This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives.
STORAGE NAME: h1293c.ACR
DATE: 3/27/2023
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: HB 1293 Affordable Housing in Areas of Critical State Concern
SPONSOR(S): Mooney
TIED BILLS: IDEN./SIM. BILLS: SB 1212
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Local Administration, Federal Affairs & Special
Districts Subcommittee
15 Y, 0 N Burgess Darden
2) Agriculture, Conservation & Resiliency
Subcommittee
17 Y, 0 N Mamontoff Moore
3) State Affairs Committee
SUMMARY ANALYSIS
The Governor and Cabinet, acting as the Administration Commission, are authorized to designate areas of
critical state concern within the state that contain resources of statewide significance. The following areas in
the state have been designated as areas of critical state concern: the Big Cypress Area, the Green Swamp
Area, the Florida Keys Area, the City of Key West Area, and the Apalachicola Bay Area.
The Florida Keys were designated as an area of critical state concern in 1975. State, regional, and local
governments in the Florida Keys Area of Critical State Concern are required to coordinate development plans
and carry out programs and activities in accordance with development principles.
A local government in the Florida Keys Area may enact, amend, or revoke a land development regulation or
element of a local comprehensive plan, but the enactment, amendment, or rescission becomes effective only
after approval by the state land planning agency, the Department of Economic Opportunity (DEO).
Local governments are authorized to implement inclusionary housing policies, but are required to fully offset a
developer’s costs to incentivize developer participation. If the development is in the Florida Keys Area of
Critical State Concern, the offset requirement does not apply. Local governments are also authorized to
approve the development of housing that is affordable on any parcel zoned for residential, commercial, or
industrial use, regardless of any state or local law or regulation that would otherwise preclude such
development. If the project is on a parcel zoned for commercial or industrial use, at least 10 percent of the
units must be affordable and the developer must agreement to not seek funding from the State Apartment
Incentive Loan Program.
The bill requires a county or municipality that adopts an inclusionary housing ordinance in the Florida Keys
Area of Critical State Concern to offset developer costs.
The bill removes the requirement for a county or municipality that approves the development of affordable
housing on any parcel zoned for residential, commercial, or industrial use in the Florida Keys Area of Critical
State Concern to offset developer costs. This includes the approval of any residential development project,
including mixed-use residential development project, where at least 10 percent of the units are for affordable
housing, on parcels zoned commercial or industrial use.
The bill exempts eligible sponsors or eligible persons in a county or municipality whose land has been
designated by the Legislature as an area of critical state concern within the past five years, and for which the
Legislature has declared an intent to provide affordable housing, from certain SHIP Program requirements.
The bill does not appear to have a fiscal impact on state or local government. STORAGE NAME: h1293c.ACR PAGE: 2
DATE: 3/27/2023
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Present Situation
Areas of Critical State Concern
The Governor and Cabinet, sitting as the Administration Commission,
1
are authorized to designate
certain areas within the state that contain resources of statewide significance as areas of critical state
concern.
2
An area of critical state concern may be designated for an area:
Containing, or having a significant impact upon, environmental or natural resources of regional
or statewide importance, including state or federal parks, forests, wildlife refuges, wilderness
areas, aquatic preserves, major rivers and estuaries, state environmentally endangered lands,
Outstanding Florida Waters, and aquifer recharge areas, the uncontrolled private or public
development of which would cause substantial deterioration of such resources;
3
Containing, or having a significant impact upon, historical or archaeological resources, sites, or
statutorily defined historical or archaeological districts, the private or public development of
which would cause substantial deterioration or complete loss of such resources, sites, or
districts;
4
or
Having a significant impact upon, or being significantly impacted by, an existing or proposed
major public facility or other area of major public investment, including highways, ports, airports,
energy facilities, and water management projects.
5
The designated areas of critical state concern in the state are: the Big Cypress Area,
6
the Green
Swamp Area,
7
the Florida Keys Area, the City of Key West Area,
8
and the Apalachicola Bay Area.
9
Florida Keys Area of Critical State Concern
In 1975, the Florida Keys were designated as an area of critical state concern. The designation
includes the municipalities of Key West,
10
Islamorada, Marathon, Layton and Key Colony Beach, and
unincorporated Monroe County.
