Florida Senate - 2017                             CS for SB 1770
       
       
        
       By the Committee on Community Affairs; and Senator Lee
       
       
       
       
       
       578-03382-17                                          20171770c1
    1                        A bill to be entitled                      
    2         An act relating to community redevelopment agencies;
    3         amending s. 163.340, F.S.; revising the definition of
    4         the term “blighted area”; amending s. 163.524, F.S.;
    5         conforming a cross-reference; amending s. 163.356,
    6         F.S.; providing reporting requirements; deleting
    7         provisions requiring certain annual reports; amending
    8         s. 163.357, F.S.; requiring, rather than authorizing,
    9         a governing body that consists of five members to
   10         appoint two additional persons to act as members of
   11         the community redevelopment agency; providing
   12         requirements for such members; amending s. 163.367,
   13         F.S.; requiring ethics training for community
   14         redevelopment agency commissioners; amending s.
   15         163.370, F.S.; establishing procurement procedures;
   16         creating s. 163.371, F.S.; providing annual reporting
   17         requirements; requiring a community redevelopment
   18         agency to publish annual reports and boundary maps on
   19         its website; creating s. 163.3755, F.S.; providing a
   20         phase-out period for existing community redevelopment
   21         agencies unless their continued existence is approved
   22         by a super majority vote of the governing bodies of
   23         the counties or municipalities which created them;
   24         providing a limited exception for community
   25         redevelopment agencies with certain outstanding bond
   26         obligations; providing that a governing body of a
   27         county or municipality may create a community
   28         redevelopment agency only by a super majority vote on
   29         or after a specified date; creating s. 163.3756, F.S.;
   30         providing legislative findings; requiring the
   31         Department of Economic Opportunity to declare inactive
   32         community redevelopment agencies that have reported no
   33         financial activity for a specified number of years;
   34         providing hearing procedures; authorizing certain
   35         financial activity by a community redevelopment agency
   36         that is declared inactive; requiring the department to
   37         maintain a website identifying all inactive community
   38         redevelopment agencies; amending s. 163.387, F.S.;
   39         revising requirements for the use of the redevelopment
   40         trust fund proceeds beginning on a specified date;
   41         limiting allowed expenditures; revising requirements
   42         for the annual budget of a community redevelopment
   43         agency; requiring municipal community redevelopment
   44         agencies to provide an annual budget to the county
   45         commission; revising requirements for the annual
   46         audit; requiring the audit to be included with the
   47         financial report of the county or municipality that
   48         created the community redevelopment agency; amending
   49         s. 218.32, F.S.; requiring county and municipal
   50         governments to report community redevelopment agency
   51         annual audit reports as part of the county or
   52         municipal annual report; revising criteria for finding
   53         that a county or municipality failed to file a report;
   54         requiring the Department of Financial Services to
   55         provide a report to the Department of Economic
   56         Opportunity concerning community redevelopment
   57         agencies with no revenues, expenditures, or debts;
   58         providing an effective date.
   59          
   60  Be It Enacted by the Legislature of the State of Florida:
   61  
   62         Section 1. Subsection (8) of section 163.340, Florida
   63  Statutes, is amended to read:
   64         163.340 Definitions.—The following terms, wherever used or
   65  referred to in this part, have the following meanings:
   66         (8) “Blighted area” means an area in which there are a
   67  substantial number of deteriorated or deteriorating structures;
   68  in which conditions, as indicated by government-maintained
   69  statistics or other studies, endanger life or property or are
   70  leading to economic distress; and in which two or more of the
   71  following factors are present:
   72         (a) Predominance of defective or inadequate street layout,
   73  parking facilities, roadways, bridges, or public transportation
   74  facilities.
   75         (b) Aggregate assessed values of real property in the area
   76  for ad valorem tax purposes have failed to show any appreciable
   77  increase over the 5 years prior to the finding of such
   78  conditions.
   79         (c) Faulty lot layout in relation to size, adequacy,
   80  accessibility, or usefulness.
   81         (d) Unsanitary or unsafe conditions.
   82         (e) Deterioration of site or other improvements.
