Senate Bill 0260c1

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


    Florida Senate - 1999                            CS for SB 260

    By the Committee on Commerce and Economic Opportunities; and
    Senators Kirkpatrick and Hargrett




    310-2033-99

  1                      A bill to be entitled

  2         An act relating to economic development in

  3         urban communities; creating 414.224, F.S.;

  4         creating the Retention Enhancing Communities

  5         Initiative; providing for the identification of

  6         communities; requiring solicitation of

  7         proposals; providing for the selection of RECI

  8         participants by the WAGES Program State Board

  9         of Directors; providing for RECI elements;

10         requiring the Governor to designate a

11         coordinator; establishing a center for

12         community excellence; providing appropriations

13         for RECI elements; providing restrictions of

14         funds; providing for monitoring and reporting;

15         creating s. 220.185, F.S.; creating the State

16         Housing Tax Credit Program; providing

17         legislative findings and policy; providing

18         definitions; providing for a credit against the

19         corporate income tax in an amount equal to a

20         percentage of the eligible basis of certain

21         housing projects; providing a limitation;

22         amending s. 250.10, F.S.; requiring the

23         Adjutant General to administer a

24         life-preparation program and job-readiness

25         services; creating s. 290.0069, F.S.; directing

26         the Office of Tourism, Trade, and Economic

27         Development to designate a pilot project area

28         within an enterprise zone; providing

29         qualifications for such area; providing that

30         certain businesses in such area are eligible

31         for credits against the tax on sales, use, and

                                  1

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






    Florida Senate - 1999                            CS for SB 260
    310-2033-99




  1         other transactions and corporate income tax;

  2         providing for computation of such credits;

  3         providing application procedures and

  4         requirements; providing rulemaking authority;

  5         requiring a review and report by the Office of

  6         Program Policy Analysis and Government

  7         Accountability; providing for future repeal and

  8         revocation of such designation; providing an

  9         extended period for certain businesses to claim

10         enterprise-zone tax incentives; authorizing

11         amendments to the boundaries of an enterprise

12         zone in a community with a brownfield pilot

13         project; creating s. 420.5093, F.S.; providing

14         for allocation of state housing tax credits and

15         administration by the Florida Housing Finance

16         Corporation; providing for an annual plan;

17         providing application procedures; providing

18         that neither tax credits nor financing

19         generated thereby may be considered income for

20         ad valorem tax purposes; providing for

21         recognition of certain income by the property

22         appraiser; creating s. 420.630, F.S.; creating

23         the Urban Homesteading Act; creating s.

24         420.631, F.S.; providing definitions; creating

25         s. 420.632, F.S.; authorizing housing

26         authorities or nonprofit community

27         organizations appointed by the housing

28         authority to operate a program to make

29         foreclosed single-family housing available to

30         purchase by certain qualified buyers; creating

31         s. 420.633, F.S.; providing eligibility

                                  2

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






    Florida Senate - 1999                            CS for SB 260
    310-2033-99




  1         requirements for entering into a homestead

  2         agreement to acquire such housing; creating s.

  3         420.634, F.S.; providing an application

  4         process; providing requirements for deeding the

  5         property to the qualified buyer; creating s.

  6         420.635, F.S.; providing for the Department of

  7         Community Affairs to make loans to qualified

  8         buyers, contingent upon an appropriation;

  9         providing requirements for the loan agreement;

10         providing an effective date.

11

12  Be It Enacted by the Legislature of the State of Florida:

13

14         Section 1.  Effective upon this act becoming a law,

15  section 414.224, Florida Statutes, is created to read:

16         414.224  Retention Enhancing Communities Initiative.--

17         (1)  LEGISLATIVE INTENT.--The Legislature finds that

18  Florida has numerous distressed urban cores with high

19  proportions of residents who are former and current WAGES

20  Program participants. The Legislature further finds that the

21  existence of strong neighborhoods and communities is crucial

22  to reduce recidivism among former WAGES Program participants,

23  and to create new jobs and promote job retention for current

24  WAGES Program participants. Therefore, it is the intent of the

25  Legislature to create a program designed to develop these

26  communities with the help of, and for the benefit of, current

27  and former WAGES Program participants.

28         (2)  CREATION.-- The Retention Enhancing Communities

29  Initiative (RECI) is created to leverage federal, state, and

30  local resources for community redevelopment initiatives that

31  promote job retention among WAGES Program participants.

                                  3

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






    Florida Senate - 1999                            CS for SB 260
    310-2033-99




  1  Selected communities will identify and compete for projects

  2  coordinated around the six community-enhancing elements of

  3  community safety, community builders, community businesses,

  4  community schools, community partnerships, and community

  5  redevelopment.

  6         (3) SELECTION OF RECI COMMUNITIES.--

  7         (a) By July 1, 1999, the WAGES Program State Board of

  8  Directors, in consultation with local WAGES coalitions, will

  9  identify 14 communities in the state's seven largest counties.

10  These communities must be compact, congruent, and contiguous

11  census tracts that have the highest concentrations of

12  residents who are current or former WAGES Program

13  participants. To the maximum extent possible, these

14  communities should coincide with federal empowerment zones,

15  enterprise zones established under chapter 290, Neighborhood

16  Improvement Districts established under chapter 163, community

17  redevelopment areas established under chapter 163, and Urban

18  High Crime Areas established under chapter 212. By August 1,

19  1999, the WAGES Program State Board of Directors must contract

20  with an independent entity to certify that these 14

21  communities comply with the requirements of this section.

22         (b) By July 10, 1999, the WAGES Program State Board of

23  Directors shall solicit proposals from the communities

24  identified in paragraph (a) for participation in RECI.

