Florida 2020 Regular Session Status: In Committee 1 I cosponsors

SB 856 — Affordable Housing Tax Reductions

Last action — Died in Finance and Tax

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  1. ✓
    Introduced
  2. 2
    In Committee
  3. 3
    Passed Senate
  4. 4
    Passed House
  5. 5
    To Executive
  6. 6
    Enacted

This bill died with 2020 Regular Session. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.

Summary

Affordable Housing Tax Reductions; Authorizing counties, municipalities, and special districts to provide an exception or waiver of impact fees for certain not-for-profit corporations for specified purposes; providing a tax reduction to certain entities that provide affordable housing to identified groups; requiring a taxpayer who receives a tax reduction to file an annual report; providing penalties for falsification of reports; authorizing a county to limit the number of qualifying projects that may be approved under specified conditions, etc.

Bill Text

What changed in the latest version

176 added · 170 removed

176 line(s) added, 170 removed.

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Florida Senate - 2020 SB 856 By Senator Pizzo 38-01037-20 2020856__ A bill to be entitled An act relating to an affordable housing tax reduction;
Florida Senate - 2020 CS for SB 856 By the Committee on Community Affairs;
creating s.
and Senator Pizzo 578-03064-20 2020856c1 A bill to be entitled An act relating to affordable housing tax reductions;
196.1979, F.S.;
amending s.
163.31801, F.S.;
authorizing counties, municipalities, and special districts to provide an exception or waiver of impact fees for certain not for-profit corporations for specified purposes;
defining the term “supportive housing” for certain purposes;
amending s.
196.1978, F.S.;
providing a reduction in certain property taxes to taxpayers building or renovating certain affordable, elderly, or workforce housing projects;
providing a tax reduction to certain entities that provide affordable housing to identified groups;
providing qualifying criteria;
providing criteria for receiving such reduction;
specifying the calculation of property assessments over the reduction term;
providing a formula for determining the amount of the reduction;
providing taxpayer requirements for recording a certain covenant;
requiring a taxpayer to submit a covenant for recording which provides specified information;
providing a requirement for the property appraiser in applying reductions;
requiring a taxpayer who receives a tax reduction to file an annual report;
specifying an annual reporting requirement for taxpayers;
providing specifications for such report;
providing a criminal penalty;
providing penalties for falsification of reports;
authorizing certain counties to limit the total number of qualifying projects, subject to certain requirements;
authorizing a county to limit the number of qualifying projects that may be approved under specified conditions;
specifying a taxpayer’s liability for back taxes, penalties, interest, and certain remedies under certain circumstances;
requiring a taxpayer to pay back taxes, penalties, and interest under specified circumstances;
providing exceptions;
21 Be It Enacted by the Legislature of the State of Florida:
25 Be It Enacted by the Legislature of the State of Florida:
23 Section 1. Section 196.1979, Florida Statutes, is created to read:
27 Section 1. Subsection (8) of section 163.31801, Florida Statutes, is amended to read:
196.1979 Affordable housing property tax reduction.— (1) As used in this section, the term:
163.31801 Impact fees;
(a) “Affordable housing project” means a qualifying housing development that receives an allocation of 4 percent low-income housing tax credits from the corporation pursuant to s.
short title;
420.5099, receives bonds for qualifying housing developments from a housing finance authority after July 1, 2020, or both.
intent;
(b) “Base tax” means the operating taxes remitted to a project taxing authority in the tax year immediately preceding the reduction term.
minimum requirements;
(c) “Corporation” means the Florida Housing Finance Corporation.
audits;
(d) “Elderly housing project” means a rental housing project that receives an allocation of 9 percent low-income housing tax credits from the corporation pursuant to s.
challenges.— (8) A county, municipality, or special district may provide an exception or waiver for an impact fee for the development or construction of housing that is affordable, as defined in s.
420.5099 and that meets all of the following criteria:
420.9071, or for the development and construction of supportive housing by a not-for-profit corporation that derives at least 75 percent of its annual revenues from contracts or services provided to a state or federal agency.
1. It reserves at least 80 percent of the rental unit occupancy in the project for the elderly.
If a county, municipality, or special district provides such an exception or waiver, it is not required to use any revenues to offset the impact.
2. It offers all rental units to eligible persons.
For purposes of this subsection, the term “supportive housing” means affordable housing for low-income persons and low-income households, as those terms are defined in s.
3. It implements the standards and processes adopted by rule of the corporation to reduce barriers to elderly rental housing entry.
420.9071(19), which provides treatment for persons who suffer from mental health, substance abuse, or domestic violence, which provides on-premises social and community support services, including job training, life skills training, alcohol and substance abuse disorder treatment, child care, and client case management services.
(e) “Household” has the same meaning as in s.
Section 2. Subsection (3) is added to section 196.1978, Florida Statutes, to read:
196.1978 Affordable housing property exemption;
