Bill Text: FL S1770 | 2017 | Regular Session | Comm Sub
Bill Title: Community Redevelopment Agencies
Spectrum: Bipartisan Bill
Status: (Failed) 2017-05-05 - Died in Appropriations Subcommittee on Transportation, Tourism, and Economic Development [S1770 Detail]
Download: Florida-2017-S1770-Comm_Sub.html
Florida Senate - 2017 CS for SB 1770 By the Committee on Community Affairs; and Senator Lee 578-03382-17 20171770c1 1 A bill to be entitled 2 An act relating to community redevelopment agencies; 3 amending s. 163.340, F.S.; revising the definition of 4 the term “blighted area”; amending s. 163.524, F.S.; 5 conforming a cross-reference; amending s. 163.356, 6 F.S.; providing reporting requirements; deleting 7 provisions requiring certain annual reports; amending 8 s. 163.357, F.S.; requiring, rather than authorizing, 9 a governing body that consists of five members to 10 appoint two additional persons to act as members of 11 the community redevelopment agency; providing 12 requirements for such members; amending s. 163.367, 13 F.S.; requiring ethics training for community 14 redevelopment agency commissioners; amending s. 15 163.370, F.S.; establishing procurement procedures; 16 creating s. 163.371, F.S.; providing annual reporting 17 requirements; requiring a community redevelopment 18 agency to publish annual reports and boundary maps on 19 its website; creating s. 163.3755, F.S.; providing a 20 phase-out period for existing community redevelopment 21 agencies unless their continued existence is approved 22 by a super majority vote of the governing bodies of 23 the counties or municipalities which created them; 24 providing a limited exception for community 25 redevelopment agencies with certain outstanding bond 26 obligations; providing that a governing body of a 27 county or municipality may create a community 28 redevelopment agency only by a super majority vote on 29 or after a specified date; creating s. 163.3756, F.S.; 30 providing legislative findings; requiring the 31 Department of Economic Opportunity to declare inactive 32 community redevelopment agencies that have reported no 33 financial activity for a specified number of years; 34 providing hearing procedures; authorizing certain 35 financial activity by a community redevelopment agency 36 that is declared inactive; requiring the department to 37 maintain a website identifying all inactive community 38 redevelopment agencies; amending s. 163.387, F.S.; 39 revising requirements for the use of the redevelopment 40 trust fund proceeds beginning on a specified date; 41 limiting allowed expenditures; revising requirements 42 for the annual budget of a community redevelopment 43 agency; requiring municipal community redevelopment 44 agencies to provide an annual budget to the county 45 commission; revising requirements for the annual 46 audit; requiring the audit to be included with the 47 financial report of the county or municipality that 48 created the community redevelopment agency; amending 49 s. 218.32, F.S.; requiring county and municipal 50 governments to report community redevelopment agency 51 annual audit reports as part of the county or 52 municipal annual report; revising criteria for finding 53 that a county or municipality failed to file a report; 54 requiring the Department of Financial Services to 55 provide a report to the Department of Economic 56 Opportunity concerning community redevelopment 57 agencies with no revenues, expenditures, or debts; 58 providing an effective date. 59 60 Be It Enacted by the Legislature of the State of Florida: 61 62 Section 1. Subsection (8) of section 163.340, Florida 63 Statutes, is amended to read: 64 163.340 Definitions.—The following terms, wherever used or 65 referred to in this part, have the following meanings: 66 (8) “Blighted area” means an area in which there are a 67 substantial number of deteriorated or deteriorating structures; 68 in which conditions, as indicated by government-maintained 69 statistics or other studies, endanger life or property or are 70 leading to economic distress; and in which two or more of the 71 following factors are present: 72 (a) Predominance of defective or inadequate street layout, 73 parking facilities, roadways, bridges, or public transportation 74 facilities. 75 (b) Aggregate assessed values of real property in the area 76 for ad valorem tax purposes have failed to show any appreciable 77 increase over the 5 years prior to the finding of such 78 conditions. 79 (c) Faulty lot layout in relation to size, adequacy, 80 accessibility, or usefulness. 81 (d) Unsanitary or unsafe conditions. 