25  Proposals should be general in nature, be no more than 20

26  pages long, and include:

27         1. A brief plan describing how the community will

28  coordinate and incorporate the six RECI elements into the

29  community's redevelopment strategy;

30

31

                                  4

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






    Florida Senate - 1999                            CS for SB 260
    310-2033-99




  1         2. Specific evidence of community support from

  2  community-based organizations and local government for

  3  participation in RECI;

  4         3. For each RECI element, identification and commitment

  5  of local resources from community-based organizations, local

  6  government, and others, to be leveraged by federal and state

  7  resources;

  8         4.  Identification of the specific entity or person

  9  responsible for coordinating the community's participation in

10  RECI; and

11         5.  Identification of local administrative entities.

12         (c) Based on proposal evaluation criteria developed by

13  the WAGES Program State Board of Directors, the board shall,

14  by October 1, 1999, select up to nine communities to

15  participate in RECI, and notify each community of such

16  selection. All RECI projects must be fully operational by

17  January 1, 2000, and must be completed by December 31, 2001.

18         (4) RECI ELEMENTS.--Once a community is selected as a

19  RECI participant, the community may compete for awards in each

20  RECI element. Awards will be granted by the WAGES Program

21  State Board of Directors and will be based on a project plan

22  that must be consistent with the community's proposal

23  describing the coordination and incorporation of the RECI

24  elements. The WAGES Program State Board of Directors shall

25  develop guidelines and criteria for the application and award

26  of the funds. Criteria must provide additional weight for

27  criteria relating to community involvement, business

28  involvement, and local contributions. Unless otherwise

29  provided for, the board or its designated agents shall

30  administer the award of funds for each RECI element and must

31

                                  5

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






    Florida Senate - 1999                            CS for SB 260
    310-2033-99




  1  provide assurances that projects are completed pursuant to

  2  project plans. RECI elements include the following:

  3         (a) WAGES Community Safety.--Funds may be awarded for

  4  projects that increase the safety and reduce crime in RECI

  5  communities. Funds may be used to train and employ WAGES

  6  Program participants in public safety jobs; establish security

  7  businesses and services; train residents in safety practices

  8  and organize safety networks; improve lighting, alarms, and

  9  law enforcement equipment; improve the safety of homes,

10  buildings, and streets; and provide community police. Local

11  law enforcement agencies must be a contributing partner in

12  safety projects. The Department of Community Affairs and the

13  Florida Department of Law Enforcement shall assign a

14  representative of their departments to assist these

15  communities with public safety issues and, notwithstanding any

16  other provision in law, may award public safety grants to

17  these communities.

18         (b) WAGES Community Builders.--Funds may be awarded for

19  small community clean-up and enhancement projects that quickly

20  create visible improvements and for planning and

21  implementation of larger neighborhood revitalization and

22  economic development initiatives.

23         1. Funds for the WAGES Community Builders element may

24  be awarded for small community clean-up and enhancement

25  projects. Projects must include WAGES Program participants,

26  must last less than 3 weeks, and must be endorsed by the local

27  unit of government. Funding may not exceed $5,000 per project

28  without a waiver from the WAGES Program State Board of

29  Directors. The board shall enlist the Department of State's

30  Main Street program, Keep Florida Beautiful, Inc., and, when

31  approved by the Governor, the Florida National Guard, to

                                  6

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






    Florida Senate - 1999                            CS for SB 260
    310-2033-99




  1  advise and assist with these projects and to redirect

  2  resources to these communities.

  3         2. Funds for the WAGES Community Builders element may

  4  be awarded for the planning and implementation of large

  5  neighborhood revitalization or economic development

  6  initiatives. Funding for planning projects may not exceed

  7  $200,000, and may not, in total, exceed 20 percent of the

  8  funds available for this element. Funding for implementation

  9  projects may not in total exceed 20 percent of the funds

10  available for this element and must primarily leverage

11  federal, state, local, private, or foundation resources other

12  than those provided for in this section. Planning and

13  implementation projects shall employ WAGES Program

14  participants from the RECI community to the greatest extent

15  possible.

16         (c) WAGES Community Businesses.--Funds may be awarded

17  for small business-development projects, including

18  national-franchise attraction efforts, microloans, guaranteed

19  commercial loans, technical assistance, self-employment, and

20  business incubators at educational institutions. At least 95

21  percent of funds awarded for these projects must be for the

22  benefit of WAGES Program participants in RECI communities. The

23  WAGES Program State Board of Directors shall work with the

24  Comptroller to target the linked-deposit program under s.

25  290.0075 into these communities, and the Comptroller shall, to

26  the greatest extent he or she deems practical, implement that

27  program in RECI communities. Using funds appropriated for this

28  element, the WAGES Program State Board of Directors, or its

29  designated agent, shall establish a $10-million loan-loss

30  reserve to encourage and guarantee commercial loans made under

31  this element, and shall develop a tax-free bond fund to

                                  7

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






    Florida Senate - 1999                            CS for SB 260
    310-2033-99




  1  provide and expand the secondary loan market for commercial

  2  loans made in RECI communities. The WAGES Program State Board

  3  of Directors, or its designated agent, shall approach and

  4  propose joint ventures with national franchisers committing to

  5  train individuals for and partially underwrite new franchise

  6  ventures in RECI communities.

  7         (d) WAGES Community Schools.--Funds may be awarded for

  8  WAGES Community School projects that upgrade schools through

  9  construction, repair, or renovation, or which provide training

10  and employment to WAGES Program participants to assist with

11  transportation, school services, and security. Schools

12  accepting this assistance must offer before, after, and summer

13  school programs for students who are WAGES Program

14  participants.

