The Florida Senate
BILL ANALYSIS AND FISCAL IMPACT STATEMENT
(This document is based on the provisions contained in the legislation as of the latest date listed below.)
Prepared By: The Professional Staff of the Committee on Community Affairs
BILL: SB 102
INTRODUCER: Senators Calatayud and Rouson
SUBJECT: Housing
DATE: February 7, 2023
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. Hackett Ryon CA Pre-meeting
2. AP
I. Summary:
SB 102 makes various changes and additions to affordable housing related programs and policies
at both the state and local level.
Much of the bill involves the Florida Housing Finance Corporation (FHFC), a public-private
entity that administers the two largest statewide affordable housing programs: the State
Apartment Incentive Loan (SAIL) program and the State Housing Initiatives Partnership (SHIP)
program. With regards to FHFC, the bill:
Provides up to $150 million annually to the SAIL program for certain specified uses such as
infill and projects near military installations. These funds are to be redirected from the
General Revenue service charge, and this provision sunsets 2033.
Provides up to a $5,000 refund for sales tax paid on building materials used to construct an
affordable housing unit funded through the FHFC.
Creates a new tax donation program to allow corporate taxpayers to direct certain tax
payments to FHFC, up to $100 million annually, to fund the SAIL program.
Codifies the Florida Hometown Hero down payment assistance program, retaining the
structure as it exists while increasing the monetary limit per loan and the scope of eligibility.
Adds two members to the FHFC Board of Directors, one appointed by the leader of each
chamber of the Legislature.
Broadens the ability for FHFC to invest in affordable housing developments for those in or
aging out of foster care.
Adds a requirement to its annual legislative budget request.
Makes a technical amendment to the qualified contracts process.
With regards to other state-level resources, the bill:
Revises the State Housing Strategy to align with current best practices and goals.
Requires nonconservation land managers to analyze whether such lands would be more
appropriately transferred to a local government for affordable housing related purposes.
REVISED: BILL: SB 102 Page 2
Clarifies current law to ensure all local government requests for surplus lands are expedited.
Expands Job Growth Grant Fund eligibility to specifically authorize public infrastructure
projects that support affordable housing.
Raises tax credits available through the Community Contribution Tax Credit Program for
affordable housing from $14.5 to $25 million.
With regards to local governments, the bill:
Preempts local governments’ requirements regarding zoning, density, and height to allow for
streamlined development of affordable housing in commercial and mixed-use zoned areas
under certain circumstances. Developments which meet the requirements may not require a
zoning change or comprehensive plan amendment.
Removes a local government’s ability to approve affordable housing on residential parcels by
bypassing state and local laws that may otherwise preclude such development, while
retaining such right for commercial and industrial parcels.
Removes provision in current law allowing local governments to impose rent control under
certain circumstances, preempting rent control ordinances entirely.
Requires counties and cities to update and electronically publish the inventory of publicly-
owned properties, for counties including property owned by a dependent special district,
which may be appropriate for affordable housing development.
Authorizes FHFC, through contract with the Florida Housing Coalition, to provide technical
assistance to local governments to facilitate the use or lease of county or municipal property
for affordable housing purposes.
Requires local governments to maintain a public written policy outlining procedures for
expediting building permits and development orders for affordable housing projects.
The bill also introduces three ad valorem property tax exemptions:
An ad valorem tax exemption for land owned by a nonprofit entity that is leased for a
minimum of 99 years for the purpose of providing affordable housing.
An ad valorem tax exemption that applies to rent-restricted units within newly constructed or
substantially rehabilitated developments setting aside at least 70 units for affordable housing
for low- and moderate-income families.
Authorizes counties and municipalities to offer, through ordinance, an ad valorem tax
exemption to property owners who dedicate units for affordable housing at extremely-low
income, very-low income, or both.
The bill contains the following appropriations to FHFC:
$100 million in non-recurring funds from the General Revenue Fund to implement the
Florida Hometown Hero Program;
$252 million in non-recurring funds from the Local Government Housing Trust Fund for the
SHIP program;
$150 million in recurring funds from the State Housing Trust Fund for SAIL projects funded
by the General Revenue service charge redirect in the bill.
$109 million in non-recurring funds from the State Housing Trust Fund for the SAIL
program; and BILL: SB 102 Page 3
$100 million in non-recurring funds from the General Revenue Fund to implement a
competitive loan program to alleviate inflation-related cost increases for FHFC-approved
multifamily projects that have not yet commenced construction.
See Section V., Fiscal Impact Statement, for Revenue Estimating Conference analysis on
individual components of the bill.
Except as otherwise provided, the bill takes effect July 1, 2023.
II. Present Situation:
The present situation for each issue is described below in Section III, Effect of Effect of
Proposed Changes.
III. Effect of Proposed Changes:
Present Situation:
Affordable Housing
One major goal at all levels of government is to ensure that citizens have access to affordable
housing. Housing is considered affordable when it costs less than 30 percent of a family’s gross
income. A family paying more than 30 percent of its income for housing is considered “cost
burdened,” while those paying more than 50 percent are considered “extremely cost burdened.”
Severely cost burdened households are more likely to sacrifice other necessities such as healthy
food and healthcare to pay for housing, and to experience unstable housing situations such as
eviction.
Affordable housing is defined in terms of household income. Resident eligibility for Florida’s
state and federally funded housing programs is typically governed by area median income (AMI)
levels. These levels are published annually by the U.S. Department of Housing and Urban
Development (HUD) for every county and metropolitan area. The following are standard
household income level definitions and their relationship to the 2022 Florida state AMI of $
78,300 for a family of four (as family size increases or decreases, the income range also
increases or decreases):
1
Extremely low income – earning up to 30% AMI (at or below $ 23,500);
2
Very low income – earning from 30.01 to 50% AMI ($23,501 to $39,150);
3
Low income – earning from 50.01 to 80% AMI ($39,151 to $62,650);
4
and
Moderate income – earning from 80.01 to 120% of AMI ($62,651 to $94,000).
5
1
U.S. Department of Housing and Urban Development, Income Limits, Access Individual Income Limits Areas – Click Here
for FY 2022 IL Documentation, available at https://www.huduser.gov/portal/datasets/il.html#2022 (last visited January 25,
2023).
2
Section 420.0004(9), F.S.
3
Section 420.0004(17), F.S.
4
Section 420.0004(11), F.S.
5
Section 420.0004(12), F.S. BILL: SB 102 Page 4
To illustrate, below are example income thresholds from various counties in Florida:
AMI % Single Income 30% 60% 80% 120% 150%
Miami-Dade 20,490 40,980 54,640 81,960 102,450
Collier 19,830 39,660 52,880 79,320 99,150
Leon 17,070 34,140 45,520 68,280 85,350
Bradford
6
12,750 25,500 34,000 51,000 63,750
AMI % Family of 4 30% 60% 80% 120% 150%
Miami-Dade 29,250 58,500 78,000 117,000 146,250
Collier 28,290 56,580 75,440 113,160 141,450
Leon 24,360 48,720 64,960 97,440 121,800
Bradford
7
18,210 36,420 48,560 72,840 91,050
Housing costs reflect what people are willing to pay to live in an area, which may make it
difficult for the workforce, elders, and people with disabilities to find affordable homes and
apartments. The government helps make housing affordable through decreased monthly rent or
mortgage payments so that income eligible families are able to pay less for housing than it would
otherwise cost at “market rate.” Lower monthly payments or down payment assistance is a result
of affordable housing financing.
Florida Housing Finance Corporation
The 1997 Legislature created the Florida Housing Finance Corporation (FHFC) as a public-
private entity to assist in providing a range of affordable housing opportunities for Floridians.
8
The FHFC is a corporation held by the state and housed within the Department of Economic
Opportunity (DEO). The FHFC is a separate budget entity and its operations, including those
relating to personnel, purchasing, transactions involving real or personal property, and budgetary
matters, are not subject to control, supervision, or direction by the DEO.
9
The goal of the FHFC is to increase the supply of safe, affordable housing for individuals and
families with very low to moderate incomes by stimulating investment of private capital and
encouraging public and private sector housing partnerships. As a financial institution, the FHFC
administers federal and state resources to finance the development and preservation of affordable
rental housing and assist homebuyers with financing and down payment assistance.
6
This threshold applies to 18 counties: Bradford, DeSoto, Dixie, Glades, Hamilton, Hardee, Hendry, Holmes, Jackson, Levy,
Liberty, Madison, Okeechobee, Putnam, Suwanee, Taylor, Union, and Washington.
7
Id.
8
Chapter 97-167, Laws of Fla. From 1980 through 1997, the former Florida Housing Finance Agency, placed within the
former Department of Community Affairs, performed similar duties.
9
Section 420.504(1), F.S. BILL: SB 102 Page 5
Funding for Affordable Housing
FHFC draws and administers funds from federal programs through federal tax credits and the
HUD,
10
from the state through the State Housing Trust Fund and Local Government Housing
Trust Fund,
11
both funded by documentary stamp taxes, as well as ad hoc individual legislative
appropriations, and through program income, which consists primarily of funds from successful
loan repayment that is recycled into the program it came from.
Documentary Stamp Tax
The documentary stamp tax imposes an excise tax on deeds or other documents that convey an
interest in Florida real property. The tax comprises two taxes imposed on different bases at
different tax rates. The first tax rate is 70 cents on each $100 of consideration for deeds,
instruments, or writings whereby lands, tenements, or other real property or interests that are
granted, assigned, transferred, conveyed or vested in a purchaser.
12
The second tax rate is 35
cents per each $100 of consideration for certificates of indebtedness, promissory notes, wage
assignments, and retail charge account agreements.
13
Revenue collected from the documentary
stamp tax is divided between the General Revenue Fund and various trust funds
14
according to
the statutory formula in ch. 201, F.S.
Housing Trust Funds
The State Housing Trust Fund, administered by the FHFC,
15
is “to be used for new construction
and substantial rehabilitation of housing, to improve the state’s ability to serve first-time
homebuyers, and to increase the affordability and availability of the housing stock in the State of
Florida.”
16
The 1992 Sadowski Act increased documentary stamp tax rates and provided for a
certain proportion of documentary stamp tax revenues to be distributed to the State Housing
Trust Fund. A large portion of these funds are utilized in the State Apartment Incentive Loan
(SAIL) Program.
The Local Government Housing Trust Fund, administered by the FHFC,
17
is used to fund the
State Housing Initiatives Partnership (SHIP) Program, which was created “for the purpose of
providing funds to local governments as an incentive for the creation of partnerships to produce
and preserve affordable housing.”
18
A certain proportion of documentary stamp tax revenues are
distributed to the Local Government Housing Trust Fund.
10
See ss. 420.507(33) and 159.608, F.S.
11
Section 201.15, F.S.
12
Section 201.02(1), F.S.
13
Sections 201.07 and 201.08, F.S.
