This document does not reflect the intent or official position of the bill sponsor or House of Representatives.
STORAGE NAME: h0763z.DOCX
DATE: 5/2/2023
HOUSE OF REPRESENTATIVES STAFF FINAL BILL ANALYSIS
BILL #: HB 763 Disposal of Department of Transportation Property
SPONSOR(S): Edmonds and others
TIED BILLS: IDEN./SIM. BILLS: SB 678
FINAL HOUSE FLOOR ACTION: 119 Y’s
0 N’s GOVERNOR’S ACTION: Pending
SUMMARY ANALYSIS
HB 763 passed the House on May 2, 2023, as SB 678.
The Florida Department of Transportation (DOT) is authorized to convey any land, building, or other real or
personal property it acquired if DOT determines the property is no longer needed for an existing, proposed, or
anticipated transportation facility. In pertinent part, DOT may, without consideration, convey such property to a
governmental entity if the property is used for a public purpose.
The bill provides that when DOT conveys the property for a public purpose without consideration to a
governmental entity, public purpose includes, but is not limited to, affordable housing.
The bill has no fiscal impact on the state and an indeterminate fiscal impact on local governments and the
private sector.
Subject to the Governor’s veto powers, the effective date of this bill is July 1, 2023.
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DATE: 5/2/2023
I. SUBSTANTIVE INFORMATION
A. EFFECT OF CHANGES:
Background
Department of Transportation Disposal of Real Property
The Florida Department of Transportation (DOT) is authorized to purchase, lease, exchange, or
otherwise acquire any land, property interests, buildings, or other improvements necessary to secure or
use transportation rights-of-way for existing, proposed, or anticipated transportation facilities.
1
At a later
date, if DOT determines the acquired property is no longer needed for a transportation facility,
2
DOT is
authorized to convey the property.
3
In such cases, DOT may dispose of the property through
negotiations, sealed competitive bids, auctions, or any other means DOT deems to be in its best
interest and must advertise the disposal of the property if it is valued over $10,000.
4
DOT may not dispose of property for a price less than DOT’s estimate of value, except under the
following conditions:
If the property has been donated to the state for transportation purposes and a transportation
facility has not been constructed for at least 5 years, plans have not been prepared for the
construction of such facility, and the property is not located in a transportation corridor, the
governmental entity may authorize reconveyance of the donated property for no consideration
to the original donor or the donor’s heirs, successors, assigns, or representatives.
5
If the property is to be used for a public purpose, the property may be conveyed without
consideration to a governmental entity.
6
If the property was originally acquired specifically to provide replacement housing for persons
displaced by transportation projects, DOT may negotiate for the sale of such property as
replacement housing.
7
If DOT determines that the property requires significant costs to be incurred or that continued
ownership of the property exposes DOT to significant liability risks, DOT may use the projected
maintenance costs over the next 10 years to offset the property’s value in establishing a value
for disposal of the property, even if that value is zero.
8
At DOT’s discretion, the property may be sold to the abutting owner for DOT’s current estimate of value
if the sale to a person other than an abutting property owner would be inequitable.
9
In cases of property
to be used for a public purpose, or in cases of the property requiring significant costs to be incurred or
exposing DOT to significant liability risks, DOT may afford a right of first refusal to the local government
or other political subdivision in the jurisdiction in which the property is situated.
10
However in these
cases, or in the case of the property being sold to the abutting owner, DOT must provide a right of first
refusal to the previous property owner from whom DOT originally acquired the property for DOT’s
1
S. 337.25(1)(a), F.S.
2
S. 334.03(30), F.S., defines “Transportation facility” as any means for the transportation of people or property from place
to place which is constructed, operated, or maintained in whole or in part from public funds. The term includes the
property or property rights, both real and personal, which have been or may be established by public bodies for the
transportation of people or property from place to place.
3
S. 337.25(4), F.S.
4
Id.
5
S. 337.25(4)(a), F.S.
6
S. 337.25(4)(b), F.S.
7
S. 337.25(4)(c), F.S.
8
S. 337.25(4)(d), F.S.
9
S. 337.25(4)(e), F.S.
10
S. 337.25(4), F.S.
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current estimate of value.
11
These provisions do not apply if the property was acquired by DOT more
than 10 years before the date of disposition.
12
County and Municipal Disposal of Property for Affordable Housing
Every three years, each county and municipality must evaluate all real property holdings within its
jurisdiction that are appropriate for affordable
13
housing and create an inventory list.
14
The governing
body of the county or municipality will review the inventory list, which includes the address and legal
description of each such real property, and adopt a resolution regarding the list following a public
hearing.
15
The properties identified as appropriate for affordable housing may be disposed of in the following
ways:
Sold and the proceeds used to purchase land for the development of affordable housing;
Sold with restrictions requiring the development of the property as permanent affordable
housing;
Donated to a nonprofit housing organization for the construction of permanent affordable
housing; or
Offered by the county or municipality for use for the production and preservation of permanent
affordable housing.
16
Public Purpose
Florida law does not define “public purpose” in the context of DOT disposing of its property.
A federal rule relating to public lands defines “public purpose” as the provision of facilities or services
for the benefit of the public in connection with, but not limited to, public health, safety, or welfare. Use of
lands or facilities for habitation, cultivation, trade, or manufacturing is permissible only when necessary
for and integral to the public purpose.
17
The DOT Right of Way Manual defines a “public purpose conveyance” as a conveyance by DOT to
another governmental entity for a social, economic, or environmental purpose that would benefit the
general public.
18
Effect of the Bill
The bill provides that when DOT conveys the property for a public purpose without consideration to a
governmental entity, public purpose includes, but is not limited to, affordable housing.
11
Id.
12
Id.
13
“Affordable” means that monthly rents or monthly mortgage payments including taxes, insurance, and utilities do not
exceed 30 percent of that amount which represents the percentage of the median adjusted gross annual income for the
households that are considered “extremely-low-income persons”, “low-income persons”, “moderate-income persons”, and
“very-low-income persons”. S. 420.0004(1), F.S.
14
Ss. 125.379(1) and 166.0451(1), F.S.
15
Id.
16
Ss. 125.379(2) and 166.0451(2), F.S.
17
43 C.F.R. § 2740.0-5(d) (2023).
18
DOT, Right of Way Procedures Manual, https://fdotwww.blob.core.windows.net/sitefinity/docs/default-
source/rightofway/documents/rowmanual/20220506_row_full.pdf?sfvrsn=3604477c_2 (last visited Mar. 1, 2023).
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DATE: 5/2/2023
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
None.
2. Expenditures:
None.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
See Fiscal Comments.
2. Expenditures:
See Fiscal Comments.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
Indeterminate but likely positive. The bill may lead to increased access to affordable housing for the
general public and those in need of such housing benefits.
D. FISCAL COMMENTS:
Indeterminate. DOT has discretion when deciding whether to convey land for a public purpose without
cost to the local governmental entity.