Florida Senate - 2013                              CS for SB 928
       By the Committee on Community Affairs; and Senator Simpson
       578-02397A-13                                          2013928c1
    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. 212.08,
   11         F.S.; revising criteria for community contribution tax
   12         credit for donations; amending ss. 220.183 and
   13         624.5105, F.S.; extending the expiration date
   14         applicable to the granting of community contribution
   15         tax credits against the sales and use tax, corporate
   16         income tax, and insurance premium tax for
   17         contributions to eligible sponsors of community
   18         projects approved by the Department of Economic
   19         Opportunity; amending s. 420.507, F.S.; revising the
   20         powers of the Florida Housing Finance Corporation;
   21         specifying how the corporation will allocate certain
   22         funds; amending s. 420.5087, F.S.; revising provisions
   23         relating to state apartment incentive loans to provide
   24         for a competitive evaluation and selection process
   25         with respect to loan applications; amending s.
   26         420.511, F.S.; providing that the corporation’s
   27         strategic business plan must be consistent with a
   28         long-range program plan relating to affordable
   29         housing; deleting a requirement that the corporation
   30         compile certain data; revising provisions relating to
   31         the corporation’s development of its long-range plan;
   32         revising the required contents and information to be
   33         included in the corporation’s annual report; requiring
   34         the corporation to submit separate audited financial
   35         statements that include specified information and
   36         incorporate certain reports; requiring the Auditor
   37         General to conduct an operational audit of the
   38         corporation and provide a written report to the
   39         Legislature; amending ss. 420.0003, 420.0006, 420.504,
   40         and 420.506, F.S.; conforming provisions to changes
   41         made by this act; repealing s. 420.5091, F.S.,
   42         relating to the HOPE program; providing for
   43         retroactive application; providing an effective date.
   45  Be It Enacted by the Legislature of the State of Florida:
   47         Section 1. Subsection (6) of section 159.603, Florida
   48  Statutes, is amended to read:
   49         159.603 Definitions.—As used in this part, the following
   50  words and terms have the following meanings unless the context
   51  indicates another or different meaning or intent.
   52         (6) “Qualifying housing development” means any work or
   53  improvement located or to be located in this the state,
   54  including real property, buildings, and any other real and
   55  personal property, designed or intended for the primary purpose
   56  of providing decent, safe, and sanitary residential housing for
   57  four or more families, at least 60 percent of whom are eligible
   58  persons, whether new construction, the acquisition of existing
   59  residential housing, or the remodeling, improvement,
   60  rehabilitation, or reconstruction of existing housing, together
   61  with such related nonhousing facilities as the authority
   62  determines to be necessary, convenient, or desirable.
   63         (a) The term includes a housing development that meets the
   64  definition of a “qualified low-income housing project” under s.
   65  42(g) of the Internal Revenue Code, regardless of whether such
   66  development meets the 60 percent eligible persons requirement
   67  under this subsection.
   68         (b) The exception provided under paragraph (a) applies to
   69  all housing developments meeting the federal definition for
   70  “qualified low-income housing project” as well as all
   71  developments that previously qualified under the state
   72  definition for “qualifying housing development.” Housing finance
   73  authorities may enter into regulatory agreement amendments as
   74  necessary to accommodate housing developments that qualify under
   75  paragraph (a).
   76         Section 2. Subsection (8) of section 159.608, Florida
   77  Statutes, is amended to read:
   78         159.608 Powers of housing finance authorities.—A housing
   79  finance authority shall constitute a public body corporate and
   80  politic, exercising the public and essential governmental
   81  functions set forth in this act, and shall exercise its power to
   82  borrow only for the purpose as provided herein:
   83         (8) To make loans directly to eligible persons or families
   84  who otherwise cannot borrow from conventional lending sources
   85  and whose annual income does not exceed 80 percent of the median
   86  income based on a family of up to four persons for the county in
   87  which they seek to purchase a residence. The housing finance
   88  authority may adjust the annual income requirements for families
   89  of greater than four persons. Such loans must be secured by
   90  either first mortgages or subordinated mortgages and must be
   91  used to purchase, construct, rehabilitate, or refinance single
   92  family residences that have purchase prices that do not exceed
   93  the purchase price limits of; however, the purchase price of any
   94  residence financed through such a loan may not exceed 90 percent
   95  of the median sales price for single-family homes in the county
   96  where the borrower’s residence is to be located, as mandated by
   97  federal law for tax-exempt single-family bond programs.