14
The Land Acquisition Trust Fund, the State Transportation Trust Fund, the State Economic Enhancement and
Development Trust Fund, the General Inspection Trust Fund, the Water Protection and Sustainability Program Trust Fund,
the Resilient Florida Trust Fund, the State Housing Trust Fund, and the Local Government Housing Trust Fund.
15
Chapter 92-317, ss. 1-35, Laws of Fla; Section 420.0005, F.S.
16
Chapter 88-376, s. 2, Laws of Fla.; s. 420.003(5), F.S. (1988).
17
Section 420.9079, F.S
18
Chapter 92-317, s. 32, Laws of Fla.; s. 420.9072, F.S. (1992). BILL: SB 102 Page 6
State Apartment Incentive Loan (SAIL) Program
The SAIL Program is administered by FHFC and provides low-interest loans on a competitive
basis to multifamily affordable housing developers.
19
These funds often serve to bridge the gap
between the development’s primary financing and the total cost of the development. SAIL
dollars are available for developers proposing to construct or substantially rehabilitate
multifamily rental housing.
20
At a minimum, developments financed by SAIL must set aside 20 percent of units for
households at or below 50 percent of AMI, or if the development also receives Low Income
Housing Tax Credits
21
(LIHTC), 40 percent of units for households up to 60 percent of AMI.
22
Loan interest rates are set at zero percent for those developments that maintain 80 percent of
their occupancy for farmworkers, commercial fishing workers or homeless people. The interest
rates are set at one percent for all other developments. Generally, loans are issued for 15 years
and cover approximately 25 to 35 percent of the total development cost.
Development Funding Selection Process
SAIL funding is distributed by FHFC through a competitive solicitation process.
23
Each year
FHFC issues several requests for application, formal offers of funding that require hopeful
developers to give FHFC detailed information related to the development. These requests for
application vary by geography and needs of the community, based on a statewide market study.
24
Applications are then reviewed and scored by FHFC based on a number of criteria, and awards
are made from the highest scoring applications.
25
To illustrate, in 2022 one request for application was entitled “SAIL Financing for the
Construction of Workforce Housing in Monroe County.”
26
This request stated that up to $5.52
million in SAIL financing would be awarded for a Monroe County based development serving
workforce income households (up to 120% AMI), in addition to $1.8 million of LIHTC
financing available for award to developments serving low income households (up to 60% AMI).
Applicants filed detailed information, including developer experience, development
characteristics, proposed location, set-aside commitments, and existing financing. Applications
19
Section 420.5087, F.S.
20
See Florida Housing Finance Corporation, State Apartment Incentive Loan, available at
https://floridahousing.org/programs/developers-multifamily-programs/state-apartment-incentive-loan (last visited
February 3, 2022).
21
Low Income Housing Tax Credits are a financial instrument administered by the Department of Housing and Urban
Development that provide financing for low income housing developments. Credits are allocated to states on a per capita
basis and state-level administration is performed by FHFC. Eligible developments are income-limited similarly to SAIL
requirements.
22
Section 420.5087(2), F.S.
23
Section 420.5087(1), F.S.
24
Id., see also Fla. Admin. Code R. Ch 67-60.
25
For the full list of statutory criteria, see s. 420.5087(6)(c), F.S. Additional criteria and scoring mechanics can be set by
FHFC.
26
Florida Housing Finance Corporation, Request for Applications 2022-208, March 7, 2022, available at
https://www.floridahousing.org/docs/default-source/programs/competitive/2022/2022-208/3-7-22-final-2022-208-
workforce_bookmarked08e499c2fb0d6fb69bf3ff00004a6e0f.pdf?sfvrsn=ce9f67b_0 (last visited December 29, 2022). BILL: SB 102 Page 7
were reviewed and ultimately one was awarded the full amount available. The resulting
development following award will have 98 units, with each unit set aside as follows:
10 percent of the units will serve households at or below 25% AMI;
40 percent of the units will serve households at or below 60% AMI; and
50 percent of the units will serve households between 60% and 120% AMI.
27
These set-asides for affordable housing set two limits on an apartment: the rent is limited to
make the apartment affordable to someone at the target income, and potential renters must
submit proof of income beneath the target before becoming eligible renters. Set-asides are
generally governed by a Land Use Restrictive Agreement (LURA), which is recorded by the
county clerk’s office and runs with the land. A LURA can also include a time period associated
with restriction compliance enforced by the IRS, HUD, or other housing authority.
28
Both FHFC
and local governments utilize LURAs to enforce requirements that developers receiving funding
indeed go on to provide affordable housing.
The same competitive solicitation process is used to distribute many different types of funding
routed through FHFC. FHFC is the state’s administrator for all federal affordable housing
programs, which include LIHTC, HOME investment partnerships and the National Housing
Trust Fund program via the HUD, and Multifamily Mortgage Revenue Bonds. The process is
also used for other state programs such as the Elderly Housing Community Loan Program.
29
Certain funding sources can also be paired to ensure a greater number of projects are funded.
External Funding for SAIL Projects
SAIL funding operates as gap financing, which means it provides the last amount needed to
secure a development’s future. There are several sources of funding that an affordable housing
development will take advantage of:
FHFC Loans and Grants, which result from state appropriations;
Traditional financing through bank loans and bond issuance;
Local government investment;
Private funds directly raised or put forth by the developer; and
LIHTC.
Housing credits are a financial instrument, tax credits, issued through the Low-Income Housing
Tax Credit (LIHTC) program.
30
After being allocated a certain amount of tax credits by the
federal government based on population and need, FHFC allocates the funding to affordable
housing developers. There are two types of credits:
27
See Lofts at Bahama Village, Application Package for RFA 2022-208, Application Number 2022-265CS, available at
https://www.floridahousing.org/programs/developers-multifamily-programs/competitive/submitted-rfas?RFA=2022208 (last
visited December 29, 2022).
28
Commercial Real Estate Finance Company of America, Multifamily Housing – Land Use Restrictive Agreement (LURA)
LIHTC, available at https://www.crefcoa.com/land-use-restrictive-agreement.html (last visited February 4, 2023).
29
SB 102’s focus, as it relates to multifamily development loans, is SAIL funding. For more on the programs referred to in
this paragraph, see generally Florida Housing Finance Corporation, 2021 Annual Report, January 30, 2022, available at
https://issuu.com/fhfc/docs/2021_annual_report (last visited December 29, 2022).
30
Florida Housing Finance Corporation, Housing Credits, available at https://www.floridahousing.org/programs/developers-
multifamily-programs/low-income-housing-tax-credits (last visited January 5, 2023). BILL: SB 102 Page 8
9 percent credits, which are more valuable and limited. These are competitively bid for and
can typically fund two-thirds of a development’s total cost; and
4 percent credits, which are not limited and considered “non-competitive.” These typically
fund one third of a development’s total cost.
General Revenue Service Charge Redirect for SAIL Program
Section 201.15, F.S., prescribes the distribution of revenues from the excise tax on documents.
After payments on certain outstanding bonds and a distribution to the Land Acquisition Trust
Fund, eight percent of total collections is deducted as the General Revenue service charge
required by s. 215.20(1), F.S. This charge is intended to represent a share of the cost of general
government. The remaining revenues from the excise tax on documents are distributed to various
trust funds, including the State Housing and Local Government Housing Trust Funds, pursuant
to s. 201.15, F.S.
Effect of Proposed Changes:
The bill provides for $150 million to be redirected from the General Revenue service charge to
the State Housing Trust Fund for use in the SAIL program, with certain priorities and goals
attached. These goals include projects focused on infill and maximizing existing infrastructure,
the use and lease of public lands, projects near military installations, and projects meeting the
needs of certain groups such as the elderly and those aging out of foster care. This funding is
annually recurring, and will be repealed on July 1, 2033. A section-level breakdown follows.
Section 10 amends s. 201.15, F.S., to provide that, after documentary stamp tax revenue
distributions to the Land Acquisition Trust Fund and before any other distributions, the lesser of
8 percent of the remainder or $150 million is paid to the credit of the State Housing Trust Fund
to be utilized pursuant to s. 420.50871, F.S., created by section 30. The remainder of the
8percent shall be paid into the General Revenue Fund, constituting the General Revenue service
charge. The section removes other references to the General Revenue service charge.
Section 11 provides that the amendments made by section 10 expire on July 1, 2033, and the text
of that section shall revert to that in existence before the bill’s passage but for unrelated
amendments by other later legislation.
Section 13 creates s. 215.212, F.S., to exempt documentary stamp taxes from the General
Revenue service charge, in accordance with the amendments made by Section 10 which provide
the same 8percent charge in another form. This section is also repealed July 1, 2023.
Section 14 amends s. 215.22, F.S., to make a technical conforming change. Section 15 likewise
provides that the amendments made by section 14 expire on July 1, 2033, and the text of that
section shall revert to that in existence before the bill’s passage but for unrelated amendments by
other later legislation.
Section 30 creates s. 420.50871, F.S., which provides the allocation of revenues derived by the
amendments made by section 10. The $150,000,000 allocated to the State Housing Trust Fund BILL: SB 102 Page 9
by section 10 are to be used by FHFC under the SAIL program, with specific requirements as
follows:
70 percent of the funds must be used to issue competitive requests for application to finance
projects which:
Both redevelop an existing affordable housing development and provide for the construction
of a new development within close proximity to the existing development to be rehabilitated.
This mechanism involves building a new affordable housing development first, relocating the
tenants of the existing development to the new development, and then demolishing the
existing development for reconstruction of an affordable housing development with more
overall and affordable units.
Address urban infill, including conversions of vacant, dilapidated, or functionally obsolete
buildings or the use of underused commercial property.
Provide for mixed use of the location, incorporating nonresidential uses, such as retail, office,
institutional, or other appropriate commercial or nonresidential uses.
Provide housing near military installations in this state.
The remaining 30 percent must be used to finance any of the following projects which:
Propose using or leasing public lands. Projects that propose to use or lease public lands must
include a resolution or other agreement with the unit of government owning the land to use
the land for affordable housing purposes.
Address needs of young adults who age out of the foster care system.
Meet the needs of elderly persons.
Provide housing to meet the needs in areas of rural opportunity, designated pursuant to s.
288.0656, F.S.
One project need not meet all of the goals listed for each allocation group, but each goal must be
targeted for development. The bill instructs FHFC to coordinate with the appropriate state
department or agency for each goal, and to prioritize projects providing mixed-income
developments. Funds allocated under this section must remain within the requirements of this
section, but FHFC may allocate outside funds (e.g. from the wider SAIL program) to supplement
these funds.
This section is repealed on June 30, 2033.
Section 31 directs the Division of Law Revision to make technical amendments to Section 30
when published into law.