11
The designation is intended to:
Establish a land use management system that protects the natural environment of the Florida
Keys; conserves and promotes the community character of the Florida Keys; promotes orderly
and balanced growth in accordance with the capacity of available and planned public facilities
and services; and promotes and supports a diverse and sound economic base;
12
Provide affordable housing in close proximity to places of employment in the Florida Keys;
13
1
See ss. 380.031(1) and 14.202, F.S.
2
S. 380.05, F.S.
3
S. 380.05(2)(a), F.S.
4
S. 380.05(2)(b), F.S.
5
S. 380.05(2)(c), F.S.
6
S. 380.055, F.S.
7
S. 380.0551, F.S.
8
S. 380.0552, F.S.
9
S. 380.0555, F.S.
10
The City of Key West challenged the designation as a critical area and after litigation in 1984 was given its own area of critical state
concern designation. See 2020 Florida Keys Area of Critical State Concern Annual Report available at
https://floridajobs.org/docs/default-source/2015-community-development/community-planning/2015-cmty-plan-
acsc/2020keysacscannualreport.pdf?sfvrsn=51c94eb0_2 (last visited Mar. 16, 2023).
11
S. 380.0552, F.S.; 2020 Florida Keys Area of Critical State Concern Annual Report available at https://floridajobs.org/docs/default-
source/2015-community-development/community-planning/2015-cmty-plan-acsc/2020keysacscannualreport.pdf?sfvrsn=51c94eb0_2
(last visited Mar. 16, 2023).
12
S. 380.0552(2)(a)-(c) and (e), F.S.
13
S. 380.0552(2)(d), F.S. STORAGE NAME: h1293c.ACR PAGE: 3
DATE: 3/27/2023
Protect the constitutional rights of property owners to own, use, and dispose of their real
property;
14
Promote coordination and efficiency among governmental agencies that have permitting
jurisdiction over land use activities in the Florida Keys;
15
Promote an appropriate land acquisition and protection strategy for environmentally sensitive
lands within the Florida Keys;
16
Protect and improve the nearshore water quality of the Florida Keys through the construction
and operation of wastewater management facilities, as applicable;
17
and
Ensure that the population of the Florida Keys can be safely evacuated.
18
State, regional, and local governments in the Florida Keys Area of Critical State Concern are required
to coordinate development plans and conduct programs and activities consistent with principles for
guiding development that:
Strengthen local government capabilities for managing land use and development so that local
government is able to achieve these objectives without continuing the area of critical state
concern designation;
19
Protect shoreline and marine resources, including mangroves, coral reef formations, seagrass
beds, wetlands, fish and wildlife, and their habitat;
20
Protect upland resources, tropical biological communities, freshwater wetlands, native tropical
vegetation (e.g., hardwood hammocks and pinelands), dune ridges and beaches, wildlife, and
their habitat;
21
Ensure the maximum well-being of the Florida Keys and its citizens through sound economic
development;
22
Limit the adverse impacts of development on the quality of water throughout the Florida Keys;
23
Enhance natural scenic resources, promoting the aesthetic benefits of the natural environment,
and ensuring that development is compatible with the unique historic character of the Florida
Keys;
24
Protect the historical heritage of the Florida Keys;
25
Protect the value, efficiency, cost-effectiveness, and amortized life of existing and proposed
major public investments, including:
o The Florida Keys Aqueduct and water supply facilities;
o Sewage collection, treatment, and disposal facilities;
o Solid waste treatment, collection, and disposal facilities;
o Key West Naval Air Station and other military facilities;
o Transportation facilities;
o Federal parks, wildlife refuges, and marine sanctuaries;
o State parks, recreation facilities, aquatic preserves, and other publicly owned properties;
o City electric service and the Florida Keys Electric Co-op; and
o Other utilities, as appropriate;
26
Protect and improve water quality by providing for the construction, operation, maintenance, and
replacement of stormwater management facilities; central sewage collection; treatment and
disposal facilities; and the installation and proper operation and maintenance of onsite sewage
treatment and disposal systems;
