Florida Senate - 2013 PROPOSED COMMITTEE SUBSTITUTE
Bill No. CS for SB 928
Barcode 526908
576-03068-13
Proposed Committee Substitute by the Committee on Appropriations
(Appropriations Subcommittee on Finance and Tax)
1 A bill to be entitled
2 An act relating to community development; amending s.
3 159.603, F.S.; modifying the definition of “qualifying
4 housing development”; amending s. 159.608, F.S.;
5 revising the power of a housing finance authority to
6 make loans directly to eligible persons; amending s.
7 196.1978, F.S.; deleting an ad valorem tax exemption
8 for property owned by certain Florida-based limited
9 partnerships and used for affordable housing for
10 certain income-qualified persons; amending s. 420.507,
11 F.S.; revising the powers of the Florida Housing
12 Finance Corporation; specifying how the corporation
13 will allocate certain funds; amending s. 420.5087,
14 F.S.; revising provisions relating to state apartment
15 incentive loans to provide for a competitive
16 evaluation and selection process with respect to loan
17 applications; amending s. 420.511, F.S.; providing
18 that the corporation’s strategic business plan must be
19 consistent with a long-range program plan relating to
20 affordable housing; deleting a requirement that the
21 corporation compile certain data; revising provisions
22 relating to the corporation’s development of its long
23 range plan; revising the required contents and
24 information to be included in the corporation’s annual
25 report; requiring the corporation to submit separate
26 audited financial statements that include specified
27 information and incorporate certain reports; requiring
28 the Auditor General to conduct an operational audit of
29 the corporation and provide a written report to the
30 Legislature; amending ss. 420.0003, 420.0006, 420.504,
31 and 420.506, F.S.; conforming provisions to changes
32 made by this act; repealing s. 420.5091, F.S.,
33 relating to the HOPE program; providing for
34 retroactive application; providing an effective date.
35
36 Be It Enacted by the Legislature of the State of Florida:
37
38 Section 1. Subsection (6) of section 159.603, Florida
39 Statutes, is amended to read:
40 159.603 Definitions.—As used in this part, the following
41 words and terms have the following meanings unless the context
42 indicates another or different meaning or intent.
43 (6) “Qualifying housing development” means any work or
44 improvement located or to be located in this the state,
45 including real property, buildings, and any other real and
46 personal property, designed or intended for the primary purpose
47 of providing decent, safe, and sanitary residential housing for
48 four or more families, at least 60 percent of whom are eligible
49 persons, whether new construction, the acquisition of existing
50 residential housing, or the remodeling, improvement,
51 rehabilitation, or reconstruction of existing housing, together
52 with such related nonhousing facilities as the authority
53 determines to be necessary, convenient, or desirable.
54 (a) The term includes a housing development that meets the
55 definition of a “qualified low-income housing project” under s.
56 42(g) of the Internal Revenue Code, regardless of whether such
57 development meets the 60-percent-eligible-persons requirement
58 under this subsection.
59 (b) The exception provided under paragraph (a) applies to
60 all housing developments that meet the federal definition of
61 “qualified low-income housing project” and all developments that
62 previously qualified under the state definition of “qualifying
63 housing development.” Housing finance authorities may enter into
64 regulatory agreement amendments as necessary to accommodate
65 housing developments that qualify under paragraph (a).
66 Section 2. Subsection (8) of section 159.608, Florida
67 Statutes, is amended to read:
68 159.608 Powers of housing finance authorities.—A housing
69 finance authority shall constitute a public body corporate and
70 politic, exercising the public and essential governmental
71 functions set forth in this act, and shall exercise its power to
72 borrow only for the purpose as provided herein:
73 (8) To make loans directly to eligible persons or families
74 who otherwise cannot borrow from conventional lending sources
75 and whose annual income does not exceed 80 percent of the median
76 income based on a family of up to four persons for the county in
77 which they seek to purchase a residence. The housing finance
78 authority may adjust the annual income requirements for families
79 of greater than four persons. Such loans must be secured by
80 either first mortgages or subordinated mortgages and must be
81 used to purchase, construct, rehabilitate, or refinance single
82 family residences that have purchase prices that do not exceed
83 the purchase price limits of; however, the purchase price of any
84 residence financed through such a loan may not exceed 90 percent
85 of the median sales price for single-family homes in the county
86 where the borrower’s residence is to be located, as mandated by
87 federal law for tax-exempt, single-family bond programs.
