Florida Senate - 2013 CS for CS for SB 928
By the Committees on Appropriations; and Community Affairs; and
1 A bill to be entitled
2 An act relating to community development; amending s.
3 159.603, F.S.; modifying the definition of “qualifying
4 housing development”; amending s. 159.608, F.S.;
5 revising the power of a housing finance authority to
6 make loans directly to eligible persons; amending s.
7 196.1978, F.S.; deleting an ad valorem tax exemption
8 for property owned by certain Florida-based limited
9 partnerships and used for affordable housing for
10 certain income-qualified persons; amending s. 420.507,
11 F.S.; revising the powers of the Florida Housing
12 Finance Corporation; specifying how the corporation
13 will allocate certain funds; directing the corporation
14 to adopt rules prioritizing affordable housing
15 projects in the Florida Keys; amending s. 420.5087,
16 F.S.; revising provisions relating to state apartment
17 incentive loans to provide for a competitive
18 evaluation and selection process with respect to loan
19 applications; amending s. 420.511, F.S.; providing
20 that the corporation’s strategic business plan must be
21 consistent with a long-range program plan relating to
22 affordable housing; deleting a requirement that the
23 corporation compile certain data; revising provisions
24 relating to the corporation’s development of its long
25 range plan; revising the required contents and
26 information to be included in the corporation’s annual
27 report; requiring the corporation to submit separate
28 audited financial statements that include specified
29 information and incorporate certain reports; requiring
30 the Auditor General to conduct an operational audit of
31 the corporation and provide a written report to the
32 Legislature; amending ss. 420.0003, 420.0006, 420.504,
33 and 420.506, F.S.; conforming provisions to changes
34 made by this act; repealing s. 420.5091, F.S.,
35 relating to the HOPE program; providing for
36 retroactive application; providing an effective date.
38 Be It Enacted by the Legislature of the State of Florida:
40 Section 1. Subsection (6) of section 159.603, Florida
41 Statutes, is amended to read:
42 159.603 Definitions.—As used in this part, the following
43 words and terms have the following meanings unless the context
44 indicates another or different meaning or intent.
45 (6) “Qualifying housing development” means any work or
46 improvement located or to be located in this
47 including real property, buildings, and any other real and
48 personal property, designed or intended for the primary purpose
49 of providing decent, safe, and sanitary residential housing for
50 four or more families, at least 60 percent of whom are eligible
51 persons, whether new construction, the acquisition of existing
52 residential housing, or the remodeling, improvement,
53 rehabilitation, or reconstruction of existing housing, together
54 with such related nonhousing facilities as the authority
55 determines to be necessary, convenient, or desirable.
56 (a) The term includes a housing development that meets the
57 definition of a “qualified low-income housing project” under s.
58 42(g) of the Internal Revenue Code, regardless of whether such
59 development meets the 60-percent-eligible-persons requirement
60 under this subsection.
61 (b) The exception provided under paragraph (a) applies to
62 all housing developments that meet the federal definition of
63 “qualified low-income housing project” and all developments that
64 previously qualified under the state definition of “qualifying
65 housing development.” Housing finance authorities may enter into
66 regulatory agreement amendments as necessary to accommodate
67 housing developments that qualify under paragraph (a).
68 Section 2. Subsection (8) of section 159.608, Florida
69 Statutes, is amended to read:
70 159.608 Powers of housing finance authorities.—A housing
71 finance authority shall constitute a public body corporate and
72 politic, exercising the public and essential governmental
73 functions set forth in this act, and shall exercise its power to
74 borrow only for the purpose as provided herein:
75 (8) To make loans directly to eligible persons or families
76 who otherwise cannot borrow from conventional lending sources
77 and whose annual income does not exceed 80 percent of the median
78 income based on a family of up to four persons for the county in
79 which they seek to purchase a residence. The housing finance
80 authority may adjust the annual income requirements for families
81 of greater than four persons. Such loans must be secured by
82 either first mortgages or subordinated mortgages and must be
83 used to purchase, construct, rehabilitate, or refinance single
84 family residences that have purchase prices that do not exceed
85 the purchase price limits of ; however, the purchase price of any
86 residence financed through such a loan may not exceed 90 percent
87 of the median sales price for single-family homes in the county
88 where the borrower’s residence is to be located, as mandated by
89 federal law for tax-exempt, single-family bond programs.
