Florida Senate - 2024 SB 1504 By Senator Davis 5-01704-24 20241504__ Page 1 of 18 CODING: Words stricken are deletions; words underlined are additions. A bill to be entitled 1

An act relating to affordable housing; creating s. 2 166.0452, F.S.; providing

definitions; authorizing 3 municipalities to create community land bank programs 4 for a certain purpose; requiring certain 5 municipalities to develop and annually adopt a 6 community land bank plan; providing requirements for 7 such plan; requiring that a public hearing on the 8 proposed plan be held before its adoption; requiring 9 notice to certain entities; requiring that the 10 proposed plan be made public within a certain 11 timeframe before the public hearing; providing 12 requirements for the sale of certain property to land 13 banks; providing that such sale is for a public 14 purpose; prohibiting certain persons from challenging 15 the market value of a property under certain 16 circumstances; requiring that written notice of a sale 17 of such property be provided to certain persons in a 18 certain manner within a specified timeframe; 19 authorizing the owner of certain property to contest 20 the sale of such property and requiring such property 21 to be sold in a different manner; specifying that the 22 owner of certain property is not entitled to proceeds 23 from the sale and is not liable for certain 24 deficiencies; authorizing land banks to buy certain 25 property for less than market value under certain 26 circumstances; conveying the right, title, and 27 interest in certain property to land banks; requiring 28 land banks to offer qualified organizations a right of 29

Florida Senate - 2024 SB 1504 5-01704-24 20241504__ Page 2 of 18 CODING: Words stricken are deletions; words underlined are additions. first refusal to purchase certain property; providing 30 requirements for the right of first refusal; providing 31 conditions for the subsequent resale of property 32 acquired by land banks; requiring certain deed 33 restrictions on certain property; providing 34 requirements for such deed restrictions; authorizing 35 the modification of or addition to deed restrictions; 36 requiring land banks to maintain certain records; 37 requiring land banks to file annual audited financial 38 statements within a certain timeframe; requiring land 39 banks to submit an annual performance report to the 40 municipality by a certain date; providing requirements 41 for such report; requiring that copies of such report 42 be provided to certain entities and made available for 43 public review; providing applicability; creating s. 44 220.1851, F.S.; providing

definitions; authorizing a 45 tax credit for certain projects; providing the maximum 46 value of such credit; authorizing the Florida Housing 47 Finance Corporation to allocate the tax credit among 48 certain projects; authorizing the tax credit to be 49 transferred by the recipient; requiring the Department 50 of Revenue to adopt rules; creating s. 420.50931, 51 F.S.; creating the Retail-to-residence Tax Credit 52 Program for a certain purpose; requiring the Florida 53 Housing Finance Corporation to determine which 54 projects are eligible for the tax credit; requiring 55 the corporation to establish and adopt certain 56 procedures and to prepare a specified annual plan; 57 requiring that such plan be approved by the Governor; 58

Florida Senate - 2024 SB 1504 5-01704-24 20241504__ Page 3 of 18 CODING: Words stricken are deletions; words underlined are additions. authorizing the corporation to exercise certain 59 powers; requiring the board of directors of the 60 corporation to administer certain procedures and 61 determine allocations on behalf of the corporation; 62 providing requirements for certain procedures; 63 requiring taxpayers to submit an application with 64 certain information to the corporation; authorizing 65 the corporation to request additional information; 66 providing requirements for the approval of an 67 application for a project; creating s. 420.5098, F.S.; 68 creating the Affordable Housing Construction Loan 69 Program for a certain purpose; providing the 70 corporation with certain powers and responsibilities 71 relating to the program; providing requirements for 72 the program; providing rulemaking authority; providing 73 an effective date. 74 75 Be It Enacted by the Legislature of the State of Florida: 76 77

Section

Section 166.0452, Florida Statutes, is created 78 to read: 79 166.0452 Community land bank program.— 80

(1) For purposes of this section, the term: 81 (a) “Affordable” has the same meaning as in s. 420.0004. 82 (b) “Community housing development organization” has the 83 same meaning as in s. 420.503. 84 (c) “Community land bank plan” or “plan” means a plan 85 adopted by the governing body of a municipality to implement a 86 community land bank program. 87

Florida Senate - 2024 SB 1504 5-01704-24 20241504__ Page 4 of 18 CODING: Words stricken are deletions; words underlined are additions. (d) “Community land bank program” or “program” means the 88 program created by a governing body of a municipality under this 89 section. 90 (e) “Land bank” means an entity established or approved by 91 the governing body of a municipality for the purpose of 92 acquiring, holding, and transferring unimproved real property 93 under this section. 94 (f) “Low-income household” has the same meaning as in s. 95 420.9071. 96 (g) “Qualified organization” means a community housing 97 development organization that meets all of the following 98 criteria: 99 1.