88 Section 3. Section 196.1978, Florida Statutes, is amended
89 to read:
90 196.1978 Affordable housing property exemption.—Property
91 used to provide affordable housing to serving eligible persons
92 as defined under by s. 159.603(7) and natural persons or
93 families meeting the extremely-low-income, very-low-income, low
94 income, or moderate-income limits specified in s. 420.0004,
95 which property is owned entirely by a nonprofit entity that is a
96 corporation not for profit, qualified as charitable under s.
97 501(c)(3) of the Internal Revenue Code and in compliance with
98 Rev. Proc. 96-32, 1996-1 C.B. 717, is or a Florida-based limited
99 partnership, the sole general partner of which is a corporation
100 not for profit which is qualified as charitable under s.
101 501(c)(3) of the Internal Revenue Code and which complies with
102 Rev. Proc. 96-32, 1996-1 C.B. 717, shall be considered property
103 owned by an exempt entity and used for a charitable purpose, and
104 those portions of the affordable housing property which provide
105 housing to natural persons or families classified as extremely
106 low income, very low income, low income, or moderate income
107 under s. 420.0004 are shall be exempt from ad valorem taxation
108 to the extent authorized under in s. 196.196. All property
109 identified in this section must shall comply with the criteria
110 provided under s. 196.195 for determining determination of
111 exempt status and to be applied by property appraisers on an
112 annual basis as defined in s. 196.195. The Legislature intends
113 that any property owned by a limited liability company or
114 limited partnership which is disregarded as an entity for
115 federal income tax purposes pursuant to Treasury Regulation
116 301.7701-3(b)(1)(ii) shall be treated as owned by its sole
117 member or sole general partner.
118 Section 4. Paragraph (h) of subsection (22) and subsection
119 (48) of section 420.507, Florida Statutes, are amended to read:
120 420.507 Powers of the corporation.—The corporation shall
121 have all the powers necessary or convenient to carry out and
122 effectuate the purposes and provisions of this part, including
123 the following powers, which are in addition to all other powers
124 granted by other provisions of this part:
125 (22) To develop and administer the State Apartment
126 Incentive Loan Program. In developing and administering that
127 program, the corporation may:
128 (h) Establish, by rule, the procedure for evaluating,
129 scoring, and competitively evaluating and selecting ranking all
130 applications for funding based on the criteria set forth in s.
131 420.5087(6)(c),; determining actual loan amounts,; making and
132 servicing loans,; and exercising the powers authorized in this
133 subsection.
134 (48) To award use up to 10 percent of its annual allocation
135 of low-income housing tax credits, nontaxable revenue bonds, and
136 State Apartment Incentive Loan Program funds appropriated by the
137 Legislature and available to allocate by request for proposals
138 or other competitive solicitation. The corporation shall reserve
139 up to 5 percent of each allocation funding for high-priority
140 affordable housing projects, such as housing to support economic
141 development and job-creation initiatives, housing for veterans
142 and their families, and other special needs populations in
143 communities throughout the state as determined by the
144 corporation on an annual basis. The corporation shall reserve an
145 additional 5 percent of each allocation for affordable housing
146 projects that target persons who have a disabling condition as
147 defined in s. 420.0004 and their families. These allocations
148 must prioritize projects or initiatives piloting or
149 demonstrating cost effective, best practices that meet the
150 housing needs and preferences of such persons. Any tax credits
151 or funds not allocated because of a lack of eligible projects
152 targeting persons who have a disabling condition shall be
153 distributed by the corporation for high-priority housing
154 projects.