82 (e) Deterioration of site or other improvements. 83 (f) Inadequate and outdated building density patterns. 84 (g) Falling lease rates per square foot of office, 85 commercial, or industrial space compared to the remainder of the 86 county or municipality. 87 (h) Tax or special assessment delinquency exceeding the 88 fair value of the land. 89 (i) Residential and commercial vacancy rates higher in the 90 area than in the remainder of the county or municipality. 91 (j) Incidence of crime in the area higher than in the 92 remainder of the county or municipality. 93 (k) Fire and emergency medical service calls to the area 94 proportionately higher than in the remainder of the county or 95 municipality. 96 (l) A greater number of violations of the Florida Building 97 Code in the area than the number of violations recorded in the 98 remainder of the county or municipality. 99 (m) Diversity of ownership or defective or unusual 100 conditions of title which prevent the free alienability of land 101 within the deteriorated or hazardous area. 102 (n) Governmentally owned property with adverse 103 environmental conditions caused by a public or private entity. 104 (o) A substantial number or percentage of properties 105 damaged by sinkhole activity which have not been adequately 106 repaired or stabilized. 107 (p) Rates of unemployment higher in the area than in the 108 remainder of the county or municipality. 109 (q) Rates of poverty higher in the area than in the 110 remainder of the county or municipality. 111 (r) Rates of foreclosure higher in the area than in the 112 remainder of the county or municipality. 113 (s) Rates of infant mortality higher in the area than in 114 the remainder of the county or municipality. 115 116However, the term “blighted area” also means any area in which117at least one of the factors identified in paragraphs (a) through118(o) is present and all taxing authorities subject to s.119163.387(2)(a) agree, either by interlocal agreement with the120agency or byresolution, that the area is blighted. Such121agreement or resolution must be limited to a determination that122the area is blighted.For purposes of qualifying for the tax 123 credits authorized in chapter 220, “blighted area” means an area 124 as defined in this subsection. 125 Section 2. Subsection (3) of section 163.524, Florida 126 Statutes, is amended to read: 127 163.524 Neighborhood Preservation and Enhancement Program; 128 participation; creation of Neighborhood Preservation and 129 Enhancement Districts; creation of Neighborhood Councils and 130 Neighborhood Enhancement Plans.— 131 (3) After the boundaries and size of the Neighborhood 132 Preservation and Enhancement District have been defined, the 133 local government shall pass an ordinance authorizing the 134 creation of the Neighborhood Preservation and Enhancement 135 District. The ordinance shall contain a finding that the 136 boundaries of the Neighborhood Preservation and Enhancement 137 District comply with s. 163.340(7) or (8)(a)-(s)(8)(a)-(o)or 138 do not contain properties that are protected by deed 139 restrictions. Such ordinance may be amended or repealed in the 140 same manner as other local ordinances. 141 Section 3. Paragraphs (c) and (d) of subsection (3) of 142 section 163.356, Florida Statutes, are amended to read: 143 163.356 Creation of community redevelopment agency.— 144 (3)(c) The governing body of the county or municipality 145 shall designate a chair and vice chair from among the 146 commissioners. An agency may employ an executive director, 147 technical experts, and such other agents and employees, 148 permanent and temporary, as it requires, and determine their 149 qualifications, duties, and compensation. For such legal service 150 as it requires, an agency may employ or retain its own counsel 151 and legal staff. 152 (d) An agency authorized to transact business and exercise 153 powers under this part shall file with the governing body the 154 report required pursuant to s. 163.371(1),on or before March 31155of each year, a report of its activities for the preceding156fiscal year, which report shall include a complete financial157statement setting forth its assets, liabilities, income, and158operating expenses as of the end of such fiscal year. At the159time of filing the report, the agency shall publish in a160newspaper of general circulation in the community a notice to161the effect that such report has been filed with the county or162municipality and that the report is available for inspection163during business hours in the office of the clerk of the city or164county commission and in the office of the agency. 