Florida Senate - 2022              PROPOSED COMMITTEE SUBSTITUTE
       Bill No. SB 196
       
       
       
       
       
                               Ì518736CÎ518736                          
       
       576-02675-22                                                    
       Proposed Committee Substitute by the Committee on Appropriations
       (Appropriations Subcommittee on Transportation, Tourism, and
       Economic Development)
    1                        A bill to be entitled                      
    2         An act relating to the Florida Housing Finance
    3         Corporation; amending s. 420.503, F.S.; defining the
    4         terms “bona fide contract” and “qualified contract”
    5         for purposes of the Florida Housing Finance
    6         Corporation Act; amending s. 420.5087, F.S.; deleting
    7         certain limitations and restrictions on, and
    8         requirements for, loans made by the corporation to
    9         sponsors of housing for the elderly under the State
   10         Apartment Incentive Loan Program; deleting the
   11         authority of the corporation to forgive certain
   12         indebtedness; deleting provisions relating to loan
   13         applications; amending s. 420.509, F.S.; designating
   14         the corporation, rather than the State Board of
   15         Administration, as the state fiscal agency to make
   16         determinations in connection with specified bonds;
   17         authorizing the corporation’s board of directors,
   18         rather than the State Board of Administration, to
   19         delegate to its executive director the authority and
   20         power to perform that function; requiring the
   21         executive director to annually report specified
   22         information to the board of directors, rather than the
   23         State Board of Administration; revising applicable
   24         interest rate limitations on bonds of the corporation;
   25         amending s. 420.5099, F.S.; providing construction
   26         relating to low-income tax credit developments if a
   27         qualified contract does not close for specified
   28         reasons; providing requirements for the corporation
   29         and an owner if a qualified contract does not close
   30         for any other reason; providing construction if no
   31         other qualified contract is presented to the owner
   32         within a certain period; amending s. 420.5092, F.S.;
   33         conforming a provision to changes made by the act;
   34         amending s. 420.628, F.S.; conforming a cross
   35         reference; providing an effective date.
   36          
   37  Be It Enacted by the Legislature of the State of Florida:
   38  
   39         Section 1. Present subsections (4) through (34) and (35)
   40  through (43) of section 420.503, Florida Statutes, are
   41  redesignated as subsections (5) through (35) and (37) through
   42  (45), respectively, new subsections (4) and (36) are added to
   43  that section, and present subsection (15) of that section is
   44  amended, to read:
   45         420.503 Definitions.—As used in this part, the term:
   46         (4) “Bona fide contract” means a complete and negotiated
   47  commercially reasonable contract for sale signed by the owner
   48  and the purchaser which states that final acceptance of the
   49  contract is contingent upon approval by the corporation and
   50  which includes:
   51         (a)A requirement for the purchaser to make an initial
   52  nonrefundable earnest money deposit of at least $50,000, to be
   53  placed in escrow, unless waived in writing by the owner; and
   54         (b)A requirement for the purchaser to make a second
   55  nonrefundable earnest money deposit equal to 3 percent of the
   56  qualified contract price within 15 business days after the end
   57  of the due diligence period, unless waived in writing by the
   58  owner and subject to any rights reserved by the purchaser in the
   59  event of the owner’s failure to deliver insurable title or in
   60  the event of the owner’s default.
   61  
   62  A bona fide contract may require that the initial earnest money
   63  deposit and the second earnest money deposit be refundable in
   64  the event of the owner’s failure to deliver insurable title at
   65  closing; the owner’s termination of a fully executed contract
   66  due to a reason other than the default of the purchaser, or as
   67  may be provided for in the contract; or the owner’s default.
   68         (16)(15) “Elderly” means persons 62 years of age or older;
   69  however, this definition does not prohibit housing from being
   70  deemed housing for the elderly as defined in subsection (21)
   71  (20) if such housing otherwise meets the requirements of
   72  subsection (21) (20).
