Item O6
BOARD OF COUNTY COMMISSIONERS
AGENDA ITEM SUMMARY
Meeting Date: April 16, 2003
Division:
BOCC
Bulk Item: Yes
No, -X-
Department: DISTRICT 5
AGENDA ITEM WORDING: Discussion of Representative Sorensen's Residential Acquisition
Fund Act which provides a reoccurring funding mechanism for local governments in areas declared
areas of critical concern.
ITEM BACKGROUND: Monroe County has been mandated to accomplish certain goals by the
comprehensive land use plan and the carrying capacity study. Meeting the goals will require millions
of dollars to implement by the timelines set by the state. Providing a reoccurring source of funding
would provide the county with capital to implement the goals in a planned and efficient manner.
PREVIOUS RELEVANT BOCC ACTION:
CONTRACT/AGREEMENT CHANGES:
STAFF RECOMMENDATIONS:
TOTAL COST:
BUDGETED: Yes
No
COST TO COUNTY:
SOURCE OF FUNDS:
REVENUE PRODUCING: Yes
No
AMOUNTPERMONTH_ Year
APPROVED BY: County Arty _ OMB/Purchasing _ Risk Management _
DIVISION DIRECTOR APPROVAL: ~~ L~~
MAYOR TEM MURRAY NELSON
DOCUMENTATION:
Included X
To Follow
Not Required_
AGENDA ITEM #4
DISPOSITION:
Rtply to;
o 90311 0va1'MU HIghway, SuII8 A
PoIt otIlce Box _
Tavernier. FL 33070
(305) 853-1947
o 020 Angela SIrMC
I<$y Wett CIty H"
K$y W-. FL 33040
(306) 283-1558
o 303 HOuM OftlClt Building
402 South Mantell Street
T.Uah....., FL 32390-1300
(860) 488-Q968
'-motH; soreneen.ktn@mylIortdehOYse.com
' Florida House of Representatives
Ken Sorensen, Ph.D.
State Representative, Dlatrfct 120
Commltt...:
LooeII Gov'l & Vel8nms Alf1Ilrs (Chair)
Commerce & t.ocel Affairs Appropriations
Neturlll RefOurcef
Subcomrtittee an Environmental Regs.
JudIciary
Suboommlttee en C1.'11If
Committee on Pubnc Security
Select Cormuttee on National Oeftnae &
Space-Relafed Economic Development
FOR IMMEDIATE RELEASE
,March 24, 2003
CONTACT:
PHONE:
Laura Todd
850/488-9965
Tallahasse'e - State Representative Ken Sorensen (R-Key Largo) Is pleased to
announce leg/slation thathe Is sponsoring which would create a permanent funding
source for mandates from the state Imposed on the Keys by critics I concern.
The bfll creates the "Residential Acquisition Fund Acf' and provides a funding
mechanism for local governments located In areas declared Areas of Critical State
Concern. The funding 'mechanism Imposes a voter approved fee, derived by applying a
percentage of the purchase price, based on a sliding sosle, of a slngle-faml!y:or multi-
family residence. The fee would be paid by the purchaser only, and would be tied to a
county-wide referendum.
It would establish a permanent source to address wastewater and storm water funding,
for the purchase of land for moderate Income homes to provide relief to our working
people, funding for purchase of envlrdnmentally sensitive lands and possIble funding for
Jltaklng" Issues;
The fee sln.Jcture Is a,8 follows:
Properties purchased at $200,000 or less
Properties purchased at $200,000 to $499,000
Properties purchased at $500,000 to $999,000
Properties purchased at $1,000,000 to $1,999,999
Properties PUrchased 'at $2,000,000 or more
0%
1.00%
1.50%
1.75%
2.00%
Upon the sale of a resIdence, the purchaser would remit to the Clerk of the Court the
appropriate fees outlined. Olstrlbutlon of the funds to local governments will be based
on current formulas between the county and the cities.
The economy has been exceptionally fluid since 9/11. It Is my thought that this would
create a sense of certainty In developing 8 permanent funding source to accommodate
mandates under the land Use Plan. I would hope that 8S things stabilize, we could get
the state to match this funding which would ba approximately $10 million par year.
Any funding from the state would go Into my proposed trust fund bill to be distributed
under the same formula between the county and cities. That would Include potentials
from Dept. of Community Affairs, Dept: of Environmental Protection and other state
agendas, many of whom handle pass-thru funds for the county. This Is Independent of
the theoretical $100 million from the federal government.
I would ask that each local government take up and pass a resolution in support of this
process as 800n as possIble, and would encourage local government to contact my
office In Tallahassee if they have any questions.
For over 25 years, we have lived with mandates and no funding. I feel this Is the first
concrete step to solving once and for all the problems for the Florida Keys and Its
. environment.
-33-
J}Jft
February 19,2003
The Honorable Ken Sorensen, I 20th District State Representative
House of Representatives
State Capitol
Dear Representative Sorensen,
This is in response to your request for Residential Real Estate sales data for the year 2002. Below
is a summary of the data from the Certified 2002 Tax Roll of Monroe County.
Percentage
24,8185%
19.7175%
43,0253%
9.9863%
1.8638%
0.5886%
Number of Sales
1265
1005
2193
509
95
30
5097
Sale Amount
<99,999
100,000-199,999
200,000-499,999
500,000-999,999
1,000,000-1,999,999
2,000,000<
TOTAL
Total Sales amount is $1,459,393,900. The average sale price is $286,324.