Present Situation:
Florida Sales Tax Refund for SAIL Developments
Florida levies a 6 percent sales and use tax on the sale or rental of most tangible personal
property,
31
admissions,
32
transient rentals,
33
and a limited number of services. Chapter 212, F.S.,
31
Section 212.05(1)(a)1.a., F.S.
32
Section 212.04(1)(b), F.S.
33
Section 212.03(1)(a), F.S. BILL: SB 102 Page 10
contains provisions authorizing the levy and collection of Florida’s sales and use tax, as well as
the exemptions and credits applicable to certain sales. Sales tax is added to the sales price of the
taxable good or service and collected from the purchaser at the time of sale.
34
Counties are authorized to impose local discretionary sales surtaxes in addition to the state sales
tax.
35
A surtax applies to “all transactions occurring in the county which transactions are subject
to the state tax imposed on sales, use, services, rentals, admissions, and other transactions by
[ch. 212, F.S.], and communications services as defined in ch. 202.”
36
The discretionary sales
surtax is based on the tax rate imposed by the county where the taxable goods or services are
sold or delivered. Discretionary sales surtax may be levied in a range of 0.5 to 2.5 percent.
37
Effect of Proposed Changes:
Section 12 (in part) amends s. 212.08(5)(v), F.S., to provide up to a $5,000 refund for sales tax
paid on building materials used to construct an affordable housing unit funded through the
FHFC.
The bill provides that building materials used in eligible residential units are exempt from sales
tax under certain circumstances. The exemption takes the form of a post-construction refund to
the owner, and may not exceed the lesser of $5,000 or 97.5percent of the Florida sales or use tax
paid on the cost of building materials per unit. A refund will not be granted unless it exceeds
$500. This refund does not apply to affordable housing developments for which construction
began prior to July 1, 2023.
In order to receive the refund, the owner of the applicable residential units must submit a review
request to the Department of Revenue (DOR) within six months of the units’ completion
including the following:
The applicant’s name and address;
An address and parcel number of the improved real property;
A description of the eligible residential units;
A copy of the units’ building permit;
A sworn statement from the general contractor or owner specifying the building materials,
their cost and sales tax; and
A certification by the building code inspector that the unit is substantially completed.
A copy of the LURA with FHFC for the eligible units.
The exemption may also be claimed by a local government, agency, or nonprofit community-
based organization if the building materials are paid for from the funds of a grant or loan
program similar to SHIP. In this instance, the local government, agency, or organization would
submit the same request as above.
The DOR may adopt rules to implement the directives of this section.
34
Section 212.07(2), F.S.
35
Section 212.055, F.S.
36
Section 212.054(2)(a), F.S.
37
Office of Economic and Demographic Research, Florida Tax Handbook, 227-228 (2021), available at
http://edr.state.fl.us/Content/revenues/reports/tax-handbook/taxhandbook2021.pdf (last visited Dec. 06, 2021). BILL: SB 102 Page 11
The DOR will additionally move 10 percent of the value of the refund from the Local
Government Half-Cent Sales Tax Clearing Trust Fund to the General Revenue Fund in order to
reflect the sales tax refund.
Present Situation:
“Live Local Program” - Tax Credit Program benefiting SAIL Program
The Florida Tax Credit Scholarship Program (FTC) was created in 2001
38
and allows taxpayers
to make private, voluntary contributions to scholarship-funding organizations (SFOs) that can
then be awarded as scholarships to eligible low-income students for private school tuition and
fees. Taxpayers can receive a tax credit for use against their liability for corporate income tax,
insurance premium tax, oil and gas production tax, use tax under a direct pay permit or alcoholic
beverage taxes on beer, wine, and spirits.
39
The tax credit is equal to 100 percent of the eligible
contributions made.
40
To receive a tax credit the taxpayer must submit an application to the DOR
and specify each tax for which the taxpayer requests a credit and the applicable taxable or state
fiscal year for the credit.
41
Taxpayers can rescind tax credits, which will become available to
another eligible taxpayer in that fiscal year.
42
Described below are select taxes imposed by Florida on certain businesses and products within
the state.
Corporate Income Tax: Florida imposes a 5.5 percent tax on the taxable income of certain
corporations and financial institutions doing business in Florida.
43
Corporate income tax is
remitted to the DOR and distributed to the General Revenue Fund.
Insurance Premium Tax: Florida imposes a 1.75 percent tax on most Florida insurance
premiums.
44
Insurance premium taxes are paid by insurance companies under ch. 624, F.S.,
and are remitted to the DOR. These revenues are distributed to the General Revenue Fund
with additional distributions to the Insurance Regulatory Trust Fund, the Police &
Firefighters Premium Tax Trust Fund, and the Emergency Management Preparedness &
Assistance Trust Fund.
Effect of Proposed Changes:
Section 32 creates s. 420.50872, F.S., to establish the “Live Local Program,” a tax credit
program benefiting the SAIL program.
Under the Live Local Program, businesses that make monetary donations to FHFC to fund the
SAIL program may receive a dollar-for-dollar credit against either corporate income or insurance
38
Section 1002.395, F.S.
39
Section 1002.395(1) and (5), F.S.
40
Sections 220.1875 and 1002.395(5), F.S.
41
Section 1002.395(5)(b), F.S.
42
Section 1002.395(5)(e), F.S.
43
Sections 220.11(2) and 220.63(2), F.S.
44
Section 624.509, F.S. (Different tax rates apply to wet marine and transportation insurance, self-insurance, and annuity
premiums.) BILL: SB 102 Page 12
premium taxes. New sections are created in each of the applicable tax chapters to create the
credit. The annual tax credit cap for all credits under the program is $100 million.
FHFC must expend all of the contributions received under the Live Local Program for the SAIL
program. From the amount received, FHFC may use up to $25 million to provide loans for the
construction of large-scale projects of significant regional impact. These projects must include a
substantial civic, educational, or health care component, and may incorporate commercial use.
Such a project must provide a number of multifamily rental units which exceeds by 50percent
the number of units in the largest multifamily project within 30 miles.
Such a loan must be made in accordance with the practices and policies of the SAIL program,
through a competitive application process, and must not exceed 25 percent of the development’s
total costs. The FHFC must find that such a loan provides a unique opportunity for investment
alongside local government participation that enables the creation of a significant amount of
affordable and workforce housing.
Application and Approval of Tax Credits by the DOR
Taxpayers that wish to participate in the program by making a donation to the initiative must
apply to the DOR beginning October 1, 2023, for an allocation of tax credit. The taxpayer must
specify in the application each tax for which the taxpayer requests a credit, the applicable taxable
year for a credit under ss. 220.1878 (regarding corporate income tax and created by section 20)
or 624.51058, F.S. (regarding insurance premium taxes and created by section 39). The DOR is
required to approve the tax credits on a first-come, first-served basis.
Any unused credit may be carried forward up to ten years. The bill generally does not allow a
taxpayer to convey, transfer, or assign the credit to another entity unless all of the assets of the
taxpayer are conveyed, transferred, or assigned in the same transaction. Upon approval of the
DOR, transfers may be made between members of an affiliated group of corporations if the
credit transferred will be taken against the same type of tax.
A taxpayer may apply to the DOR to rescind all or part of an approved tax credit. The amount
rescinded becomes available for that state fiscal year to another eligible taxpayer as approved by
the DOR if the taxpayer receives notice that the rescindment has been accepted.
The bill allows the DOR and FHFC to develop a cooperative agreement to assist in the
administration of the program and the DOR is authorized to adopt rules. Additionally, the bill
requires the DOR, by August 15, 2023, and each year thereafter, to determine the 500 taxpayers
with the greatest total corporate income or franchise tax liability and notify those taxpayers of
the existence of the Live Local Program and the process to participate.
Present Situation:
SAIL Developments for Those In or Aging Out of Foster Care
Current law provides that FHFC may prioritize a portion of SAIL funding set aside for persons
with special needs to provide funding for the development of newly constructed permanent rental
housing on a campus that provides housing for persons in foster care or persons aging out of BILL: SB 102 Page 13
foster care.
45
This housing must promote and facilitate access to community-based supportive,
educational, and employment services and resources that assist persons aging out of foster care
to successfully transition to independent living and adulthood.
Effect of Proposed Changes:
Section 29 amends s. 420.5087(10), F.S., to remove the requirement that the prioritized
developments for persons in foster care or aging out of foster care be “on a campus” that
provides housing for such persons, in order to add flexibility to the types of developments FHFC
can fund.
Present Situation:
State Housing Initiatives Partnership (SHIP) Program
The SHIP Program was created in 1992
46
to provide funds to local governments as an incentive
to create partnerships that produce and preserve affordable homeownership and multifamily
housing. The SHIP program provides funds to all 67 counties and 52 Community Development
Block Grant
47
entitlement cities on a population-based formula to finance and preserve
affordable housing based on locally adopted housing plans.
48
The program was designed to serve
very-low, low-, and moderate-income families and is administered by FHFC. SHIP 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.
49
Funds are expended per each local government’s adopted Local Housing Assistance Plan
(LHAP), which details the housing strategies it will use.
50
Local governments submit their
LHAPs to the FHFC for review to ensure that they meet the broad statutory guidelines and the
requirements of the program rules. The FHFC must approve an LHAP before a local government
may receive the SHIP 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 funds must be reserved for construction, rehabilitation, or
emergency repair of affordable, eligible housing;
51
and
Up to 25 percent of SHIP funds may be reserved for allowed rental services.
52
45
Section 420.5087(10), F.S.
46
Chapter 92-317, Laws of Fla.
47
The CDBG program is a federal program created in 1974 that provides funding for housing and community development
activities.
48
See ss. 420.907-420.9089, F.S.
49
Section 420.072(7), F.S.
50
Section 420.9075, F.S. Section 420.9075(3), F.S., outlines 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.
51
Section 420.9075(5)(c), F.S.
52
Section 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 BILL: SB 102 Page 14
Within those distributions by local governments, additional requirements must be met:
At least 65 percent of SHIP funds must be reserved for home ownership for eligible
persons;
53
At least 20 percent of SHIP funds must serve persons with special needs;
54
Up to 20 percent of SHIP funds may be used for manufactured housing;
55
and
At least 30 percent of SHIP 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.
56
FHFC Homeownership Programs
FHFC’s primary function is administering a variety of programs to assist in the development and
rehabilitation of affordable housing stock, provide low interest loans for first-time homebuyers,
provide down payment assistance and reduce closing costs, and assist in the housing side of
disaster recovery. The following programs focus primarily on aiding first-time homebuyers into
stable homeownership by reducing mortgage payments and onerous one-time costs associated
with purchasing a home.
Homebuyer Loan Programs
FHFC’s homebuyer loan programs offer 30-year fixed-rate first mortgage loans originated by a
network of participating lenders throughout Florida. The programs are offered to eligible first
time homebuyers
57
who meet income, purchase price and other program criteria; can qualify for
a loan; and successfully complete a homebuyer education course.
