housing or develop independent living skills and who has a
174 disabling condition; a young adult formerly in foster care who
175 is eligible for services under s. 409.1451(5); a survivor of
176 domestic violence as defined in s. 741.28; or a person receiving
177 benefits under the Social Security Disability Insurance (SSDI)
178 program or the Supplemental Security Income (SSI) program or
179 from veterans’ disability benefits.
180 (14)(12) “Student” means any person not living with his or
181 her parent or guardian who is eligible to be claimed by his or
182 her parent or guardian as a dependent under the federal income
183 tax code and who is enrolled on at least a half-time basis in a
184 secondary school, career center, community college, college, or
185 university.
186 (15)(13) “Substandard” means:
187 (a) Any unit lacking complete plumbing or sanitary
188 facilities for the exclusive use of the occupants;
189 (b) A unit which is in violation of one or more major
190 sections of an applicable housing code and where such violation
191 poses a serious threat to the health of the occupant; or
192 (c) A unit that has been declared unfit for human
193 habitation but that could be rehabilitated for less than 50
194 percent of the property value.
195 (16)(14) “Substantial rehabilitation” means repair or
196 restoration of a dwelling unit where the value of such repair or
197 restoration exceeds 40 percent of the value of the dwelling.
198 (17)(15) “Very-low-income persons” means one or more
199 natural persons or a family, not including students, the total
200 annual adjusted gross household income of which does not exceed
201 50 percent of the median annual adjusted gross income for
202 households within the state, or 50 percent of the median annual
203 adjusted gross income for households within the metropolitan
204 statistical area (MSA) or, if not within an MSA, within the
205 county in which the person or family resides, whichever is
206 greater.
207 Section 3. Paragraph (a) of subsection (22) and subsection
208 (46) of section 420.507, Florida Statutes, are amended to read:
209 420.507 Powers of the corporation.—The corporation shall
210 have all the powers necessary or convenient to carry out and
211 effectuate the purposes and provisions of this part, including
212 the following powers which are in addition to all other powers
213 granted by other provisions of this part:
214 (22) To develop and administer the State Apartment
215 Incentive Loan Program. In developing and administering that
216 program, the corporation may:
217 (a) Make first, second, and other subordinated mortgage
218 loans including variable or fixed rate loans subject to
219 contingent interest for all State Apartment Incentive Loans
220 provided for in this chapter based upon available cash flow of
221 the projects. The corporation shall make loans exceeding 25
222 percent of project cost available only to nonprofit
223 organizations and public bodies which are able to secure grants,
224 donations of land, or contributions from other sources and to
225 projects meeting the criteria of subparagraph 1. Mortgage loans
226 shall be made available at the following rates of interest:
227 1. Zero to 3 percent interest for sponsors of projects that
228 set aside at least 80 percent of their total units for residents
229 qualifying as farmworkers as defined in this part, or commercial
230 fishing workers as defined in this part, or the homeless as
231 defined in s. 420.621(4), or persons with special needs as
232 defined in s. 420.0004(13) over the life of the loan.
233 2. Zero to 3 percent interest based on the pro rata share
234 of units set aside for homeless residents or persons with
235 special needs if the total of such units is less than 80 percent
236 of the units in the borrower’s project.
237 3. One to 9 percent interest for sponsors of projects
238 targeted at populations other than farmworkers, commercial
239 fishing workers, and the homeless, and persons with special
240 needs.
241 (46) To require, as a condition of financing a multifamily
242 rental project, that an agreement be recorded in the official
243 records of the county where the real property is located, which
244 requires that the project be used for housing defined as
245 affordable in s. 420.0004(3) by persons defined in s.
246 420.0004(9)(8), (11)(10), (12)(11), and (17)(15). Such an
247 agreement is a state land use regulation that limits the highest
248 and best use of the property within the meaning of s.
249 193.011(2).
250 Section 4. Subsection (3) of section 420.5087, Florida
251 Statutes, is amended to read:
252 420.5087 State Apartment Incentive Loan Program.—There is
253 hereby created the State Apartment Incentive Loan Program for
254 the purpose of providing first, second, or other subordinated
255 mortgage loans or loan guarantees to sponsors, including for
256 profit, nonprofit, and public entities, to provide housing
257 affordable to very-low-income persons.