workforce housing property reductions.— (3)(a) As used in this subsection, the term:
1. “Base tax” means the operating taxes remitted to the taxing authority in the tax year immediately preceding the reduction term.
2. “Corporation” means the Florida Housing Finance Corporation.
3. “Household” has the same meaning as in s.
(f) “Operating taxes” means the nonvoted millage portion of the county millage and the municipal millage as identified in s.
4. “Operating taxes” means the nonvoted millage portion of the county millage and the municipal millage as identified in s.
(g) “Project taxing authority” means a county or municipality, as those terms are defined in s.
5. “Project taxing authority” means a county or municipality, as those terms are defined in s.
(h) “Qualifying project” means an affordable housing project, elderly housing project, or workforce housing project that:
6. “Qualifying project” means a workforce housing project that:
1. Is located in a county with a population of 825,000 or more;
a. Is located in a county that has a population of 825,000 or more;
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and 2. Has not received an affordable housing property exemption pursuant to s.
and b. Has not received a property tax discount pursuant to subsection (2).
196.1978(2).
7. “Reduction term” means the 25-year tax reduction period beginning the year in which the qualifying project is first assessed under s.
(i) “Reduction term” means the 25-year tax reduction period beginning the year in which the qualifying project is first assessed under s.
192.042(1) and certified by the county property appraiser as eligible to receive a tax reduction in operating taxes.
192.042(1) and certified by the county property appraiser as eligible to receive a reduction in operating taxes.
8. “Taxpayer” has the same meaning as in s.
(j) “Taxpayer” has the same meaning as in s.
192.001.
192.001(13).
9. “Workforce housing project” means a rental housing project that provides at least 4 but not more than 70 dwelling units for natural persons or families and in which:
(k) “Workforce housing project” means a rental housing project containing four or more dwelling units for natural persons and households which has not received from the corporation an allocation of low-income housing tax credits pursuant to s.
a. At least 10 percent of the rental units are set aside for one or more natural persons or a family with a total annual gross household income greater than 60 percent but less than 80 percent of the median annual income adjusted for family size for households within the metropolitan statistical area, the county, or the nonmetropolitan median for the state, whichever is greatest.
420.5099, a loan pursuant to s.
b. At least 20 percent of the rental units are set aside for one or more natural persons or a family with a total annual gross household income greater than 60 percent but less than 100 percent of the median annual income adjusted for family size for households within the metropolitan statistical area, the county, or the nonmetropolitan median for the state, whichever is greatest.
420.5087, or bond proceeds pursuant to s.
c. Rents for the rental units set aside pursuant to sub subparagraphs a.
159.612, and in which:
and b.
1. At least 10 percent of the rental units are set aside for one or more natural persons or a family with a total annual gross household income greater than 60 percent and up to 80 percent of the median annual income, adjusted for family size, for households within the metropolitan statistical area, the county, or the nonmetropolitan areas of this state, whichever is greatest;
comply with the income limitations established by the corporation for the county in which the rental units are located.
2. At least 20 percent of the rental units are set aside for one or more natural persons or a family with a total annual gross household income greater than 60 percent and up to 100 percent of the median annual income, adjusted for family size, for households within the metropolitan statistical area, the county, or the nonmetropolitan areas of this state, whichever is greatest;
Rents for the rental units within the project that are not subject to the set-asides may be offered at rents determined by the taxpayer in his or her sole discretion.
and 3. Rents for the rental units set aside under subparagraphs 1.
(b) The Legislature finds that property used to provide workforce housing to natural persons and households that meet the low-income or moderate-income limits is a charitable purpose.
and 2.
Therefore, notwithstanding s.
are set at the applicable income limitations established by the corporation for the county in which the rental housing project is located.
196.195(4), a taxpayer who builds or renovates a qualifying project after July 1, 2021, may receive a tax reduction in operating taxes that would otherwise be assessed if the following criteria are met:
For rental units within the project which are not set aside under subparagraphs 1.
1. The taxpayer timely files an application for the tax reduction with the property appraiser no later than March 1 of the year immediately following the year in which the qualifying project is first assessed under s.
and 2., the taxpayer may offer the units at rents it determines at its sole discretion.
(2) The Legislature finds that property used to provide affordable, elderly, and workforce housing to natural persons and households that meet the low-income or moderate-income limits is a charitable purpose.
Notwithstanding s.
196.195(4), a taxpayer who builds or renovates a qualifying project after July 1, 2020, may receive a reduction in operating taxes that would otherwise be assessed, if both of the following criteria are met:
(a) The taxpayer timely files an application for the tax reduction with the property appraiser no later than March 1 of the year immediately after the year in which the qualifying project is first assessed under s.