   83         (f) Inadequate and outdated building density patterns.
   84         (g) Falling lease rates per square foot of office,
   85  commercial, or industrial space compared to the remainder of the
   86  county or municipality.
   87         (h) Tax or special assessment delinquency exceeding the
   88  fair value of the land.
   89         (i) Residential and commercial vacancy rates higher in the
   90  area than in the remainder of the county or municipality.
   91         (j) Incidence of crime in the area higher than in the
   92  remainder of the county or municipality.
   93         (k) Fire and emergency medical service calls to the area
   94  proportionately higher than in the remainder of the county or
   95  municipality.
   96         (l) A greater number of violations of the Florida Building
   97  Code in the area than the number of violations recorded in the
   98  remainder of the county or municipality.
   99         (m) Diversity of ownership or defective or unusual
  100  conditions of title which prevent the free alienability of land
  101  within the deteriorated or hazardous area.
  102         (n) Governmentally owned property with adverse
  103  environmental conditions caused by a public or private entity.
  104         (o) A substantial number or percentage of properties
  105  damaged by sinkhole activity which have not been adequately
  106  repaired or stabilized.
  107         (p) Rates of unemployment higher in the area than in the
  108  remainder of the county or municipality.
  109         (q) Rates of poverty higher in the area than in the
  110  remainder of the county or municipality.
  111         (r) Rates of foreclosure higher in the area than in the
  112  remainder of the county or municipality.
  113         (s) Rates of infant mortality higher in the area than in
  114  the remainder of the county or municipality.
  115  
  116  However, the term “blighted area” also means any area in which
  117  at least one of the factors identified in paragraphs (a) through
  118  (o) is present and all taxing authorities subject to s.
  119  163.387(2)(a) agree, either by interlocal agreement with the
  120  agency or by resolution, that the area is blighted. Such
  121  agreement or resolution must be limited to a determination that
  122  the area is blighted. For purposes of qualifying for the tax
  123  credits authorized in chapter 220, “blighted area” means an area
  124  as defined in this subsection.
  125         Section 2. Subsection (3) of section 163.524, Florida
  126  Statutes, is amended to read:
  127         163.524 Neighborhood Preservation and Enhancement Program;
  128  participation; creation of Neighborhood Preservation and
  129  Enhancement Districts; creation of Neighborhood Councils and
  130  Neighborhood Enhancement Plans.—
  131         (3) After the boundaries and size of the Neighborhood
  132  Preservation and Enhancement District have been defined, the
  133  local government shall pass an ordinance authorizing the
  134  creation of the Neighborhood Preservation and Enhancement
  135  District. The ordinance shall contain a finding that the
  136  boundaries of the Neighborhood Preservation and Enhancement
  137  District comply with s. 163.340(7) or (8)(a)-(s) (8)(a)-(o) or
  138  do not contain properties that are protected by deed
  139  restrictions. Such ordinance may be amended or repealed in the
  140  same manner as other local ordinances.
  141         Section 3. Paragraphs (c) and (d) of subsection (3) of
  142  section 163.356, Florida Statutes, are amended to read:
  143         163.356 Creation of community redevelopment agency.—
  144         (3)(c) The governing body of the county or municipality
  145  shall designate a chair and vice chair from among the
  146  commissioners. An agency may employ an executive director,
  147  technical experts, and such other agents and employees,
  148  permanent and temporary, as it requires, and determine their
  149  qualifications, duties, and compensation. For such legal service
  150  as it requires, an agency may employ or retain its own counsel
  151  and legal staff.
  152         (d) An agency authorized to transact business and exercise
  153  powers under this part shall file with the governing body the
  154  report required pursuant to s. 163.371(1), on or before March 31
  155  of each year, a report of its activities for the preceding
  156  fiscal year, which report shall include a complete financial
  157  statement setting forth its assets, liabilities, income, and
  158  operating expenses as of the end of such fiscal year. At the
  159  time of filing the report, the agency shall publish in a
  160  newspaper of general circulation in the community a notice to
  161  the effect that such report has been filed with the county or
  162  municipality and that the report is available for inspection
  163  during business hours in the office of the clerk of the city or
  164  county commission and in the office of the agency.