58
Borrowers who qualify for a
first mortgage program may access one of FHFC’s down payment assistance (DPA) programs.
59
Down Payment Assistance
FHFC administers multiple DPA programs available to first time homebuyers utilizing a FHFC
first mortgage loan product. DPA is typically offered as a low- or zero-rate loan, in the form of a
second mortgage,
60
to secure funding for down payments, closing costs, mortgage insurance
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.
53
Section 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.
54
Section 420.9075(5)(d), F.S.
55
Section 420.9075(5)(e), F.S.
56
Section 420.9075(5)(g)2., F.S.
57
The IRS definition of “first-time homebuyer,” generally accepted by Florida agencies and corporations, is a person who
has not owned and occupied their primary residence for the past three years. See Homebuyer Overview, FHFC, available at
https://www.floridahousing.org/programs/homebuyer-overview-page (last visited December 15, 2021).
58
FHFC funds homebuyer loans through various transaction types, including (a) the specified pool market, (2) tax-exempt
bonds, and (3) forward delivery/To Be Announced (TBA) market.
59
See Florida Housing Finance Corporation, 2020 Annual Report, p. 13, available at https://www.floridahousing.org/data-
docs-reports/annual-reports (last visited November 30, 2021).
60
A second mortgage is a subordinate mortgage made while the original is still in effect. BILL: SB 102 Page 15
premiums, or principal reduction to the first mortgage.
61
FHFC DPA programs are funded from a
mix of sources including documentary stamp tax revenue, special legislative appropriation, and
FHFC program income, which is primarily returned loan money. The various programs differ in
terms of eligibility, ranging up to 120 percent AMI, requirements, such as also having been
approved for a first mortgage through FHFC, and terms, some including forgivable loans.
Hometown Heroes Program
In 2022, pursuant to the 2022 General Appropriations Act,
62
FHFC created the Hometown
Heroes Program, a new homeownership assistance program.
63
Under the program, eligible
purchasers have access to 0-interest rate loans to reduce the amount of down payment and
closing costs from $10,000 to a maximum of 5 percent or $25,000, whichever is less. Loans must
be repaid when the property is sold, refinanced, rented, or transferred unless otherwise approved
by FHFC.
Such loans are available to those first-time homebuyers seeking first mortgages whose family
incomes do not exceed 150 percent of the state or local AMI, whichever is greater, and are
employed in certain necessary professions such as law enforcement officers, educators,
healthcare professionals, and active military or veterans (combining the previous Salute our
Soldiers Program).
64
The requirement to be a first-time homebuyer does not apply to those
qualifying as servicemembers or veterans.
FHFC was appropriated $100 million in 2022 to establish the Hometown Heroes Program.
65
As
of January 16, 2023, the program has provided over $49 million in assistance in 3,363 loans.
Effect of Proposed Changes:
Section 33 creates s. 420.5096, F.S., to codify the Florida Hometown Hero Program. The
program created by the bill will operate as the current Hometown Heroes program with the
following differences:
Eligibility remains based on income being at or below 150 percent AMI and one’s ability to
qualify for a first mortgage, however the occupation qualifiers that currently apply to the
Hometown Heroes program are omitted. A prospective borrower must be a Florida resident
and employed full-time (35 hours or more per week) by a Florida-based employer.
The maximum amount available per loan is raised from $25,000 to $35,000, while the cap of
5 percent of purchase price is maintained.
The bill specifies that loans made under this program may be used for the purchase of
manufactured homes, as defined by s. 320.01(2)(b), that were constructed after August 1,
1994.
61
Only one FHFC DPA program can be used by a borrower.
62
HB 5001, specific appropriation 2289 (2022 Reg. Session)
63
Florida Housing Finance Corporation, Florida Hometown Heroes Housing Program, available at
https://www.floridahousing.org/programs/homebuyer-overview-page/hometown-heroes (last visited January 10, 2023).
64
See Eligible Occupations for FL Hometown Heroes Loan Program, available at
https://www.floridahousing.org/docs/default-source/programs/homebuyers/hometown-heroes/eligible-
occupations.pdf?sfvrsn=238ff57b_6 (last visited February 4, 2023).
65
Supra note 62. BILL: SB 102 Page 16
Present Situation:
Additional Provisions Related to the Florida Housing Finance Corporation
Legislative Budget Request
As SAIL funding can be used in several ways (for example new unit production, rehabilitation,
and maintenance of affordable units), and is often utilized to draw down federal funding from tax
credits and grant funds, the effects of SAIL funding are variable on a per-dollar basis. The
amount of funding needed annually to maximize state and local funding toward the production of
new affordable units is calculable by analyzing the various sources and matching state funding
with federal funding.
FHFC prepares and submits an annual legislative budget request to the Secretary of DEO
containing a request for operational expenditures and a separate request for other authorized
corporation programs.
66
Effect of Proposed Changes:
Section 27 amends s. 420.507(30), F.S., to require that FHFC legislative budget requests include,
for informational purposes, the amount of state funds necessary to fully utilize all federal
housing funds in the fiscal year to maximize the production of new, affordable multifamily
housing units.
Section 28 provides that this provision expires July 1, 2033, unless otherwise acted upon by the
Legislature.
Present Situation:
Qualified Contracts
Of the affordable housing financing options provided by the federal government, Low Income
Housing Tax Credits (LIHTC)
67
are among the most commonly used. When a property is
financed using LIHTC the federal government typically requires the property be utilized for
affordable housing for at least 30 years.
68
This time period is divided into the first 15 years, the
“initial compliance period,” and the rest, an “extended use period.”
After 14 years the owner of an affordable housing development may request that FHFC seek a
purchaser who will continue to operate the affordable portions of the development as affordable
housing, what’s referred to as the “qualified contract process.” Many developments, particularly
those who receive the most lucrative LIHTC, waive the right to enter this process, and must
remain affordable housing for the duration of the agreed upon time. After a developer requests a
qualified contract, if FHFC is unable to present a buyer during the subsequent 1-year period the
66
Section 420.507(30), F.S.
67
Low Income Housing Tax Credits are provided by the federal government to rental housing developers in exchange for a
commitment to provide affordable rents and are usually sold to investors to raise project equity. The LIHTC program is
governed by the U.S. Department of Treasury and Florida’s allocation is administered by Florida Housing. Under the LIHTC
program, successful applicants are provided with a dollar-for-dollar reduction in federal tax liability in exchange for the
development or rehabilitation of units to be occupied by very low- and low-income households.
68
Internal Revenue Code Section 42(h)(6)(A). BILL: SB 102 Page 17
extended use period of the property as affordable housing will end, and the property can be
utilized for market-rate housing.
69
This “qualified contract process” relies on FHFC marketing the property and returning to the
owner with a “bona fide contract,” showing that they have found a buyer in order to maintain the
affordable housing requirement. The price for the affordable housing portion of the sale is set
according to a formula designed to give the owner an inflation adjusted return on its original
equity contribution.
70
The bona fide contract, as provided by administrative rule is:
a contract for sale signed by the purchaser, which states that acceptance of the contract
is contingent upon approval by the Corporation, and must provide for an initial earnest
money deposit (the initial deposit) from the purchaser in the minimum amount of
$50,000 and obligate the purchaser to make a second earnest money deposit (the second
deposit) (the initial and second deposits shall be refundable in the event of the seller’s
failure to deliver insurable title or in the event of seller’s default, otherwise the deposits
shall be non-refundable) equal to three (3) percent of the qualified contract price ...
71
If FHFC is able to procure a purchaser and present the owner with such a bona fide contract
within the one year period, regardless of whether the owner accepts, rejects, or fails to act upon
the contract, the property will continue to be subject to its extended use agreement as affordable
housing.
72
If the owner accepts the offer, the property will be sold to the purchaser. If the owner
rejects the offer or fails to act upon the offer, the owner will continue to be subject to the
extended use agreement and cannot submit another qualified contract request for the
development.
In 2022, the Legislature codified certain definitions and procedures related to the qualified
contract process. In doing so, the moment when a bona fide contract becomes a qualified
contract shifted from when the purchaser makes the first deposit to when the second earnest
money deposit is made.
73
However, under the scenario where the seller refuses to sell after being
presented a bona fide offer the second deposit will never be made, making this definition
unworkable.
Effect of Proposed Changes:
Section 25 amends s. 420.503(36), F.S., to provide that FHFC shall deem a bona fide contract to
be a qualified contract at the time the bona fide contract is presented to the owner and the initial
earnest money deposit is deposited in escrow, as opposed to when the second deposit is made.
69
Internal Revenue Code Section 42(h)(6)(E)(i)(II).
70
Internal Revenue Code Section 42(h)(6)(F).
71
Fla. Admin. Code R. 67-48.031.
72
Fla. Admin. Code R. 67-48.031(11).
73
Chapter 2022-194, s. 1, Laws of Fla. BILL: SB 102 Page 18
Present Situation:
FHFC Structure and Board of Directors
FHFC is a public corporation created within DEO, and a separate budget entity not subject to
control, supervision, or direction by DEO.
74
FHFC consists of a board of directors composed of
the Secretary of the DEO as an ex officio and voting member, or a senior-level agency employee
designated by the secretary, and eight members appointed by the Governor subject to
confirmation by the Senate from the following:
(a) One citizen actively engaged in the residential home building industry.
(b) One citizen actively engaged in the banking or mortgage banking industry.
(c) One citizen who is a representative of those areas of labor engaged in home building.
(d) One citizen with experience in housing development who is an advocate for low-
income persons.
(e) One citizen actively engaged in the commercial building industry.
(f) One citizen who is a former local government elected official.
(g) Two citizens of the state who are not principally employed as members or
representatives of any of the groups specified in paragraphs (a)-(f).
75
Members are appointed for 4 year terms and vacancies are filled for the unexpired term.
76
The
Governor may suspend a member for cause, including failure to attend 3 meetings in a 12-month
period, and suspended members are subject to removal or reinstatement by the Senate.
77
Members receive no compensation for services, are entitled to necessary expenses, and must file
full and public disclosure of financial interests.
78
Effect of Proposed Changes:
Section 26 amends s. 420.504, F.S., to provide that the board will include two additional
members, one appointed by the President of the Senate and one appointed by the Speaker of the
House of Representatives. Additionally, vacancies shall be filled by the party who made the
original member’s appointment.
Present Situation:
State Housing Strategy Act
The State Housing Strategy Act, located in Part I, of ch. 420, F.S., was created by the Legislature
in 1992 to guarantee adequate affordable housing for Florida residents.
79
The State Housing
Strategy posits the goal of assuring that by the year 2010 each Floridian shall have decent and
affordable housing. “Policies,” guidelines for state agencies and programs to follow, are divided
into sections: housing need, public-private partnerships, preservation of housing stock, public
74
Section 420.504, F.S.
75
Section 420.504(3), F.S.
76
Section 420.504(4), F.S.