15         (e) WAGES Community Partnerships.--Funds may be awarded

16  for WAGES Community Partnership projects to make payments of

17  tax credits to businesses that contribute to projects in RECI

18  communities which are eligible under the community

19  contribution tax credit program under ss. 220.183 and

20  624.5105. Business contributions must benefit WAGES Program

21  participants in these communities. Funds may equal 30 percent

22  of the business's contribution and may apply to contributions

23  of any size if adequate funds are available in this RECI

24  element. The Office of Tourism, Trade, and Economic

25  Development and the Department of Revenue shall assist the

26  WAGES Program State Board of Directors in administering such

27  tax credits. Projects may also match, up to a

28  dollar-for-dollar level, any foundation awards to RECI

29  communities which will improve job retention and reduce public

30  assistance dependency as determined by the WAGES Program State

31  Board of Directors.

                                  8

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






    Florida Senate - 1999                            CS for SB 260
    310-2033-99




  1         (f) WAGES Community Redevelopment.--Funds may be

  2  awarded for WAGES Community Redevelopment projects to

  3  facilitate the planning, preparing, marketing, and financing

  4  of residential, mixed-use, and commercial development

  5  projects, as well as residential and business infrastructure

  6  redevelopment projects in RECI communities. Projects that

  7  would mainly result in gentrification of the community, that

  8  would not employ a preponderance of WAGES Program

  9  participants, and that predominately create residences or

10  business sites that are beyond the anticipated income level of

11  working WAGES Program participants are not eligible.

12         1. The Office of Tourism, Trade, and Economic

13  Development shall be the administrator of projects under this

14  paragraph and shall develop criteria for the award of the

15  funds. Funds available under this element must be leveraged

16  with federal, state, and local resources, including, but not

17  limited to, those available through the local unit of

18  government under the Community Development Block Grant,

19  section 108 loan guarantee program, and through state agencies

20  including the Department of Community Affairs, the Department

21  of Environmental Protection, and the Florida Housing Finance

22  Corporation.

23         2. A redevelopment finance review team including the

24  WAGES Program State Board of Directors, the Office of Tourism,

25  Trade, and Economic Development, Enterprise Florida, Inc., the

26  appropriate local WAGES coalition, the appropriate local unit

27  of government, the Department of Community Affairs, the

28  Department of Environmental Protection, and the Florida

29  Housing Finance Corporation shall review all project plans and

30  coordinate available resources, matching expenditures to

31  eligible and available revenues that may be invested in the

                                  9

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






    Florida Senate - 1999                            CS for SB 260
    310-2033-99




  1  project. The team shall seek federal funding assistance in

  2  these projects and may identify and recommend projects for

  3  award under the WAGES Targeted Employment and WAGES

  4  transportation projects established by law. The team shall

  5  recommend appropriate projects to the State Board of

  6  Administration for public investment. Their collaborative

  7  project package shall constitute a recommended public

  8  financing commitment that shall serve to induce private

  9  developers to finance the remaining costs of the project.

10  Notwithstanding the provisions of s. 216.301, funds

11  appropriated for the purpose of this paragraph shall not be

12  subject to reversion.

13         3. The Office of Tourism, Trade, and Economic

14  Development, based upon the recommendation from the team, may

15  award project funds to RECI communities for up to 30 percent

16  of the total project cost. In awarding funds, the office shall

17  consider factors including, but not limited to, the project's

18  direct employment of WAGES Program participants in planning,

19  development, or construction; eventual direct employment of

20  WAGES Program participants; residences or businesses to be

21  owned by WAGES Program participants; impact on retention in

22  employment of WAGES Program participants; impact on lowering

23  recidivism and dependency on public assistance programs;

24  demonstrated local public and private commitment; and the

25  potential to enhance and upgrade the community.

26         4. To facilitate timely response and induce the

27  development of site opportunities where a community-based or

28  private-sector partner exists, the Office of Tourism, Trade,

29  and Economic Development may award funds for infrastructure

30  feasibility studies, design and engineering activities,

31  project development and packaging, or other infrastructure

                                  10

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






    Florida Senate - 1999                            CS for SB 260
    310-2033-99




  1  planning and preparation activities. Such funds may not exceed

  2  $300,000 per project, and may not exceed 5 percent of the

  3  total funding available under this paragraph.

  4         5. The Office of Tourism, Trade, and Economic

  5  Development shall pursue execution of a memorandum of

  6  agreement with the Department of Housing and Urban Development

  7  and other federal or state partners under which state funds

  8  available through this element may be advanced, in excess of

  9  the prescribed state share, for a project that has received

10  from the department or partner a preliminary determination of

11  eligibility for financial support. State funds in excess of

12  the prescribed state share which are advanced pursuant to this

13  paragraph and a memorandum of agreement shall be reimbursed

14  when funds are awarded under an application for other

15  financing.

16         6. To facilitate development of prospective sites, the

17  Office of Tourism, Trade, and Economic Development may award

18  funds for surveys, feasibility studies, project development,

19  packaging, marketing, and other activities related to the

20  identification, marketing, and preparation of sites of up to

21  $150,000. Such funds shall require a match from local sources

22  of 33 percent and the total grants awarded under this

23  subparagraph shall not exceed 5 percent of the total funding

24  available under this paragraph.

25         (5) The Governor shall name by July 15, 1999, a

26  coordinator in the Office of Urban Opportunity with the

27  authority, established by executive order, to work with the

28  WAGES Program State Board of Directors to direct agency

29  assistance, solve problems, and commit resources to RECI

30  communities.

31

                                  11

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






    Florida Senate - 1999                            CS for SB 260
    310-2033-99




  1         (6) By August 15, 1999, working with the Workforce

  2  Development Board, the WAGES Program State Board of Directors

  3  shall establish a center for community excellence, affiliated

  4  with an educational institution or group of educational

  5  institutions, which will provide research, consulting,

  6  technical assistance, capacity building, training, and program

  7  assistance services to RECI communities.