90 Section 3. Section 196.1978, Florida Statutes, is amended
91 to read:
92 196.1978 Affordable housing property exemption.—Property
93 used to provide affordable housing to serving eligible persons
94 as defined under by s. 159.603 (7) and natural persons or
95 families meeting the extremely-low-income, very-low-income, low
96 income, or moderate-income limits specified in s. 420.0004,
97 which property is owned entirely by a nonprofit entity that is a
98 corporation not for profit, qualified as charitable under s.
99 501(c)(3) of the Internal Revenue Code and in compliance with
100 Rev. Proc. 96-32, 1996-1 C.B. 717, is or a Florida-based limited
101 partnership, the sole general partner of which is a corporation
102 not for profit which is qualified as charitable under s.
103 501(c)(3) of the Internal Revenue Code and which complies with
104 Rev. Proc. 96-32, 1996-1 C.B. 717, shall be considered property
105 owned by an exempt entity and used for a charitable purpose, and
106 those portions of the affordable housing property which provide
107 housing to natural persons or families classified as extremely
108 low income, very low income, low income, or moderate income
109 under s. 420.0004 are shall be exempt from ad valorem taxation
110 to the extent authorized under in s. 196.196. All property
111 identified in this section must shall comply with the criteria
112 provided under s. 196.195 for determining determination of
113 exempt status and to be applied by property appraisers on an
114 annual basis as defined in s. 196.195. The Legislature intends
115 that any property owned by a limited liability company or
116 limited partnership which is disregarded as an entity for
117 federal income tax purposes pursuant to Treasury Regulation
118 301.7701-3(b)(1)(ii) shall be treated as owned by its sole
119 member or sole general partner.
120 Section 4. Paragraph (h) of subsection (22) and subsection
121 (48) of section 420.507, Florida Statutes are amended, and
122 subsection (49) is added to that section, to read:
123 420.507 Powers of the corporation.—The corporation shall
124 have all the powers necessary or convenient to carry out and
125 effectuate the purposes and provisions of this part, including
126 the following powers, which are in addition to all other powers
127 granted by other provisions of this part:
128 (22) To develop and administer the State Apartment
129 Incentive Loan Program. In developing and administering that
130 program, the corporation may:
131 (h) Establish, by rule, the procedure for evaluating,
132 scoring, and competitively evaluating and selecting ranking all
133 applications for funding based on the criteria set forth in s.
134 420.5087(6)(c), ; determining actual loan amounts, ; making and
135 servicing loans, ; and exercising the powers authorized in this
137 (48) To award use up to 10 percent of its annual allocation
138 of low-income housing tax credits, nontaxable revenue bonds, and
139 State Apartment Incentive Loan Program funds appropriated by the
140 Legislature and available to allocate by request for proposals
141 or other competitive solicitation. The corporation shall reserve
142 up to 5 percent of each allocation funding for high-priority
143 affordable housing projects, such as housing to support economic
144 development and job-creation initiatives, housing for veterans
145 and their families, and other special needs populations in
146 communities throughout the state as determined by the
147 corporation on an annual basis. The corporation shall reserve an
148 additional 5 percent of each allocation for affordable housing
149 projects that target persons who have a disabling condition as
150 defined in s. 420.0004 and their families. These allocations
151 must prioritize projects or initiatives piloting or
152 demonstrating cost effective, best practices that meet the
153 housing needs and preferences of such persons. Any tax credits
154 or funds not allocated because of a lack of eligible projects
155 targeting persons who have a disabling condition shall be
156 distributed by the corporation for high-priority housing
158 (49) To adopt rules prescribing a priority for funding
159 affordable housing projects in the Florida Keys Area of Critical
160 State Concern and the City of Key West Area of Critical State
161 Concern where, due to challenging environmental, land use,
162 transportation, workforce, and economic factors, it is extremely
163 difficult to successfully finance, develop, and construct
164 affordable housing.