(b) The taxpayer records a covenant running with the land which restricts the rents of units within the qualifying project in accordance with the criteria under paragraph (1)(a), paragraph (1)(d), or paragraph (1)(k), as applicable.
2. The taxpayer records a covenant running with the land that restricts the rents of rental units within the qualifying project in accordance with the requirements set forth in subparagraph (a)9.
(3) For the first 16 years of the reduction term, a qualifying project shall be assessed operating taxes in an amount equal to the base tax, subject to an annual adjustment equal to 2.5 percent beginning in year 2 of the reduction term or the percentage change in the Consumer Price Index for the county in which the qualifying project is located, whichever is less.
(c) For the first 16 years of the reduction term, a qualifying project shall be assessed operating taxes in an amount equal to the base tax for the qualifying project, which base tax shall be increased annually thereafter by 2.5 percent or the Consumer Price Index for the county in which the qualifying project is located, whichever is less.
After the first 16 years of the reduction term, the qualifying project shall be assessed as follows:
Beginning in Year 17 of the reduction term, the property appraiser shall determine the assessed value of the qualifying project and reduce the assessed value of the property in accordance with the percentages set forth below:
121 Year of Tax Reduction Affordable Housing Reduction PercentageWorkforce Housing Reduction Percentage 1-16 100 percent 100 percent 17 90 percent 100 percent 18 80 percent 90 percent 19 70 percent 85 percent 20 60 percent 75 percent 21 50 percent 60 percent 22 40 percent 50 percent 23 30 percent 40 percent 24 20 percent 25 percent 25 10 percent 15 percent (4) If the property appraiser approves the application, the taxpayer must submit the covenant under paragraph (2)(b) for recording.
129 Year of Tax Reduction Workforce Housing Reduction Percentage 17 90 percent 18 80 percent 19 70 percent 20 60 percent 21 50 percent 22 40 percent 23 30 percent 24 20 percent 25 10 percent (d) If the property appraiser approves the application, the taxpayer must record the covenant.
The property appraiser shall apply the authorized tax reductions beginning in the same tax year.
The property appraiser shall apply the authorized tax reductions beginning in the appropriate tax year.
The taxpayer submitting the application is responsible for the cost of recording the covenant.
The taxpayer is responsible for the cost of recording the covenant.
(5) A taxpayer who receives a tax reduction is required to submit a report annually to the property appraiser confirming his or her compliance with the rent restrictions required for the receipt of the reduction.
(e) Each taxpayer who receives a tax reduction must submit a report annually to the property appraiser confirming his or her compliance with the rent restrictions required for the receipt of the reduction.
The report must be executed by the taxpayer or an authorized representative of the taxpayer and must include the written declaration set forth in s.
The report must be executed by the taxpayer or an authorized representative of the taxpayer, and must include the written declaration set forth in s.
(6) Each county described in s.
(f) Each county may limit the total number of qualifying projects that the property appraiser may approve annually if:
420.5087(1)(a) where a qualifying project may be located may, by the adoption of an ordinance and after conducting a public hearing noticed in a newspaper of general circulation, limit the total number of qualifying projects the property appraiser may approve annually, upon a finding supported by competent substantial evidence that such a limitation is necessary in order to avoid a substantial impairment of the taxing authority’s ability to meet its financial obligations to fund other public services that are necessary to ensure the public safety and welfare.
1. It conducts a public hearing noticed in a newspaper of general circulation.
(7)(a) If the property appraiser determines that a qualifying project that was granted a tax reduction failed to offer rents as required in the recorded covenant and as set forth in this section, the taxpayer is liable for the payment of any back taxes, penalties, and interest, as well as any other remedies authorized pursuant to s.
2. It adopts a resolution that finds and is supported by competent substantial evidence that a limitation is necessary to avoid the substantial impairment of the taxing authority’s ability to meet its financial obligations to fund other public services that are necessary to ensure the public safety and welfare.
(g)1. If the property appraiser determines that a qualifying project that was granted a tax reduction has failed to offer rents as required in the recorded covenant and as set forth in this subsection, the taxpayer shall be liable for the payment of any back taxes, penalties, and interest, as well as any other remedies authorized pursuant to s.
(b) If a property appraiser improperly grants a tax reduction as a result of a clerical mistake or an omission, the taxpayer improperly receiving the reduction shall not be assessed back taxes, penalties, or interest, or liable for any other remedies authorized under s.
2. If the property appraiser improperly grants a tax reduction as a result of a clerical mistake or an omission, the taxpayer improperly receiving the reduction shall not be assessed back taxes, penalties, or interest, or be held liable for any other remedies authorized under s.
Section 2. This act shall take effect July 1, 2020.
Section 3. This act shall take effect July 1, 2020.
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Action History