   73         (36)“Qualified contract” has the same meaning as in 26
   74  U.S.C. s. 42(h)(6)(F) in effect on the date of the preliminary
   75  determination certificate for the low-income housing tax credits
   76  for the development that is the subject of the qualified
   77  contract request. The corporation shall deem a bona fide
   78  contract to be a qualified contract at the time the second
   79  earnest money deposit is deposited in escrow in accordance with
   80  the terms of the bona fide contract and, in such event, the
   81  corporation is deemed to have fulfilled its responsibility to
   82  present the owner with a qualified contract.
   83         Section 2. Subsection (3) of section 420.5087, Florida
   84  Statutes, is amended to read:
   85         420.5087 State Apartment Incentive Loan Program.—There is
   86  hereby created the State Apartment Incentive Loan Program for
   87  the purpose of providing first, second, or other subordinated
   88  mortgage loans or loan guarantees to sponsors, including for
   89  profit, nonprofit, and public entities, to provide housing
   90  affordable to very-low-income persons.
   91         (3) During the first 6 months of loan or loan guarantee
   92  availability, program funds shall be made available for use by
   93  sponsors who provide the housing set-aside required in
   94  subsection (2) for the tenant groups designated in this
   95  subsection. The funds made available to each of these groups
   96  shall be determined using the most recent statewide very-low
   97  income rental housing market study available at the time of
   98  publication of each notice of fund availability required by
   99  paragraph (6)(b). The funds made available within each notice of
  100  fund availability to the tenant groups in paragraphs (b)-(e) may
  101  not be less than 10 percent of the funds available at that time.
  102  Any increase in funding required to reach the required minimum
  103  must be taken from the tenant group that would receive the
  104  largest percentage of available funds in accordance with the
  105  study. The funds made available within each notice of fund
  106  availability to the tenant group in paragraph (a) may not be
  107  less than 5 percent of the funds available at that time. The
  108  tenant groups are:
  109         (a) Commercial fishing workers and farmworkers;
  110         (b) Families;
  111         (c) Persons who are homeless;
  112         (d) Persons with special needs; and
  113         (e) Elderly persons. Ten percent of the amount made
  114  available for the elderly shall provide loans to sponsors of
  115  housing for the elderly for the purpose of making building
  116  preservation, health, or sanitation repairs or improvements
  117  which are required by federal, state, or local regulation or
  118  code, or lifesafety or security-related repairs or improvements
  119  to such housing. Such a loan may not exceed $750,000 per housing
  120  community for the elderly. In order to receive the loan, the
  121  sponsor of the housing community must make a commitment to match
  122  at least 5 percent of the loan amount to pay the cost of such
  123  repair or improvement. The corporation shall establish the rate
  124  of interest on the loan, which may not exceed 3 percent, and the
  125  term of the loan, which may not exceed 15 years; however, if the
  126  lien of the corporation’s encumbrance is subordinate to the lien
  127  of another mortgagee, then the term may be made coterminous with
  128  the longest term of the superior lien. The term of the loan
  129  shall be based on a credit analysis of the applicant. The
  130  corporation may forgive indebtedness for a share of the loan
  131  attributable to the units in a project reserved for extremely
  132  low-income elderly by nonprofit organizations, as defined in s.
  133  420.0004(5), where the project has provided affordable housing
  134  to the elderly for 15 years or more. The corporation shall
  135  establish, by rule, the procedure and criteria for receiving,
  136  evaluating, and competitively ranking all applications for loans
  137  under this paragraph. A loan application must include evidence
  138  of the first mortgagee’s having reviewed and approved the
  139  sponsor’s intent to apply for a loan. A nonprofit organization
  140  or sponsor may not use the proceeds of the loan to pay for
  141  administrative costs, routine maintenance, or new construction.
  142         Section 3. Subsections (2) and (4) of section 420.509,
  143  Florida Statutes, are amended to read:
  144         420.509 Revenue bonds.—
  145         (2) The corporation State Board of Administration is
  146  designated as the state fiscal agency to make the determinations
  147  required by s. 16, Art. VII of the State Constitution in
  148  connection with the issuance of such bonds that in no state
  149  fiscal year will the debt service requirements of the bonds
  150  proposed to be issued and all other bonds secured by the same
  151  pledged revenues exceed the pledged revenues available for such
  152  debt service requirements. The corporation’s board of directors
  153  State Board of Administration may delegate to its executive
  154  director the authority and power to perform that function
  155  without further review of the agency. The determinations
  156  pursuant to this subsection paragraph are limited to a review of
  157  the matters essential to making the determinations required by
  158  s. 16, Art. VII of the State Constitution. The executive
  159  director shall report annually to the board State Board of
  160  Administration and the Legislature regarding the number of bond
  161  issues considered and the determination with respect thereto.
