| 1 | A bill to be entitled |
| 2 | An act relating to affordable housing; amending s. |
| 3 | 420.5087, F.S.; specifying a percentage of moneys in the |
| 4 | State Apartment Incentive Loan Fund to be awarded as |
| 5 | subordinate loan financing for the new construction of |
| 6 | affordable rental housing developments; providing |
| 7 | eligibility requirements; providing duties of the Florida |
| 8 | Housing Development Corporation; prohibiting certain |
| 9 | persons from serving as financial beneficiaries for any |
| 10 | applicant or developer of any program funded in part with |
| 11 | moneys from the State Housing Trust Fund; providing an |
| 12 | effective date. |
| 13 |
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| 14 | Be It Enacted by the Legislature of the State of Florida: |
| 15 |
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| 16 | Section 1. Subsections (9) and (10) are added to section |
| 17 | 420.5087, Florida Statutes, to read: |
| 18 | 420.5087 State Apartment Incentive Loan Program.-There is |
| 19 | hereby created the State Apartment Incentive Loan Program for |
| 20 | the purpose of providing first, second, or other subordinated |
| 21 | mortgage loans or loan guarantees to sponsors, including for- |
| 22 | profit, nonprofit, and public entities, to provide housing |
| 23 | affordable to very-low-income persons. |
| 24 | (9) At least 70 percent of the moneys in the State |
| 25 | Apartment Incentive Loan Fund in each calendar year shall be |
| 26 | awarded as subordinate loan financing for the new construction |
| 27 | of affordable rental housing developments, for which the primary |
| 28 | source of financing is an allocation of tax-exempt private |
| 29 | activity bonds issued by the corporation or by a local or |
| 30 | regional housing finance authority pursuant to part VI of |
| 31 | chapter 159. Development projects located outside of a 2.5-mile |
| 32 | radius of a Florida Affordable Housing Guarantee Fund |
| 33 | development, which has a short-term subordinate mortgage issued |
| 34 | by the corporation, are eligible to receive subordinate loan |
| 35 | financing through the corporation. Such subordinate loan |
| 36 | financing shall be awarded as provided in subsection (6). Before |
| 37 | the receipt of competitive applications for the award of such |
| 38 | subordinate loan financing, the corporation shall generate and |
| 39 | distribute an estimate of the total amount of State Apartment |
| 40 | Incentive Loan Fund moneys available in the calendar year such |
| 41 | subordinate loan financing will be awarded. The moneys available |
| 42 | to be awarded under this subsection shall include program |
| 43 | income, including principal and interest. A rank-ordered list of |
| 44 | applications selected for receipt of subordinate loan financing |
| 45 | shall be presented to the corporation's board of directors. |
| 46 | (10) A financial beneficiary, which is any principal of |
| 47 | the developer or general partner of an applicant, of any |
| 48 | development financed in part by the guarantee fund authorized |
| 49 | under s. 420.5092 which has been foreclosed or is in foreclosure |
| 50 | or the developer or general partner of the applicant for which |
| 51 | has defaulted on or after July 1, 2011, on any guarantee fund |
| 52 | subordinate mortgage or a short-term subordinate mortgage issued |
| 53 | in accordance with the programs authorized by the corporation, |
| 54 | may not be a financial beneficiary for any applicant or |
| 55 | developer of any program funded in part with funds from the |
| 56 | State Housing Trust Fund for 3 years after the date of the |
| 57 | foreclosure or default, and must thereafter be approved to |
| 58 | participate as a financial beneficiary by the corporation's |
| 59 | board of directors. |
| 60 | Section 2. This act shall take effect July 1, 2011. |