Florida Senate - 2020                        COMMITTEE AMENDMENT
       Bill No. SB 856
                              LEGISLATIVE ACTION                        
                    Senate             .             House              

       The Committee on Community Affairs (Pizzo) recommended the
    1         Senate Amendment (with title amendment)
    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:
  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                          
  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.
  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.