   98         Section 3. Section 196.1978, Florida Statutes, is amended
   99  to read:
  100         196.1978 Affordable housing property exemption.—Property
  101  used to provide affordable housing to serving eligible persons
  102  as defined under by s. 159.603(7) and natural persons or
  103  families meeting the extremely-low-income, very-low-income, low
  104  income, or moderate-income limits specified in s. 420.0004,
  105  which property is owned entirely by a nonprofit entity that is a
  106  corporation not for profit, qualified as charitable under s.
  107  501(c)(3) of the Internal Revenue Code and in compliance with
  108  Rev. Proc. 96-32, 1996-1 C.B. 717, is or a Florida-based limited
  109  partnership, the sole general partner of which is a corporation
  110  not for profit which is qualified as charitable under s.
  111  501(c)(3) of the Internal Revenue Code and which complies with
  112  Rev. Proc. 96-32, 1996-1 C.B. 717, shall be considered property
  113  owned by an exempt entity and used for a charitable purpose, and
  114  those portions of the affordable housing property that which
  115  provide housing to natural persons or families classified as
  116  extremely low income, very low income, low income, or moderate
  117  income under s. 420.0004 are shall be exempt from ad valorem
  118  taxation to the extent authorized under in s. 196.196. All
  119  property identified in this section must shall comply with the
  120  criteria provided under s. 196.195 for determining determination
  121  of exempt status and to be applied by property appraisers on an
  122  annual basis as defined in s. 196.195. The Legislature intends
  123  that any property owned by a limited liability company or
  124  limited partnership which is disregarded as an entity for
  125  federal income tax purposes pursuant to Treasury Regulation
  126  301.7701-3(b)(1)(ii) shall be treated as owned by its sole
  127  member or sole general partner.
  128         Section 4. Paragraph (p) of subsection (5) of section
  129  212.08, Florida Statutes, is amended to read:
  130         212.08 Sales, rental, use, consumption, distribution, and
  131  storage tax; specified exemptions.—The sale at retail, the
  132  rental, the use, the consumption, the distribution, and the
  133  storage to be used or consumed in this state of the following
  134  are hereby specifically exempt from the tax imposed by this
  135  chapter.
  136         (5) EXEMPTIONS; ACCOUNT OF USE.—
  137         (p) Community contribution tax credit for donations.—
  138         1. Authorization.—Persons who are registered with the
  139  department under s. 212.18 to collect or remit sales or use tax
  140  and who make donations to eligible sponsors are eligible for tax
  141  credits against their state sales and use tax liabilities as
  142  provided in this paragraph:
  143         a. The credit shall be computed as 50 percent of the
  144  person’s approved annual community contribution.
  145         b. The credit shall be granted as a refund against state
  146  sales and use taxes reported on returns and remitted in the 12
  147  months preceding the date of application to the department for
  148  the credit as required in sub-subparagraph 3.c. If the annual
  149  credit is not fully used through such refund because of
  150  insufficient tax payments during the applicable 12-month period,
  151  the unused amount may be included in an application for a refund
  152  made pursuant to sub-subparagraph 3.c. in subsequent years
  153  against the total tax payments made for such year. Carryover
  154  credits may be applied for a 3-year period without regard to any
  155  time limitation that would otherwise apply under s. 215.26.
  156         c. A person may not receive more than $200,000 in annual
  157  tax credits for all approved community contributions made in any
  158  one year.
  159         d. All proposals for the granting of the tax credit require
  160  the prior approval of the Department of Economic Opportunity.
  161         e. The total amount of tax credits which may be granted for
  162  all programs approved under this paragraph, s. 220.183, and s.
  163  624.5105 is $10.5 million annually for projects that provide
  164  homeownership opportunities for low-income or very-low-income
  165  households as those terms are defined in s. 420.9071(19) and
  166  (28) and $3.5 million annually for all other projects.
  167         f. A person who is eligible to receive the credit provided
  168  for in this paragraph, s. 220.183, or s. 624.5105 may receive
  169  the credit only under the one section pursuant to of the
  170  person’s choice.
  171         2. Eligibility requirements.—
  172         a. A community contribution by a person must be in the
  173  following form:
  174         (I) Cash or other liquid assets;
  175         (II) Real property;
  176         (III) Goods or inventory; or
  177         (IV) Other physical resources as identified by the
  178  Department of Economic Opportunity.
  179         b. All community contributions must be reserved exclusively
  180  for use in a project. As used in this sub-subparagraph, the term
  181  “project” means any activity undertaken by an eligible sponsor
  182  which is designed to construct, improve, or substantially
  183  rehabilitate housing that is affordable to low-income or very
  184  low-income households as those terms are defined in s.