165 Section 5. Paragraphs (c) and (f) of subsection (6) of
166 section 420.5087, Florida Statutes, are amended to read:
167 420.5087 State Apartment Incentive Loan Program.—There is
168 hereby created the State Apartment Incentive Loan Program for
169 the purpose of providing first, second, or other subordinated
170 mortgage loans or loan guarantees to sponsors, including for
171 profit, nonprofit, and public entities, to provide housing
172 affordable to very-low-income persons.
173 (6) On all state apartment incentive loans, except loans
174 made to housing communities for the elderly to provide for
175 lifesafety, building preservation, health, sanitation, or
176 security-related repairs or improvements, the following
177 provisions shall apply:
178 (c) The corporation shall provide by rule for the
179 establishment of a review committee composed of the department
180 and corporation staff and shall establish by rule a scoring
181 system for the competitive evaluation and selection competitive
182 ranking of applications submitted in this program, including,
183 but not limited to, the following criteria:
184 1. Tenant income and demographic targeting objectives of
185 the corporation.
186 2. Targeting objectives of the corporation which will
187 ensure an equitable distribution of loans between rural and
188 urban areas.
189 3. Sponsor’s agreement to reserve the units for persons or
190 families who have incomes below 50 percent of the state or local
191 median income, whichever is higher, for a time period that
192 exceeds to exceed the minimum required by federal law or the
193 provisions of this part.
194 4. Sponsor’s agreement to reserve more than:
195 a. Twenty percent of the units in the project for persons
196 or families who have incomes that do not exceed 50 percent of
197 the state or local median income, whichever is higher; or
198 b. Forty percent of the units in the project for persons or
199 families who have incomes that do not exceed 60 percent of the
200 state or local median income, whichever is higher, without
201 requiring a greater amount of the loans as provided in this
203 5. Provision for tenant counseling.
204 6. Sponsor’s agreement to accept rental assistance
205 certificates or vouchers as payment for rent.
206 7. Projects requiring the least amount of a state apartment
207 incentive loan compared to overall project cost, except that the
208 share of the loan attributable to units serving extremely-low
209 income persons must shall be excluded from this requirement.
210 8. Local government contributions and local government
211 comprehensive planning and activities that promote affordable
213 9. Project feasibility.
214 10. Economic viability of the project.
215 11. Commitment of first mortgage financing.
216 12. Sponsor’s prior experience.
217 13. Sponsor’s ability to proceed with construction.
218 14. Projects that directly implement or assist welfare-to
219 work transitioning.
220 15. Projects that reserve units for extremely-low-income
222 16. Projects that include green building principles, storm
223 resistant construction, or other elements that reduce long-term
224 costs relating to maintenance, utilities, or insurance.
225 17. Job-creation rate of the developer and general
226 contractor, as provided in s. 420.507(47).
227 (f) The review committee established by corporation rule
228 pursuant to this subsection shall make recommendations to the
229 board of directors of the corporation regarding program
230 participation under the State Apartment Incentive Loan Program.
231 The corporation board shall make the final ranking and the
232 decisions regarding which applicants shall become program
233 participants based on the scores received in the competitive
234 process ranking, further review of applications, and the
235 recommendations of the review committee. The corporation board
236 shall approve or reject applications for loans and shall
237 determine the tentative loan amount available to each applicant
238 selected for participation in the program. The actual loan
239 amount shall be determined pursuant to rule adopted pursuant to
240 s. 420.507(22)(h).
