Fla. Admin. Code Ann. R. 67-21.0025 - [Effective 7/10/2025] Miscellaneous Criteria
(1) A minimum
rehabilitation investment is required to assure meaningful, rather than simply
cosmetic, rehabilitation of properties. In addition to the alteration,
improvement or modification of an existing structure, Rehabilitation or
Preservation costs during any 24-month period with respect to the Housing
Credit Program must equal or exceed an average of $40,000 in hard
rehabilitation costs per unit and are in addition to the 20% of the property's
adjusted basis requirements and minimum qualified basis per low income unit set
forth in Section 42(e)(3)(A)(ii) of the IRC. For purposes of this subsection,
"hard rehabilitation costs" include site improvements, off-site improvements,
rehabilitation costs for physical improvements to the property, and
construction contingency and do not include general contractor fees or
overhead, general requirements, architect and engineering fees, permit fees,
financing or soft costs, or developer fees.
(2) For purposes of this rule chapter, in
accordance with Section 42 of the IRC, a for-profit entity wholly owned by one
or more qualified non-profit organizations will constitute a Non-Profit entity.
The purpose of the Non-Profit must be, in part, to foster low-income housing
and such purpose must be reflected in the Articles of Incorporation of the
Non-Profit entity. A Non-Profit entity shall own an interest in the
Development, either directly or indirectly; shall not be affiliated with or
controlled by a for-profit Corporation; and shall materially participate in the
development and operation of the Development throughout the total affordability
period as stated in the MMRB Land Use Restriction Agreement and the Extended
Use Agreement, as applicable. If an Applicant applies to the Corporation as a
Non-Profit entity but does not qualify as such, the Application will fail
threshold.
(3) Total Development
Cost includes the following:
(a) The cost of
acquiring real property and any buildings thereon, including payment for
options, deposits, or contracts to purchase properties, of which the total cost
cannot exceed the appraised value of the real property as determined in the
Credit Underwriting process.
(b)
The cost of site preparation, demolition, and development.
(c) Any expenses relating to the issuance of
Tax-exempt Bonds or Taxable Bonds related to the particular
Development.
(d) Fees in connection
with the planning, execution, and financing of the Development, such as those
of architects, engineers, attorneys, accountants, Developer Fee, and the
Corporation. However, fees of the Applicant's or Developer's attorney(s)
awarded in conjunction with litigation against the Corporation with respect to
a Development shall not be included in Total Development Cost.
(e) The cost of studies, surveys, plans,
permits, insurance, interest, financing, tax and assessment costs, and other
operating and carrying costs during construction, rehabilitation, or
reconstruction of the Development.
(f) The cost of the construction,
rehabilitation, and equipping of the Development.
(g) The cost of land improvements, such as
landscaping and offsite improvements related to the Development, whether such
costs are paid in cash, property, or services.
(h) Expenses in connection with initial
occupancy of the Development.
(i)
Allowances for contingency reserves and any anticipated operating reserves as
recommended by the Credit Underwriter and approved by the
Corporation.
(j) The cost of such
other items, including relocation costs, indemnity and surety bonds, premiums
on insurance, and fees and expenses of trustees, depositories, and paying
agents for the Corporation's bonds, for the construction or Rehabilitation of
the Development.
(4) In
determining the income standards of Eligible Persons for its various programs,
the Corporation shall take into account the following factors:
(a) Requirements mandated by federal
law.
(b) Variations in
circumstances in the different areas of the state.
(c) Whether the determination is for rental
housing.
(d) The need for family
size adjustments to accomplish the purposes set forth in this rule chapter.
With respect to the HC Program, an Eligible Person shall mean a Family having a combined income which meets the income eligibility requirements of the HC Program and Section 42 of the IRC.
(5) Financial Beneficiary and
Affiliate, as defined in Rule 67-21.002, F.A.C., do not include third party
lenders, third party management agents or companies, third party service
providers, Housing Credit Syndicators, credit enhancers regulated by a state or
federal agency, or contractors whose total fees are within the limit described
in this rule chapter.
(6) For
computing any period of time allowed by this rule chapter, the day of the event
from which the designated period of time begins to run shall not be included.
The last day of the period so computed shall be included unless it is a
Saturday, Sunday or legal holiday, in which event the period shall run until
the end of the next day which is neither a Saturday, Sunday or legal
holiday.