  8         (7) FUNDING.--

  9         (a) For Fiscal Year 1999-2000, the following funds are

10  appropriated and may be carried forward for RECI projects

11  authorized under this section:

12         1. For the WAGES Community Safety element, $25 million

13  designated for WAGES under Temporary Assistance for Needy

14  Families;

15         2. For the WAGES Community Builders element, $20

16  million from unclaimed Lottery prize funding;

17         3. For the WAGES Community Businesses element, $25

18  million designated for WAGES under Temporary Assistance for

19  Needy Families;

20         4. For the WAGES Community Schools element, $25 million

21  designated for WAGES under Temporary Assistance for Needy

22  Families;

23         5. For the WAGES Community Partnerships element, $30

24  million designated for WAGES under Temporary Assistance for

25  Needy Families; and

26         6. For the WAGES Community Redevelopment element, $10

27  million designated for WAGES under Temporary Assistance for

28  Needy Families each year until the year 2010, and $15 million

29  annually designated for the Transportation Trust Fund from the

30  Rental Car Surcharge under s. 212.0606. Such revenues may be

31  assigned, pledged, or set aside as a trust for the payment of

                                  12

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






    Florida Senate - 1999                            CS for SB 260
    310-2033-99




  1  principal or interest on bonds, grants, anticipation notes,

  2  variable-rate demand obligations including, but not limited

  3  to, tax-exempt commercial paper and derivative instruments, or

  4  any other form of indebtedness, or may be used to purchase

  5  credit support to permit such borrowing, issued by a governing

  6  body under s. 163.01(7)(d), or appropriate local government

  7  having jurisdiction thereof, or collectively by inter-local

  8  agreement among any applicable government; however, such debt

  9  does not constitute a general obligation of the state. The

10  state covenants with holders of such revenue bonds or other

11  instruments of indebtedness issued hereunder that it will not

12  repeal, impair, or amend in any manner that will materially

13  and adversely affect the rights of such holders as long as

14  bonds authorized by this subsection are outstanding. Any

15  revenues that are not pledged to the repayment of bonds as

16  authorized by this subparagraph may be used for purposes

17  authorized under this element. Funds provided for in this

18  element may not be diverted for any other purpose. For

19  projects in this element, the governing body of each

20  government may exercise powers provided to municipalities or

21  counties in s. 163.01(7)(d).

22         (b) Any expenditure from the Temporary Assistance for

23  Needy Families block grant shall be expended in accordance

24  with the requirements and limitations of Title IV of the

25  Social Security Act, as amended, or any other applicable

26  federal requirement or limitation in law. Prior to any

27  expenditure of such funds, the WAGES Program State Board of

28  Directors and the Secretary of Children and Family Services,

29  or his or her designee, shall certify that controls are in

30  place to ensure that such funds are expended and reported in

31  accordance with the requirements and limitations of federal

                                  13

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






    Florida Senate - 1999                            CS for SB 260
    310-2033-99




  1  law. It shall be the responsibility of any entity to which

  2  funds are awarded to obtain the required certification prior

  3  to any expenditure of funds.

  4         (c) Unexpended proceeds derived from a project

  5  completed with the use of program funds, beyond the operating

  6  costs and debt service, shall be restricted to further

  7  expenditures within the element. Use of such unexpended

  8  proceeds for purposes other than those authorized by this act

  9  is prohibited.

10         (d) No more than 5 percent of the funds available under

11  this section may be used by the board or its designated agents

12  to administer and monitor the awards.

13         (e) Funds authorized under this section must augment

14  the existing efforts or resources of local communities rather

15  than offset or supplant them.

16         (8) The Governor shall notify the President of the

17  United States and the Florida Congressional Delegation of any

18  delays by the federal government affecting the prompt

19  implementation of this section, and enlist their assistance in

20  resolution of such delays. By budget amendment, the Governor

21  shall identify and transfer funds to continue this initiative

22  on schedule, notwithstanding federal delays. With the

23  assistance of the Secretary of Children and Family Services

24  and the Attorney General, the Governor shall then explore

25  administrative and judicial options to gain reimbursement.

26         (9) MONITORING AND REPORTING.--

27         (a) The independent entity selected by the WAGES

28  Program State Board of Directors to certify compliance by the

29  14 communities identified under paragraph (2)(a) shall also

30  identify four other similar communities to serve as a control

31  group for RECI. The entity must measure performance trends in

                                  14

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






    Florida Senate - 1999                            CS for SB 260
    310-2033-99




  1  the control group communities, the communities that applied

  2  for RECI designation but were not selected, and the

  3  communities selected to participate in RECI. The four control

  4  communities shall be known only to the entity until the

  5  completion of the initiative. The entity shall develop,

  6  working with the Office of Program Policy Analysis and

  7  Government Accountability and the WAGES Program State Board of

  8  Directors, criteria by October 1, 1999, to measure the impact

  9  of the initiative. Such criteria must include the total

10  revenues generated and invested in RECI communities, and the

11  amount of revenue saved from the retention of WAGES Program

12  participants.

13         (b) In addition to a comprehensive final report due

14  February 15, 2002, the WAGES Program State Board of Directors

15  must report to the Governor and Legislature every 6 months

16  beginning January 1, 2000, on the progress of RECI. Reports

17  must include tangible impacts of the initiative. The final

18  report shall include recommendations relating to the potential

19  development of a RECI program for communities in mid-sized

20  counties. The report must additionally recognize the three

21  most successful RECI communities and designate these

22  communities Florida's "come-back communities."

23         Section 2.  Section 220.185, Florida Statutes, is

24  created to read:

25         220.185  State housing tax credit.--

26         (1)  LEGISLATIVE FINDINGS.--The Legislature finds that:

27         (a)  There exists within the urban areas of the state

28  conditions of blight evidenced by extensive deterioration of

29  public and private facilities, abandonment of sound

30  structures, and high unemployment, and these conditions impede

31

                                  15

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






    Florida Senate - 1999                            CS for SB 260
    310-2033-99




  1  the conservation and development of healthy, safe, and

  2  economically viable communities.

  3         (b)  Deterioration of housing and industrial,

  4  commercial, and public facilities contributes to the decline

  5  of neighborhoods and communities and leads to the loss of

  6  their historic character and the sense of community which this

  7  inspires; reduces the value of property comprising the tax

  8  base of local communities; discourages private investment; and

  9  requires a disproportionate expenditure of public funds for

10  the social services, unemployment benefits, and police

11  protection required to combat the social and economic problems

12  found in urban communities.

13         (c)  In order to ultimately restore social and economic

14  viability to urban areas, it is necessary to renovate or

15  construct new infrastructure and housing, including housing

16  specifically targeted for the elderly, and to specifically

17  provide mechanisms to attract and encourage private economic

18  activity.