Contains within its designated geographical boundaries 100 of operation, as set forth in its application for certification 101 filed with and approved by the municipality, a portion of the 102 property that a land bank is offering for sale. 103 2. Has built at least three single-family homes or duplexes 104 or one multifamily residential dwelling of four or more housing 105 units in compliance with all applicable building codes within 106 the preceding 2-year period and within the organization’s 107 designated geographical boundaries of operation. 108 3.

Has developed or rehabilitated housing units within the 109 preceding 3-year period which are within a 2-mile radius of the 110 property that a land bank is offering for sale. 111 (h) “Qualified participating developer” means a developer 112 that meets all of the following criteria: 113 1. Has developed three or more housing units within the 3-114 year period preceding its submission of a proposal to a land 115 bank seeking to acquire real property from the land bank. 116

Florida Senate - 2024 SB 1504 5-01704-24 20241504__ Page 5 of 18 CODING: Words stricken are deletions; words underlined are additions. 2. Has a development plan approved by the governing body of 117 the municipality for the property acquired from the land bank. 118 3. Any other requirements adopted by the governing body of 119 the municipality in its community land bank plan. 120 121 The term includes a qualified organization. 122 (i) “Very-low-income household” has the same meaning as in 123 s. 420.9071. 124

(2) The governing body of a municipality may create a 125 community land bank program in which the person charged with 126 selling real property pursuant to a foreclosure judgment may 127 sell certain eligible real property by private sale for purposes 128 of affordable housing developments. The governing body of a 129 municipality that adopts a community land bank program shall 130 establish or approve a land bank for the purpose of acquiring, 131 holding, and transferring unimproved real property under this 132 section. 133 (3)(

a) The governing body of a municipality that creates a 134 community land bank program shall operate the program in 135 conformance with a community land bank plan that the 136 municipality adopts annually. The plan may be amended as needed. 137 (

b) In developing the plan, the governing body of a 138 municipality shall consider other housing plans adopted by the 139 governing body, including the comprehensive plan submitted to 140 the United States Department of Housing and Urban Development 141 and all fair housing plans and policies adopted or agreed to by 142 the governing body. 143 (

c) The plan must include, at a minimum, all of the 144 following: 145

Florida Senate - 2024 SB 1504 5-01704-24 20241504__ Page 6 of 18 CODING: Words stricken are deletions; words underlined are additions. 1. A list of community housing development organizations 146 eligible to participate in the right of first refusal under 147 subsection (6). The plan must also include the time period 148 during which the right of first refusal may be exercised, which 149 time period must be at least 9 months but not more than 26 150 months after the date of the deed of conveyance of the property 151 to the land bank. 152 2.

A right of first refusal for any other nonprofit 153 corporation exempted from federal income tax under s. 501(c)(3) 154 of the United States Internal Revenue Code, provided that the 155 preeminent right of first refusal is provided to qualified 156 organizations as provided in subsection (6). 157 3. A list of the parcels of real property that may be 158 eligible for sale to the land bank during the next year. 159 4. The municipality’s plan for the development of 160 affordable housing on those parcels of real property. 161 5.