  185  420.9071(19) and (28); designed to provide commercial,
  186  industrial, or public resources and facilities; or designed to
  187  improve entrepreneurial and job-development opportunities for
  188  low-income persons. A project may be the investment necessary to
  189  increase access to high-speed broadband capability in rural
  190  communities with enterprise zones, including projects that
  191  result in improvements to communications assets that are owned
  192  by a business. A project may include the provision of museum
  193  educational programs and materials that are directly related to
  194  a any project approved between January 1, 1996, and December 31,
  195  1999, and located in an enterprise zone designated pursuant to
  196  s. 290.0065. This paragraph does not preclude projects that
  197  propose to construct or rehabilitate housing for low-income or
  198  very-low-income households on scattered sites. With respect to
  199  housing, contributions may be used to pay the following eligible
  200  low-income and very-low-income housing-related activities:
  201         (I) Project development impact and management fees for low
  202  income or very-low-income housing projects;
  203         (II) Down payment and closing costs for low-income persons
  204  and very-low-income eligible persons, as those terms are defined
  205  in s. 420.9071(19) and (28);
  206         (III) Administrative costs, including housing counseling
  207  and marketing fees, not to exceed 10 percent of the community
  208  contribution, directly related to low-income or very-low-income
  209  projects; and
  210         (IV) Removal of liens recorded against residential property
  211  by municipal, county, or special district local governments if
  212  when satisfaction of the lien is a necessary precedent to the
  213  transfer of the property to a low-income person or very-low-
  214  income an eligible person, as those terms are defined in s.
  215  420.9071(19) and (28), for the purpose of promoting home
  216  ownership. Contributions for lien removal must be received from
  217  a nonrelated third party.
  218         c. The project must be undertaken by an “eligible sponsor,”
  219  which includes:
  220         (I) A community action program;
  221         (II) A nonprofit community-based development organization
  222  whose mission is the provision of housing for low-income or
  223  very-low-income households or increasing entrepreneurial and
  224  job-development opportunities for low-income persons;
  225         (III) A neighborhood housing services corporation;
  226         (IV) A local housing authority created under chapter 421;
  227         (V) A community redevelopment agency created under s.
  228  163.356;
  229         (VI) A historic preservation district agency or
  230  organization;
  231         (VII) A regional workforce board;
  232         (VIII) A direct-support organization as provided in s.
  233  1009.983;
  234         (IX) An enterprise zone development agency created under s.
  235  290.0056;
  236         (X) A community-based organization incorporated under
  237  chapter 617 which is recognized as educational, charitable, or
  238  scientific pursuant to s. 501(c)(3) of the Internal Revenue Code
  239  and whose bylaws and articles of incorporation include
  240  affordable housing, economic development, or community
  241  development as the primary mission of the corporation;
  242         (XI) Units of local government;
  243         (XII) Units of state government; or
  244         (XIII) Any other agency that the Department of Economic
  245  Opportunity designates by rule.
  247  In no event may A contributing person may not have a financial
  248  interest in the eligible sponsor.
  249         d. The project must be located in an area designated an
  250  enterprise zone or a Front Porch Florida Community, unless the
  251  project increases access to high-speed broadband capability for
  252  rural communities that have with enterprise zones but is
  253  physically located outside the designated rural zone boundaries.
  254  Any project designed to construct or rehabilitate housing for
  255  low-income or very-low-income households as those terms are
  256  defined in s. 420.9071(19) and (28) is exempt from the area
  257  requirement of this sub-subparagraph.
  258         e.(I) If, during the first 10 business days of the state
  259  fiscal year, eligible tax credit applications for projects that
  260  provide homeownership opportunities for low-income households or
  261  very-low-income households as those terms are defined in s.
  262  420.9071(19) and (28) are received for less than the annual tax
  263  credits available for those projects, the Department of Economic
  264  Opportunity shall grant tax credits for those applications and
  265  shall grant remaining tax credits on a first-come, first-served
  266  basis for any subsequent eligible applications received before
  267  the end of the state fiscal year. If, during the first 10
  268  business days of the state fiscal year, eligible tax credit
  269  applications for projects that provide homeownership
  270  opportunities for low-income or very-low-income households as
  271  defined in s. 420.9071(19) and (28) are received for more than
  272  the annual tax credits available for those projects, the
  273  Department of Economic Opportunity shall grant the tax credits
  274  for those applications as follows:
  275         (A) If tax credit applications submitted for approved
  276  projects of an eligible sponsor do not exceed $200,000 in total,
  277  the credits shall be granted in full if the tax credit
  278  applications are approved.