19         (d)  The various local governments and other

20  redevelopment organizations now undertaking physical

21  revitalization projects and new housing developments in urban

22  areas are limited by tightly constrained budgets and

23  inadequate resources.

24         (e)  In order to significantly improve revitalization

25  efforts by local governments and community development

26  organizations and to retain as much of the historic character

27  of our communities as possible, it is necessary to provide

28  additional resources, and the participation of private

29  enterprise in revitalization efforts is an effective means for

30  accomplishing that goal.

31

                                  16

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






    Florida Senate - 1999                            CS for SB 260
    310-2033-99




  1         (2)  POLICY AND PURPOSE.--It is the policy of this

  2  state to encourage the participation of private corporations

  3  in revitalization projects within urban areas. The purpose of

  4  this section is to provide an incentive for such participation

  5  by granting state corporate-income-tax credits to qualified

  6  low-income housing projects, including housing specifically

  7  designed for the elderly, and associated mixed-use projects.

  8  The Legislature thus declares this a public purpose for which

  9  public money may be borrowed, expended, loaned, and granted.

10         (3)  DEFINITIONS.--As used in this section, the term:

11         (a)  "Credit period" means the period of 5 years

12  beginning with the year the project is completed.

13         (b)  "Eligible basis" means a project's adjusted basis

14  as of the close of the first taxable year of the credit

15  period.

16         (c)  "Adjusted basis" means the owner's adjusted basis

17  in the project, calculated in a manner consistent with the

18  calculation of basis under the Internal Revenue Code, taking

19  into account the adjusted basis of property of a character

20  subject to the allowance for depreciation used in common areas

21  or provided as comparable amenities to the entire project.

22         (d)  "Designated project" means a qualified project

23  designated pursuant to s. 420.5093 to receive the tax credit

24  under this section.

25         (e)  "Qualified project" means a project located in an

26  urban infill area, at least 50 percent of which, on a cost

27  basis, consists of a qualified low-income project within the

28  meaning of s. 42(g) of the Internal Revenue Code, including

29  such projects designed specifically for the elderly but

30  excluding any income restrictions imposed pursuant to s. 42(g)

31  of the Internal Revenue Code upon residents of the project

                                  17

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






    Florida Senate - 1999                            CS for SB 260
    310-2033-99




  1  unless such restrictions are otherwise established by the

  2  Florida Housing Finance Corporation pursuant to s. 420.5093,

  3  and the remainder of which constitutes commercial or

  4  single-family residential development consistent with and

  5  serving to complement the qualified low-income project.

  6         (f)  "Urban infill area" means an area designated for

  7  urban infill as defined by s. 163.3164.

  8         (4)  AUTHORIZATION TO GRANT STATE HOUSING TAX CREDITS;

  9  LIMITATION.--

10         (a)  There shall be allowed a credit of 9 percent of

11  the eligible basis of any designated project for each year of

12  the credit period against any tax due for a taxable year under

13  this chapter.

14         (b)  The total amount of tax credit which may be

15  granted for all projects approved under this section is $5

16  million annually, for each of 5 years.

17         (c)  The tax credit shall be allocated among designated

18  projects by the Florida Housing Finance Corporation as

19  provided in s. 420.5093.

20         (d)  Each designated project must comply with the

21  applicable provisions of s. 42 of the Internal Revenue Code

22  with respect to the multifamily residential rental housing

23  element of the project, including specifically the provisions

24  of s. 42(h)(6).

25         (e)  A tax credit shall be allocated to a designated

26  project and shall not be subject to transfer by the recipient

27  unless the transferee is also an owner of the designated

28  project.

29         Section 3.  Paragraph (m) is added to subsection (2) of

30  section 250.10, Florida Statutes, 1998 Supplement, to read:

31

                                  18

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






    Florida Senate - 1999                            CS for SB 260
    310-2033-99




  1         250.10  Appointment and duties of the Adjutant

  2  General.--

  3         (2)  The Adjutant General of the state shall be the

  4  Chief of the Department of Military Affairs. He or she shall:

  5         (m)  Subject to annual appropriations, administer youth

  6  About Face programs and adult Forward March programs at sites

  7  to be selected by the Adjutant General.

  8         1.  About Face shall establish a summer and a

  9  year-round afterschool life-preparation program for

10  economically disadvantaged and at-risk youths from 13 through

11  17 years of age. Both programs must provide schoolwork

12  assistance, focusing on the skills needed to pass the high

13  school competency test, and also focus on functional life

14  skills, including teaching students to work effectively in

15  groups; providing basic instruction in computer skills;

16  teaching basic problem solving, decision making, and reasoning

17  skills; teaching how the business world and free enterprise

18  work through computer simulations; and teaching home finance

19  and budgeting and other daily living skills. In the

20  afterschool program, students must train in academic study

21  skills and the basic skills that businesses require for

22  employment consideration.

23         2.  The Adjutant General shall provide job-readiness

24  services in the Forward March program for WAGES program

25  participants who are directed to Forward March by local WAGES

26  coalitions. The Forward March program shall provide training

27  on topics that directly relate to the skills required for

28  real-world success. The program shall emphasize functional

29  life skills, computer literacy, interpersonal relationships,

30  critical-thinking skills, business skills, preemployment and

31  work maturity skills, job-search skills, exploring careers

                                  19

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






    Florida Senate - 1999                            CS for SB 260
    310-2033-99




  1  activities, how to be a successful and effective employee, and

  2  some job-specific skills. The program also shall provide

  3  extensive opportunities for participants to practice generic

  4  job skills in a supervised work setting. Upon completion of

  5  the program, Forward March shall return participants to the

  6  local WAGES coalition for placement in a job-placement pool.