  165         (e)(d) At any time after the creation of a community
  166  redevelopment agency, the governing body of the county or
  167  municipality may appropriate to the agency such amounts as the
  168  governing body deems necessary for the administrative expenses
  169  and overhead of the agency, including the development and
  170  implementation of community policing innovations.
  171         Section 4. Paragraph (c) of subsection (1) of section
  172  163.357, Florida Statutes, is amended to read:
  173         163.357 Governing body as the community redevelopment
  174  agency.—
  175         (1)
  176         (c) A governing body that which consists of five members
  177  shall may appoint two additional persons to act as members of
  178  the community redevelopment agency. These members may not be
  179  elected officials. The two additional members must have
  180  expertise in at least one of the following areas: architecture,
  181  finance, construction, land use, affordable housing,
  182  sustainability, or other educational or professional experience
  183  in the area of community redevelopment. The terms of office of
  184  the additional members shall be for 4 years, except that the
  185  first person appointed shall initially serve a term of 2 years.
  186  Persons appointed under this section are subject to all
  187  provisions of this part relating to appointed members of a
  188  community redevelopment agency.
  189         Section 5. Subsection (1) of section 163.367, Florida
  190  Statutes, is amended to read:
  191         163.367 Public officials, commissioners, and employees
  192  subject to code of ethics.—
  193         (1)(a) The officers, commissioners, and employees of a
  194  community redevelopment agency created by, or designated
  195  pursuant to, s. 163.356 or s. 163.357 are shall be subject to
  196  the provisions and requirements of part III of chapter 112.
  197         (b)Commissioners of a community redevelopment agency must
  198  comply with the ethics training requirements in s. 112.3142.
  199         Section 6. Subsection (5) is added to section 163.370,
  200  Florida Statutes, to read:
  201         163.370 Powers; counties and municipalities; community
  202  redevelopment agencies.—
  203         (5)A community redevelopment agency shall procure all
  204  commodities and services under the same purchasing processes and
  205  requirements that apply to the county or municipality that
  206  created the agency.
  207         Section 7. Section 163.371, Florida Statutes, is created to
  208  read:
  209         163.371Reporting requirements.—
  210         (1)Beginning March 31, 2018, and no later than March 31 of
  211  each year thereafter, a community redevelopment agency shall
  212  file an annual report with the county or municipality that
  213  created the agency and publish the information on the agency’s
  214  website. The report must include the following information:
  215         (a)A complete audit report of the redevelopment trust fund
  216  pursuant to s. 163.387(8).
  217         (b)The performance data for each plan authorized,
  218  administered, or overseen by the community redevelopment agency
  219  as of December 31 of the year being reported, including the:
  220         1.Total number of projects started and completed and the
  221  estimated project cost for each project.
  222         2.Total expenditures from the redevelopment trust fund.
  223         3.Original assessed real property values within the
  224  community redevelopment agency’s area of authority as of the day
  225  the agency was created.
  226         4.Total assessed real property values of property within
  227  the boundaries of the community redevelopment agency as of
  228  January 1 of the year being reported.
  229         5.Total amount expended for affordable housing for low
  230  income and middle-income residents.
  231         (2)By January 1, 2018, each community redevelopment agency
  232  shall publish on its website digital maps that depict the
  233  geographic boundaries and total acreage of the community
  234  redevelopment agency. If any change is made to the boundaries or
  235  total acreage, the agency shall post updated map files on its
  236  website within 60 days after the date such change takes effect.