  279         (B) If tax credit applications submitted for approved
  280  projects of an eligible sponsor exceed $200,000 in total, the
  281  amount of tax credits granted pursuant to sub-sub-sub
  282  subparagraph (A) shall be subtracted from the amount of
  283  available tax credits, and the remaining credits shall be
  284  granted to each approved tax credit application on a pro rata
  285  basis.
  286         (II) If, during the first 10 business days of the state
  287  fiscal year, eligible tax credit applications for projects other
  288  than those that provide homeownership opportunities for low
  289  income households or very-low-income households as those terms
  290  are defined in s. 420.9071(19) and (28) are received for less
  291  than the annual tax credits available for those projects, the
  292  Department of Economic Opportunity shall grant tax credits for
  293  those applications and shall grant remaining tax credits on a
  294  first-come, first-served basis for any subsequent eligible
  295  applications received before the end of the state fiscal year.
  296  If, during the first 10 business days of the state fiscal year,
  297  eligible tax credit applications for projects other than those
  298  that provide homeownership opportunities for low-income or very
  299  low-income households as defined in s. 420.9071(19) and (28) are
  300  received for more than the annual tax credits available for
  301  those projects, the Department of Economic Opportunity shall
  302  grant the tax credits for those applications on a pro rata
  303  basis.
  304         3. Application requirements.—
  305         a. Any eligible sponsor seeking to participate in this
  306  program must submit a proposal to the Department of Economic
  307  Opportunity which sets forth the name of the sponsor, a
  308  description of the project, and the area in which the project is
  309  located, together with such supporting information as is
  310  prescribed by rule. The proposal must also contain a resolution
  311  from the local governmental unit in which the project is located
  312  certifying that the project is consistent with local plans and
  313  regulations.
  314         b. Any person seeking to participate in this program must
  315  submit an application for tax credit to the Department of
  316  Economic Opportunity which sets forth the name of the sponsor, a
  317  description of the project, and the type, value, and purpose of
  318  the contribution. The sponsor shall verify, in writing, the
  319  terms of the application and indicate its receipt of the
  320  contribution, which verification must be in writing and
  321  accompany the application for tax credit. The person must submit
  322  a separate tax credit application to the department of Economic
  323  Opportunity for each individual contribution that it makes to
  324  each individual project.
  325         c. Any person who has received notification from the
  326  Department of Economic Opportunity that a tax credit has been
  327  approved must apply to the department to receive the refund.
  328  Application must be made on the form prescribed for claiming
  329  refunds of sales and use taxes and be accompanied by a copy of
  330  the notification. A person may submit only one application for
  331  refund to the department within a any 12-month period.
  332         4. Administration.—
  333         a. The Department of Economic Opportunity may adopt rules
  334  pursuant to ss. 120.536(1) and 120.54 necessary to administer
  335  this paragraph, including rules for the approval or disapproval
  336  of proposals by a person.
  337         b. The decision of the Department of Economic Opportunity
  338  must be in writing, and, if approved, the notification shall
  339  state the maximum credit allowable to the person. Upon approval,
  340  the department of Economic Opportunity shall transmit a copy of
  341  the decision to the Department of Revenue.
  342         c. The Department of Economic Opportunity shall
  343  periodically monitor all projects in a manner consistent with
  344  available resources to ensure that resources are used in
  345  accordance with this paragraph; however, each project must be
  346  reviewed at least once every 2 years.
  347         d. The Department of Economic Opportunity shall, in
  348  consultation with the statewide and regional housing and
  349  financial intermediaries, market the availability of the
  350  community contribution tax credit program to community-based
  351  organizations.
  352         5. Expiration.—This paragraph expires June 30, 2025 2015;
  353  however, any accrued credit carryover that is unused on that
  354  date may be used until the expiration of the 3-year carryover
  355  period for such credit.
  356         Section 5. Subsection (5) of section 220.183, Florida
  357  Statutes, is amended to read:
  358         220.183 Community contribution tax credit.—
  359         (5) EXPIRATION.—The provisions of this section, except
  360  paragraph (1)(e), shall expire and are be void on June 30, 2025
  361  2015.
  362         Section 6. Subsection (6) of section 624.5105, Florida
  363  Statutes, is amended to read:
  364         624.5105 Community contribution tax credit; authorization;
  365  limitations; eligibility and application requirements;
  366  administration; definitions; expiration.—
  367         (6) EXPIRATION.—The provisions of this section, except
  368  paragraph (1)(e), shall expire and are be void on June 30, 2025
  369  2015.