241 Section 6. Section 420.511, Florida Statutes, is amended to
243 420.511 Strategic business plan; long-range program
244 strategic plan; annual report; audited financial statements.—
245 (1) The corporation shall develop a strategic business plan
246 for the provision of affordable housing for the state. The plan
247 must be consistent shall not be inconsistent with the long-range
248 program strategic plan prepared pursuant to subsection (2) and
249 shall contain performance measures and specific performance
250 targets for the following:
251 (a) The ability of low-income and moderate-income
252 Floridians to access housing that is decent and affordable.
253 (b) The continued availability and affordability of housing
254 financed by the corporation to target populations.
255 (c) The availability of affordable financing programs,
256 including equity and debt products, and programs that reduce
257 gaps in conventional financing in order , to increase individual
258 access to housing and stimulate private production of affordable
260 (d) The establishment and maintenance of efficiencies in
261 the delivery of affordable housing.
262 (e) Such other measures as directed by the corporation’s
263 board of directors.
265 The corporation shall also compile data on the stimulus of
266 economic activity created by the affordable housing finance
267 programs administered by the corporation.
268 (2) The corporation, in coordination equal partnership with
269 the department, shall develop annually develop a long-range
270 program strategic plan for the provision of affordable housing
271 in this state as Florida as part of the department’s agency
272 strategic plan required pursuant to chapter 186. In part, the
273 plan must shall include provisions that maximize the abilities
274 of the corporation and the department to implement the state
275 housing strategy established under s. 420.0003, to respond to
276 federal housing initiatives, and to develop programs in a manner
277 that is more responsive to the needs of public and private
278 partners. The plan shall be developed on a schedule consistent
279 with that established by s. 186.021. For purposes of this
280 section act, the executive director or his or her designee shall
281 serve as the corporation’s representative to achieve a
282 coordinated and integrated planning relationship with the
284 (3) (a) The corporation shall submit to the Governor and the
285 presiding officers of each house of the Legislature, within 6 2
286 months after the end of its fiscal year, a complete and detailed
287 report setting forth the corporation’s state and federal program
288 accomplishments using the most recent available data. The report
289 must include, but is not limited to:
290 (a) The following tenant characteristics in existing rental
291 units financed through corporation-administered programs:
292 1. The number of households served, delineated by income,
293 race, ethnicity, and age of the head of household.
294 2. The number of households served in large, medium, and
295 small counties as defined in s. 420.5087 and the extent to which
296 geographic distribution has been achieved in accordance with s.
298 3. The number of farmworker and commercial-fishing worker
299 households served.
300 4. The number of homeless households served.
301 5. The number of special needs households served.
302 6. By county, the average rent charged based on unit size.
303 (b) The number of rental units to which resources have been
304 allocated in the last fiscal year, including income and
305 demographic restrictions.
306 (c) The estimated average cost of producing units under
307 each rental or homeownership unit financed under each program in
308 the last fiscal year.
309 (d) By county, the average sales price of homeownership
310 units financed in the last fiscal year.
311 (e) The number of households served by homeownership
312 programs in the last fiscal year, including the income, race,
313 ethnicity, and age of the homeowner of each household.
314 (f) The percentage of homeownership loans that are in
316 (g) The percentage of properties in the corporation’s
317 rental portfolio which have an occupancy rate below 90 percent.
318 (h) The amount of economic stimulus created by the
319 affordable housing finance programs administered by the
320 corporation for the most recent year available.
321 (i) For the State Apartment Incentive Loan (SAIL) Program,
322 a comprehensive list of all closed loans outstanding at the end
323 of the most recent fiscal year, including, but not limited to,
324 development name, city, county, developer, set-aside type, set
325 aside percentage, affordability term, total number of units,
326 number of set-aside units, lien position, original loan amount,
327 loan maturity date, loan balance at close of year, status of
328 loan, rate of interest, and interest paid.