The sources and amounts of money the municipality 162 anticipates to be available for subsidies for the development of 163 affordable housing in the municipality, including any money 164 specifically available for housing developed under the program, 165 as approved by the governing body of the municipality at the 166 time the plan is adopted. 167 6. The amount of additional time, if any, that a property 168 may be held in the land bank once an offer has been received 169 from a qualified participating developer and accepted by the 170 land bank. 171 (4)(

a) Before the adoption of a plan, the governing body of 172 a municipality must hold a public hearing on the proposed plan. 173 (

b) The city manager or his or her designee must provide 174

Florida Senate - 2024 SB 1504 5-01704-24 20241504__ Page 7 of 18 CODING: Words stricken are deletions; words underlined are additions. notice of the public hearing to all community housing 175 development organizations and to the neighborhood associations 176 identified by the governing body of the municipality as serving 177 the neighborhoods in which properties anticipated to be 178 available for sale to the land bank under this

section are 179 located. 180 (

c) The city manager or his or her designee must make 181 copies of the proposed plan available to the public at least 60 182 days before the date of the public hearing. 183 (5)(

a) Except as provided in paragraph (f), property that 184 is ordered sold pursuant to a foreclosure judgment may be sold 185 in a private sale to a land bank by the person charged with the 186 sale of the property without first offering the property for 187 sale as otherwise provided in

chapter 45 if all of the following 188 apply: 189 1. The market value of the property as specified in the 190 judgment of foreclosure is less than the total amount due under 191 the judgment, including all taxes, penalties, and interest, plus 192 the value of nontax liens held by a taxing unit and awarded by 193 the judgment, court costs, and the cost of the sale. 194 2. The property is not improved with a building or 195 buildings. 196 3. There are delinquent taxes on the property for a total 197 of at least 5 years. 198 4.

The governing body of the municipality has executed an 199 interlocal agreement with the other taxing units that are 200 parties to the foreclosure proceeding which enables those taxing 201 units to agree to participate in the program while retaining the 202 right to withhold consent to the sale of the specific properties 203

Florida Senate - 2024 SB 1504 5-01704-24 20241504__ Page 8 of 18 CODING: Words stricken are deletions; words underlined are additions. to the land bank. 204 (

b) A sale of property for use in connection with the 205 program is a sale for a public purpose. 206 (

c) If the person being sued in a foreclosure proceeding 207 does not contest the market value of the property in the 208 proceeding, the person waives the right to challenge the amount 209 of the market value determined by the court for purposes of the 210 sale of the property under s. 45.031. 211 (

d) For any sale of property under this section, the person 212 charged with the sale of the property must provide each person 213 who was a defendant to the judgment, or that person’s attorney, 214 written notice at least 90 days before the date of the sale of 215 the proposed method of sale of the property. Such notice must be 216 given in accordance with the Florida Rules of Civil Procedure. 217 (

e) After receipt of the notice required under paragraph 218 (

d) and before the date of the proposed sale, the owner of the 219 property subject to the sale may file with the person charged 220 with the sale a written request that the property not be sold in 221 the manner provided under this section. 222 (

f) If the person charged with the sale receives a written 223 request as provided in paragraph (e), the person must sell the 224 property as otherwise provided in

chapter 45. 225 (

g) The owner of the property subject to the sale may not 226 receive any proceeds of a sale under this

section and does not 227 have any personal liability for a deficiency of the judgment as 228 a result of a sale under this section. 229 (

h) If consent is given by the taxing units that are a 230 party to the judgment, property may be sold to a land bank for 231 less than the market value of the property as specified in the 232

Florida Senate - 2024 SB 1504 5-01704-24 20241504__ Page 9 of 18 CODING: Words stricken are deletions; words underlined are additions. judgment or less than the total of all taxes, penalties, and 233 interest, plus the value of nontax liens held by a taxing unit 234 and awarded by the judgment, court costs, and the cost of the 235 sale. 236 (

i) The deed of conveyance of the property sold to a land 237 bank under this

section conveys to the land bank the right, 238 title, and interest in the property acquired or held by each 239 taxing unit that was a party to the judgment, subject to the 240 right of redemption. 241

(6) After receiving the deed of conveyance of the property, 242 a land bank must first offer the property for sale to qualified 243 organizations. 244 (

a) A land bank must provide notice to qualified 245 organizations by certified mail, return receipt requested, at 246 least 60 days before the beginning of the time period in which a 247 right of first refusal may be exercised according to a 248 municipality’s community land bank plan. 249 (

b) If a land bank conveys the property to a qualified 250 organization before the expiration of the time period specified 251 by the community land bank plan, the interlocal agreement 252 executed under subparagraph (5)(a)4. must provide tax abatement 253 for the property until the expiration of the time period. 254 (

c) During the right of first refusal time period, a land 255 bank may not sell the property to a qualified participating 256 developer other than a qualified organization. If all qualified 257 organizations notify the land bank that they are declining to 258 exercise their right of first refusal during the applicable time 259 period, the land bank may sell the property to any other 260 qualified participating developer at the same price that the 261