  370         Section 7. Paragraph (h) of subsection (22) and subsection
  371  (48) of section 420.507, Florida Statutes, are amended to read:
  372         420.507 Powers of the corporation.—The corporation shall
  373  have all the powers necessary or convenient to carry out and
  374  effectuate the purposes and provisions of this part, including
  375  the following powers, which are in addition to all other powers
  376  granted by other provisions of this part:
  377         (22) To develop and administer the State Apartment
  378  Incentive Loan Program. In developing and administering that
  379  program, the corporation may:
  380         (h) Establish, by rule, the procedure for evaluating,
  381  scoring, and competitively evaluating and selecting ranking all
  382  applications for funding based on the criteria set forth in s.
  383  420.5087(6)(c),; determining actual loan amounts,; making and
  384  servicing loans,; and exercising the powers authorized in this
  385  subsection.
  386         (48) To award use up to 10 percent of its annual allocation
  387  of low-income housing tax credits, nontaxable revenue bonds, and
  388  State Apartment Incentive Loan Program funds appropriated by the
  389  Legislature and available to allocate by request for proposals
  390  or other competitive solicitation. The corporation shall reserve
  391  up to 5 percent of each allocation funding for high-priority
  392  affordable housing projects, such as housing to support economic
  393  development and job-creation initiatives, housing for veterans
  394  and their families, and other special needs populations in
  395  communities throughout the state as determined by the
  396  corporation on an annual basis. The corporation shall reserve an
  397  additional 5 percent of each allocation for affordable housing
  398  projects that target persons who have a disabling condition as
  399  defined in s. 420.0004 and their families. These allocations
  400  must prioritize projects or initiatives piloting or
  401  demonstrating cost effective, best practices that meet the
  402  housing needs and preferences of such persons. Any tax credits
  403  or funds not allocated because of a lack of eligible projects
  404  targeting persons who have a disabling condition shall be
  405  distributed by the corporation for high-priority housing
  406  projects.
  407         Section 8. Paragraphs (c) and (f) of subsection (6) of
  408  section 420.5087, Florida Statutes, are amended to read:
  409         420.5087 State Apartment Incentive Loan Program.—There is
  410  hereby created the State Apartment Incentive Loan Program for
  411  the purpose of providing first, second, or other subordinated
  412  mortgage loans or loan guarantees to sponsors, including for
  413  profit, nonprofit, and public entities, to provide housing
  414  affordable to very-low-income persons.
  415         (6) On all state apartment incentive loans, except loans
  416  made to housing communities for the elderly to provide for
  417  lifesafety, building preservation, health, sanitation, or
  418  security-related repairs or improvements, the following
  419  provisions shall apply:
  420         (c) The corporation shall provide by rule for the
  421  establishment of a review committee composed of the department
  422  and corporation staff and shall establish by rule a scoring
  423  system for the competitive evaluation and selection competitive
  424  ranking of applications submitted in this program, including,
  425  but not limited to, the following criteria:
  426         1. Tenant income and demographic targeting objectives of
  427  the corporation.
  428         2. Targeting objectives of the corporation which will
  429  ensure an equitable distribution of loans between rural and
  430  urban areas.
  431         3. Sponsor’s agreement to reserve the units for persons or
  432  families who have incomes below 50 percent of the state or local
  433  median income, whichever is higher, for a time period that
  434  exceeds to exceed the minimum required by federal law or the
  435  provisions of this part.
  436         4. Sponsor’s agreement to reserve more than:
  437         a. Twenty percent of the units in the project for persons
  438  or families who have incomes that do not exceed 50 percent of
  439  the state or local median income, whichever is higher; or
  440         b. Forty percent of the units in the project for persons or
  441  families who have incomes that do not exceed 60 percent of the
  442  state or local median income, whichever is higher, without
  443  requiring a greater amount of the loans as provided in this
  444  section.
  445         5. Provision for tenant counseling.
  446         6. Sponsor’s agreement to accept rental assistance
  447  certificates or vouchers as payment for rent.
  448         7. Projects requiring the least amount of a state apartment
  449  incentive loan compared to overall project cost, except that the
  450  share of the loan attributable to units serving extremely-low
  451  income persons must shall be excluded from this requirement.
  452         8. Local government contributions and local government
  453  comprehensive planning and activities that promote affordable
  454  housing.
  455         9. Project feasibility.
  456         10. Economic viability of the project.
  457         11. Commitment of first mortgage financing.
  458         12. Sponsor’s prior experience.
  459         13. Sponsor’s ability to proceed with construction.
  460         14. Projects that directly implement or assist welfare-to
  461  work transitioning.