(7) For all Applications,
disclosure of the Principals of the Applicant must comply with paragraphs (a)
and (b) below, and unless otherwise approved by the Corporation for Applicants
requesting Non-Competitive Housing Credits only, all Applicants must also
comply with paragraphs (c) and (d) below.
(a)
The Applicant must disclose all of the Principals of the Applicant (first
principal disclosure level). For Applicants seeking Housing Credits, the
Housing Credit Syndicator/Housing Credit investor need only be disclosed at the
first principal disclosure level and no other disclosure is required;
(b) The Applicant must disclose all of the
Principals of all the entities identified in paragraph (a) above (second
principal disclosure level);
(c)
The Applicant must disclose all of the Principals of all of the entities
identified in paragraph (b) above (third principal disclosure level). Unless
the entity is a trust or a non-profit as defined in Section 42(h)(5)(C),
subsection 501(c)(3) or subsection 501(c)(4) of the IRC, all of the Principals
must be natural persons. A non-profit entity may be identified at the third
principal disclosure level if the non-profit wholly owns a real estate
development subsidiary identified at the second principal disclosure level;
and
(d) If any of the entities
identified in paragraph (c) above are a trust or a non-profit, the Applicant
must disclose all of the Principals of the trust or a non-profit (fourth
principal disclosure level), all of whom must be natural persons.
(e) Applicants requesting Non-Competitive
Housing Credits only that request approval from the Corporation to allow for
disclosure of natural person Principals below the third disclosure level must
send written request to the Corporation which details the reason for the
request, including any substantial hardship which prevents the Applicant from
complying with paragraphs (c) and (d) of this subsection.
(f) Applicants requesting Non-Competitive
Housing Credits shall be relieved of the principal disclosures required in
paragraphs (c) through (e) of this subsection if the following criteria are
met:
1. The Applicant has no entities at any
principal disclosure level that own more than a 10 percent direct or indirect
interest in the General Partner or Non-Investor Member of the Applicant where
any natural person Principal owns more than a 10 percent interest in the
entity;
2. The Applicant, its
Affiliate entities, or its disclosed Principals collectively have a net worth
of at least $250 million;
3. The
Applicant, its Affiliate entities, or its disclosed Principals collectively own
or have owned a controlling interest in at least 25 affordable housing projects
where:
a. At least 50 percent of the total
units are Low Income units and financed in whole or in part utilizing
Tax-exempt Bonds or Housing Credits; or
b. At least 50 percent of the total
households receive federal, state, or local rental subsidies; and
4. The Applicant discloses:
a. All non-natural person Principals of all
entities at all Principal disclosure levels; provided, that, such disclosure
shall not be required for entities that own less than a 10 percent indirect
non-controlling interest in the General Partner or Non-Investor Member of the
Applicant;
b. Each officer,
director, and executive director of the entity that controls day-to-day
management and decisions of the Applicant; and
c. A natural person Principal who possesses
the authority to legally bind each entity.
(8) Disclosure of the Principals
of each Developer must comply with the following:
(a) The Applicant must disclose all of the
Principals of the Developer (first principal disclosure level); and
(b) The Applicant must disclose all of the
Principals of all the entities identified in paragraph (a) above (second
principal disclosure level).
(9) Applicants awarded funding under this
rule chapter shall comply with the compliance procedures set forth in Chapter
67-53, F.A.C.
(10) In a land use
restriction agreement issued with terms set forth in s. 196.1978(4), F.S.,
ceasing to provide affordable housing under the land use restriction agreement
shall mean that the development does not serve any residents at the set aside
commitments set forth in the land use restriction agreement. Prior to a
determination by the Corporation of noncompliance related to terms set forth in
s. 196.1978(4), F.S., the owner shall be provided with written notice and an
opportunity to cure within 90 days. If the development remains out of
compliance after the cure period, the penalty under s. 196.1978(4), F.S., shall
be enforced upon determination by the Board that the development does not serve
any residents at any set-aside designation set forth in the land use
restriction agreement. The Board's determination shall be based on a review of
program reports, compliance reports, or other documentation required under the
land use restriction agreement or Chapter 67-53, F.A.C.
Notes
Rulemaking Authority 420.507(12), (44), 420.508(3)(c), 196.1978(3)(m) FS. Law Implemented 420.509, 420.5099, 196.1978(4) FS.
New 7-16-13, Amended 2-2-15, 9-15-16, Repromulgated 5-24-17, Amended 7-8-18, 7-11-19, Repromulgated 6-23-20, 5-18-21, 7-6-22, Amended 6-28-23.
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