  162         (4) Bonds of the corporation may:
  163         (a) Bear interest at a rate or rates not exceeding the
  164  interest rate limitation set forth in s. 159.825 or s. 215.84,
  165  as applicable s. 215.84(3), unless the State Board of
  166  Administration authorizes an interest rate in excess of such
  167  maximum;
  168         (b) Have such provisions for payment at maturity and
  169  redemption before maturity at such time or times and at such
  170  price or prices; and
  171         (c) Be payable at such place or places within or without
  172  the state as the board determines by resolution.
  173         Section 4. Present subsection (7) of section 420.5099,
  174  Florida Statutes, is redesignated as subsection (8), and a new
  175  subsection (7) is added to that section, to read:
  176         420.5099 Allocation of the low-income housing tax credit.—
  177         (7) For the further purpose of implementing this program in
  178  this state, if a qualified contract does not close due to a
  179  default of the owner, the termination by the owner due to a
  180  reason other than the purchaser’s default, or as otherwise
  181  provided for in the bona fide contract, the development must
  182  remain subject to the extended use agreement, and the owner is
  183  deemed to have waived any right or option to submit another
  184  qualified contract request for the development. If a qualified
  185  contract does not close for any other reason, the corporation
  186  must continue to seek offers at the qualified contract price
  187  through the end of the 1-year period, and the owner’s obligation
  188  to cooperate in the marketing of the project must continue. If
  189  no other qualified contract is presented to the owner during the
  190  1-year period, the project must be treated as if no qualified
  191  contract had been presented, and the extended use period is
  192  terminated.
  193         Section 5. Paragraph (b) of subsection (6) of section
  194  420.5092, Florida Statutes, is amended to read:
  195         420.5092 Florida Affordable Housing Guarantee Program.—
  196         (6)
  197         (b) If the claims payment obligations under affordable
  198  housing guarantees from amounts on deposit in the guarantee fund
  199  would cause the claims paying rating assigned to the guarantee
  200  fund to be less than the third-highest rating classification of
  201  any nationally recognized rating service, which classifications
  202  being consistent with s. 215.84(3) and rules adopted thereto by
  203  the State Board of Administration, the corporation shall certify
  204  to the Chief Financial Officer the amount of such claims payment
  205  obligations. Upon receipt of such certification, the Chief
  206  Financial Officer shall transfer to the guarantee fund, from the
  207  first available taxes distributed to the State Housing Trust
  208  Fund pursuant to s. 201.15(4)(c) and (d) during the ensuing
  209  state fiscal year, the amount certified as necessary to meet
  210  such obligations, such transfer to be subordinate to any
  211  transfer referenced in paragraph (a) and not to exceed 50
  212  percent of the amounts distributed to the State Housing Trust
  213  Fund pursuant to s. 201.15(4)(c) and (d) during the preceding
  214  state fiscal year.
  215         Section 6. Subsection (2) of section 420.628, Florida
  216  Statutes, is amended to read:
  217         420.628 Affordable housing for children and young adults
  218  leaving foster care; legislative findings and intent.—
  219         (2) Young adults who leave the child welfare system meet
  220  the definition of eligible persons under ss. 420.503(18) and
  221  420.9071(11) ss. 420.503(17) and 420.9071(11) for affordable
  222  housing, and are encouraged to participate in federal, state,
  223  and local affordable housing programs. Students deemed to be
  224  eligible occupants under 26 U.S.C. s. 42(i)(3)(D) shall be
  225  considered eligible persons for purposes of all projects funded
  226  under this chapter.
  227         Section 7. This act shall take effect July 1, 2022.