  462         15. Projects that reserve units for extremely-low-income
  463  persons.
  464         16. Projects that include green building principles, storm
  465  resistant construction, or other elements that reduce long-term
  466  costs relating to maintenance, utilities, or insurance.
  467         17. Job-creation rate of the developer and general
  468  contractor, as provided in s. 420.507(47).
  469         (f) The review committee established by corporation rule
  470  pursuant to this subsection shall make recommendations to the
  471  board of directors of the corporation regarding program
  472  participation under the State Apartment Incentive Loan Program.
  473  The corporation board shall make the final ranking and the
  474  decisions regarding which applicants shall become program
  475  participants based on the scores received in the competitive
  476  process ranking, further review of applications, and the
  477  recommendations of the review committee. The corporation board
  478  shall approve or reject applications for loans and shall
  479  determine the tentative loan amount available to each applicant
  480  selected for participation in the program. The actual loan
  481  amount shall be determined pursuant to rule adopted pursuant to
  482  s. 420.507(22)(h).
  483         Section 9. Section 420.511, Florida Statutes, is amended to
  484  read:
  485         420.511 Strategic business plan; long-range program
  486  strategic plan; annual report; audited financial statements.—
  487         (1) The corporation shall develop a strategic business plan
  488  for the provision of affordable housing for the state. The plan
  489  must be consistent shall not be inconsistent with the long-range
  490  program strategic plan prepared pursuant to subsection (2) and
  491  shall contain performance measures and specific performance
  492  targets for the following:
  493         (a) The ability of low-income and moderate-income
  494  Floridians to access housing that is decent and affordable.
  495         (b) The continued availability and affordability of housing
  496  financed by the corporation to target populations.
  497         (c) The availability of affordable financing programs,
  498  including equity and debt products, and programs that reduce
  499  gaps in conventional financing in order, to increase individual
  500  access to housing and stimulate private production of affordable
  501  housing.
  502         (d) The establishment and maintenance of efficiencies in
  503  the delivery of affordable housing.
  504         (e) Such other measures as directed by the corporation’s
  505  board of directors.
  507  The corporation shall also compile data on the stimulus of
  508  economic activity created by the affordable housing finance
  509  programs administered by the corporation.
  510         (2) The corporation, in coordination equal partnership with
  511  the department, shall develop annually develop a long-range
  512  program strategic plan for the provision of affordable housing
  513  in this state as Florida as part of the department’s agency
  514  strategic plan required pursuant to chapter 186. In part, the
  515  plan must shall include provisions that maximize the abilities
  516  of the corporation and the department to implement the state
  517  housing strategy established under s. 420.0003, to respond to
  518  federal housing initiatives, and to develop programs in a manner
  519  that is more responsive to the needs of public and private
  520  partners. The plan shall be developed on a schedule consistent
  521  with that established by s. 186.021. For purposes of this
  522  section act, the executive director or his or her designee shall
  523  serve as the corporation’s representative to achieve a
  524  coordinated and integrated planning relationship with the
  525  department.
  526         (3)(a) The corporation shall submit to the Governor and the
  527  presiding officers of each house of the Legislature, within 6 2
  528  months after the end of its fiscal year, a complete and detailed
  529  report setting forth the corporation’s state and federal program
  530  accomplishments using the most recent available data. The report
  531  must include, but is not limited to:
  532         (a) The following tenant characteristics in the existing
  533  rental units financed through corporation-administered programs:
  534         1. The number of households served, delineated by income,
  535  race, ethnicity, and age of the head of household.
  536         2. The number of households served in large, medium, and
  537  small counties as defined by s. 420.5087 and the extent to which
  538  geographic distribution has been achieved in accordance with s.
  539  420.5087.
  540         3. The number of farmworker and commercial-fishing worker
  541  households served.
  542         4. The number of homeless households served.
  543         5. The number of special needs households served.
  544         6. By county, the average rent charged based on unit size.
  545         (b) The number of rental units to which resources have been
  546  allocated in the last fiscal year, including income and
  547  demographic restrictions.
  548         (c) The estimated average cost of producing units under
  549  each rental or homeownership unit financed under each program in
  550  the last fiscal year.
  551         (d) By county, the average sales price of homeownership
  552  units financed in the last fiscal year.
  553         (e) The number of households served by homeownership
  554  programs in the last fiscal year, including the income, race,
  555  ethnicity, and age of the homeowner of each household.
  556         (f) The percentage of homeownership loans that are in
  557  foreclosure.
  558         (g) The percentage of properties in the corporation’s
  559  rental portfolio which have an occupancy rate below 90 percent.