Very truly yours,
ERVIN A. IDGGS, CRA-CRA
MONROE COUNTY PROPERTY APPRAISER
EAH/rs
Cc: Sharon Gonzalez
FLORIDA
H 0 USE
o F
R E PRE S E N TAT I V E S
~
HB 1799 2003
1 A bill to be entitled
2 An act relating to a fee on residential acquisitions;
3 providing a popular name; providing for applicability of
4 fees in areas of critical state concern; providing for a
5 referendum; providing a fee. schedule; providing procedures
6 for collection of fees; providing criteria for utilization
7 of funds; providing a time limit on local government
8 authorization to impose or collect certain fees; providing,
9 an effective date.
10
11 WHEREAS, the Legislature finds that areas designated as
12 areas of critical state concern under s. 380.05, Florida
13 Statutes, experience certain limitations relating to affordable
14 housing, wastewater and stormwater drainage, and economic
15 viability and stability due to the vulnerability and fragility
16 of those areas, and
17 WHEREAS, areas of critical state concern may lack available
18 land on which to construct affordable housing and sufficient
19 funds for wastewater and stormwater improvements, which may
20 result in fewer employment opportunities to attract new
21 residents and keep new generations living in those areas., anq
22 WHEREAS, environmentally sensitive land must be set aside
23 for the benefit of future generations, and a lack of adequate
24 funds greatiy diminishes the ability of government to provide.
25 for acquisition of those lands, and
26 WHEREAS, for purposes of land acquisition for affordable
27 housing, provision of adequate wastewater and stormwater
28 facilities, economic stability and retention of an adequate
29 workforce, and acquisition of environmentally sensitive lands,
30 it is desirable to provide adequate funding through a stable,
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HB 1799 2003
31 recurring, and time-limited fee approved by the citizens
32 incurring such fee, . NOW , THEREFO:RE,
33
34 Be It Enacted by the Legislature of the State of Florida:
35
36
section 1. This act shall be known by the popular name the
37 "Residential Acquisition Fund Act."
38 Section 2. Authority to adopt ordinance or resolution;
39 amount of fee; referendum; disbursement.--
40 (1) Any local qovernment that contains an area or part of
41 an area desiqnated as an area of critical state concern under s.
42 380.05, Florida Statutes, may adopt a resolution or ordinance
43 for imposition and collection of a residential acquisition fee.
44 However, in an area of critical state concern where the entire
45 county is included in the desiqnation pursuant to s. 380.05,
46 Florida Statutes, the authority under this act is exclusive to
47 the county. The fee shall be assessed in accordance with the
48 schedule set forth in subsection (2) of section 3. The
49 authorization provided in this section shall be construed to be
50 qeneral law authorization pursuant to s. 1, Art. VII of the
51 State Constitution.
52 (2) Such ordinance or resolution must be approved by a
53 maiority of the qualified electors in the affected area of
54 critical state concern. The ordinance or resolution for fee
55 adoption must establish the date, time, and place of the
56 referendum and provide appropriate ballot lanquaqe, includinq,
57 but not limited to, the fee schedule set forth in subsection (2)
58 of section 3.
59 (3) Any fees imposed and collected pursuant to this
60 section shall be deposited into a residential acquisition fund
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61 to be established by ordinance or resolution of the qoverninq
62 body of the local qovernment imposinq the fee. The fund shall be
63 maintained and administered by the clerk of the court. Six
64 months after the initial collection, and quarterly thereafter,
65 the clerk shall remit the proceeds accrued in the residential
66 acquisition fund, less reasonable administrative costs, to the
67 local qovernment imposinq the fee.
68 Section 3. Applicability of fee; fee schedule.--
69 (1) The residential acquisition fee shall be imposed at
70 closinq or upon the sale of a sinqle-family residential or
71 multifamily residential property on a slidinq scale based on
72 purchase price of the property. Commercial and qovernmental
73 properties are not subject to the provisions of this act.
74 (2) The fee is based on the followinq schedule:
75 SCHEDULE OF FEES
80
PURCHASE PRICE OF PROPERTY PERCENTAGE OF FEE
Properties purchased at $199,999 or less 0%
Properties purchased at $200,000 to $499,999 1.00%
Properties purchased at $500,000 to $999,999 1. 50%
Properties purchased at $1,000,000 to $1,999,999 1.75%
Properties purchased at $2,000,000 or more 2_.00 %- c.,
76
77
78
79
81
82 Section 4. Collection of fee.--At the time of closinq or
83 upon the sale of a single-family residential or a multifamily
84 residential property, the closinq aqent, the representative of
85 the closinq aqent, or the seller must collect and remit the fee
86 to the clerk. The closinq aqent, the representative of the
87 closing aqent, or the seller must provide a space on the buyer
88 and seller disbursement statement or an addendum accompanying
89 the buyer and seller disbursement statement identifying the fee
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90 and must disclose the amount of the fee to the prospective
91 buyer .
92 Section 5. Utilization of funds.--Funds received by the
93 local government pursuant to this act shall be used as follows:
94 (1) Seventy percent of the funds received shall be used
95 for improvements to wastewater or stormwater facilities.
96 (2) Ten percent of the funds received shall be used for
97 acquisition of land for moderate and affordable housing.
98 (3) Ten percent of the funds received shall be used for
99 acquisition of environmentally sensitive lands as designated by
100 the local qoverninq entity imposinq the fee.
101 (4) Ten percent of the funds received shall be used for
102 other purposes necessary or resulting from the implementation of
103 this act.
104
105 Funds collected under this act may be used to complete proiects
106 currently underway or proiects undertaken pursuant to this act.
107 Section 6. A local qovernment's authorization to impose or
108 collect the fee authorized under this act shall expire 10 years
109 after the termination of the oesiqnation of the area of critical
110 state concern pursuant to s. 380.05, Florida Statutes, in which
111 the local government is located.
112 Section 7. This act shall take effect upon becoming a law.
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