Florida Senate - 2020 COMMITTEE AMENDMENT Bill No. SB 856 Ì7966428Î796642 LEGISLATIVE ACTION Senate . House Comm: RCS . 02/05/2020 . . . . ————————————————————————————————————————————————————————————————— ————————————————————————————————————————————————————————————————— The Committee on Community Affairs (Pizzo) recommended the following: 1 Senate Amendment (with title amendment) 2 3 Delete everything after the enacting clause 4 and insert: 5 Section 1. Subsection (8) of section 163.31801, Florida 6 Statutes, is amended to read: 7 163.31801 Impact fees; short title; intent; minimum 8 requirements; audits; challenges.— 9 (8) A county, municipality, or special district may provide 10 an exception or waiver for an impact fee for the development or 11 construction of housing that is affordable, as defined in s. 12 420.9071, or for the development and construction of supportive 13 housing by a not-for-profit corporation that derives at least 75 14 percent of its annual revenues from contracts or services 15 provided to a state or federal agency. If a county, 16 municipality, or special district provides such an exception or 17 waiver, it is not required to use any revenues to offset the 18 impact. For purposes of this subsection, the term “supportive 19 housing” means affordable housing for low-income persons and 20 low-income households, as those terms are defined in s. 21 420.9071(19), which provides treatment for persons who suffer 22 from mental health, substance abuse, or domestic violence, which 23 provides on-premises social and community support services, 24 including job training, life skills training, alcohol and 25 substance abuse disorder treatment, child care, and client case 26 management services. 27 Section 2. Subsection (3) is added to section 196.1978, 28 Florida Statutes, to read: 29 196.1978 Affordable housing property exemption; workforce 30 housing property reductions.— 31 (3)(a) As used in this subsection, the term: 32 1. “Base tax” means the operating taxes remitted to the 33 taxing authority in the tax year immediately preceding the 34 reduction term. 35 2. “Corporation” means the Florida Housing Finance 36 Corporation. 37 3. “Household” has the same meaning as in s. 196.075(1). 38 4. “Operating taxes” means the nonvoted millage portion of 39 the county millage and the municipal millage as identified in s. 40 200.001(1)(a) and (2)(a), respectively. 41 5. “Project taxing authority” means a county or 42 municipality, as those terms are defined in s. 200.001(8)(a) and 43 (b), respectively, which is authorized to levy operating taxes 44 against real property in the jurisdiction in which a qualifying 45 project is located. 46 6. “Qualifying project” means a workforce housing project 47 that: 48 a. Is located in a county that has a population of 825,000 49 or more; and 50 b. Has not received a property tax discount pursuant to 51 subsection (2). 52 7. “Reduction term” means the 25-year tax reduction period 53 beginning the year in which the qualifying project is first 54 assessed under s. 192.042(1) and certified by the county 55 property appraiser as eligible to receive a tax reduction in 56 operating taxes. 57 8. “Taxpayer” has the same meaning as in s. 192.001. 58 9. “Workforce housing project” means a rental housing 59 project that provides at least 4 but not more than 70 dwelling 60 units for natural persons or families and in which: 61 a. At least 10 percent of the rental units are set aside 62 for one or more natural persons or a family with a total annual 63 gross household income greater than 60 percent but less than 80 64 percent of the median annual income adjusted for family size for 65 households within the metropolitan statistical area, the county, 66 or the nonmetropolitan median for the state, whichever is 67 greatest. 68 b. At least 20 percent of the rental units are set aside 69 for one or more natural persons or a family with a total annual 70 gross household income greater than 60 percent but less than 100 71 percent of the median annual income adjusted for family size for 72 households within the metropolitan statistical area, the county, 73 or the nonmetropolitan median for the state, whichever is 74 greatest. 75 c. Rents for the rental units set aside pursuant to sub 76 subparagraphs a. and b. comply with the income limitations 77 established by the corporation for the county in which the 78 rental units are located. Rents for the rental units within the 79 project that are not subject to the set-asides may be offered at 80 rents determined by the taxpayer in his or her sole discretion. 