27
14
S. 380.0552(2)(f), F.S.
15
S. 380.0552(2)(g), F.S.
16
S. 380.0552(2)(h), F.S.
17
S. 380.0552(2)(i), F.S.
18
S. 380.0552(2)(j), F.S.
19
S. 380.0552(7)(a), F.S.
20
S. 380.0552(7)(b), F.S.
21
S. 380.0552(7)(c), F.S.
22
S. 380.0552(7)(d), F.S.
23
S. 380.0552(7)(e), F.S.
24
S. 380.0552(7)(f), F.S.
25
S. 380.0552(7)(g), F.S.
26
S. 380.0552(7)(h), F.S.
27
S. 380.0552(7)(i), F.S. STORAGE NAME: h1293c.ACR PAGE: 4
DATE: 3/27/2023
Ensure the improvement of nearshore water quality by requiring the construction and operation
of wastewater management facilities, as applicable, and by directing growth to areas served by
central wastewater treatment facilities through permit allocation systems;
28
Limit the adverse impacts of public investments on the environmental resources of the Florida
Keys;
29
Make available adequate affordable housing for all sectors of the population of the Florida
Keys;
30
Provide adequate alternatives for the protection of public safety and welfare in the event of a
natural or manmade disaster and for a post-disaster reconstruction plan;
31
and
Protect the public health, safety, and welfare of the citizens of the Florida Keys and maintaining
the Florida Keys as a unique Florida resource.
32
A land development regulation or element of a local comprehensive plan in the Florida Keys Area may
be enacted, amended, or rescinded by a local government, but the enactment, amendment, or
rescission becomes effective only upon approval by the Department of Economic Opportunity (DEO).
33
Amendments to local comprehensive plans must also be reviewed for compliance with the following:
Construction schedules and detailed capital financing plans for wastewater management
improvements in the annually adopted capital improvements element, and standards for the
construction of wastewater treatment and disposal facilities or collection systems that meet or
exceed criteria for wastewater treatment and disposal facilities or onsite sewage treatment and
disposal systems; and
Goals, objectives, and policies to protect public safety and welfare in the event of a natural
disaster by maintaining a hurricane evacuation clearance time for permanent residents of no
more than 24 hours. The hurricane evacuation clearance time must be determined by a
hurricane evacuation study conducted in accordance with a professionally accepted
methodology and approved by DEO.
34
In 2011, the Administration Commission directed DEO and the Division of Emergency Management to
enter into a Memorandum of Understanding (MOU) with Monroe County, the Village of Islamorada, and
the cities of Marathon, Key West, Key Colony Beach, and Layton regarding hurricane evacuation
modeling.
35
The MOU is the basis for an analysis on the maximum build-out capacity of the Florida
Keys while maintaining the ability of the permanent population to evacuate within 24 hours.
36
Affordable Housing
Affordable housing is defined in terms of household income. Resident eligibility for Florida’s state and
federally-funded housing programs is governed by area median income (AMI) or statewide median
family income,
37
published annually by the United States Department of Housing and Urban
Development (HUD).
38
The following are standard household income level definitions and their
relationship to the 2022 Florida statewide AMI of $78,300 for a family of four (as family size changes,
the income range also varies):
39
28
S. 380.0552(7)(j), F.S.
29
S. 380.0552(7)(k), F.S.
30
S. 380.0552(7)(l), F.S.
31
S. 380.0552(7)(m), F.S.
32
S. 380.0552(7)(n), F.S.
33
S. 380.552(9)(a), F.S.
34
S. 380.0552(9)(a)1. and 2., F.S.
35
DEO Florida Keys Hurricane Evacuation available at http://www.floridajobs.org/community-planning-and-
development/programs/community-planning-table-of-contents/areas-of-critical-state-concern/city-of-key-west-and-the-florida-
keys/florida-keys-hurricane-evacuation.
36
Id.
37
The 2022 Florida SMI for a family of four was $79,300. U.S. Dept. of Housing and Urban Development, Income Limits, Access
Individual Income Limits Areas, available at https://www.huduser.gov/portal/datasets/il.html#2022 (last visited Mar. 16, 2023).
38
HUD User, Office of Policy Development and Research, “Income Limits,” available at
https://www.huduser.gov/portal/datasets/il.html#2022 (last visited Mar. 16, 2023) (SMI and AMI available under the "Access Individual
Income Limits Area” dataset).