77
Id.
78
Section 420.504(6), (7), F.S.
79
Section 420.0003, F.S. BILL: SB 102 Page 19
housing, and housing production or rehabilitation programs. This forward-looking and optimistic
set of ideas and strategies has not been amended in 30 years.
The State Housing Strategy Act also includes certain provisions implementing state programs in
the pursuit of goals outlined. For example, the DEO and the FHFC annually coordinate with the
Shimberg Center for Housing Studies at the University of Florida
80
to develop and maintain
statewide data on affordable housing needs for specific populations.
81
These studies are then
used to review and evaluate existing affordable housing accommodations to ensure that they are
consistent with current need assessments and to recommend any improvements or plan
modifications.
82
Effect of Proposed Changes:
Section 24 amends s. 420.003, F.S., to substantially revise and reword the State Housing
Strategy, maintaining the goal of assuring that each Floridian has safe, decent, and affordable
housing. The bill retains strategies requiring local buy-in to state-funded developments,
interlocal coordination, and cost-effective public-private partnerships, while adding language
emphasizing the need to avoid sprawl to minimize separation of housing and employment as well
as ecological impact.
The State Housing Strategy is separated into the following three categories:
Legislative Intent
This section states that it is the intent of the act to articulate a strategy to carry the state toward
assuring that each Floridian has safe, decent, and affordable housing. The strategy must involve
state and local governments working in partnership with communities and the private sector, and
must encompass both financial and regulatory commitment.
Policies
Housing Production and Rehabilitation Programs, which enumerates state programs;
emphasizes the need to leverage state funds efficiently; and highlights innovative solutions
such as utilizing publically held land, community-led planning such as urban infill;
maximizing efficiency through promotion of high-density and mixed-use developments; and
modern housing concepts such as manufactured or 3D-printed homes.
Public Private Partnerships, which emphasizes the need for cost effective, data driven
cooperative efforts.
Preservation of Housing Stock, which calls for the preservation of existing stock through
rehabilitation programs and neighborhood revitalization efforts.
80
The Shimberg Center for Housing Studies was established at the University of Florida in 1988 to “facilitate safe, decent
and affordable housing throughout the state of Florida” and was named after Jim Shimberg Sr., a Tampa homebuilder
dedicated to affordable housing. The Center’s Florida Housing Data Clearinghouse provides public information on Florida
housing needs, programs and demographics. For more information visit: http://www.shimberg.ufl.edu/aboutUs2.html (last
visited on March 11, 2010).
81
Section 420.0003(4)(c), F.S.
82
Id. BILL: SB 102 Page 20
Unique Housing Needs, which covers the wide range of need for safe, decent, and affordable
housing among the various groups of citizens most in need, including those with disabilities
and the elderly.
Implementation
This section, largely maintained from the original State Housing Strategy, incorporates FHFC
and the Shimberg Center for Housing Studies into the state housing strategy. Further, the bill
adds a series of studies required to be conducted by OPPAGA. The reports will be conducted on
a rotating basis and include studying:
Innovative affordable housing strategies implemented by other states, their effectiveness, and
the potential for implementation in Florida;
Affordable housing policies enacted by local governments, including interlocal cooperation;
and
Existing state-level housing rehabilitation, production, preservation, and finance programs to
determine their consistency with the goals of the state housing strategy, and
recommendations for improved program linkages.
Present Situation:
State-Owned Lands
Land Use Plans
All lands held by the Board of Trustees of the Internal Improvement Trust Fund
83
(board) are
required to be held in trust for the use and benefit of the people of the state.
84
Each manager of
nonconservation lands
85
is required to submit to the division a land use plan at least every 10
years in a form and manner prescribed by rule by the board.
86
All land use plans, whether for
single-use or multiple-use properties, must include an analysis of the property to determine the
potential use of private land managers to facilitate the restoration or management of these
lands.
87
Effect of Proposed Changes:
Section 21 amends s. 253.034(5), F.S., to provide that a land use plan submitted for
nonconservation lands must include an analysis of whether such lands would be more
appropriately transferred to a local government for affordable housing related purposes.
83
Consisting of the Governor, as the chair, the Chief Financial Officer, the Attorney General, and the Commissioner of
Agriculture. FLA. CONST. art. IV, s. 4.
84
Section 253.001, F.S.
85
“Conservation lands” include those held for conservation, recreation, historic preservation, and other uses. Section
253.034(2)(c), F.S. All other lands held by the state, such as those used for government functions, are nonconservation lands.
86
Section 253.034(5), F.S.
87
Id. BILL: SB 102 Page 21
Present Situation:
Surplus Lands
The board determines which lands it holds title to may be surplused.
88
Conservation lands may
only be surplused if the board, by an affirmative vote of at least two-thirds, determines that the
lands are no longer needed for conservation purposes.
89
The board may dispose of all other lands
if the board, by an affirmative vote of at least three members, determines whether the lands are
no longer needed.
90
If the board determines that nonconservation lands are no longer needed, it made dispose of such
surplus lands by vote.
91
Requests for surplusing lands may be made by any public or private
entity or person.
92
County or local government requests for surplus lands through purchase or
exchange are expedited throughout the surplusing process.
93
The board is required to consider
such requests within 90 days of the board’s receipt of the request.
94
Surplus lands conveyed to a
local government for affordable housing must be disposed of by the local government pursuant
to ss. 125.379 or 166.0451, F.S., discussed in further detail below.
Effect of Proposed Changes:
Section 22 amends s. 253.0341(1), F.S., to clarify that local government requests for surplus
lands are expedited throughout the process regardless of the means of transfer, to include
donation.
Present Situation:
Job Growth Grant Fund
The Florida Job Growth Grant Fund, created by the legislature in 2017, is an economic
development program within the DEO designed to promote public infrastructure and workforce
training across the state.
95
Eligible projects include state or local public infrastructure projects to
promote economic recovery, rehabilitation of the Herbert Hoover Dike, and workforce training
grants that support college and technical center workforce skills programs. Proposals are
reviewed by DEO, the Department of Transportation, and Enterprise Florida, Inc., and chosen by
the Governor to meet the demand for workforce or infrastructure needs in the community they
are awarded to.
96
Contracts for projects approved by the Governor and funded pursuant to this
program must be administered by the DEO.
97
88
Section 253.0341, F.S.
89
FLA. CONST. art. X, s. 18.
90
Section 253.0341, F.S.
91
Section 253.0341(1), F.S.
92
Section 253.0341(11), F.S.
93
Section 253.0341(1), F.S.
94
Section 253.0341(10), F.S.
95
Section 288.101, F.S.
96
Section 288.101(2), F.S.
97
Section 288.101(4), F.S. BILL: SB 102 Page 22
Effect of Proposed Changes:
Section 23 amends s. 288.101(2), F.S., to provide that public infrastructure projects that support
affordable housing are an authorized use of Job Growth Grant Fund funding. This provision
sunsets 2033.
Present Situation:
Community Contribution Tax Credit Program
In 1980, the Legislature established the Community Contribution Tax Credit Program (CCTCP)
to encourage private sector participation in community revitalization and housing projects.
98
Broadly, the CCTCP offers tax credits to businesses or persons (“taxpayers”) anywhere in
Florida that contribute
99
to certain projects undertaken by approved CCTCP sponsors.
100
Eligible
projects include activities undertaken by an eligible sponsor that are designed to accomplish one
of the following purposes:
To construct, improve, or substantially rehabilitate housing that is affordable to low-income
households or very-low-income households as those terms are defined in s. 420.9071;
To provide commercial, industrial, or public resources and facilities; or
To improve entrepreneurial and job-development opportunities for low-income persons.
101
The DEO administers the CCTCP, and its responsibilities include reviewing sponsor project
proposals and tax credit applications, periodically monitoring projects, and marketing the
CCTCP in consultation with the FHFC and other statewide and regional housing and financial
intermediaries.
102
Once approved by the DEO, the taxpayer must claim the community
contribution tax credit from the DOR.
The credit is calculated as 50 percent of the taxpayer’s annual contribution, but a taxpayer may
not receive more than $200,000 in credits in any one year.
103
The taxpayer may use the credit
against corporate income tax, insurance premiums tax, or as a refund against sales tax.
104
Unused
credits against corporate income taxes and insurance premium taxes may be carried forward for
five years.
105
Unused credits against sales taxes may be carried forward for three years.
106
DOR may approve $14.5 million in annual funding for projects that provide homeownership
opportunities for low-income and very-low-income households or housing opportunities for
persons with special needs and $4.5 million for all other projects. “Persons with special needs” is
defined in current statute to include adults requiring independent living services, young adults
98
Chapter 80-249, Laws of Fla. The CCTCP is one of the state incentives available under the Florida Enterprise Zone Act,
which was partially repealed on December 31, 2015.
99
Sections 212.08(5)(p)2.a., 220.183(2)(a), and 624.5105(5)(a), F.S., require community contributions to be in the form of
cash or other liquid assets, real property, goods or inventory, or other physical resources.
100
Sections 212.08(5)(p); 220.183; and 624.5105, F.S.
101
Sections 212.08(5)(p)2.b.; 220.183(2)(d); 624.5105(2)(b); and 220.03(1)(t), F.S.
102
Sections 212.08(5)(p)4.; 220.183(4); and 624.5105(4), F.S.
103
Sections 212.08(5)(p)1.; 220.183 (1)(a) and (b); and 624.5105(1), F.S.
104
Sections 212.08(5)(p); 220.183; and 624.5105, F.S.
105
Sections 220.183(1)(e) and (g); and 624.5105, F.S.
106
Sections 212.08(5)(p)1.b. and f., F.S. BILL: SB 102 Page 23
formerly in foster care, survivors of domestic violence, and people receiving Social Security
Disability Insurance, Supplemental Security Income, or veterans’ disability benefits.
107
The Legislature extended the CCTCP in 1984, 1994, 2005, 2014, and 2015,
108
and made the
program permanent in 2017.
109
It has also amended the annual tax credit allocation of the
CCTCP on numerous occasions.
110
Each time the allocation has been increased, the number of
projects has increased to match the larger allocation.
Effect of Proposed Changes:
Sections 12 and 18 amend ss. 212.08 and 220.183, F.S., respectively, to provide that for the
2023-2024 fiscal year $25 million, rather than $14.5 million, is the total amount of tax credits
which may be granted for projects that provide homeownership opportunities for low- and very-
low income households or housing opportunities for persons with special needs.
Present Situation:
Local Governments and Affordable Housing Development
Consistency with Comprehensive Plans
All development, both public and private, and all development orders
111
approved by local
governments must be consistent with the local government’s comprehensive plan.
112
The Growth
Management Act requires every city and county to create and implement a comprehensive plan
to guide future development.
113
A comprehensive plan is intended to provide for the future use of
land, which contemplates a gradual and ordered growth, and establishes a long-range maximum
limit on the possible intensity of land use.