  1. Died in Finance and Tax

  2. Indefinitely postponed and withdrawn from consideration

  3. CS by Community Affairs read 1st time

  4. Now in Finance and Tax

  5. Pending reference review under Rule 4.7(2) - (Committee Substitute)

  6. CS by Community Affairs; YEAS 5 NAYS 0

  7. On Committee agenda-- Community Affairs, 02/03/20, 4:00 pm, 301 Senate Building

  8. Introduced

  9. Referred to Community Affairs; Finance and Tax; Appropriations

  10. Filed

Sponsors

Sponsorship breakdown

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1 sponsors · 0 co-sponsors · 163 not signed on

Sponsors (1)

Co-sponsors (0)

None.

Not signed on (163)

163 members have not signed on to this bill.

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Frequently asked questions

What does SB 856 do?
Affordable Housing Tax Reductions; Authorizing counties, municipalities, and special districts to provide an exception or waiver of impact fees for certain not-for-profit corporations for specified purposes; providing a tax reduction to certain entities that provide affordable housing to identified groups; requiring a taxpayer who receives a tax reduction to file an annual report; providing penalties for falsification of reports; authorizing a county to limit the number of qualifying projects that may be approved under specified conditions, etc.
Who sponsors SB 856?
SB 856 is sponsored by Pizzo, Jason W. B. (No Party Affiliation).
What is the current status of SB 856?
This bill died with 2020 Regular Session. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track SB 856?
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