39
U.S. Dept. of Housing and Urban Development, Income Limits, Access Individual Income Limits Areas, available at
https://www.huduser.gov/portal/datasets/il.html#2022 (last visited Mar. 16, 2023). STORAGE NAME: h1293c.ACR PAGE: 5
DATE: 3/27/2023
Extremely low income – earning up to 30 percent AMI (at or below $ 23,500);
40
Very low income – earning from 30.01 to 50 percent AMI ($23,501 to $39,150);
41
Low income – earning from 50.01 to 80 percent AMI ($39,151 to $62,650);
42
and
Moderate income – earning from 80.01 to 120 percent of AMI ($62,651 to $94,000).
43
State Apartment Incentive Loan Program
The State Apartment Incentive Loan (SAIL) Program
44
provides low-interest loans on a competitive
basis to affordable housing developers. SAIL is funded through a statutory distribution of documentary
stamp tax revenues, which are deposited into the State Housing Trust Fund. This money often serves
to bridge the gap between the primary financing and the total cost of the development. SAIL dollars are
available to individuals, public entities, nonprofit organizations, or for-profit organizations that propose
the construction or substantial rehabilitation of multifamily units affordable to very-low-income
individuals and families. In most cases, the SAIL loan cannot exceed 25 percent of the total
development cost and can be used in conjunction with other state and federal programs.
The Florida Housing Finance Corporation (FHFC) administers the SAIL program and is required to
establish a review committee for the competitive evaluation and selection of applications submitted.
The evaluation criteria include local government contributions and local government comprehensive
planning and activities that promote affordable housing.
45
Local Government Affordable Housing Policies
Counties and municipalities may adopt an inclusionary housing ordinance that requires a developer to
provide a specified number or percentage of affordable housing units within a development or,
alternatively, allows a developer to contribute to a housing fund or other alternative.
46
In exchange, a
county or municipality must provide incentives to fully offset the developer’s costs.
47
Incentives may
include:
Allowing the developer density or intensity bonus incentives or more floor space than allowed
under the current or proposed future land use designations; or
Reducing or waiving fees, such as impact fees or water and sewer charges.
If the development is in the Florida Keys Area the Florida Keys Area of Critical State Concern, the
offset requirement does not apply.
48
Counties and municipalities may approve the development of housing that is affordable on any parcel
zoned for residential, commercial, or industrial use, regardless of any state or local law or regulation
that would otherwise preclude such development.
49
If the project is on a parcel zoned for commercial or
industrial use, at least 10 percent of the units must be affordable and the developer must agree to not
apply for or receive funding from the SAIL Program.
State Housing Initiatives Partnership Program
The State Housing Initiatives Partnership (SHIP) Program was created in 1992
50
to provide funds to
local governments as an incentive to create partnerships that produce and preserve affordable
40
S. 420.0004(9), F.S.
41
S. 420.0004(17), F.S.
42
S. 420.0004(11), F.S.
43
S. 420.0004(12), F.S.
44
See s. 420.5087, F.S., and Florida Housing Finance Corporation, State Apartment Incentive Loan, Background, for information cited
in this section, http://www.floridahousing.org/programs/developers-multifamily-programs/state-apartment-incentive-loan (last visited
Mar. 16, 2023).
45
S. 420.5087(6)(c), F.S.
46
Ss. 125.01055(2) and 166.04151(2), F.S.
47
Ss. 125.01055(2) and 166.04151(2), F.S.
48
Ss. 125.01055(5) and 166.04151(5), F.S.
49
Ss. 125.01055(6) and 166.04151(6), F.S.
50
Ch. 92-317, Laws of Fla. STORAGE NAME: h1293c.ACR PAGE: 6
DATE: 3/27/2023
homeownership and multifamily housing. The SHIP program provides funds to all 67 counties and
52 Community Development Block Grant
51
entitlement cities on a population-based formula to finance
and preserve affordable housing based on locally adopted housing plans.
52
The program was designed
to serve very-low, low-, and moderate-income families and is administered by FHFC. SHIP program
funds may be used to pay for emergency repairs, rehabilitation, down payment and closing cost
assistance, impact fees, construction and gap financing, mortgage buydowns, acquisition of property
for affordable housing, matching dollars for federal housing grants and programs, and homeownership
counseling.
53
Funds are expended per each local government’s adopted Local Housing Assistance Plan (LHAP),
which details the housing strategies it will use.
54
Local governments submit their LHAPs to FHFC for
review to ensure they meet the broad statutory guidelines and the requirements of the program rules.
FHFC must approve an LHAP before a local government may receive SHIP program funding.