A locality’s comprehensive plan lays out the locations for future public facilities, including
roads, water and sewer facilities, neighborhoods, parks, schools, and commercial and industrial
developments. A comprehensive plan is made up of 10 required elements, each laying out
regulations for a different facet of development.
114
Most relevant among them as it pertains to the
bill are the Future Land Use Element and the Housing Element.
The Future Land Use Element designates proposed future general distribution, location, and
extent of the uses of land. Specified use designations include those for residential,
commercial, industry, agriculture, recreation, conservation, education, and public facilities.
115
107
Section 420.0004(13), F.S.
108
Chapters 84-356, 94-136, 2005-282, 2014-38, and 2015-221, Laws of Fla.
109
Chapter 2017-36, Laws of Fla.
110
Chapters 94-136, 98-219, 99-265, 2005-282, 2006-78, 2008-153, 2015-221, and 2017-36, Laws of Fla.
111
“Development order” means any order granting, denying, or granting with conditions an application for a development
permit. See s. 163.3164(15), F.S. “Development permit” includes any building permit, zoning permit, subdivision approval,
rezoning, certification, special exception, variance, or any other official action of local government having the effect of
permitting the development of land. See s. 163.3164(16), F.S.
112
Section 163.3194(3), F.S
113
Section 163.3167(2), F.S.
114
Section 163.3177(6), F.S. The 10 required elements include capital improvements; future land use plan; transportation;
general sanitary sewer, solid waste, drainage, potable water, and natural groundwater aquifer recharge; conservation;
recreation and open space; housing; coastal management; intergovernmental coordination; and property rights. Throughout
statutes exist plans and programs that may be added as optional elements.
115
Section 163.3177(6)(a), F.S. BILL: SB 102 Page 24
The approximate acreage and the general range of density or intensity of use must be
provided for each land use category.
116
The Housing Element sets forth guidelines and strategies for the creation and preservation of
affordable housing for all current and anticipated future residents of the jurisdiction,
elimination of substandard housing conditions, provision of adequate sites for future housing,
and distribution of housing for a range of incomes and types.
117
A comprehensive plan is implemented through the adoption of land development regulations
118
that are consistent with the plan, and which contain specific and detailed provisions necessary to
implement the plan.
119
Such regulations must, among other prescriptions, regulate the
subdivision of land and the use of land for the land use categories in the land use element of the
comprehensive plan.
120
Substantially affected persons have the right to maintain administrative
actions which assure that land development regulations implement and are consistent with the
comprehensive plan.
121
Development that does not conform to the comprehensive plan may not be approved by a local
government unless the local government amends its comprehensive plan first. State law requires
a proposed comprehensive plan amendment to receive two public hearings, the first held by the
local planning board, and subsequently by the governing board.
122
Following the hearings they
must transmit the plan to several statutorily identified reviewing agencies, including the DEO for
review.
123
Most plan amendments are placed into the Expedited State Review Process, while plan
amendments relating to large-scale developments are placed into the State Coordinated Review
Process.
124
Zoning Regulations
A comprehensive plan’s Future Land Use Element establishes a range of allowable uses and
densities and intensities over large areas, and the specific use and intensities for specific parcels
within that range are decided by a more detailed, implementing zoning map.
125
116
Section 163.3177(6)(a), F.S.
117
Section 163.3177(6)(f), F.S.
118
“Land development regulations” means ordinances enacted by governing bodies for the regulation of any aspect of
development and includes any local government zoning, rezoning, subdivision, building construction, or sign regulations or
any other regulations controlling the development of land, except that this definition does not apply in s. 163.3213. See s.
163.3164(26), F.S.
119
Section 163.3202, F.S.
120
Id.
121
Section 163.3213, F.S.
122
Sections 163.3174(4)(a) and 163.3184, F.S.
123
Section 163.3184, F.S.
124
See ss. 163.3184 and 380.06, F.S. In the Expedited State Review Process, DEO reviews and approves or amends the
proposed comprehensive plan amendment. This process can take 4 to 6 months. The State Coordinated Review Process is a
more thorough, complex, multi-phase process. For more information, see Florida Department of Economic Opportunity,
Amendments that Must Follow the State Coordinated Review Process; Procedures and Timeframes, available at
https://floridajobs.org/community-planning-and-development/programs/community-planning-table-of-contents/amendments-
that-must-follow-the-state-coordinated-review-process-procedures-and-timeframes (last visited Dec. 27, 2022).
125
Richard Grosso, A Guide to Development Order "Consistency" Challenges Under Florida Statutes Section 163.3215, 34 J.
Envtl. L. & Litig. 129, 154 (2019) citing Brevard Cty. v. Snyder, 627 So. 2d 469, 475 (Fla. 1993). BILL: SB 102 Page 25
Zoning maps and zoning districts are adopted by a local government for developments within
each land use category or sub-category. While land uses are general in nature, one or more
zoning districts may apply within each land use designation.
126
Common regulations within the
zoning map districts include density,
127
height and bulk of buildings, setbacks, and parking
requirements.
128
Regulations for a zoning category in a downtown area may allow for more
density and height than allowed in a suburb, for instance.
If a developer or landowner believes that a proposed development may have merit but it does not
meet the requirements of a zoning map in a jurisdiction, the developer or landowner can seek a
rezoning through a rezoning application which is reviewed by the local government and voted on
by the governing body.
129
If a property has unique circumstances or small nonconformities but
otherwise meets zoning regulations, local governments may ease restrictions on certain
regulations such as building size or setback through an application for a variance.
130
However,
any action to rezone or grant a variance must be consistent with the local government’s
comprehensive plan.
Ordinances or resolutions that change the actual list of permitted, conditional, or prohibited uses
within a zoning category or ordinances or resolutions initiated by the local government that
change the actual zoning map designation of a parcel or parcels of land must follow additional
enhanced notice requirements.
131
If the area affected is less than 10 acres, the local government is required to notify by mail
each property owner and hold a public meeting to discuss the ordinance or resolution before
passage.
132
If the area affected is 10 acres or greater the local government must hold two separate
meetings at which to discuss the changes, and notice the public through either mail to each
property owner or to the public generally by newspaper.
133
Effect of Proposed Changes:
Section 3, in part, amends s. 125.01055, F.S., to preempt counties on zoning, density, and height
for certain multi-family rental developments in commercial and mixed-use areas. Specifically, a
county must authorize multifamily and mixed-use residential
134
as allowable uses in any area
zoned for commercial or mixed-use if at least 40percent of the units will be affordable for at least
126
Indian River County, General Zoning Questions, available at
https://www.ircgov.com/communitydevelopment/planning/FAQ.htm#zoning1 (last visited Jan. 20, 2023)
127
“Density” means an objective measurement of the number of people or residential units allowed per unit of land, such as
residents or employees per acre. See s. 163.3164(12), F.S.
128
Supra note 126.
129
City of Tallahassee, Application For Rezoning Review, available at
https://www.talgov.com/Uploads/Public/Documents/place/zoning/cityrezinfsh.pdf (last visited Jan. 20, 2023)
130
City of Tallahassee, Variance and Appeals, available at
https://www.talgov.com/Uploads/Public/Documents/growth/forms/boaa_variance.pdf (last visited Jan. 20, 2023) and
Seminole County, Variance Processes available at https://www.seminolecountyfl.gov/departments-services/development-
services/planning-development/boards/board-of-adjustment/variance-process-requirements.stml (last visited Jan. 20, 2023)
131
See sections 125.66(4) and 166.041(3), F.S.
132
Id.
133
Id.
134
At least 65 percent of the total square footage must be used for residential purposes. BILL: SB 102 Page 26
30 years and serve incomes up to 120% AMI. A county may not require a zoning, land use
change, or a comprehensive plan amendment for such development.
A county may not restrict the density of such development below the highest allowed density on
any unincorporated land in the county where residential development is allowed. Additionally, a
county may not restrict the height of such development below the highest allowed height for a
commercial or residential development in its jurisdiction within 1 mile of the proposed
development or 3 stories, whichever is higher.
An application for such development must be administratively approved and may not require
further action from the board of county commissioners if the development satisfies the county’s
land development regulations for multifamily in areas zoned for such use. A county must
consider reducing parking requirements for these developments if they are located within one-
half mile of a major transit stop.
These provisions expire on October 1, 2033.
The bill also makes a technical change, correcting an internal cross-reference in subsection (5).
Section 5 amends s. 166.04151, F.S. to make identical changes to section 3, as applied to
municipalities.
Present Situation:
Expedited Development Projects for Affordable Housing
In 2019, the Legislature enacted a provision to authorize counties and municipalities 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.
135
At least 10 percent of the units in a project on a commercial or industrial
parcel must be affordable and the developer of the project must agree to not seek funding from
FHFC’s SAIL program.
136
This provision allows local governments to expedite the development of affordable housing by
allowing locals to bypass state law and their comprehensive plans and zoning regulations that
would otherwise preclude or delay such development.
Effect of Proposed Changes:
Section 3, in part, amends s. 125.01055(6), F.S., to remove a county’s ability to approve
affordable housing on residential parcels by bypassing state and local laws that may otherwise
preclude such development. The bill also removes the SAIL restriction to allow SAIL
developments to utilize this expedited approval process on commercial and industrial parcels.
135
Sections 125.01055(6) and 166.04151(6), F.S.
136
Id. BILL: SB 102 Page 27
Section 5 amends s. 166.04151, F.S. to make identical changes to section 3, as applied to
municipalities.
Present Situation:
Local Government-owned Property
Since 2006 counties and cities have been required to prepare an inventory of publically owned
real property that would be appropriate for use as affordable housing, and update the inventory
every three years.
137
The list must include the address and legal description of each such real
property, specifying whether it is vacant or improved. The list must be reviewed and adopted by
resolution at public hearing.
Properties identified as appropriate for use as affordable housing may be:
Sold and the proceeds used to purchase land for the development of affordable housing;
Sold with a restriction that requires the development of permanent affordable housing on the
land;
Donated to a nonprofit housing organization for the construction of permanent affordable
housing; or
Be otherwise made available for the use for the production and preservation of permanent
affordable housing.
138
Effect of Proposed Changes:
Sections 4 and 7 amend ss. 125.379 and 166.0451, F.S., respectively, to provide that counties
and cities must produce their real property inventory lists referenced above by October 1, 2023,
and every three years thereafter, and make such list available on the county or city website.
Counties and cities must also include real property owned by dependent special districts within
their boundaries.
The bill further adds that acceptable uses of property identified as appropriate for affordable
housing include utilization through a long-term land lease requiring the development and
maintenance of affordable housing.
The bill includes certain best practices counties and cities are encouraged to adopt in creating
surplus land programs, including:
Establishing eligibility criteria for the receipt or purchase of surplus land by developers;
Making the process for requesting surplus lands publicly available; and
Ensuring long-term affordability through ground leases by retaining the right of first refusal
to purchase property that would otherwise be sold or offered at market rate.