  7         Section 4.  Effective upon this act becoming a law,

  8  section 290.0069, Florida Statutes, is created to read:

  9         290.0069  Designation of enterprise zone pilot project

10  area.--

11         (1)  The Office of Tourism, Trade, and Economic

12  Development shall designate one pilot project area within one

13  state enterprise zone. The Office of Tourism, Trade, and

14  Economic Development shall select a pilot project area by July

15  1, 1999, which meets the following qualifications:

16         (a)  The area is contained within an enterprise zone

17  that is composed of one contiguous area and is placed in the

18  category delineated in s. 290.0065(3)(a)1.

19         (b)  The local government having jurisdiction over the

20  enterprise zone grants economic development ad valorem tax

21  exemptions in the enterprise zone pursuant to s. 196.1995, and

22  electrical energy public service tax exemptions pursuant to s.

23  166.231(8).

24         (c)  The local government having jurisdiction over the

25  enterprise zone has developed a plan for revitalizing the

26  pilot project area, or for revitalizing an area within the

27  enterprise zone that contains the pilot project area, and has

28  committed at least $5 million to redevelop an area including

29  the pilot project area.

30         (d)  The pilot project area is contiguous and is

31  limited to no more than 70 acres, or equivalent square miles,

                                  20

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






    Florida Senate - 1999                            CS for SB 260
    310-2033-99




  1  to avoid a dilution of additional state assistance and

  2  effectively concentrate these additional resources on

  3  revitalizing the acute area of economic distress.

  4         (e)  The pilot project area contains a diverse cluster

  5  or grouping of facilities or space for a mix of retail,

  6  restaurant, or service-related businesses necessary to an

  7  overall revitalization of surrounding neighborhoods through

  8  community involvement, investment, and enhancement of

  9  employment markets.

10         (2)(a)  Beginning December 1, 1999, no more than four

11  businesses located within the pilot project area are eligible

12  for a credit against any taxes due for a taxable year under

13  chapters 212 and 220.

14         (b)  The credit shall be computed as $5,000 times the

15  number of full-time employees of the business and $2,500 times

16  the number of part-time employees of the business. For

17  purposes of this section, a person is considered to be

18  employed by such a business on a full-time basis if the person

19  performs duties in connection with the operations of the

20  business for an average of at least 36 hours per week each

21  month, or on a part-time basis if the person is performing

22  such duties for an average of at least 20 hours per week each

23  month throughout the year. The person must be performing such

24  duties at a business site located in the pilot project area.

25         (c)  The total amount of tax credits that may be

26  granted under this section is $1 million annually. If the

27  Office of Tourism, Trade, and Economic Development receives

28  applications that total more than $1 million in any year, the

29  director shall prorate the amount of tax credit each applicant

30  is eligible to receive to ensure that all eligible applicants

31  receive a tax credit.

                                  21

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






    Florida Senate - 1999                            CS for SB 260
    310-2033-99




  1         (d)  In order to be eligible to apply to the Office of

  2  Tourism, Trade, and Economic Development for tax credits under

  3  this section a business must:

  4         1.  Have entered into a contract, with the developer of

  5  the diverse cluster or grouping of facilities or space located

  6  in the pilot project area, governing lease of commercial space

  7  in a facility.

  8         2.  Have commenced operations in the facility after

  9  July 1, 1999, and before July 1, 2000.

10         3.  Be a business predominantly engaged in activities

11  usually provided for consideration by firms classified under

12  the Standard Industrial Classification Manual Industry Number

13  5311, Industry Number 5399, or Industry Number 7832.

14         (e)  All applications for the granting of the tax

15  credits allowed under this section shall require the prior

16  approval of the director of the Office of Tourism, Trade, and

17  Economic Development. The director shall establish one

18  submittal date each year for the receipt of applications for

19  such tax credits.

20         (f)  Any business seeking to receive tax credits

21  pursuant to this section must submit an application to the

22  Office of Tourism, Trade, and Economic Development which sets

23  forth the business name and address and the number of

24  employees of the business.

25         (g)  The decision of the director must be in writing,

26  and, if approved, the application must state the maximum

27  credits allowable to the business. A copy of the decision

28  shall be transmitted to the executive director of the

29  Department of Revenue, who shall apply such credits to the tax

30  liabilities of the business firm.

31

                                  22

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






    Florida Senate - 1999                            CS for SB 260
    310-2033-99




  1         (h)  If any credit granted pursuant to this section is

  2  not fully used in any one year because of insufficient tax

  3  liability on the part of the business, the unused amount may

  4  be carried forward for a period not to exceed 5 years.

  5         (4)  The Office of Tourism, Trade, and Economic

  6  Development is authorized to adopt all rules necessary to

  7  administer this section, including rules for the approval or

  8  disapproval of applications for tax incentives by businesses.

  9         (5)  The Department of Revenue shall adopt any rules

10  necessary to ensure the orderly implementation and

11  administration of this section.

12         (6)  For purposes of this section, the terms "business"

13  and "taxable year" have the meanings ascribed in s. 220.03.

14         (7)  Prior to the 2001 Regular Session of the

15  Legislature, the Office of Program Policy Analysis and

16  Government Accountability shall review and evaluate the

17  effectiveness and viability of the pilot project area created

18  under this section, using the research design prescribed

19  pursuant to s. 290.015. The office shall specifically evaluate

20  whether relief from certain taxes induced new investment and

21  development in the area, increased the number of jobs created

22  or retained in the area, induced the renovation,

23  rehabilitation, restoration, improvement, or new construction

24  of businesses or housing within the area, and contributed to

25  the economic viability and profitability of business and

26  commerce located within the area. The office shall submit a

27  report of its findings and recommendations to the President of

28  the Senate and to the Speaker of the House of Representatives

29  by January 15, 2001.

30

31

                                  23

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






    Florida Senate - 1999                            CS for SB 260
    310-2033-99




  1         (8)  This section shall stand repealed on June 30,

  2  2015, and any designation made pursuant to this section shall

  3  be revoked on that date.