329 (j) For the Florida Affordable Housing Guarantee Program, a
330 list of all guaranteed loans through the close of the most
331 recent fiscal year, including, but not limited to, development
332 name, city, county, developer, total number of units, issuer of
333 the bonds, loan maturity date, participation in the United
334 States Department of Housing and Urban Development Risk-Sharing
335 Program, original guarantee amount, guarantee amount at the
336 close of the fiscal year, status of guaranteed loans, and total
337 outstanding Florida Housing Finance Corporation Affordable
338 Housing Guarantee Program revenue bonds at the close of the most
339 recent fiscal year.
340 (k) Any other information the corporation deems
342 1. Its operations and accomplishments;
343 2. Its receipts and expenditures during its fiscal year in
344 accordance with the categories or classifications established by
345 the corporation for its operating and capital outlay purposes;
346 3. Its assets and liabilities at the end of its fiscal year
347 and the status of reserve, special, or other funds;
348 4. A schedule of its bonds outstanding at the end of its
349 fiscal year, together with a statement of the principal amounts
350 of bonds issued and redeemed during the fiscal year; and
351 5. Information relating to the corporation’s activities in
352 implementing the provisions of ss. 420.5087 , 420.5088 , and
353 420.5095 .
354 (b) The report shall include, but not be limited to:
355 1. The number of people served, delineated by income, age,
356 family size, and racial characteristics.
357 2. The number of units produced under each program.
358 3. The average cost of producing units under each program.
359 4. The average sales price of single-family units financed
360 under s. 420.5088 .
361 5. The average amount of rent charged based on unit size on
362 units financed under s. 420.5087 .
363 6. The number of persons in rural communities served under
364 each program.
365 7. The number of farmworkers served under each program.
366 8. The number of homeless persons served under each
368 9. The number of elderly persons served under each program.
369 10. The extent to which geographic distribution has been
370 achieved in accordance with the provisions of s. 420.5087 .
371 11. The success of the Community Workforce Housing
372 Innovation Pilot Program in meeting the housing needs of
373 eligible areas.
374 12. Any other information the corporation deems
376 (4) Within 6 months after the end of its fiscal year, the
377 corporation shall submit audited financial statements prepared
378 in accordance with generally accepted accounting principles
379 which include all assets, liabilities, revenues, and expenses of
380 the corporation, and a list of all bonds outstanding at the end
381 of its fiscal year. with the annual report required by this
382 section, a copy of an annual financial audit of its accounts and
383 records and an annual compliance The audit must be of its
384 programs conducted by an independent certified public accountant
385 and performed in accordance with generally accepted auditing
386 standards and government auditing standards, and must
387 incorporate all reports, including compliance reports, as
388 required by such auditing standards.
389 (5) The Auditor General shall conduct an operational audit
390 of the accounts and records of the corporation and provide a
391 written report on the audit to the President of the Senate and
392 the Speaker of the House of Representatives by December 1, 2016.
393 Both the corporation’s business plan and annual report must
394 shall recognize the different fiscal periods under which the
395 corporation, the state, the Federal Government, and local
396 governments operate.
397 Section 7. Paragraph (b) of subsection (4) of section
398 420.0003, Florida Statutes, is amended to read:
399 420.0003 State housing strategy.—
400 (4) IMPLEMENTATION.—The Department of Economic Opportunity
401 and the Florida Housing Finance Corporation in carrying out the
402 strategy articulated herein shall have the following duties:
403 (b) The long-range program agency strategic plan of the
404 Department of Economic Opportunity must shall include specific
405 goals, objectives, and strategies that implement the housing
406 policies in this section and shall include the strategic plan
407 for housing production prepared by the corporation pursuant to
408 s. 420.511.