Additionally, Section 34 amends s. 420.531, F.S., to expressly authorize FHFC to contract with
the Florida Housing Coalition, Florida’s provider for statewide training and technical assistance
funded by the Catalyst Program,
139
to provide assistance to local governments related to surplus
137
Sections 125.379 and 166.0451, F.S.
138
Id.
139
Section 420.531, F.S. BILL: SB 102 Page 28
lands programs and executing contracts related to bidding for affordable housing projects and
land-lease developments.
Present Situation:
Expedited Building Permits
It is the intent of the Legislature that local governments have the power to inspect all buildings,
structures, and facilities within their jurisdiction in protection of the public’s health, safety, and
welfare.
140
Every local government must enforce the Florida Building Code and issue building permits.
141
It
is unlawful for a person, firm, or corporation to construct, erect, alter, repair, secure, or demolish
any building without first obtaining a permit from the local government enforcing agency or
from such persons as may, by resolution or regulation, be directed to issue such permit, upon the
payment of reasonable fees as set forth in a schedule of fees adopted by the enforcing agency.
142
Any construction work that requires a building permit also requires plans and inspections to
ensure the work complies with the building code. The building code requires certain building,
electrical, plumbing, mechanical, and gas inspections.
143
Construction work may not be done
beyond a certain point until it passes an inspection.
Current law provides a set of deadlines for ordinary processing of a building permit, chief among
them that a local government must approve, approve with conditions, or deny an application for
a building permit within 120 days following receipt of a completed application.
144
Various laws
require or encourage local governments to further expedite the permitting process in certain
situations, including for those developments utilizing SAIL funding.
145
These statutes largely
leave the nature of such expediting to the local governments, resulting in varied experiences
throughout the state.
Effect of Proposed Changes:
Section 36 amends s. 553.792, F.S., to require that a local government maintain on its website a
policy containing procedures and expectations for expedited processing of those building permits
and development orders required by law to be expedited.
Present Situation:
Rent Control
Counties and municipalities are permitted to pass rent control ordinances under strict
circumstances.
146
Florida law provides that local governments may not impose price controls on
140
Section 553.72, F.S.
141
Sections 125.01(1)(bb), 125.56(1), and 553.80(1), F.S.
142
Sections 125.56(4)(a), 553.79(1), F.S.
143
Section 110 Seventh edition of the Florida Building Code (Building).
144
Section 553.792(1)(a), F.S.
145
See sections 403.973(3), 420.5087(6)(c)8., and 553.80(6)(b)1., F.S.
146
Sections 125.0103 and 166.043, F.S. BILL: SB 102 Page 29
rent unless the entity finds that such a price control would “eliminate an existing housing
emergency which is so grave as to constitute a serious menace to the general public.”
147
The
measure enacting rent control, in addition to normal requirements for passing an ordinance, must
expire in one year and must be approved by the voters in the locality.
148
Effect of Proposed Changes: Sections 2 and 6 amend ss. 125.0103 and 166.0451, F.S.,
respectively, to preempt local governments from enacting ordinances controlling the price of rent
under any circumstances.
Present Situation:
Ad Valorem Taxation
The ad valorem tax or “property tax” is an annual tax levied by counties, municipalities, school
districts, and some special districts. The tax is based on the taxable value of property as of
January 1 of each year.
149
The property appraiser annually determines the “just value”
150
of
property within the taxing jurisdiction and then applies relevant exclusions, assessment
limitations, and exemptions to determine the property’s “taxable value.”
151
Tax bills are mailed
in November of each year based on the previous January 1 valuation, and payment is due by
March 31 of the following year.
The Florida Constitution prohibits the state from levying ad valorem taxes,
152
and it limits the
Legislature’s authority to provide for property valuations at less than just value, unless expressly
authorized.
153
The just valuation standard generally requires the property appraiser to consider the highest and
best use of property;
154
however, the Florida Constitution authorizes certain types of property to
be valued based on their current use (classified use assessments), which often results in lower
assessments. Properties that receive classified use treatment in Florida include agricultural land,
land producing high water recharge to Florida’s aquifers, and land used exclusively for
noncommercial recreational purposes;
155
land used for conservation purposes;
156
historic
147
Id.
148
Id.
149
Both real property and tangible personal property are subject to tax. Section 192.001(12), F.S., defines “real property” as
land, buildings, fixtures, and all other improvements to land. Section 192.001(11)(d), F.S., defines “tangible personal
property” as all goods, chattels, and other articles of value capable of manual possession and whose chief value is intrinsic to
the article itself.
150
Property must be valued at “just value” for purposes of property taxation, unless the Florida Constitution provides
otherwise. FLA. CONST. art VII, s. 4. Just value has been interpreted by the courts to mean the fair market value that a willing
buyer would pay a willing seller for the property in an arm’s-length transaction. See Walter v. Shuler, 176 So. 2d 81 (Fla.
1965); Deltona Corp. v. Bailey, 336 So. 2d 1163 (Fla. 1976); Southern Bell Tel. & Tel. Co. v. Dade County, 275 So. 2d 4
(Fla. 1973).
151
See s. 192.001(2) and (16), F.S.
152
FLA. CONST. art. VII, s. 1(a).
153
See FLA. CONST. art. VII, s. 4.
154
Section 193.011(2), F.S.
155
FLA. CONST. art. VII, s. 4(a).
156
FLA. CONST. art. VII, s. 4(b). BILL: SB 102 Page 30
properties when authorized by the county or municipality;
157
and certain working waterfront
property.
158
Ad Valorem Exemption for Literary, Scientific, Religious, or Charitable Organizations
The Florida Constitution allows the Legislature to exempt from ad valorem taxation portions of
property that are used predominantly for educational, literary, scientific, religious or charitable
purposes.
159
The Legislature has implemented these exemptions and set forth criteria to
determine whether property is entitled to an exemption.
160
To determine whether a property’s use qualifies for an education, literary, scientific, religious,
or charitable exemption, the property appraiser must consider the nature and extent of the
qualifying activity compared to other activities or other uses of the property.
161
Incidental use of property for an exempt purpose will not qualify the property for an exemption
nor will the incidental use of the property for a non-exempt purpose impair an exemption.
162, 163,
164
Property claimed as exempt which is used for profitmaking purposes is not exempt and is subject
to ad valorem taxation; however, the Legislature has allowed certain property to remain exempt
even when used for profitmaking purposes when the use of the property does not require a
business or occupational license and the revenue derived from the profitmaking activity is used
wholly for exempt purposes.
165
Ad Valorem Exemption for Charitable Purposes and Affordable Housing
In 1999, the Legislature authorized a charitable use property tax exemption for property owned
by a nonprofit corporation that provides affordable housing.
166, 167
The exemption is limited to
only those portions of the property that house persons or families whose income does not exceed
157
FLA. CONST. art. VII, s. 4(e).
158
FLA. CONST. art. VII, s. 4(j).
159
FLA. CONST. art. VII, s. 3(a).
160
Section 196.196, F.S.
161
Section 196.196(1), F.S.
162
Section 196.196(2), F.S.
163
Underhill v. Edwards, 400 So.2d 129, 132 (Fla. 5th DCA 1981). The district court found that trustees of a private not-for
profit hospital were not entitled to an exemption on the new wing's first floor, which was used for a private purpose and not
for a charitable purpose or other exempt purpose, despite the fact that the portion of the hospital used for a non-exempt
purpose represented only a very small percentage of the otherwise exempt property.
164
Central Baptist Church of Miami, Florida Incorporated v. Dade County, Florida, et. al., 216 So.2d 4, 6 (Fla 1968). The
Supreme Court found that “limited part time rental of a portion of the church lot for commercial parking on weekday
business hours is reasonably incidental to the primary use of the church property as a whole for church or religious purposes
and is not a sufficiently divergent commercial use that eliminates the exemption as to the commercial parking lot portion of
the property.” at 6.
165
See section 196.196(4), F.S.
166
Chapter 99-378, s. 15, Laws of Fla. (creating s. 196.1978, F.S, effective July 1, 1999).
167
The not-for-profit corporation must qualify as charitable under s. 501(c)(3) of the Internal Revenue Code and other federal
regulations. See 26 U.S.C. § 501(c)(3) (“charitable purposes” include relief of the poor, the distressed or the underprivileged,
the advancement of religion, and lessening the burdens of government). BILL: SB 102 Page 31
120 percent of the median income of the state, the metropolitan area, or the county where the
person lives, whichever is greater.
In 2017, the Legislature authorized a charitable use property tax discount for property with an
agreement with the FHFC where more than 70 of the units provide affordable housing. The
discount is limited to only those portions of the property that house persons or families whose
income does not exceed 80 percent of the median income of the state, the metropolitan area, or
the county where the person lives, whichever is greater. The tax discount amounted to 50 percent
of the taxable value of eligible units and was applicable to taxes assessed after the 15th
completed year of an agreement with the FHFC.
168
In 2021, the Legislature increased the 50
percent discount to a full exemption.
169
Effect of Proposed Changes:
The bill includes three new property tax exemptions:
Nonprofit Land Lease Exemption
Section 8, in part, amends s. 196.1978(1), F.S., to provide that land owned entirely by a
nonprofit entity which is leased for at least 99 years for the purpose of and is in fact used for
providing affordable housing for extremely-low-, very-low-, low-, or moderate-income persons
or families is exempt from ad valorem taxation.
In order to receive this exemption the improvements on the land being used for affordable
housing purposes must encompass more than half the square footage of all improvements on the
land. This exemption first applies to the 2024 tax roll and is repealed on December 31, 2059.
Exemption for Newly Constructed Units Providing Affordable Housing
Section 8, in part, amends s. 196.1978(3), F.S., to provide a new ad valorem tax exemption for
certain property used to provide affordable housing. This exemption applies throughout the state
without further action by local governments.
Eligible property includes units in a newly constructed multifamily project containing more than
70 units dedicated to housing natural persons or families below certain income thresholds.
“Newly constructed” is defined as an improvement substantially completed within 5 years before
the property owner’s first application for this exemption. The units must be occupied by such
persons or families and rent limited so as to provide affordable housing at either the 80 or 120
percent AMI threshold. Rent for such units also may not exceed 90 percent of the fair market
value rent as determined by a rental market study.
Qualified property used to provide affordable housing at the 80 to 120 percent AMI threshold
receives an exemption of 75 percent of the assessed value of the units, while such property
providing affordable housing at the 80 percent AMI threshold receives a complete ad valorem
tax exemption.
168
Section 196.1978(2)(a), F.S. (2018) and ch. 2017-36, s. 6, Laws of Fla.
169
See ch. 2021-31, s. 10, Laws of Fla. BILL: SB 102 Page 32
If an occupied unit qualifies for this exemption and the following year is vacant on January 1, the
vacant unit is eligible for the exemption provided it meets the other requirements and a
reasonable effort is made to lease the unit to eligible persons or families.
