| 1 | A bill to be entitled |
| 2 | An act relating to ad valorem taxation of property used to |
| 3 | provide affordable housing; creating s. 193.018, F.S.; |
| 4 | defining the term "community land trust"; authorizing a |
| 5 | community land trust to make certain conveyances; |
| 6 | specifying that a community land trust retains certain |
| 7 | preemptive purchase options; providing criteria by which |
| 8 | the property appraiser must assess the just value of |
| 9 | improvements on certain lands that a community land trust |
| 10 | uses to provide affordable housing; amending s. 196.1978, |
| 11 | F.S.; providing for the exemption from property tax for |
| 12 | affordable housing to apply to certain lands used by a |
| 13 | community land trust for affordable housing if the lands |
| 14 | are subject to a long-term lease; providing an effective |
| 15 | date. |
| 16 |
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| 17 | Be It Enacted by the Legislature of the State of Florida: |
| 18 |
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| 19 | Section 1. Section 193.018, Florida Statutes, is created |
| 20 | to read: |
| 21 | 193.018 Assessment of improvements on lands used by a |
| 22 | community land trust to provide affordable housing.--As used in |
| 23 | this section, the term "community land trust" means a nonprofit |
| 24 | entity that is qualified as charitable under s. 501(c)(3) of the |
| 25 | Internal Revenue Code and has as one of its purposes the |
| 26 | acquisition of land to be held in perpetuity for the primary |
| 27 | purpose of providing affordable homeownership. The community |
| 28 | land trust may convey structural improvements located on |
| 29 | specific parcels of such land, which are identified by a legal |
| 30 | description contained in and subject to a ground lease having a |
| 31 | term of 99 years. The community land trust shall retain a |
| 32 | preemptive option to purchase any structural improvements on the |
| 33 | land at a price determined by a formula that is designed to |
| 34 | ensure that the improvements remain affordable to persons who |
| 35 | meet the income limits in s. 420.0004(8), (10), (11), or (15). |
| 36 | In assessing property for ad valorem taxation under s. 193.011, |
| 37 | an improvement used for affordable housing on land owned by a |
| 38 | community land trust and subject to such a ground lease shall be |
| 39 | assessed under the following criteria: |
| 40 | (1) The amount a willing purchaser would pay a willing |
| 41 | seller shall be limited to the amount determined by the formula |
| 42 | in the ground lease. |
| 43 | (2) If the ground lease and all amendments and supplements |
| 44 | thereto, or a memorandum documenting how such lease and |
| 45 | amendments or supplements restrict the price at which the |
| 46 | improvements may be sold, is recorded and filed in the official |
| 47 | public records of the county in which the leased land is |
| 48 | located, the lease and any amendments or supplements shall be |
| 49 | deemed a land use regulation during the term of the lease as |
| 50 | amended or supplemented. |
| 51 | Section 2. Section 196.1978, Florida Statutes, is amended |
| 52 | to read: |
| 53 | 196.1978 Affordable housing property exemption.--Property |
| 54 | used to provide affordable housing serving eligible persons as |
| 55 | defined by s. 159.603(7) and persons meeting income limits |
| 56 | specified in s. 420.0004(8), (10), (11), or and (15), which |
| 57 | property is owned entirely by a nonprofit entity that which is |
| 58 | qualified as charitable under s. 501(c)(3) of the Internal |
| 59 | Revenue Code and that which complies with Rev. Proc. 96-32, |
| 60 | 1996-1 C.B. 717, shall be considered property owned by an exempt |
| 61 | entity and used for a charitable purpose, and those portions of |
| 62 | the affordable housing property which provide housing to |
| 63 | individuals with incomes as defined in s. 420.0004(10) or and |
| 64 | (15) shall be exempt from ad valorem taxation to the extent |
| 65 | authorized in s. 196.196. All property identified in this |
| 66 | section shall comply with the criteria for determination of |
| 67 | exempt status to be applied by property appraisers on an annual |
| 68 | basis as defined in s. 196.195. The Legislature intends that any |
| 69 | property owned by a limited liability company which is |
| 70 | disregarded as an entity for federal income tax purposes |
| 71 | pursuant to Treasury Regulation 301.7701-3(b)(1)(ii) shall be |
| 72 | treated as owned by its sole member. The exemption provided in |
| 73 | this section extends to land that is owned by a community land |
| 74 | trust, as defined under s. 193.018, which is held in perpetuity |
| 75 | for the purpose of providing affordable housing to persons |
| 76 | meeting income limits specified in s. 420.0004(8), (10), (11), |
| 77 | or (15) and subject to a ground lease having a term of 99 years |
| 78 | for the purpose of providing such housing. |
| 79 | Section 3. This act shall take effect July 1, 2007. |