258 (3) During the first 6 months of loan or loan guarantee
259 availability, program funds shall be reserved for use by
260 sponsors who provide the housing set-aside required in
261 subsection (2) for the tenant groups designated in this
262 subsection. The reservation of funds to each of these groups
263 shall be determined using the most recent statewide very-low
264 income rental housing market study available at the time of
265 publication of each notice of fund availability required by
266 paragraph (6)(b). The reservation of funds within each notice of
267 fund availability to the tenant groups in paragraphs (a), (b),
268 and (e) (d) may not be less than 10 percent of the funds
269 available at that time. Any increase in funding required to
270 reach the 10-percent minimum must be taken from the tenant group
271 that has the largest reservation. The reservation of funds
272 within each notice of fund availability to the tenant group in
273 paragraph (c) may not be less than 5 percent of the funds
274 available at that time. The reservation of funds within each
275 notice of fund availability to the tenant group in paragraph (d)
276 may not be more than 10 percent of the funds available at that
277 time. The tenant groups are:
278 (a) Commercial fishing workers and farmworkers;
279 (b) Families;
280 (c) Persons who are homeless;
281 (d) Persons with special needs; and
282 (e)(d) Elderly persons. Ten percent of the amount reserved
283 for the elderly shall be reserved to provide loans to sponsors
284 of housing for the elderly for the purpose of making building
285 preservation, health, or sanitation repairs or improvements
286 which are required by federal, state, or local regulation or
287 code, or lifesafety or security-related repairs or improvements
288 to such housing. Such a loan may not exceed $750,000 per housing
289 community for the elderly. In order to receive the loan, the
290 sponsor of the housing community must make a commitment to match
291 at least 5 percent of the loan amount to pay the cost of such
292 repair or improvement. The corporation shall establish the rate
293 of interest on the loan, which may not exceed 3 percent, and the
294 term of the loan, which may not exceed 15 years; however, if the
295 lien of the corporation’s encumbrance is subordinate to the lien
296 of another mortgagee, then the term may be made coterminous with
297 the longest term of the superior lien. The term of the loan
298 shall be based on a credit analysis of the applicant. The
299 corporation may forgive indebtedness for a share of the loan
300 attributable to the units in a project reserved for extremely
301 low-income elderly by nonprofit organizations, as defined in s.
302 420.0004(5), where the project has provided affordable housing
303 to the elderly for 15 years or more. The corporation shall
304 establish, by rule, the procedure and criteria for receiving,
305 evaluating, and competitively ranking all applications for loans
306 under this paragraph. A loan application must include evidence
307 of the first mortgagee’s having reviewed and approved the
308 sponsor’s intent to apply for a loan. A nonprofit organization
309 or sponsor may not use the proceeds of the loan to pay for
310 administrative costs, routine maintenance, or new construction.
311 Section 5. Paragraphs (d), (e), (f), and (g) of subsection
312 (2) of section 163.31771, Florida Statutes, are amended to read:
313 163.31771 Accessory dwelling units.—
314 (2) As used in this section, the term:
315 (d) “Low-income persons” has the same meaning as in s.
316 420.0004(11)(10).
317 (e) “Moderate-income persons” has the same meaning as in s.
318 420.0004(12)(11).
319 (f) “Very-low-income persons” has the same meaning as in s.
320 420.0004(17)(15).
321 (g) “Extremely-low-income persons” has the same meaning as
322 in s. 420.0004(9)(8).
323 Section 6. Section 196.1978, Florida Statutes, is amended
324 to read:
325 196.1978 Affordable housing property exemption.—Property
326 used to provide affordable housing serving eligible persons as
327 defined by s. 159.603(7) and persons meeting income limits
328 specified in s. 420.0004(9)(8), (11)(10), (12)(11), and
329 (17)(15), which property is owned entirely by a nonprofit entity
330 which is qualified as charitable under s. 501(c)(3) of the
331 Internal Revenue Code and which complies with Rev. Proc. 96-32,
332 1996-1 C.B. 717, shall be considered property owned by an exempt
333 entity and used for a charitable purpose, and those portions of
334 the affordable housing property which provide housing to
335 individuals with incomes as defined in s. 420.0004(11)(10) and
336 (17)(15) shall be exempt from ad valorem taxation to the extent
337 authorized in s. 196.196. All property identified in this
338 section shall comply with the criteria for determination of
339 exempt status to be applied by property appraisers on an annual
340 basis as defined in s. 196.195. The Legislature intends that any
341 property owned by a limited liability company which is
342 disregarded as an entity for federal income tax purposes
343 pursuant to Treasury Regulation 301.7701-3(b)(1)(ii) shall be
344 treated as owned by its sole member.