Certain statutory requirements restrict a local government’s use of funds made available under the
SHIP program (excluding amounts set aside for administrative costs):
At least 75 percent of SHIP program funds must be reserved for construction, rehabilitation, or
emergency repair of affordable, eligible housing;
55
and
Up to 25 percent of SHIP program funds may be reserved for allowed rental services.
56
Within those distributions by local governments, additional requirements must be met:
At least 65 percent of SHIP program funds must be reserved for home ownership for eligible
persons;
57
At least 20 percent of SHIP program funds must serve persons with special needs;
58
Up to 20 percent of SHIP program funds may be used for manufactured housing;
59
and
At least 30 percent of SHIP program funds must be used for awards to very-low-income persons
or eligible sponsors serving very-low-income persons, and another 30 percent must be used for
awards for low-income-persons or eligible sponsors serving low-income persons.
60
Effect of Proposed Changes
The bill removes a provision that exempts a county or municipality that adopts an inclusionary housing
ordinance from fully offsetting a developer’s costs for a development within the Florida Keys Area of
Critical State Concern.
The bill exempts a county or municipality from the requirement to offset a developer’s costs when the
county or municipality approves the development of residential or mixed-use residential development
on any parcel zoned for residential, commercial, or industrial use within the Florida Keys Area of Critical
State Concern. This exemption includes any residential development project or mixed-use residential
development project where at least 10 percent of the units are for affordable housing, on parcels zoned
commercial or industrial use.
51
The CDBG program is a federal program created in 1974 that provides funding for housing and community development activities.
52
See ss. 420.907-420.9089, F.S.
53
S. 420.072(7), F.S.
54
Sections 420.9075 and 420.9075(3), F.S., outline a list of strategies LHAPs are encouraged to employ, such as helping those
affected by mobile home park closures, encouraging innovative housing design to reduce long-term housing costs, preserving assisted
housing, and reducing homelessness.
55
S. 420.9075(5)(c), F.S.
56
S. 420.9075(5)(b), F.S. However, a local government may not expend money distributed to it to provide ongoing rent subsidies,
except for: security and utility deposit assistance; eviction prevention not to exceed six months’ rent; or a rent subsidy program for very-
low-income households with at least one adult who is a person with special needs or is homeless, not to exceed 12 months’ rental
assistance.
57
S. 420.9075(5)(a), F.S. “Eligible person” or “eligible household” means one or more natural persons or a family determined by the
county or eligible municipality to be of very low income, low income, or moderate income based upon the annual gross income of the
household.
58
S. 420.9075(5)(d), F.S.
59
S. 420.9075(5)(e), F.S.
60
S. 420.9075(5)(g)2., F.S. STORAGE NAME: h1293c.ACR PAGE: 7
DATE: 3/27/2023
The bill allows eligible sponsors or eligible persons who are in a county or municipality whose land has
been designated by the Legislature as an area of critical state concern within the past five years, and
for which the Legislature has declared an intent to provide affordable housing, to be exempt from the
following requirements for awards made under the SHIP program:
At least 30 percent of the funds deposited in to the local housing assistance trust fund must be
reserved for awards to very-low-income persons or eligible sponsors who will serve very-low-
income persons; and
At least an additional 30 percent of the funds deposited into the local housing assistance trust
fund must be reserved for awards to low-income persons or eligible sponsors who will serve
low-income persons.
The bill states that this exemption from the above requirements expires July 1, 2028, and applies
retroactively.
B. SECTION DIRECTORY:
Section 1: Amends s. 125.01055, F.S., relating to county affordable housing.
Section 2: Amends s. 166.04151, F.S., relating to municipal affordable housing.
Section 3: Amends s. 420.9075, F.S., relating to local housing assistance plans.
Section 4: Provides an effective date of July 1, 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:
None.
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
None.
D. FISCAL COMMENTS:
None.
STORAGE NAME: h1293c.ACR PAGE: 8
DATE: 3/27/2023
III. COMMENTS
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
Not applicable. This bill does not appear to require counties or municipalities to spend funds or take
action requiring the expenditure of funds; reduce the authority that counties or municipalities have
to raise revenues in the aggregate; or reduce the percentage of state tax shared with counties or
municipalities.
2. Other:
None.
B. RULE-MAKING AUTHORITY:
The bill neither provides authority for nor requires rulemaking by executive branch agencies.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
None.