165 (e)(d)At any time after the creation of a community 166 redevelopment agency, the governing body of the county or 167 municipality may appropriate to the agency such amounts as the 168 governing body deems necessary for the administrative expenses 169 and overhead of the agency, including the development and 170 implementation of community policing innovations. 171 Section 4. Paragraph (c) of subsection (1) of section 172 163.357, Florida Statutes, is amended to read: 173 163.357 Governing body as the community redevelopment 174 agency.— 175 (1) 176 (c) A governing body thatwhichconsists of five members 177 shallmayappoint two additional persons to act as members of 178 the community redevelopment agency. These members may not be 179 elected officials. The two additional members must have 180 expertise in at least one of the following areas: architecture, 181 finance, construction, land use, affordable housing, 182 sustainability, or other educational or professional experience 183 in the area of community redevelopment. The terms of office of 184 the additional members shall be for 4 years, except that the 185 first person appointed shall initially serve a term of 2 years. 186 Persons appointed under this section are subject to all 187 provisions of this part relating to appointed members of a 188 community redevelopment agency. 189 Section 5. Subsection (1) of section 163.367, Florida 190 Statutes, is amended to read: 191 163.367 Public officials, commissioners, and employees 192 subject to code of ethics.— 193 (1)(a) The officers, commissioners, and employees of a 194 community redevelopment agency created by, or designated 195 pursuant to, s. 163.356 or s. 163.357 areshall besubject to 196 the provisions and requirements of part III of chapter 112. 197 (b) Commissioners of a community redevelopment agency must 198 comply with the ethics training requirements in s. 112.3142. 199 Section 6. Subsection (5) is added to section 163.370, 200 Florida Statutes, to read: 201 163.370 Powers; counties and municipalities; community 202 redevelopment agencies.— 203 (5) A community redevelopment agency shall procure all 204 commodities and services under the same purchasing processes and 205 requirements that apply to the county or municipality that 206 created the agency. 207 Section 7. Section 163.371, Florida Statutes, is created to 208 read: 209 163.371 Reporting requirements.— 210 (1) Beginning March 31, 2018, and no later than March 31 of 211 each year thereafter, a community redevelopment agency shall 212 file an annual report with the county or municipality that 213 created the agency and publish the information on the agency’s 214 website. The report must include the following information: 215 (a) A complete audit report of the redevelopment trust fund 216 pursuant to s. 163.387(8). 217 (b) The performance data for each plan authorized, 218 administered, or overseen by the community redevelopment agency 219 as of December 31 of the year being reported, including the: 220 1. Total number of projects started and completed and the 221 estimated project cost for each project. 222 2. Total expenditures from the redevelopment trust fund. 223 3. Original assessed real property values within the 224 community redevelopment agency’s area of authority as of the day 225 the agency was created. 226 4. Total assessed real property values of property within 227 the boundaries of the community redevelopment agency as of 228 January 1 of the year being reported. 229 5. Total amount expended for affordable housing for low 230 income and middle-income residents. 231 (2) By January 1, 2018, each community redevelopment agency 232 shall publish on its website digital maps that depict the 233 geographic boundaries and total acreage of the community 234 redevelopment agency. If any change is made to the boundaries or 235 total acreage, the agency shall post updated map files on its 236 website within 60 days after the date such change takes effect. 237 Section 8. Section 163.3755, Florida Statutes, is created 238 to read: 239 163.3755 Termination of community redevelopment agencies; 240 future creation.— 241 (1) Unless the governing body of the county or municipality 242 which created the community redevelopment agency approves its 243 continued existence by a super majority vote of the governing 244 body members, a community redevelopment agency in existence on 245 July 1, 2017, shall terminate on the expiration date provided in 246 the community redevelopment agency’s charter as it exists on 247 July 1, 2017, or on September 30, 2037, whichever is earlier. 