155 Section 5. Paragraphs (c) and (f) of subsection (6) of
156 section 420.5087, Florida Statutes, are amended to read:
157 420.5087 State Apartment Incentive Loan Program.—There is
158 hereby created the State Apartment Incentive Loan Program for
159 the purpose of providing first, second, or other subordinated
160 mortgage loans or loan guarantees to sponsors, including for
161 profit, nonprofit, and public entities, to provide housing
162 affordable to very-low-income persons.
163 (6) On all state apartment incentive loans, except loans
164 made to housing communities for the elderly to provide for
165 lifesafety, building preservation, health, sanitation, or
166 security-related repairs or improvements, the following
167 provisions shall apply:
168 (c) The corporation shall provide by rule for the
169 establishment of a review committee composed of the department
170 and corporation staff and shall establish by rule a scoring
171 system for the competitive evaluation and selection competitive
172 ranking of applications submitted in this program, including,
173 but not limited to, the following criteria:
174 1. Tenant income and demographic targeting objectives of
175 the corporation.
176 2. Targeting objectives of the corporation which will
177 ensure an equitable distribution of loans between rural and
178 urban areas.
179 3. Sponsor’s agreement to reserve the units for persons or
180 families who have incomes below 50 percent of the state or local
181 median income, whichever is higher, for a time period that
182 exceeds to exceed the minimum required by federal law or the
183 provisions of this part.
184 4. Sponsor’s agreement to reserve more than:
185 a. Twenty percent of the units in the project for persons
186 or families who have incomes that do not exceed 50 percent of
187 the state or local median income, whichever is higher; or
188 b. Forty percent of the units in the project for persons or
189 families who have incomes that do not exceed 60 percent of the
190 state or local median income, whichever is higher, without
191 requiring a greater amount of the loans as provided in this
192 section.
193 5. Provision for tenant counseling.
194 6. Sponsor’s agreement to accept rental assistance
195 certificates or vouchers as payment for rent.
196 7. Projects requiring the least amount of a state apartment
197 incentive loan compared to overall project cost, except that the
198 share of the loan attributable to units serving extremely-low
199 income persons must shall be excluded from this requirement.
200 8. Local government contributions and local government
201 comprehensive planning and activities that promote affordable
202 housing.
203 9. Project feasibility.
204 10. Economic viability of the project.
205 11. Commitment of first mortgage financing.
206 12. Sponsor’s prior experience.
207 13. Sponsor’s ability to proceed with construction.
208 14. Projects that directly implement or assist welfare-to
209 work transitioning.
210 15. Projects that reserve units for extremely-low-income
211 persons.
212 16. Projects that include green building principles, storm
213 resistant construction, or other elements that reduce long-term
214 costs relating to maintenance, utilities, or insurance.
215 17. Job-creation rate of the developer and general
216 contractor, as provided in s. 420.507(47).
217 (f) The review committee established by corporation rule
218 pursuant to this subsection shall make recommendations to the
219 board of directors of the corporation regarding program
220 participation under the State Apartment Incentive Loan Program.
221 The corporation board shall make the final ranking and the
222 decisions regarding which applicants shall become program
223 participants based on the scores received in the competitive
224 process ranking, further review of applications, and the
225 recommendations of the review committee. The corporation board
226 shall approve or reject applications for loans and shall
227 determine the tentative loan amount available to each applicant
228 selected for participation in the program. The actual loan
229 amount shall be determined pursuant to rule adopted pursuant to
230 s. 420.507(22)(h).