  560         (h) The amount of economic stimulus created by the
  561  affordable housing finance programs administered by the
  562  corporation for the most recent year available.
  563         (i) For the State Apartment Incentive Loan Program (SAIL),
  564  a comprehensive list of all closed loans outstanding at the end
  565  of the most recent fiscal year, including, but not limited to,
  566  development name, city, county, developer, set-aside type, set
  567  aside percentage, affordability term, total number of units,
  568  number of set-aside units, lien position, original loan amount,
  569  loan maturity date, loan balance at close of year, status of
  570  loan, rate of interest, and interest paid.
  571         (j) For the Florida Affordable Housing Guarantee Program, a
  572  list of all guaranteed loans through the close of the most
  573  recent fiscal year, including, but not limited to, development
  574  name, city, county, developer, total number of units, issuer of
  575  the bonds, loan maturity date, participation in the United
  576  States Department of Housing and Urban Development Risk-Sharing
  577  Program, original guarantee amount, guarantee amount at the
  578  close of the fiscal year, status of guaranteed loans, and total
  579  outstanding Florida Housing Finance Corporation Affordable
  580  Housing Guarantee Program revenue bonds at the close of the most
  581  recent fiscal year.
  582         (k) Any other information the corporation deems
  583  appropriate.
  584         1. Its operations and accomplishments;
  585         2. Its receipts and expenditures during its fiscal year in
  586  accordance with the categories or classifications established by
  587  the corporation for its operating and capital outlay purposes;
  588         3. Its assets and liabilities at the end of its fiscal year
  589  and the status of reserve, special, or other funds;
  590         4. A schedule of its bonds outstanding at the end of its
  591  fiscal year, together with a statement of the principal amounts
  592  of bonds issued and redeemed during the fiscal year; and
  593         5. Information relating to the corporation’s activities in
  594  implementing the provisions of ss. 420.5087, 420.5088, and
  595  420.5095.
  596         (b) The report shall include, but not be limited to:
  597         1. The number of people served, delineated by income, age,
  598  family size, and racial characteristics.
  599         2. The number of units produced under each program.
  600         3. The average cost of producing units under each program.
  601         4. The average sales price of single-family units financed
  602  under s. 420.5088.
  603         5. The average amount of rent charged based on unit size on
  604  units financed under s. 420.5087.
  605         6. The number of persons in rural communities served under
  606  each program.
  607         7. The number of farmworkers served under each program.
  608         8. The number of homeless persons served under each
  609  program.
  610         9. The number of elderly persons served under each program.
  611         10. The extent to which geographic distribution has been
  612  achieved in accordance with the provisions of s. 420.5087.
  613         11. The success of the Community Workforce Housing
  614  Innovation Pilot Program in meeting the housing needs of
  615  eligible areas.
  616         12. Any other information the corporation deems
  617  appropriate.
  618         (4) Within 6 months after the end of its fiscal year, the
  619  corporation shall submit audited financial statements prepared
  620  in accordance with generally accepted accounting principles
  621  which include all assets, liabilities, revenues, and expenses of
  622  the corporation, and a list of all bonds outstanding at the end
  623  of its fiscal year. with the annual report required by this
  624  section, a copy of an annual financial audit of its accounts and
  625  records and an annual compliance The audit must be of its
  626  programs conducted by an independent certified public
  627  accountant, performed in accordance with generally accepted
  628  auditing standards and government auditing standards, and
  629  incorporate all reports, including compliance reports, as
  630  required by such auditing standards.
  631         (5) The Auditor General shall conduct an operational audit
  632  of the accounts and records of the corporation and provide a
  633  written report on the audit to the President of the Senate and
  634  the Speaker of the House of Representatives by December 1, 2016.
  635  Both the corporation’s business plan and annual report must
  636  shall recognize the different fiscal periods under which the
  637  corporation, the state, the Federal Government, and local
  638  governments operate.
  639         Section 10. Paragraph (b) of subsection (4) of section
  640  420.0003, Florida Statutes, is amended to read:
  641         420.0003 State housing strategy.—
  642         (4) IMPLEMENTATION.—The Department of Economic Opportunity
  643  and the Florida Housing Finance Corporation in carrying out the
  644  strategy articulated herein shall have the following duties:
  645         (b) The long-range program agency strategic plan of the
  646  Department of Economic Opportunity must shall include specific
  647  goals, objectives, and strategies that implement the housing
  648  policies in this section and shall include the strategic plan
  649  for housing production prepared by the corporation pursuant to
  650  s. 420.511.