345 Section 7. Paragraph (o) of subsection (5) of section
346 212.08, Florida Statutes, is amended to read:
347 212.08 Sales, rental, use, consumption, distribution, and
348 storage tax; specified exemptions.—The sale at retail, the
349 rental, the use, the consumption, the distribution, and the
350 storage to be used or consumed in this state of the following
351 are hereby specifically exempt from the tax imposed by this
352 chapter.
353 (5) EXEMPTIONS; ACCOUNT OF USE.—
354 (o) Building materials in redevelopment projects.—
355 1. As used in this paragraph, the term:
356 a. “Building materials” means tangible personal property
357 that becomes a component part of a housing project or a mixed
358 use project.
359 b. “Housing project” means the conversion of an existing
360 manufacturing or industrial building to housing units in an
361 urban high-crime area, enterprise zone, empowerment zone, Front
362 Porch Community, designated brownfield area, or urban infill
363 area and in which the developer agrees to set aside at least 20
364 percent of the housing units in the project for low-income and
365 moderate-income persons or the construction in a designated
366 brownfield area of affordable housing for persons described in
367 s. 420.0004(9)(8), (11)(10), (12)(11), or (17)(15) or in s.
368 159.603(7).
369 c. “Mixed-use project” means the conversion of an existing
370 manufacturing or industrial building to mixed-use units that
371 include artists’ studios, art and entertainment services, or
372 other compatible uses. A mixed-use project must be located in an
373 urban high-crime area, enterprise zone, empowerment zone, Front
374 Porch Community, designated brownfield area, or urban infill
375 area, and the developer must agree to set aside at least 20
376 percent of the square footage of the project for low-income and
377 moderate-income housing.
378 d. “Substantially completed” has the same meaning as
379 provided in s. 192.042(1).
380 2. Building materials used in the construction of a housing
381 project or mixed-use project are exempt from the tax imposed by
382 this chapter upon an affirmative showing to the satisfaction of
383 the department that the requirements of this paragraph have been
384 met. This exemption inures to the owner through a refund of
385 previously paid taxes. To receive this refund, the owner must
386 file an application under oath with the department which
387 includes:
388 a. The name and address of the owner.
389 b. The address and assessment roll parcel number of the
390 project for which a refund is sought.
391 c. A copy of the building permit issued for the project.
392 d. A certification by the local building code inspector
393 that the project is substantially completed.
394 e. A sworn statement, under penalty of perjury, from the
395 general contractor licensed in this state with whom the owner
396 contracted to construct the project, which statement lists the
397 building materials used in the construction of the project and
398 the actual cost thereof, and the amount of sales tax paid on
399 these materials. If a general contractor was not used, the owner
400 shall provide this information in a sworn statement, under
401 penalty of perjury. Copies of invoices evidencing payment of
402 sales tax must be attached to the sworn statement.
403 3. An application for a refund under this paragraph must be
404 submitted to the department within 6 months after the date the
405 project is deemed to be substantially completed by the local
406 building code inspector. Within 30 working days after receipt of
407 the application, the department shall determine if it meets the
408 requirements of this paragraph. A refund approved pursuant to
409 this paragraph shall be made within 30 days after formal
410 approval of the application by the department.
411 4. The department shall establish by rule an application
412 form and criteria for establishing eligibility for exemption
413 under this paragraph.
414 5. The exemption shall apply to purchases of materials on
415 or after July 1, 2000.