231 Section 6. Section 420.511, Florida Statutes, is amended to
232 read:
233 420.511 Strategic business plan; long-range program
234 strategic plan; annual report; audited financial statements.—
235 (1) The corporation shall develop a strategic business plan
236 for the provision of affordable housing for the state. The plan
237 must be consistent shall not be inconsistent with the long-range
238 program strategic plan prepared pursuant to subsection (2) and
239 shall contain performance measures and specific performance
240 targets for the following:
241 (a) The ability of low-income and moderate-income
242 Floridians to access housing that is decent and affordable.
243 (b) The continued availability and affordability of housing
244 financed by the corporation to target populations.
245 (c) The availability of affordable financing programs,
246 including equity and debt products, and programs that reduce
247 gaps in conventional financing in order, to increase individual
248 access to housing and stimulate private production of affordable
249 housing.
250 (d) The establishment and maintenance of efficiencies in
251 the delivery of affordable housing.
252 (e) Such other measures as directed by the corporation’s
253 board of directors.
254
255 The corporation shall also compile data on the stimulus of
256 economic activity created by the affordable housing finance
257 programs administered by the corporation.
258 (2) The corporation, in coordination equal partnership with
259 the department, shall develop annually develop a long-range
260 program strategic plan for the provision of affordable housing
261 in this state as Florida as part of the department’s agency
262 strategic plan required pursuant to chapter 186. In part, the
263 plan must shall include provisions that maximize the abilities
264 of the corporation and the department to implement the state
265 housing strategy established under s. 420.0003, to respond to
266 federal housing initiatives, and to develop programs in a manner
267 that is more responsive to the needs of public and private
268 partners. The plan shall be developed on a schedule consistent
269 with that established by s. 186.021. For purposes of this
270 section act, the executive director or his or her designee shall
271 serve as the corporation’s representative to achieve a
272 coordinated and integrated planning relationship with the
273 department.
274 (3)(a) The corporation shall submit to the Governor and the
275 presiding officers of each house of the Legislature, within 6 2
276 months after the end of its fiscal year, a complete and detailed
277 report setting forth the corporation’s state and federal program
278 accomplishments using the most recent available data. The report
279 must include, but is not limited to:
280 (a) The following tenant characteristics in existing rental
281 units financed through corporation-administered programs:
282 1. The number of households served, delineated by income,
283 race, ethnicity, and age of the head of household.
284 2. The number of households served in large, medium, and
285 small counties as defined in s. 420.5087 and the extent to which
286 geographic distribution has been achieved in accordance with s.
287 420.5087.
288 3. The number of farmworker and commercial-fishing worker
289 households served.
290 4. The number of homeless households served.
291 5. The number of special needs households served.
292 6. By county, the average rent charged based on unit size.
293 (b) The number of rental units to which resources have been
294 allocated in the last fiscal year, including income and
295 demographic restrictions.
296 (c) The estimated average cost of producing units under
297 each rental or homeownership unit financed under each program in
298 the last fiscal year.
299 (d) By county, the average sales price of homeownership
300 units financed in the last fiscal year.
301 (e) The number of households served by homeownership
302 programs in the last fiscal year, including the income, race,
303 ethnicity, and age of the homeowner of each household.
304 (f) The percentage of homeownership loans that are in
305 foreclosure.
306 (g) The percentage of properties in the corporation’s
307 rental portfolio which have an occupancy rate below 90 percent.
308 (h) The amount of economic stimulus created by the
309 affordable housing finance programs administered by the
310 corporation for the most recent year available.
311 (i) For the State Apartment Incentive Loan (SAIL) Program,
312 a comprehensive list of all closed loans outstanding at the end
313 of the most recent fiscal year, including, but not limited to,
314 development name, city, county, developer, set-aside type, set
315 aside percentage, affordability term, total number of units,
316 number of set-aside units, lien position, original loan amount,
317 loan maturity date, loan balance at close of year, status of
318 loan, rate of interest, and interest paid.