409 Section 8. Section 420.0006, Florida Statutes, is amended
410 to read:
411 420.0006 Authority to contract with corporation; contract
412 requirements; nonperformance.—The executive director of the
413 department shall contract, notwithstanding part I of chapter
414 287, with the Florida Housing Finance Corporation on a multiyear
415 basis to stimulate, provide, and foster affordable housing in
416 the state. The contract must incorporate the performance
417 measures required by s. 420.511 and must be consistent with the
418 provisions of the corporation’s strategic business plan prepared
419 in accordance with s. 420.511. The contract must provide that
420 if , in the event the corporation fails to comply with any of the
421 a performance measure measures required under by s. 420.511, the
422 executive director shall notify the Governor and shall refer the
423 nonperformance to the department’s inspector general for review
424 and determination as to whether such failure is due to forces
425 beyond the corporation’s control or whether such failure is due
426 to inadequate management of the corporation’s resources.
427 Advances shall continue to be made pursuant to s. 420.0005
428 during the pendency of the review by the department’s inspector
429 general. If such failure is due to outside forces, it may shall
430 not be deemed a violation of the contract. If such failure is
431 due to inadequate management, the department’s inspector general
432 shall provide recommendations regarding solutions. The Governor
433 may is authorized to resolve any differences of opinion with
434 respect to performance under the contract and may request that
435 advances continue in the event of a failure under the contract
436 due to inadequate management. The Chief Financial Officer shall
437 approve the request absent a finding by the Chief Financial
438 Officer that continuing such advances would adversely impact the
439 state; however, in any event the Chief Financial Officer shall
440 provide advances sufficient to meet the debt service
441 requirements of the corporation and sufficient to fund contracts
442 committing funds from the State Housing Trust Fund if so long as
443 such contracts are in accordance with the laws of this state.
444 Section 9. Subsection (1) of section 420.504, Florida
445 Statutes, is amended to read:
446 420.504 Public corporation; creation, membership, terms,
448 (1) There is created within the Department of Economic
449 Opportunity A public corporation and a public body corporate and
450 politic, to be known as the “Florida Housing Finance
451 Corporation,” is created within the Department of Economic
452 Opportunity. “Florida Housing Finance Corporation.” It is
453 declared to be the intent of and constitutional construction by
454 the Legislature that the Florida Housing Finance Corporation
455 constitutes an entrepreneurial public corporation organized to
456 provide and promote the public welfare by administering the
457 governmental function of financing or refinancing housing and
458 related facilities in this state Florida and that the
459 corporation is not a department of the executive branch of state
460 government within the scope and meaning of s. 6, Art. IV of the
461 State Constitution, but is functionally related to the
462 Department of Economic Opportunity in which it is placed. The
463 executive function of state government to be performed by the
464 executive director of the Department of Economic Opportunity in
465 the conduct of the business of the Florida Housing Finance
466 Corporation must be performed pursuant to a contract to monitor
467 and set performance standards for the implementation of the
468 business plan for the provision of housing approved for the
469 corporation as provided in s. 420.0006. This contract must shall
470 include the performance standards for the provision of
471 affordable housing in this state Florida established in the
472 strategic business plan described in s. 420.511.
473 Section 10. Subsection (1) of section 420.506, Florida
474 Statutes, is amended to read:
475 420.506 Executive director; agents and employees; inspector
477 (1) The appointment and removal of an executive director
478 shall be by the executive director of the Department of Economic
479 Opportunity, with the advice and consent of the corporation’s
480 board of directors. The executive director shall employ legal
481 and technical experts and such other agents and employees,
482 permanent and temporary, as the corporation may require, and
483 shall communicate with and provide information to the
484 Legislature with respect to the corporation’s activities. The
485 board is authorized, Notwithstanding the provisions of s.
486 216.262, the board may to develop and implement rules regarding
487 the employment of employees of the corporation and service
488 providers, including legal counsel. The board of directors of
489 the corporation is entitled to establish travel procedures and
490 guidelines for employees of the corporation, subject to s.
491 112.061(6) and (7). The executive director’s office and the
492 corporation’s files and records must be located in Leon County.
493 Section 11. Section 420.5091, Florida Statutes, is
495 Section 12. This act shall take effect upon becoming a law
496 and shall first apply to the 2013 ad valorem tax rolls.