81 (b) The Legislature finds that property used to provide 82 workforce housing to natural persons and households that meet 83 the low-income or moderate-income limits is a charitable 84 purpose. Therefore, notwithstanding s. 196.195(4), a taxpayer 85 who builds or renovates a qualifying project after July 1, 2021, 86 may receive a tax reduction in operating taxes that would 87 otherwise be assessed if the following criteria are met: 88 1. The taxpayer timely files an application for the tax 89 reduction with the property appraiser no later than March 1 of 90 the year immediately following the year in which the qualifying 91 project is first assessed under s. 192.042(1). 92 2. The taxpayer records a covenant running with the land 93 that restricts the rents of rental units within the qualifying 94 project in accordance with the requirements set forth in 95 subparagraph (a)9. 96 (c) For the first 16 years of the reduction term, a 97 qualifying project shall be assessed operating taxes in an 98 amount equal to the base tax for the qualifying project, which 99 base tax shall be increased annually thereafter by 2.5 percent 100 or the Consumer Price Index for the county in which the 101 qualifying project is located, whichever is less. Beginning in 102 Year 17 of the reduction term, the property appraiser shall 103 determine the assessed value of the qualifying project and 104 reduce the assessed value of the property in accordance with the 105 percentages set forth below: 106 107 Year of Tax Reduction Workforce Housing Reduction Percentage 108 17 90 percent 109 18 80 percent 110 19 70 percent 111 20 60 percent 112 21 50 percent 113 22 40 percent 114 23 30 percent 115 24 20 percent 116 25 10 percent 117 118 (d) If the property appraiser approves the application, the 119 taxpayer must record the covenant. The property appraiser shall 120 apply the authorized tax reductions beginning in the appropriate 121 tax year. The taxpayer is responsible for the cost of recording 122 the covenant. 123 (e) Each taxpayer who receives a tax reduction must submit 124 a report annually to the property appraiser confirming his or 125 her compliance with the rent restrictions required for the 126 receipt of the reduction. The report must be executed by the 127 taxpayer or an authorized representative of the taxpayer, and 128 must include the written declaration set forth in s. 92.525(2). 129 A taxpayer who falsifies the written declaration commits a 130 felony of the third degree, punishable as provided in s. 131 775.082, s. 775.083, or s. 775.084. 132 (f) Each county may limit the total number of qualifying 133 projects that the property appraiser may approve annually if: 134 1. It conducts a public hearing noticed in a newspaper of 135 general circulation. 136 2. It adopts a resolution that finds and is supported by 137 competent substantial evidence that a limitation is necessary to 138 avoid the substantial impairment of the taxing authority’s 139 ability to meet its financial obligations to fund other public 140 services that are necessary to ensure the public safety and 141 welfare. 142 (g)1. If the property appraiser determines that a 143 qualifying project that was granted a tax reduction has failed 144 to offer rents as required in the recorded covenant and as set 145 forth in this subsection, the taxpayer shall be liable for the 146 payment of any back taxes, penalties, and interest, as well as 147 any other remedies authorized pursuant to s. 193.092. 148 2. If the property appraiser improperly grants a tax 149 reduction as a result of a clerical mistake or an omission, the 150 taxpayer improperly receiving the reduction shall not be 151 assessed back taxes, penalties, or interest, or be held liable 152 for any other remedies authorized under s. 193.092. 153 Section 3. This act shall take effect July 1, 2020. 154 155 ================= T I T L E A M E N D M E N T ================ 156 And the title is amended as follows: 157 Delete everything before the enacting clause 158 and insert: 159 A bill to be entitled 160 An act relating to affordable housing tax reductions; 161 amending s. 163.31801, F.S.; authorizing counties, 162 municipalities, and special districts to provide an 163 exception or waiver of impact fees for certain not 164 for-profit corporations for specified purposes; 165 defining the term “supportive housing” for certain 166 purposes; amending s. 196.1978, F.S.; defining terms; 167 providing legislative findings; providing a tax 168 reduction to certain entities that provide affordable 169 housing to identified groups; providing criteria for 170 receiving such reduction; providing a formula for 171 determining the amount of the reduction; requiring a 172 taxpayer to submit a covenant for recording that 173 provides specified information; requiring a taxpayer 174 who receives a tax reduction to file an annual report; 175 providing specifications for such report; providing 176 penalties for falsification of reports; authorizing a 177 county to limit the number of qualifying projects that 178 may be approved under specified conditions; requiring 179 a taxpayer to pay back taxes, penalties, and interest 180 under specified circumstances; providing exceptions; 181 providing an effective date.