319 (j) For the Florida Affordable Housing Guarantee Program, a
320 list of all guaranteed loans through the close of the most
321 recent fiscal year, including, but not limited to, development
322 name, city, county, developer, total number of units, issuer of
323 the bonds, loan maturity date, participation in the United
324 States Department of Housing and Urban Development Risk-Sharing
325 Program, original guarantee amount, guarantee amount at the
326 close of the fiscal year, status of guaranteed loans, and total
327 outstanding Florida Housing Finance Corporation Affordable
328 Housing Guarantee Program revenue bonds at the close of the most
329 recent fiscal year.
330 (k) Any other information the corporation deems
331 appropriate.
332 1. Its operations and accomplishments;
333 2. Its receipts and expenditures during its fiscal year in
334 accordance with the categories or classifications established by
335 the corporation for its operating and capital outlay purposes;
336 3. Its assets and liabilities at the end of its fiscal year
337 and the status of reserve, special, or other funds;
338 4. A schedule of its bonds outstanding at the end of its
339 fiscal year, together with a statement of the principal amounts
340 of bonds issued and redeemed during the fiscal year; and
341 5. Information relating to the corporation’s activities in
342 implementing the provisions of ss. 420.5087, 420.5088, and
343 420.5095.
344 (b) The report shall include, but not be limited to:
345 1. The number of people served, delineated by income, age,
346 family size, and racial characteristics.
347 2. The number of units produced under each program.
348 3. The average cost of producing units under each program.
349 4. The average sales price of single-family units financed
350 under s. 420.5088.
351 5. The average amount of rent charged based on unit size on
352 units financed under s. 420.5087.
353 6. The number of persons in rural communities served under
354 each program.
355 7. The number of farmworkers served under each program.
356 8. The number of homeless persons served under each
357 program.
358 9. The number of elderly persons served under each program.
359 10. The extent to which geographic distribution has been
360 achieved in accordance with the provisions of s. 420.5087.
361 11. The success of the Community Workforce Housing
362 Innovation Pilot Program in meeting the housing needs of
363 eligible areas.
364 12. Any other information the corporation deems
365 appropriate.
366 (4) Within 6 months after the end of its fiscal year, the
367 corporation shall submit audited financial statements prepared
368 in accordance with generally accepted accounting principles
369 which include all assets, liabilities, revenues, and expenses of
370 the corporation, and a list of all bonds outstanding at the end
371 of its fiscal year. with the annual report required by this
372 section, a copy of an annual financial audit of its accounts and
373 records and an annual compliance The audit must be of its
374 programs conducted by an independent certified public accountant
375 and performed in accordance with generally accepted auditing
376 standards and government auditing standards, and must
377 incorporate all reports, including compliance reports, as
378 required by such auditing standards.
379 (5) The Auditor General shall conduct an operational audit
380 of the accounts and records of the corporation and provide a
381 written report on the audit to the President of the Senate and
382 the Speaker of the House of Representatives by December 1, 2016.
383 Both the corporation’s business plan and annual report must
384 shall recognize the different fiscal periods under which the
385 corporation, the state, the Federal Government, and local
386 governments operate.
387 Section 7. Paragraph (b) of subsection (4) of section
388 420.0003, Florida Statutes, is amended to read:
389 420.0003 State housing strategy.—
390 (4) IMPLEMENTATION.—The Department of Economic Opportunity
391 and the Florida Housing Finance Corporation in carrying out the
392 strategy articulated herein shall have the following duties:
393 (b) The long-range program agency strategic plan of the
394 Department of Economic Opportunity must shall include specific
395 goals, objectives, and strategies that implement the housing
396 policies in this section and shall include the strategic plan
397 for housing production prepared by the corporation pursuant to
398 s. 420.511.