  4         Section 5.  Notwithstanding the time limitations

  5  contained in chapters 212 and 220, Florida Statutes, relating

  6  to enterprise-zone tax incentives, a business that was

  7  purchased in February 1992 within an area of Tampa that

  8  received a designation as an enterprise zone under section

  9  290.0065, Florida Statutes, effective July 1, 1995, and that

10  was eligible to receive enterprise-zone tax incentives from

11  July 1, 1995, to July 1, 1998, must submit an application for

12  the tax incentives by December 1, 1999. All other requirements

13  of the enterprise zone program apply to such a business.

14         Section 6.  Notwithstanding any provision of law to the

15  contrary, the governing body of a municipality or a county

16  containing a U.S. Environmental Protection Agency brownfield

17  pilot project that was designated as of May 1, 1997, may apply

18  to the Office of Tourism, Trade, and Economic Development

19  before December 31, 1999, to amend the boundaries of an

20  enterprise zone designated in a municipality or a county

21  containing such brownfield pilot project. The office shall

22  approve the application to amend the boundaries of the

23  enterprise zone if the added area does not increase the

24  overall size of the expanded zone more than its original size

25  or 20 square miles, whichever is larger.

26         Section 7.  Section 420.5093, Florida Statutes, is

27  created to read:

28         420.5093  State Housing Tax Credit Program.--

29         (1)  There is created the State Housing Tax Credit

30  Program for the purposes of stimulating creative

31  private-sector initiatives to increase the supply of

                                  24

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






    Florida Senate - 1999                            CS for SB 260
    310-2033-99




  1  affordable housing in urban areas, including, specifically,

  2  housing for the elderly, and to provide associated commercial

  3  facilities associated with such housing facilities.

  4         (2)  The Florida Housing Finance Corporation shall

  5  determine those qualified projects that will be considered

  6  designated projects under s. 220.185 and eligible for the

  7  corporate-income-tax credit under that section. The

  8  corporation shall establish procedures necessary for proper

  9  allocation and distribution of state housing tax credits,

10  including the establishment of criteria for any single-family

11  or commercial component of a project, and may exercise all

12  powers necessary to administer the allocation of such credits.

13  The board of directors of the corporation shall administer the

14  allocation procedures and determine allocations on behalf of

15  the corporation. The corporation shall prepare an annual plan,

16  which must be approved by the Governor, containing general

17  guidelines for the allocation and distribution of credits to

18  designated projects.

19         (3)  The corporation shall adopt allocation procedures

20  that will ensure the maximum use of available tax credits in

21  order to encourage development of low-income housing and

22  associated mixed-use projects in urban areas, taking into

23  consideration the timeliness of the application, the location

24  of the proposed project, the relative need in the area of

25  revitalization and low-income housing, and the availability of

26  such housing, the economic feasibility of the project, and the

27  ability of the applicant to proceed to completion of the

28  project in the calendar year for which the credit is sought.

29         (4)(a)  A taxpayer who seeks to participate in the

30  State Housing Tax Credit Program must submit an application

31  for tax credit to the corporation. The application must

                                  25

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






    Florida Senate - 1999                            CS for SB 260
    310-2033-99




  1  identify the project and its location and include evidence

  2  that the project is a qualified project as defined in s.

  3  220.185. The corporation may request any information from an

  4  applicant necessary to enable the corporation to make tax

  5  credit allocations according to the guidelines set forth in

  6  subsection (3).

  7         (b)  The corporation's approval of an applicant as a

  8  designated project must be in writing and must include a

  9  statement of the maximum credit allowable to the applicant. A

10  copy of this approval shall be transmitted to the executive

11  director of the Department of Revenue, who shall apply the tax

12  credit to the tax liability of the applicant.

13         (5)  For purposes of implementing this program and

14  assessing the property for ad valorem taxation under s.

15  193.011, neither the tax credits nor financing generated by

16  tax credits shall be considered as income to the property, and

17  the rental income from rent-restricted units in a state

18  housing tax credit development shall be recognized by the

19  property appraiser.

20         (6)  The corporation is authorized to expend fees

21  received in conjunction with the allocation of state housing

22  tax credits only for the purpose of administration of the

23  program, including private legal services that relate to

24  interpretation of s. 42 of the Internal Revenue Code.

25         Section 8.  Section 420.630, Florida Statutes, is

26  created to read:

27         420.630  Short title.--Sections 420.630-420.635 may be

28  cited as the "Urban Homesteading Act."

29         Section 9.  Section 420.631, Florida Statutes, is

30  created to read:

31

                                  26

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






    Florida Senate - 1999                            CS for SB 260
    310-2033-99




  1         420.631  Definitions.--As used in ss. 420.630-420.635,

  2  the term:

  3         (1)  "Authority" or "housing authority" means any of

  4  the public corporations created under s. 421.04.

  5         (2)  "Community-based organization" or "nonprofit

  6  organization" means a private corporation that is organized

  7  under chapter 617 which assists in providing housing and

  8  related services on a not-for-profit basis and that is

  9  acceptable to federal, state, and local agencies and financial

10  institutions as a sponsor of low-income housing.

11         (3)  "Department" means the Department of Community

12  Affairs.

13         (4)  "Homestead agreement" means a written contract

14  between a housing authority or community-based organization

15  and a qualified buyer which contains the terms under which the

16  qualified buyer may acquire the single-family housing

17  property.

18         (5)  "Nonprofit community organization" means an

19  organization that is exempt from taxation under s. 501(c)(3)

20  of the Internal Revenue Code of 1986 and that contracts with a

21  housing authority to administer an urban homesteading program

22  for single-family housing under ss. 420.630-420.635.

23         (6)  "Office" means the Office of Urban Opportunity

24  within the Office of Tourism, Trade, and Economic Development.

25         (7)  "Project" means a specific work or improvement,

26  including land, buildings, real and personal property, or any

27  interest therein, acquired, owned, constructed, reconstructed,

28  rehabilitated, or improved with the financial assistance of

29  the agency, including the construction of low-income and

30  moderate-income housing facilities and facilities incident or

31  appurtenant thereto, such as streets, sewers, utilities,

                                  27

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






    Florida Senate - 1999                            CS for SB 260
    310-2033-99




  1  parks, site preparation, landscaping, and any other

  2  administrative, community, and recreational facilities that

  3  the agency determines are necessary, convenient, or desirable

  4  appurtenances.