  237         Section 8. Section 163.3755, Florida Statutes, is created
  238  to read:
  239         163.3755Termination of community redevelopment agencies;
  240  future creation.—
  241         (1) Unless the governing body of the county or municipality
  242  which created the community redevelopment agency approves its
  243  continued existence by a super majority vote of the governing
  244  body members, a community redevelopment agency in existence on
  245  July 1, 2017, shall terminate on the expiration date provided in
  246  the community redevelopment agency’s charter as it exists on
  247  July 1, 2017, or on September 30, 2037, whichever is earlier.
  248         (2)(a) If the governing body of the county or municipality
  249  which created the community redevelopment agency does not
  250  approve its continued existence by a super majority vote of the
  251  governing body members, a community redevelopment agency with
  252  outstanding bonds as of July 1, 2017, which do not mature until
  253  after the earlier of the termination date of the agency or
  254  September 30, 2037, remains in existence until the date the
  255  bonds mature.
  256         (b)A community redevelopment agency operating under this
  257  subsection on or after September 30, 2037, may not extend the
  258  maturity date of any outstanding bonds.
  259         (c)The county or municipality that created the community
  260  redevelopment agency must issue a new finding of necessity
  261  limited to timely meeting the remaining bond obligations of the
  262  community redevelopment agency.
  263         (3)On or after July 1, 2017, the governing body of a
  264  county or municipality may create a community redevelopment
  265  agency only by a super majority vote of the members of the
  266  governing body of the county or municipality. A community
  267  redevelopment agency in existence before July 1, 2017, may
  268  continue to operate as provided in this part.
  269         Section 9. Section 163.3756, Florida Statutes, is created
  270  to read:
  271         163.3756Inactive community redevelopment agencies.—
  272         (1)The Legislature finds that a number of community
  273  redevelopment agencies continue to exist but report no revenues,
  274  no expenditures, and no outstanding debt in their annual report
  275  to the Department of Financial Services pursuant to s. 218.32.
  276         (2)(a)A community redevelopment agency that has reported
  277  no revenues, expenditures, or debt under s. 218.32 or s.
  278  189.016(9) for 3 consecutive fiscal years calculated from no
  279  earlier than October 1, 2014, shall be declared inactive by the
  280  Department of Economic Opportunity. The department shall notify
  281  the agency of the declaration of inactive status under this
  282  subsection. If the agency has no board members and no agent, the
  283  notice of inactive status must be delivered to the governing
  284  board or commission of the county or municipality which created
  285  the agency.
  286         (b)The governing board of a community redevelopment agency
  287  declared inactive under this subsection may seek to invalidate
  288  the declaration by initiating proceedings under s. 189.062(5)
  289  within 30 days after the date of the receipt of the notice from
  290  the department.
  291         (3)A community redevelopment agency declared inactive
  292  under this section is authorized only to expend funds from the
  293  redevelopment trust fund as necessary to service outstanding
  294  bond debt. The agency may not expend other funds without an
  295  ordinance of the governing body of the local government which
  296  created the agency consenting to the expenditure of funds.
  297         (4)The provisions of s. 189.062(2) and (4) do not apply to
  298  a community redevelopment agency that has been declared inactive
  299  under this section.
  300         (5)The provisions of this section are cumulative to the
  301  provisions of s. 189.062. To the extent the provisions of this
  302  section conflict with the provisions of s. 189.062, this section
  303  prevails.
  304         (6)The Department of Economic Opportunity shall maintain
  305  on its website a separate list of community redevelopment
  306  agencies declared inactive under this section.
  307         Section 10. Subsections (6) and (8) of section 163.387,
  308  Florida Statutes, are amended to read:
  309         163.387 Redevelopment trust fund.—
  310         (6) Beginning October 1, 2017, moneys in the redevelopment
  311  trust fund may be expended from time to time for undertakings of
  312  a community redevelopment agency as described in the community
  313  redevelopment plan only pursuant to an annual budget adopted by
  314  the board of commissioners of the community redevelopment agency
  315  and only for the following purposes stated in this subsection.,
  316  including, but not limited to:
  317         (a) Except as provided in this subsection, a community
  318  redevelopment agency shall comply with the requirements of s.
  319  189.016.
  320         (b)A community redevelopment agency created by a
  321  municipality shall:
  322         1.Adopt its proposed budget within 90 days before the
  323  beginning of its fiscal year.
  324         2.Submit its proposed budget and projections for the next
  325  fiscal year to the board of county commissioners for the county
  326  in which the community redevelopment agency is located within 60
  327  days before the start of the agency’s fiscal year.