To receive this exemption, a property owner must submit an application by March 1 to the
property appraiser, accompanied by a certification notice from FHFC. To receive a FHFC
certification a property appraiser must submit a request on a form including the most recent
market study, which must have been conducted by an independent certified general appraiser in
the preceding 3 years; a list of units for which the exemption is sought; the rent amount received
for each unit, and a sworn statement restricting the property for a period of not less than 3 years
to provide affordable housing.
The certification process will be administered within FHFC. Their responsibilities include
publishing the deadline for submission, reviewing each request, sending certification notices to
both the successful property owner and appropriate property appraiser, notifying unsuccessful
property owners with reasons for denial.
If the property appraiser determines that such an exemption has been improperly granted within
the last 10 years, the property appraiser must serve the owner with a notice of intent to record a
tax lien. Such property will be subject to the taxes improperly exempted, plus a penalty of 50
percent and 15 percent annual interest. Penalty and interest amounts do not apply to exemptions
erroneously granted due to clerical mistake or omission by the property appraiser.
Units subject to a recorded agreement with FHFC under ch. 420, F.S., to provide affordable
housing, and property receiving an exemption under s. 196.1979, F.S., as created by the
following section of the bill, are not eligible to receive this exemption.
The bill provides FHFC rulemaking authority to implement this section.
This section first applies to the 2024 tax roll and is repealed December 31, 2059.
Local Option Affordable Housing Exemption
Section 9 creates s. 196.1979, F.S., which provides that the governing body of a county or
municipality may adopt by ordinance an ad valorem tax exemption for certain property used for
providing affordable housing.
Portions of property eligible for such an exemption must be utilized to house persons or families
meeting the extremely-low- or very-low-income limits specified in s. 420.0004, F.S, be
contained in a multifamily project of at least 50 units where at least 20 percent are reserved for
affordable housing, and have rent set such that it provides affordable housing to people in the
target income bracket, or no higher than 90 percent of the fair market rent value as determined by
a rental market study, whichever is less.
In adopting this exemption, a local government may choose to offer either or both an exemption
for extremely-low-income (up to 30 percent AMI) and for very-low-income (30 to 50 percent BILL: SB 102 Page 33
AMI) targets. The value of the exemption is up to 75 percent of the assessed value of each unit if
less than 100 percent of the multifamily project’s units are used to provide affordable housing, or
up to 100 percent of the assessed value if 100 percent of the project’s units are used to provide
affordable housing.
An ordinance enacting such an exemption must:
Be adopted under normal non-emergency procedures;
Designate the local entity under the supervision of the governing body which must develop,
receive, and review applications for certification and develop notices of determination of
eligibility;
Require the property owner to apply for certification on a form including the most recent
market study, which must have been conducted by an independent certified general appraiser
in the preceding three years; a list of units for which the exemption is sought; and the rent
amount received for each unit;
Require the designated entity to verify and certify property as having met the requirements
for the exemption, and to notify unsuccessful applicants with the reasons for denial;
Set out the requirements for each unit discussed above;
Require the property owner to submit an application for exemption accompanied by
certification to the property appraiser by March 1;
Specify that such exemption only applies to taxes levied by the unit of government granting
the exemption;
Specify that the property may not receive such an exemption after the expiration of the
ordinance granting the exemption;
Identify the percentage of assessed value to be exempted, and whether such exemption
applies to very-low-income, extremely-low-income, or both; and
Require that the deadline to submit an application and a list of certified properties be
published on the government’s website.
Such an ordinance must expire before the fourth January 1 after adoption, however the governing
body may adopt a new ordinance renewing the exemption.
If the property appraiser determines that such an exemption has been improperly granted within
the last 10 years, the property appraiser must serve the owner with a notice of intent to record a
tax lien. Such property will be subject to the taxes improperly exempted, plus a penalty of 50
percent and 15 percent annual interest. Penalty and interest amounts do not apply to exemptions
erroneously granted due to clerical mistake or omission by the property appraiser.
This section first applies to the 2024 tax roll.
Miscellaneous Effect of Proposed Changes
Sections 16, 17, and 19 amend ss. 220.02, 220.13, and 220.186, F.S., respectively, to make
conforming changes with regards to Section 20.
Section 35 amends s. 420.6075, F.S., to make technical changes.
BILL: SB 102 Page 34
Section 37 amends s. 624.509, F.S., to make technical changes.
Section 38 amends s. 624.5105, F.S., to make technical changes.
Section 40 expressly grants the DOR emergency rulemaking authority as it relates to
administering the Live Local Program created by the bill. This authority is repealed July 1, 2026.
Section 45 provides that the Legislature finds and declares that this act fulfills an important state
interest.
Section 46 provides that, except as otherwise provided, the bill will take effect July 1, 2023.
IV. Constitutional Issues:
A. Municipality/County Mandates Restrictions:
Article VII, section 18 (a) of the Florida Constitution provides in part that a county or
municipality may not be bound by a general law requiring a county or municipality to
spend funds or take an action that requires the expenditure of funds unless certain
specified exemptions or exceptions are met. Under the bill counties and municipalities
may be required to spend funds related to publishing certain policies and documents
online, administering new tax exemptions, and updating inventories of publicly owned
land.
Article VII, Section 18(b) of the Florida Constitution provides that, except upon the
approval of each house of the Legislature by a two-thirds vote of the membership, the
Legislature may not enact, amend, or repeal any general law if the anticipated effect of
doing so would be to reduce the authority that municipalities or counties have to raise
revenue in the aggregate, as such authority existed on February 1, 1989. The portions of
the bill alleviating ad valorem taxes under certain circumstances for properties providing
affordable housing reduce taxing authority.
If the bill does qualify as a mandate, in order to be binding upon cities and counties the
bill must contain a finding of important state interest and be approved by a two-thirds
vote of the membership of each house.
B. Public Records/Open Meetings Issues:
None.
C. Trust Funds Restrictions:
The amount directed to the State Housing Trust Fund from Documentary Stamp Tax
collections does not affect the amount received by the Land Acquisition Trust Fund, as
required by Article X, section 28(a) of the Florida Constitution. BILL: SB 102 Page 35
D. State Tax or Fee Increases:
None.
E. Other Constitutional Issues:
None.
V. Fiscal Impact Statement:
A. Tax/Fee Issues:
The REC made the following estimates for the specified bill provisions:
The sales tax refund for building materials will reduce General Revenue Fund
receipts by $31.9 beginning in Fiscal Year 2023-2024, and will reduce local
government revenues by $8.9 million beginning in Fiscal Year 2023-2024.
Increasing the Community Contribution Tax Credit cap will reduce General Revenue
Fund receipts by $8.4 million beginning in Fiscal Year 2023-2024, and will reduce
local government revenues by $2.1 million beginning in Fiscal Year 2023-2024.
The Live Local Program will reduce General Revenue receipts by $50 million in
Fiscal Year 2023-2024 and by $100 million in future years.
The property tax exemption for certain lands leased for affordable housing will
reduce local property tax revenues by $8.5 million beginning in Fiscal Year 2023-
2024.
The local option affordable housing property tax exemption will have an
indeterminate reduction to local property tax revenue.
The General Revenue service charge redirect will reduce General Revenue Fund
receipts by $150 million beginning in Fiscal Year 2023-2024 and will increase State
Housing Trust Fund receipts by $150 million beginning in Fiscal Year 2023-2024.
The REC has not yet estimated the impact of the property tax exemption for newly
constructed or substantially renovated multi-family rental units used to provide affordable
housing.
B. Private Sector Impact:
Developers of multifamily housing should see a reduction in bureaucracy, and an
increase in the amount of property available, for residential development relating to
housing projects which qualify for the density, height, and zoning preemptions.
Developers will also benefit from tax exemption portions of the legislation, and increased
funding to FHFC.
Individuals may benefit from a resulting increase in income-limited units, overall housing
production increases, and downpayment assistance eligibility. BILL: SB 102 Page 36
C. Government Sector Impact:
Local governments may incur expenditures and lost revenues in implementing the bill
with regards to updating inventory lists of publicly owned land, publishing certain
procedures and regulations electronically, and administering new ad valorem tax
exemptions. Local governments may benefit from the expansion of the Community
Contribution Tax Credit Program, the locally held land leasing provisions, and SHIP
funding.
Certain components of the bill, specifically the General Revenue service charge
redirection and Live Local program, have the neutral effect of reducing general revenue
while increasing funding to FHFC programs.
The DOR and FHFC will face costs related to administration of various provisions of the
bill.
The bill makes the following appropriations to the FHFC:
$100 million in non-recurring funds from the General Revenue Fund to implement
the Florida Hometown Hero Program;
$252 million in non-recurring funds from the Local Government Housing Trust Fund
for the SHIP program;
$150 million in recurring funds from the State Housing Trust Fund for the purpose of
implementing section 30 of the bill, related to SAIL project funding derived from a
redirected General Revenue service charge;
$109 million in non-recurring funds from the State Housing Trust Fund for the SAIL
program; and
$100 million in non-recurring funds from the General Revenue Fund to implement a
competitive loan program to alleviate inflation-related cost increases for FHFC-
approved multifamily projects that have not yet commenced construction.
170
VI. Technical Deficiencies:
None.
VII. Related Issues:
None.
VIII. Statutes Affected:
This bill substantially amends or creates the following sections of the Florida Statutes: 125.0103,
125.01055, 125.379, 166.04151, 166.043, 166.0451, 196.1978, 196.1979, 201.15, 212.08,
170
FHFC currently maintains such an effort through a program called the Construction Housing Inflation Response Program
(CHIRP), which sets aside funding for projects that were previously awarded SAIL funding but risk failure due to acutely
rising construction costs. See FHFC, Construction Housing Inflation Response Program (CHIRP), April 29, 2022, available
at https://www.floridahousing.org/docs/default-source/programs/competitive/2022/2022--chirp/4-29-22-board-presentation-
re-chirp-(1).pdf?sfvrsn=c94cf57b_0 (last visited January 19, 2023). This provision takes effect upon the bill becoming a law. BILL: SB 102 Page 37
215.212, 215.22, 220.02, 220.13, 220.183, 220.186, 220.1878, 253.034, 253.0341, 288.101,
420.0003, 420.503, 420.504, 420.507, 420.5087, 420.50871, 420.50872, 420.5096, 420.531,
420.6075, 553.792, 624.509, 624.5105, and 624.51058.
This bill creates undesignated sections of Florida law.
IX. Additional Information:
A. Committee Substitute – Statement of Changes:
(Summarizing differences between the Committee Substitute and the prior version of the bill.)
None.
B. Amendments:
None.
This Senate Bill Analysis does not reflect the intent or official position of the bill’s introducer or the Florida Senate.