Florida Senate - 2024 SB 1504 5-01704-24 20241504__ Page 10 of 18 CODING: Words stricken are deletions; words underlined are additions. land bank offered the property to the qualified organizations. 262 (

d) If more than one qualified organization expresses an 263 interest in exercising its right of first refusal, the 264 organization that has the most geographically compact area 265 encompassing a portion of the property as designated in its 266 application for certification is given priority. 267 (

e) A land bank is not required to provide a right of first 268 refusal to qualified organizations under this

section if the 269 land bank is selling property that reverted to the land bank as 270 provided under subsection (7). 271

(7) Each subsequent resale of property acquired by a land 272 bank under this

section must comply with the conditions of this 273 subsection. 274 (

a) Within 3 years after receiving the deed of conveyance 275 of the property, a land bank must sell the property to a 276 qualified participating developer for the purpose of 277 constructing affordable housing for sale or rent to low-income 278 households or very-low-income households. If the land bank has 279 not sold the property within those 3 years, the property must be 280 transferred from the land bank back to the taxing units that 281 were parties to the foreclosure judgment for disposition as 282 otherwise allowed under law. 283 (

b) The number of properties acquired by a qualified 284 participating developer under this

section on which development 285 has not been completed may not at any time exceed three times 286 the annual average residential production completed by the 287 qualified participating developer during the preceding 2-year 288 period, as determined by the governing body of the municipality. 289 In its community land bank plan, the governing body of the 290

Florida Senate - 2024 SB 1504 5-01704-24 20241504__ Page 11 of 18 CODING: Words stricken are deletions; words underlined are additions. municipality may increase the number of properties a qualified 291 participating developer may acquire. 292 (

c) The deed conveying a property sold by a land bank must 293 include a right of reverter so that, if the qualified 294 participating developer does not apply for a construction permit 295 and close on any construction financing within 2 years after the 296 date of the conveyance of the property from the land bank to the 297 qualified participating developer, the property reverts to the 298 land bank for subsequent resale to another qualified 299 participating developer or conveyance to the taxing units as 300 required under paragraph (a). 301 (

d) The proceeds from sales under this

section must be 302 reinvested back into the community land bank program. 303 (8)(

a) A land bank must impose deed restrictions on 304 property sold to qualified participating developers requiring 305 the development and sale or rental of the property to low-income 306 households and very-low-income households. 307 (

b) At least 25 percent of a land bank’s properties sold 308 during any given fiscal year to be developed for sale must be 309 deed restricted for sale to households whose total annual 310 household income does not exceed 60 percent of the area median 311 income, adjusted for household size, for the metropolitan 312 statistical area in which the municipality is located, as 313 determined annually by the United States Department of Housing 314 and Urban Development. 315 (c)1.

If the property sold is to be developed for rental 316 units, the deed restrictions must last for at least 20 years and 317 prohibit the exclusion of a person or family from admission to 318 the development based solely on the participation of the person 319

Florida Senate - 2024 SB 1504 5-01704-24 20241504__ Page 12 of 18 CODING: Words stricken are deletions; words underlined are additions. or family in the Housing Choice Voucher Program under s. 8 of 320 the United States Housing Act of 1937, as amended. Additionally, 321 the deed restrictions must require: 322 a.

That 100 percent of the rental units be occupied by and 323 be affordable to households whose total annual household income 324 does not exceed 60 percent of the area median income, adjusted 325 for household size, for the metropolitan statistical area in 326 which the municipality is located, as determined annually by the 327 United States Department of Housing and Urban Development; 328 b.

That 40 percent of the rental units be occupied by and 329 be affordable to households whose total annual household income 330 does not exceed 50 percent of the area median income, adjusted 331 for household size, for the metropolitan statistical area in 332 which the municipality is located, as determined annually by the 333 United States Department of Housing and Urban Development; or 334 c.