  328         3.Submit amendments to its operating budget to the board
  329  of county commissioners of the county in which the community
  330  redevelopment agency is located within 10 days after the date of
  331  adoption of the amended budget Administrative and overhead
  332  expenses necessary or incidental to the implementation of a
  333  community redevelopment plan adopted by the agency.
  334         (c)The annual budget of a community redevelopment agency
  335  may provide for payment of the following expenses:
  336         1.Administrative and overhead expenses directly or
  337  indirectly necessary to implement a community redevelopment plan
  338  adopted by the agency.
  339         2.(b) Expenses of redevelopment planning, surveys, and
  340  financial analysis, including the reimbursement of the governing
  341  body or the community redevelopment agency for such expenses
  342  incurred before the redevelopment plan was approved and adopted.
  343         3.(c) The acquisition of real property in the redevelopment
  344  area.
  345         4.(d) The clearance and preparation of any redevelopment
  346  area for redevelopment and relocation of site occupants within
  347  or outside the community redevelopment area as provided in s.
  348  163.370.
  349         5.(e) The repayment of principal and interest or any
  350  redemption premium for loans, advances, bonds, bond anticipation
  351  notes, and any other form of indebtedness.
  352         6.(f) All expenses incidental to or connected with the
  353  issuance, sale, redemption, retirement, or purchase of bonds,
  354  bond anticipation notes, or other form of indebtedness,
  355  including funding of any reserve, redemption, or other fund or
  356  account provided for in the ordinance or resolution authorizing
  357  such bonds, notes, or other form of indebtedness.
  358         7.(g) The development of affordable housing within the
  359  community redevelopment area.
  360         8.(h) The development of community policing innovations.
  361         (8)(a) Each community redevelopment agency shall provide
  362  for an audit of the trust fund each fiscal year and a report of
  363  such audit to be prepared by an independent certified public
  364  accountant or firm.
  365         (b)The audit Such report shall:
  366         1. Describe the amount and source of deposits into, and the
  367  amount and purpose of withdrawals from, the trust fund during
  368  such fiscal year and the amount of principal and interest paid
  369  during such year on any indebtedness to which increment revenues
  370  are pledged and the remaining amount of such indebtedness.
  371         2.Include a complete financial statement identifying the
  372  assets, liabilities, income, and operating expenses of the
  373  community redevelopment agency as of the end of such fiscal
  374  year.
  375         3.Include a finding by the auditor determining whether the
  376  community redevelopment agency complies with the requirements of
  377  subsection (7).
  378         (c)The audit report for the community redevelopment agency
  379  shall be included with the annual financial report submitted by
  380  the county or municipality that created the agency to the
  381  Department of Financial Services as provided in s. 218.32,
  382  regardless of whether the agency reports separately under s.
  383  218.32.
  384         (d) The agency shall provide by registered mail a copy of
  385  the audit report to each taxing authority.
  386         Section 11. Subsection (3) of section 218.32, Florida
  387  Statutes, is amended to read:
  388         218.32 Annual financial reports; local governmental
  389  entities.—
  390         (3)(a) The department shall notify the President of the
  391  Senate and the Speaker of the House of Representatives of any
  392  municipality that has not reported any financial activity for
  393  the last 4 fiscal years. Such notice must be sufficient to
  394  initiate dissolution procedures as described in s.
  395  165.051(1)(a). Any special law authorizing the incorporation or
  396  creation of the municipality must be included within the
  397  notification.
  398         (b)Failure of a county or municipality to include in its
  399  annual report to the department the full audit required by s.
  400  163.387(8) for each community redevelopment agency created by
  401  that county or municipality constitutes a failure to report
  402  under this section.
  403         (c)By November 1 of each year, the department must provide
  404  the Special District Accountability Program of the Department of
  405  Economic Opportunity with a list of each community redevelopment
  406  agency reporting no revenues, expenditures, or debt for the
  407  community redevelopment agency’s previous fiscal year.
  408         Section 12. This act shall take effect July 1, 2017.