248 (2)(a) If the governing body of the county or municipality 249 which created the community redevelopment agency does not 250 approve its continued existence by a super majority vote of the 251 governing body members, a community redevelopment agency with 252 outstanding bonds as of July 1, 2017, which do not mature until 253 after the earlier of the termination date of the agency or 254 September 30, 2037, remains in existence until the date the 255 bonds mature. 256 (b) A community redevelopment agency operating under this 257 subsection on or after September 30, 2037, may not extend the 258 maturity date of any outstanding bonds. 259 (c) The county or municipality that created the community 260 redevelopment agency must issue a new finding of necessity 261 limited to timely meeting the remaining bond obligations of the 262 community redevelopment agency. 263 (3) On or after July 1, 2017, the governing body of a 264 county or municipality may create a community redevelopment 265 agency only by a super majority vote of the members of the 266 governing body of the county or municipality. A community 267 redevelopment agency in existence before July 1, 2017, may 268 continue to operate as provided in this part. 269 Section 9. Section 163.3756, Florida Statutes, is created 270 to read: 271 163.3756 Inactive community redevelopment agencies.— 272 (1) The Legislature finds that a number of community 273 redevelopment agencies continue to exist but report no revenues, 274 no expenditures, and no outstanding debt in their annual report 275 to the Department of Financial Services pursuant to s. 218.32. 276 (2)(a) A community redevelopment agency that has reported 277 no revenues, expenditures, or debt under s. 218.32 or s. 278 189.016(9) for 3 consecutive fiscal years calculated from no 279 earlier than October 1, 2014, shall be declared inactive by the 280 Department of Economic Opportunity. The department shall notify 281 the agency of the declaration of inactive status under this 282 subsection. If the agency has no board members and no agent, the 283 notice of inactive status must be delivered to the governing 284 board or commission of the county or municipality which created 285 the agency. 286 (b) The governing board of a community redevelopment agency 287 declared inactive under this subsection may seek to invalidate 288 the declaration by initiating proceedings under s. 189.062(5) 289 within 30 days after the date of the receipt of the notice from 290 the department. 291 (3) A community redevelopment agency declared inactive 292 under this section is authorized only to expend funds from the 293 redevelopment trust fund as necessary to service outstanding 294 bond debt. The agency may not expend other funds without an 295 ordinance of the governing body of the local government which 296 created the agency consenting to the expenditure of funds. 297 (4) The provisions of s. 189.062(2) and (4) do not apply to 298 a community redevelopment agency that has been declared inactive 299 under this section. 300 (5) The provisions of this section are cumulative to the 301 provisions of s. 189.062. To the extent the provisions of this 302 section conflict with the provisions of s. 189.062, this section 303 prevails. 304 (6) The Department of Economic Opportunity shall maintain 305 on its website a separate list of community redevelopment 306 agencies declared inactive under this section. 307 Section 10. Subsections (6) and (8) of section 163.387, 308 Florida Statutes, are amended to read: 309 163.387 Redevelopment trust fund.— 310 (6) Beginning October 1, 2017, moneys in the redevelopment 311 trust fund may be expendedfrom time to timefor undertakings of 312 a community redevelopment agency as described in the community 313 redevelopment plan only pursuant to an annual budget adopted by 314 the board of commissioners of the community redevelopment agency 315 and only for thefollowingpurposes stated in this subsection.,316including, but not limited to:317 (a) Except as provided in this subsection, a community 318 redevelopment agency shall comply with the requirements of s. 319 189.016. 