That 20 percent of the rental units be occupied by and 335 affordable to households whose total annual household income 336 does not exceed 30 percent of the area median income, adjusted 337 for household size, for the metropolitan statistical area in 338 which the municipality is located, as determined annually by the 339 United States Department of Housing and Urban Development. 340 2. The owner of a development with deed restrictions 341 required under this paragraph must file an annual occupancy 342 report with the municipality on a form adopted by the governing 343 body of the municipality. 344 (

d) Except as otherwise provided in this section, if the 345 deed restrictions imposed under this subsection are for a 346 specified number of years, the deed restrictions must renew 347 automatically. 348

Florida Senate - 2024 SB 1504 5-01704-24 20241504__ Page 13 of 18 CODING: Words stricken are deletions; words underlined are additions. (

e) A land bank or the governing body of a municipality may 349 modify or add to the deed restrictions imposed under this 350 subsection. Any modifications or additions made by the governing 351 body of the municipality must be adopted by the governing body 352 as part of its community land bank plan and must comply with the 353 restrictions in this subsection. 354 (9)(

a) A land bank must keep accurate minutes of its 355 meetings and accurate records and books of account that conform 356 with generally accepted principles of accounting and that 357 clearly reflect the income and expenses of the land bank and all 358 transactions in relation to its property. 359 (

b) A land bank must maintain in its records for inspection 360 a copy of the sale settlement statement for each property sold 361 by a qualified participating developer and a copy of the first 362 page of the mortgage note with the interest rate and indicating 363 the volume and page number of the instrument as filed with the 364 county clerk. 365 (

c) Within 90 days after the close of its fiscal year, a 366 land bank must file with the municipality an annual audited 367 financial statement prepared by a certified public accountant. 368 The financial transactions of the land bank are subject to audit 369 by the municipality. 370 (

d) For purposes of evaluating the effectiveness of the 371 program, a land bank must submit an annual performance report to 372 the municipality by November 1 of each year in which the land 373 bank acquires or sells property under this section. The 374 performance report must include all of the following: 375 1. A complete and detailed written accounting of all money 376 and properties received and disbursed by the land bank during 377

Florida Senate - 2024 SB 1504 5-01704-24 20241504__ Page 14 of 18 CODING: Words stricken are deletions; words underlined are additions. the preceding fiscal year. 378 2. For each property acquired by the land bank during the 379 preceding fiscal year: 380 a. The street address of the property. 381 b. The legal description of the property. 382 c. The date on which the land bank took title to the 383 property. 384 d. The full name and street address of the property owner 385 of record at the time of the foreclosure proceeding. 386 3.

For each property sold by the land bank to a qualified 387 participating developer during the preceding fiscal year: 388 a. The street address of the property. 389 b. The legal description of the property. 390 c. The full name and mailing address of the developer. 391 d. The purchase price paid by the developer. 392 e. The maximum incomes allowed for the households by the 393 terms of the sale. 394 f. The source and amount of any public subsidy provided by 395 the municipality to facilitate the sale or rental of the 396 property to a household within the targeted income range. 397 4.

For each property sold by a qualified participating 398 developer during the preceding fiscal year, the buyer’s 399 household income and a description of all use and sale 400 restrictions. 401 5. For each property developed for rental units with an 402 active deed restriction, a copy of the most recent annual report 403 filed by the owner of the land bank. 404 (

e) A land bank must provide copies of the performance 405 report to the taxing units that were parties to the judgment of 406

Florida Senate - 2024 SB 1504 5-01704-24 20241504__ Page 15 of 18 CODING: Words stricken are deletions; words underlined are additions. foreclosure and provide notice of the availability of the 407 performance report for review to the organizations and 408 neighborhood associations identified by the governing body of 409 the municipality as serving the neighborhoods in which 410 properties sold to the land bank under this

section are located. 411 (

f) The land bank and municipality must maintain copies of 412 all performance reports and make such reports available for 413 public review. 414

(10) This

section does not apply to property acquired 415 through an eminent domain action. 416

Section

Section 220.1851, Florida Statutes, is created 417 to read: 418 220.1851 Retail-to-residence tax credit.— 419