416 Section 8. Paragraphs (a) and (g) of subsection (2) of
417 section 215.5586, Florida Statutes, are amended to read:
418 215.5586 My Safe Florida Home Program.—There is established
419 within the Department of Financial Services the My Safe Florida
420 Home Program. The department shall provide fiscal
421 accountability, contract management, and strategic leadership
422 for the program, consistent with this section. This section does
423 not create an entitlement for property owners or obligate the
424 state in any way to fund the inspection or retrofitting of
425 residential property in this state. Implementation of this
426 program is subject to annual legislative appropriations. It is
427 the intent of the Legislature that the My Safe Florida Home
428 Program provide inspections for at least 400,000 site-built,
429 single-family, residential properties and provide grants to at
430 least 35,000 applicants before June 30, 2009. The program shall
431 develop and implement a comprehensive and coordinated approach
432 for hurricane damage mitigation that shall include the
433 following:
434 (2) MITIGATION GRANTS.—Financial grants shall be used to
435 encourage single-family, site-built, owner-occupied, residential
436 property owners to retrofit their properties to make them less
437 vulnerable to hurricane damage.
438 (a) To be eligible for a grant for persons who have
439 obtained a completed inspection after May 1, 2007, a residential
440 property must:
441 1. Have been granted a homestead exemption under chapter
442 196.
443 2. Be a dwelling with an insured value of $300,000 or less.
444 Homeowners who are low-income persons, as defined in s.
445 420.0004(11)(10), are exempt from this requirement.
446 3. Have undergone an acceptable hurricane mitigation
447 inspection.
448 4. Be located in the “wind-borne debris region” as that
449 term is defined in s. 1609.2, International Building Code
450 (2006).
451 5. Be a home for which the building permit application for
452 initial construction was made before March 1, 2002.
453
454 An application for a grant must contain a signed or
455 electronically verified statement made under penalty of perjury
456 that the applicant has submitted only a single application and
457 must have attached documents demonstrating the applicant meets
458 the requirements of this paragraph.
459 (g) Low-income homeowners, as defined in s.
460 420.0004(11)(10), who otherwise meet the requirements of
461 paragraphs (a), (c), (e), and (f) are eligible for a grant of up
462 to $5,000 and are not required to provide a matching amount to
463 receive the grant. Additionally, for low-income homeowners,
464 grant funding may be used for repair to existing structures
465 leading to any of the mitigation improvements provided in
466 paragraph (e), limited to 20 percent of the grant value. The
467 program may accept a certification directly from a low-income
468 homeowner that the homeowner meets the requirements of s.
469 420.0004(11)(10) if the homeowner provides such certification in
470 a signed or electronically verified statement made under penalty
471 of perjury.
472 Section 9. Subsection (19) of section 420.503, Florida
473 Statutes, is amended to read:
474 420.503 Definitions.—As used in this part, the term:
475 (19) “Housing for the elderly” means, for purposes of s.
476 420.5087(3)(e)(d), any nonprofit housing community that is
477 financed by a mortgage loan made or insured by the United States
478 Department of Housing and Urban Development under s. 202, s. 202
479 with a s. 8 subsidy, s. 221(d)(3) or (4), or s. 236 of the
480 National Housing Act, as amended, and that is subject to income
481 limitations established by the United States Department of
482 Housing and Urban Development, or any program funded by the
483 Rural Development Agency of the United States Department of
484 Agriculture and subject to income limitations established by the
485 United States Department of Agriculture. A project which
486 qualifies for an exemption under the Fair Housing Act as housing
487 for older persons as defined by s. 760.29(4) shall qualify as
488 housing for the elderly for purposes of s. 420.5087(3)(e)(d) and
489 for purposes of any loans made pursuant to s. 420.508. In
490 addition, if the corporation adopts a qualified allocation plan
491 pursuant to s. 42(m)(1)(B) of the Internal Revenue Code or any
492 other rules that prioritize projects targeting the elderly for
493 purposes of allocating tax credits pursuant to s. 420.5099 or
494 for purposes of the HOME program under s. 420.5089, a project
495 which qualifies for an exemption under the Fair Housing Act as
496 housing for older persons as defined by s. 760.29(4) shall
497 qualify as a project targeted for the elderly, if the project
498 satisfies the other requirements set forth in this part.
499 Section 10. This act shall take effect July 1, 2009.