320 (b) A community redevelopment agency created by a 321 municipality shall: 322 1. Adopt its proposed budget within 90 days before the 323 beginning of its fiscal year. 324 2. Submit its proposed budget and projections for the next 325 fiscal year to the board of county commissioners for the county 326 in which the community redevelopment agency is located within 60 327 days before the start of the agency’s fiscal year. 328 3. Submit amendments to its operating budget to the board 329 of county commissioners of the county in which the community 330 redevelopment agency is located within 10 days after the date of 331 adoption of the amended budgetAdministrative and overhead332expenses necessary or incidental to the implementation of a333community redevelopment plan adopted by the agency. 334 (c) The annual budget of a community redevelopment agency 335 may provide for payment of the following expenses: 336 1. Administrative and overhead expenses directly or 337 indirectly necessary to implement a community redevelopment plan 338 adopted by the agency. 339 2.(b)Expenses of redevelopment planning, surveys, and 340 financial analysis, including the reimbursement of the governing 341 body or the community redevelopment agency for such expenses 342 incurred before the redevelopment plan was approved and adopted. 343 3.(c)The acquisition of real property in the redevelopment 344 area. 345 4.(d)The clearance and preparation of any redevelopment 346 area for redevelopment and relocation of site occupants within 347 or outside the community redevelopment area as provided in s. 348 163.370. 349 5.(e)The repayment of principal and interest or any 350 redemption premium for loans, advances, bonds, bond anticipation 351 notes, and any other form of indebtedness. 352 6.(f)All expenses incidental to or connected with the 353 issuance, sale, redemption, retirement, or purchase of bonds, 354 bond anticipation notes, or other form of indebtedness, 355 including funding of any reserve, redemption, or other fund or 356 account provided for in the ordinance or resolution authorizing 357 such bonds, notes, or other form of indebtedness. 358 7.(g)The development of affordable housing within the 359 community redevelopment area. 360 8.(h)The development of community policing innovations. 361 (8)(a) Each community redevelopment agency shall provide 362 for an audit of the trust fund each fiscal year and a report of 363 such audit to be prepared by an independent certified public 364 accountant or firm. 365 (b) The auditSuchreport shall: 366 1. Describe the amount and source of deposits into, and the 367 amount and purpose of withdrawals from, the trust fund during 368 such fiscal year and the amount of principal and interest paid 369 during such year on any indebtedness to which increment revenues 370 are pledged and the remaining amount of such indebtedness. 371 2. Include a complete financial statement identifying the 372 assets, liabilities, income, and operating expenses of the 373 community redevelopment agency as of the end of such fiscal 374 year. 375 3. Include a finding by the auditor determining whether the 376 community redevelopment agency complies with the requirements of 377 subsection (7). 378 (c) The audit report for the community redevelopment agency 379 shall be included with the annual financial report submitted by 380 the county or municipality that created the agency to the 381 Department of Financial Services as provided in s. 218.32, 382 regardless of whether the agency reports separately under s. 383 218.32. 384 (d) The agency shall provideby registered maila copy of 385 the audit report to each taxing authority. 386 Section 11. Subsection (3) of section 218.32, Florida 387 Statutes, is amended to read: 388 218.32 Annual financial reports; local governmental 389 entities.— 390 (3)(a) The department shall notify the President of the 391 Senate and the Speaker of the House of Representatives of any 392 municipality that has not reported any financial activity for 393 the last 4 fiscal years. Such notice must be sufficient to 394 initiate dissolution procedures as described in s. 395 165.051(1)(a). Any special law authorizing the incorporation or 396 creation of the municipality must be included within the 397 notification. 398 (b) Failure of a county or municipality to include in its 399 annual report to the department the full audit required by s. 400 163.387(8) for each community redevelopment agency created by 401 that county or municipality constitutes a failure to report 402 under this section. 403 (c) By November 1 of each year, the department must provide 404 the Special District Accountability Program of the Department of 405 Economic Opportunity with a list of each community redevelopment 406 agency reporting no revenues, expenditures, or debt for the 407 community redevelopment agency’s previous fiscal year. 408 Section 12. This act shall take effect July 1, 2017.