(1) As used in this section, the term: 420 (a) “Credit period” means the period of 5 years beginning 421 with the year a project is completed. 422 (b) “Designated project” means a qualified project 423 designated pursuant to s. 420.50931 to receive the tax credit 424 under this section. 425 (c) “Qualified project” means a project to redevelop a 426 structure that was originally developed as a shopping center to 427 provide appropriate and affordable workforce housing. 428 (d) “Shopping center” means an area designed to provide 429 space for multiple storefronts within a single building or 430 sharing a common parking lot. 431 (2)(

a) There shall be allowed a tax credit of up to 9 432 percent, but no more than necessary to make the project 433 feasible, of the total cost of a designated project for each 434 year of the credit period against any tax due for a taxable year 435

Florida Senate - 2024 SB 1504 5-01704-24 20241504__ Page 16 of 18 CODING: Words stricken are deletions; words underlined are additions. under this chapter. 436 (

b) The tax credit shall be allocated among designated 437 projects by the Florida Housing Finance Corporation as provided 438 in s. 420.50931. 439 (

c) A tax credit allocated to a designated project may be 440 subject to transfer by the recipient. Such transferred credits 441 may not be transferred again. The department shall adopt rules 442 necessary to administer this paragraph. 443

Section

Section 420.50931, Florida Statutes, is created 444 to read: 445 420.50931 Retail-to-residence Tax Credit Program.— 446

(1) There is created the Retail-to-residence Tax Credit 447 Program for the purpose of redeveloping shopping centers into 448 appropriate and affordable workforce housing. 449

(2) The corporation shall determine those qualified 450 projects, as defined in s. 220.1851(1), which shall be 451 considered designated projects under s. 220.1851 and eligible 452 for the corporate tax credit under that section.

The corporation 453 shall establish procedures necessary for proper allocation and 454 distribution of tax credits, including the establishment of 455 criteria for ensuring that the housing is appropriate and 456 affordable for the workers of this state, and may exercise all 457 powers necessary to administer the allocation of such credits. 458 The board of directors of the corporation shall administer the 459 allocation procedures and determine allocations on behalf of the 460 corporation.

The corporation shall prepare an annual plan, which 461 must be approved by the Governor, containing general guidelines 462 for the allocation of tax credits to designated projects. 463

(3) The corporation shall adopt allocation procedures to 464

Florida Senate - 2024 SB 1504 5-01704-24 20241504__ Page 17 of 18 CODING: Words stricken are deletions; words underlined are additions. ensure that tax credits are used in a fair manner, taking into 465 consideration the timeliness of the application, the location of 466 the proposed project, the relative need in the area for 467 appropriate and affordable workforce housing and the 468 availability of such housing, the economic feasibility of the 469 proposed project, and the ability of the applicant to complete 470 the proposed project in the calendar year for which the tax 471 credit is sought. 472 (4)(

a) A taxpayer who wishes to participate in the Retail-473 to-residence Tax Credit Program must submit an application for 474 the tax credit to the corporation. The application must identify 475 the proposed project and the location of the proposed project 476 and include evidence that the proposed project is a qualified 477 project as defined in s. 220.1851(1). The corporation may 478 request any information from an applicant necessary to enable 479 the corporation to make tax credit allocations according to the 480 procedures adopted under subsection (3). 481 (

b) The corporation’s approval of an application for a 482 project must be in writing and include a statement of the 483 maximum tax credit allowable to the applicant. 484

Section

Section 420.5098, Florida Statutes, is created 485 to read: 486 420.5098 Affordable Housing Construction Loan Program.— 487

(1) The Affordable Housing Construction Loan Program is 488 created to encourage the new construction of affordable homes 489 for purchase by low-to-moderate income homebuyers by providing a 490 revolving line of construction funding. 491

(2) The corporation is authorized to provide loans under 492 the program to applicants for construction of affordable 493

Florida Senate - 2024 SB 1504 5-01704-24 20241504__ Page 18 of 18 CODING: Words stricken are deletions; words underlined are additions. housing. Applicants may draw from the loan up to five times per 494 home. All homes must meet the requirements of the Florida 495 Building Code or, if more stringent, local amendments to the 496 Florida Building Code. 497

(3) Qualified homebuyers of homes built under this program 498 must be first-time homebuyers who earn no more than 120 percent 499 of the area median income. 500

(4) The corporation shall develop a loan application 501 process for the program. 502

(5) The corporation may adopt rules pursuant to ss. 503 120.536(1) and 120.54 to implement this section. 504

Section 5. This act shall take effect July 1, 2024. 505