399 Section 8. Section 420.0006, Florida Statutes, is amended
400 to read:
401 420.0006 Authority to contract with corporation; contract
402 requirements; nonperformance.—The executive director of the
403 department shall contract, notwithstanding part I of chapter
404 287, with the Florida Housing Finance Corporation on a multiyear
405 basis to stimulate, provide, and foster affordable housing in
406 the state. The contract must incorporate the performance
407 measures required by s. 420.511 and must be consistent with the
408 provisions of the corporation’s strategic business plan prepared
409 in accordance with s. 420.511. The contract must provide that
410 if, in the event the corporation fails to comply with any of the
411 a performance measure measures required under by s. 420.511, the
412 executive director shall notify the Governor and shall refer the
413 nonperformance to the department’s inspector general for review
414 and determination as to whether such failure is due to forces
415 beyond the corporation’s control or whether such failure is due
416 to inadequate management of the corporation’s resources.
417 Advances shall continue to be made pursuant to s. 420.0005
418 during the pendency of the review by the department’s inspector
419 general. If such failure is due to outside forces, it may shall
420 not be deemed a violation of the contract. If such failure is
421 due to inadequate management, the department’s inspector general
422 shall provide recommendations regarding solutions. The Governor
423 may is authorized to resolve any differences of opinion with
424 respect to performance under the contract and may request that
425 advances continue in the event of a failure under the contract
426 due to inadequate management. The Chief Financial Officer shall
427 approve the request absent a finding by the Chief Financial
428 Officer that continuing such advances would adversely impact the
429 state; however, in any event the Chief Financial Officer shall
430 provide advances sufficient to meet the debt service
431 requirements of the corporation and sufficient to fund contracts
432 committing funds from the State Housing Trust Fund if so long as
433 such contracts are in accordance with the laws of this state.
434 Section 9. Subsection (1) of section 420.504, Florida
435 Statutes, is amended to read:
436 420.504 Public corporation; creation, membership, terms,
437 expenses.—
438 (1) There is created within the Department of Economic
439 Opportunity A public corporation and a public body corporate and
440 politic, to be known as the “Florida Housing Finance
441 Corporation,” is created within the Department of Economic
442 Opportunity.“Florida Housing Finance Corporation.” It is
443 declared to be the intent of and constitutional construction by
444 the Legislature that the Florida Housing Finance Corporation
445 constitutes an entrepreneurial public corporation organized to
446 provide and promote the public welfare by administering the
447 governmental function of financing or refinancing housing and
448 related facilities in this state Florida and that the
449 corporation is not a department of the executive branch of state
450 government within the scope and meaning of s. 6, Art. IV of the
451 State Constitution, but is functionally related to the
452 Department of Economic Opportunity in which it is placed. The
453 executive function of state government to be performed by the
454 executive director of the Department of Economic Opportunity in
455 the conduct of the business of the Florida Housing Finance
456 Corporation must be performed pursuant to a contract to monitor
457 and set performance standards for the implementation of the
458 business plan for the provision of housing approved for the
459 corporation as provided in s. 420.0006. This contract must shall
460 include the performance standards for the provision of
461 affordable housing in this state Florida established in the
462 strategic business plan described in s. 420.511.
463 Section 10. Subsection (1) of section 420.506, Florida
464 Statutes, is amended to read:
465 420.506 Executive director; agents and employees; inspector
466 general.—
467 (1) The appointment and removal of an executive director
468 shall be by the executive director of the Department of Economic
469 Opportunity, with the advice and consent of the corporation’s
470 board of directors. The executive director shall employ legal
471 and technical experts and such other agents and employees,
472 permanent and temporary, as the corporation may require, and
473 shall communicate with and provide information to the
474 Legislature with respect to the corporation’s activities. The
475 board is authorized, Notwithstanding the provisions of s.
476 216.262, the board may to develop and implement rules regarding
477 the employment of employees of the corporation and service
478 providers, including legal counsel. The board of directors of
479 the corporation is entitled to establish travel procedures and
480 guidelines for employees of the corporation, subject to s.
481 112.061(6) and (7). The executive director’s office and the
482 corporation’s files and records must be located in Leon County.
483 Section 11. Section 420.5091, Florida Statutes, is
484 repealed.
485 Section 12. This act shall take effect upon becoming a law
486 and shall first apply to the 2013 ad valorem tax rolls.