  5         (8)  "Qualified buyer" means a person who meets the

  6  criteria under s. 420.633.

  7         (9)  "Qualified loan rate" means an interest rate that

  8  does not exceed the interest rate charged for home improvement

  9  loans by the Federal Housing Administration under Title I of

10  the National Housing Act; chapter 847; 48 Stat. 1246; or 12

11  U.S.C. ss. 1702, 1703, 1705, and 1706b et seq.

12         Section 10.  Section 420.632, Florida Statutes, is

13  created to read:

14         420.632  Authority to operate.--By resolution, subject

15  to federal and state law, and in consultation with the Office

16  of Urban Opportunity, a housing authority or a nonprofit

17  community organization appointed by the housing authority may

18  operate a program that makes foreclosed single-family housing

19  properties available to eligible buyers to purchase. This

20  urban homesteading program is intended to be one component of

21  a comprehensive urban-core redevelopment initiative known as

22  Front Porch Florida, implemented by the Office of Urban

23  Opportunity.

24         Section 11.  Section 420.633, Florida Statutes, is

25  created to read:

26         420.633  Eligibility.--An applicant is eligible to

27  enter into a homestead agreement to acquire single-family

28  housing property as a qualified buyer under ss.

29  420.630-420.635, if:

30         (1)  The applicant or his or her spouse is employed and

31  has been employed for the immediately preceding 12 months;

                                  28

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






    Florida Senate - 1999                            CS for SB 260
    310-2033-99




  1         (2)  The applicant or his or her spouse has not been

  2  convicted of a drug-related felony within the immediately

  3  preceding 3 years;

  4         (3)  All school-age children of the applicant or his or

  5  her spouse who will reside in the single-family housing

  6  property attend school regularly; and

  7         (4)  The applicant and his or her spouse have incomes

  8  below the median for the state, as determined by the United

  9  States Department of Housing and Urban Development, for

10  families with the same number of family members as the

11  applicant and his or her spouse.

12         Section 12.  Section 420.634, Florida Statutes, is

13  created to read:

14         420.634  Application process.--

15         (1)  A qualified buyer may apply to the housing

16  authority or a nonprofit community organization appointed by

17  the housing authority to acquire the single-family-housing

18  property. The application must be in a form and in a manner

19  provided by the housing authority or nonprofit community

20  organization appointed by the housing authority. If the

21  application is approved, the qualified buyer and housing

22  authority or nonprofit community organization appointed by the

23  housing authority shall enter into a homestead agreement for

24  the single-family-housing property. The housing authority or

25  nonprofit community organization appointed by the housing

26  authority may add additional terms and conditions to the

27  homestead agreement.

28         (2)  The housing authority or nonprofit community

29  organization appointed by the housing authority shall deed or

30  cause to be deeded the single-family-housing property to the

31  qualified buyer for $1 if the qualified buyer:

                                  29

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






    Florida Senate - 1999                            CS for SB 260
    310-2033-99




  1         (a)  Is in compliance with the terms of the homestead

  2  agreement for at least 5 years or has resided in the

  3  single-family-housing property before the housing authority or

  4  nonprofit community organization appointed by the housing

  5  authority adopts the urban homesteading program;

  6         (b)  Resides in that property for at least 5 years;

  7         (c)  Meets the criteria in the homestead agreement; and

  8         (d)  Has otherwise promptly met his or her financial

  9  obligations with the housing commission.

10

11  However, if the housing authority has received federal funds

12  for which bonds or notes were issued and those bonds or notes

13  are outstanding for that housing project, the housing

14  authority shall deed the property to the qualified buyer only

15  upon payment of the pro rata share of the bonded debt on that

16  specific property by the qualified buyer. The housing

17  authority shall obtain the appropriate releases from the

18  holders of the bonds or notes.

19         Section 13.  Section 420.635, Florida Statutes, is

20  created to read:

21         420.635  Loans to qualified buyers.--Contingent upon an

22  appropriation, the department, in consultation with the Office

23  of Urban Opportunity, shall provide loans to qualified buyers

24  who are required to pay the pro rata portion of the bonded

25  debt on the single-family housing. Loans provided under this

26  section shall be made at a rate of interest which may not

27  exceed the qualified loan rate. A buyer must maintain the

28  qualifications specified in s. 420.633 for the full term of

29  the loan. The loan agreement may contain additional terms and

30  conditions as determined by the department.

31

                                  30

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






    Florida Senate - 1999                            CS for SB 260
    310-2033-99




  1         Section 14.  Except as otherwise provided in this act,

  2  this act shall take effect July 1, 1999.

  3

  4          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
  5                         Senate Bill 260

  6

  7  This committee substitute is an omnibus economic development
    bill relating to urban communities, which through its
  8  principal provisions:

  9        Creates the Retention Enhancing Communities Initiative
          to allow selected communities to compete for community
10        redevelopment funds.

11        Creates the State Housing Tax Credit Program authorizing
          tax credits to be issued against the state corporate
12        income tax.

13        Provides that the Adjutant General shall administer
          youth About Face programs and adult Forward March
14        programs that provide life preparation and job readiness
          services to WAGES participants at sites selected by the
15        Adjutant General, subject to annual appropriations.

16        Directs the Office of Tourism, Trade, and Economic
          Development to designate a pilot project area within an
17        enterprise zone which provides that up to four
          businesses within such area are eligible for credits
18        against the sales tax and corporate income tax, computed
          on the basis of the number of employees of the business.
19
          Allows a business that is located in a Tampa enterprise
20        zone, and that meets specified conditions, to apply for
          enterprise zone tax incentives dating back to July 1,
21        1995, if it applies by December 1, 1999.

22        Allows for the amendment of the boundaries of an
          enterprise zone in a community that has received
23        designation as a U.S. Environmental Protection Agency
          brownfield pilot project as of May 1, 1997.
24

25

26

27

28

29

30

31

                                  31