  651         Section 11. Section 420.0006, Florida Statutes, is amended
  652  to read:
  653         420.0006 Authority to contract with corporation; contract
  654  requirements; nonperformance.—The executive director of the
  655  department shall contract, notwithstanding part I of chapter
  656  287, with the Florida Housing Finance Corporation on a multiyear
  657  basis to stimulate, provide, and foster affordable housing in
  658  the state. The contract must incorporate the performance
  659  measures required by s. 420.511 and must be consistent with the
  660  provisions of the corporation’s strategic business plan prepared
  661  in accordance with s. 420.511. The contract must provide that
  662  if, in the event the corporation fails to comply with any of the
  663  a performance measure measures required by s. 420.511, the
  664  executive director shall notify the Governor and shall refer the
  665  nonperformance to the department’s inspector general for review
  666  and determination as to whether such failure is due to forces
  667  beyond the corporation’s control or whether such failure is due
  668  to inadequate management of the corporation’s resources.
  669  Advances shall continue to be made pursuant to s. 420.0005
  670  during the pendency of the review by the department’s inspector
  671  general. If such failure is due to outside forces, it may shall
  672  not be deemed a violation of the contract. If such failure is
  673  due to inadequate management, the department’s inspector general
  674  shall provide recommendations regarding solutions. The Governor
  675  may is authorized to resolve any differences of opinion with
  676  respect to performance under the contract and may request that
  677  advances continue in the event of a failure under the contract
  678  due to inadequate management. The Chief Financial Officer shall
  679  approve the request absent a finding by the Chief Financial
  680  Officer that continuing such advances would adversely impact the
  681  state; however, in any event the Chief Financial Officer shall
  682  provide advances sufficient to meet the debt service
  683  requirements of the corporation and sufficient to fund contracts
  684  committing funds from the State Housing Trust Fund if so long as
  685  such contracts are in accordance with the laws of this state.
  686         Section 12. Subsection (1) of section 420.504, Florida
  687  Statutes, is amended to read:
  688         420.504 Public corporation; creation, membership, terms,
  689  expenses.—
  690         (1) There is created within the Department of Economic
  691  Opportunity A public corporation and a public body corporate and
  692  politic, to be known as the “Florida Housing Finance
  693  Corporation,” is created within the Department of Economic
  694  Opportunity.“Florida Housing Finance Corporation.” It is
  695  declared to be the intent of and constitutional construction by
  696  the Legislature that the Florida Housing Finance Corporation
  697  constitutes an entrepreneurial public corporation organized to
  698  provide and promote the public welfare by administering the
  699  governmental function of financing or refinancing housing and
  700  related facilities in this state Florida and that the
  701  corporation is not a department of the executive branch of state
  702  government within the scope and meaning of s. 6, Art. IV of the
  703  State Constitution, but is functionally related to the
  704  Department of Economic Opportunity in which it is placed. The
  705  executive function of state government to be performed by the
  706  executive director of the Department of Economic Opportunity in
  707  the conduct of the business of the Florida Housing Finance
  708  Corporation must be performed pursuant to a contract to monitor
  709  and set performance standards for the implementation of the
  710  business plan for the provision of housing approved for the
  711  corporation as provided in s. 420.0006. This contract must shall
  712  include the performance standards for the provision of
  713  affordable housing in this state Florida established in the
  714  strategic business plan described in s. 420.511.
  715         Section 13. Subsection (1) of section 420.506, Florida
  716  Statutes, is amended to read:
  717         420.506 Executive director; agents and employees; inspector
  718  general.—
  719         (1) The appointment and removal of an executive director
  720  shall be by the executive director of the Department of Economic
  721  Opportunity, with the advice and consent of the corporation’s
  722  board of directors. The executive director shall employ legal
  723  and technical experts and such other agents and employees,
  724  permanent and temporary, as the corporation may require, and
  725  shall communicate with and provide information to the
  726  Legislature with respect to the corporation’s activities. The
  727  board is authorized, Notwithstanding the provisions of s.
  728  216.262, the board may to develop and implement rules regarding
  729  the employment of employees of the corporation and service
  730  providers, including legal counsel. The board of directors of
  731  the corporation is entitled to establish travel procedures and
  732  guidelines for employees of the corporation, subject to s.
  733  112.061(6) and (7). The executive director’s office and the
  734  corporation’s files and records must be located in Leon County.
  735         Section 14. Section 420.5091, Florida Statutes, is
  736  repealed.
  737         Section 15. This act shall take effect upon becoming a law
  738  and shall first apply to the 2013 ad valorem tax rolls.