Florida Statutes 420.526 – Predevelopment Loan Program; loans and grants authorized; activities eligible for support
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(1) The corporation is authorized to make loans and grants from the Housing Predevelopment Fund to eligible sponsors when it determines that:
(a) A need for housing for the target population exists in the area described in the application; and
Terms Used In Florida Statutes 420.526
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Corporation: means the Florida Housing Finance Corporation. See Florida Statutes 420.503
- Development costs: means the sum total of all costs incurred in the development of a project which are approved by the corporation as reasonable and necessary. See Florida Statutes 420.503
- Farmworker: includes a person who has retired as a laborer due to age, disability, or illness. See Florida Statutes 420.503
- Project: means any work or improvement located or to be located in the state, including real property, buildings, and any other real and personal property, designed and intended for the primary purpose of providing decent, safe, and sanitary residential housing for persons or families, whether new construction, the acquisition of existing residential housing, or the remodeling, improvement, rehabilitation, or reconstruction of existing housing, together with such related nonhousing facilities as the corporation determines to be necessary, convenient, or desirable. See Florida Statutes 420.503
- Services: means the professional services normally provided by the service provider. See Florida Statutes 420.503
- Sponsor: means any individual, association, corporation, joint venture, partnership, trust, local government, or other legal entity or any combination thereof which:(a) Has been approved by the corporation as qualified to own, construct, acquire, rehabilitate, reconstruct, operate, lease, manage, or maintain a project; and(b) Except for a local government, has agreed to subject itself to the regulatory powers of the corporation. See Florida Statutes 420.503
- State: means the State of Florida. See Florida Statutes 420.503
(b) Federal, state, or local public funds or private funds are available or likely to be available to aid in the site acquisition, site development, construction, rehabilitation, maintenance, or support of the housing proposed in the application.
(2) If a loan is made, the corporation is authorized to forgive such loan, and thereby make a grant to a sponsor for any moneys which are unable to be repaid due to the sponsor’s inability to obtain construction or permanent financing for the development. The corporation shall not forgive the portion of the loan, if any, which is secured by a mortgage to the extent such loan could be repaid from the sale of the mortgaged property.
(3) Funds shall be made available under the program on a first-come, first-served basis, unless otherwise established by corporation rule. Sponsors of farmworker housing, if any, shall receive first priority under this program.
(4) The activities of sponsors which are eligible for housing predevelopment loans and grants shall include, but not be limited to:
(a) Site acquisition.
(b) Site development.
(c) Fees for requisite services from architects, engineers, surveyors, attorneys, and other professionals.
(d) Marketing expenses relating to advertisement.
(e) Administrative expenses.
(f) Market and feasibility studies.
(g) Consulting fees.
(5) Any funds paid out of the Housing Predevelopment Fund for activities under ss. 420.521–420.529 which are reimbursed to the sponsor from another source shall be repaid to the fund.
(6) Terms and conditions of housing predevelopment loan agreements shall be established and shall include:
(a) Provision for interest, which shall be set at between 0 and 3 percent per year, as established by the corporation.
(b) Provision of a schedule for the repayment of principal and interest for a term not to exceed 3 years or initiation of permanent financing, whichever event occurs first. However, the corporation may extend the term of a loan for an additional period if extraordinary circumstances exist and if such extension would not jeopardize the corporation’s security interest.
(c) Provision of reasonable security for the housing predevelopment loan to ensure the repayment of the principal and any interest accrued within the term specified.
(d) Provisions to ensure that the land acquired will be used for the development of housing and related services for the target population.
(e) Provisions to ensure, to the extent possible, that any accrued savings in cost due to the availability of these funds will be passed on to the target population in the form of lower land prices. The corporation shall ensure that such savings in land prices shall be passed on in the form of lower prices or rents for dwellings constructed on such land.
(f) Provisions to ensure that any land acquired through assistance under ss. 420.521–420.529 for housing for the target population shall not be disposed of or alienated in a manner that violates Title VII of the 1968 Civil Rights Act, which specifically prohibits discrimination based on race, sex, color, religion, or national origin or that violates other applicable federal or state laws.
(7) No predevelopment loan made under this section shall exceed the lesser of:
(a) The development and acquisition costs for the project, as determined by rule of the corporation; or
(b) Seven hundred and fifty thousand dollars.
(8) Any real property or any portion thereof purchased or developed under ss. 420.521–420.529 may be disposed of by the eligible sponsor upon the terms and conditions established by rule of the corporation and consistent with ss. 420.521–420.529, at a price not to exceed the actual prorated land costs, development costs, accrued taxes, and interest.