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Item P4 P4 BOARD OF COUNTY COMMISSIONERS COUNTY of MONROE �� i Mayor Holly Merrill Raschein,District 5 The Florida Keys Mayor Pro Tern James K.Scholl,District 3 Craig Cates,District 1 Michelle Lincoln,District 2 ' David Rice,District 4 Board of County Commissioners Meeting May 15, 2024 Agenda Item Number: P4 2023-2474 BULK ITEM: No DEPARTMENT: County Attorney TIME APPROXIMATE: STAFF CONTACT: Christine Limbert-Barrows Public Hearings AGENDA ITEM WORDING: Public Hearing to consider adoption of an Ordinance authorizing the use of accumulated surplus Tourist Development Tax and Tourist Impact Tax revenues collected through September 30, 2024 in an amount not to exceed $35 million for the purpose of providing housing that is affordable and available to employee of private sector tourism-related businesses in the County in accordance with CS/CS/SB 1456; providing for the repeal of all ordinances inconsistent herewith and providing for an effective date. ITEM BACKGROUND: CS/CS/SB 1456 (SB 1456)was passed by the legislature on March 5, 2024, and provides for counties designated as Areas of Critical State Concern(ACSC) that levy a tourist development tax pursuant to s. 125.0104, Florida Statutes and a tourist impact tax pursuant to s. 125.0108, Florida Statutes, may use any accumulated surplus from such taxes collected through September 30, 2024, not to exceed $35 million, whether held by the county directly or by a land authority in the county created pursuant to s. 380.0663, Florida Statutes, for purposes of providing housing that is Affordable, as defined in s. 420.0004, Florida Statutes; and available to employees of private sector tourism-related businesses in the county. Any housing financed with funds from the surplus may be used only to provide housing that is affordable, as defined in s. 420.0004, Florida Statutes, for a period of no less than 99 years. Expenditure of such funds is subject to approval by a majority vote of the BOCC. The term "accumulated surplus"means the accumulated excess of revenue over expenditure from prior years which has not been set aside for a specific purpose. At the April 17, 2024, BOCC meeting, the BOCC agreed to direct staff to bring an ordinance back regarding legislation needed in response to SB 1456. If Governor DeSantis signs SB 1456 or it otherwise becomes law, it will become effective July 1, 2024. 4023 Since the BOCC has no meeting scheduled in June, this ordinance is being placed before the Board for approval in anticipation of SB 1456 becoming law. This ordinance authorizes for "accumulated surplus" funds to be transferred to an account to be held directly by the County or Land Authority and authorized for use in accordance with provisions of SB 1456 as set forth above. The Ordinance also provides that the expenditure of such"accumulated surplus" funds is subject to approval by a majority vote of the BOCC. The ordinance also provides that BOCC will adopt a policy or resolution setting forth the process for distribution and expenditure of the accumulated funds for affordable housing in accordance with the conditions as set forth in SB 1456. The Board adopted Ordinance 011-2023 at its June 21, 2023, meeting and set forth a separate account established for special public facilities which was at that time anticipated to be expanded by legislation to include affordable housing. A policy was also adopted regarding how the special public facilities fund will be funded which is being revised to allow for funds to be used as set forth in SB 1456. The policy for"special public facilities"will be revised and is included as a separate agenda item for approval by the Board which also authorizes for"accumulated funds"to be used for the affordable housing in accordance with SB 1456. The account for special public facilities will remain in place under the tourist management plan and in accordance with the revised policy will be funded from excess funds after the $35 million is transferred for the purpose as set forth in SB 1456. PREVIOUS RELEVANT BOCC ACTION: At the April 17, 2024 BOCC meeting, the Board agreed to direct staff to prepare an ordinance to allow for the authorized use of Tourist Development and Tourist Impact Tax revenues as set forth in SB 1456. INSURANCE REQUIRED: No CONTRACT/AGREEMENT CHANGES: N/A STAFF RECOMMENDATION: Approval. DOCUMENTATION: Ordinance implementing SB 1456 allowing for use of excess TDT and TIMP taxes for deed restricted affordable housing available to employees of tourism related business.pdf Business Impact Estimate for Ordinance authorizing sue of funds per SB 1456 TDT and TIMP for housing employees of tourist related businesses.pdf SB 1456 2024.pdf 4024 FINANCIAL IMPACT: This Ordinance will allow for TDT and Tourist Impact Tax revenues in an amount not to exceed $35 million to be held by the County or the Land Authority for use for affordable housing for private sector tourism-related business as set forth in more detail above effective July 1, 2024 conditioned upon SB 1456 becoming law. 4025 ORDINANCE NO. -2024 AN UNCODIFIED ORDINANCE OF THE BOARD OF COUNTY COMMISSIONERS (BOCC) OF MONROE COUNTY, FLORIDA, AUTHORIZING THE USE OF ACCUMULATED SURPLUS FROM TOURIST DEVELOPMENT TAX AND TOURIST IMPACT TAX REVENUES COLLECTED THROUGH SEPTEMBER 30, 2024 NOT TO EXCEED $35 MILLION, WHETHER HELD BY THE COUNTY DIRECTLY OR BY THE LAND AUTHORITY IN THE COUNTY FOR THE PURPOSE OF PROVIDING HOUSING THAT IS AFFORDABLE, AVAILABLE TO EMPLOYEES OF PRIVATE SECTOR TOURISM-RELATED BUSINESSES IN THE COUNTY IN ACCORDANCE WITH CS/CS/SB 1456; PROVIDING FOR SEVERABILITY; PROVIDING FOR THE REPEAL OF ALL ORDINANCES INCONSISTENT HEREWITH AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the Legislature passed CS/CS/SB 1456 (SB 1456) on March 5, 2024; and WHEREAS, SB 1456 provides for counties, which are designated as an Areas of Critical State Concern (ACSC) and which levy both a tourist development tax pursuant to F.S.. 125.0104 and a tourist impact tax pursuant to F.S. 125.0108, may use any accumulated surplus from such taxes collected through September 30, 2024, not to exceed $35 million, whether held by the county directly or by a land authority in the county created pursuant to F.S. 380.0663 for purposes of providing housing that is "affordable", as that term is defined in F.S. 420.0004, and on the condition that said housing is available to employees of private sector tourism-related businesses in the county; and WHEREAS, SB 1456 further provides that any housing financed with funds from the surplus may be used only to provide housing that is affordable, as that term is defined in F.S. 420.0004 for a period of no less than 99 years; and WHEREAS, SB 1456 further provides that expenditure of such funds is subject to approval by a majority vote of the BOCC and defines the term "accumulated surplus"to mean the accumulated excess of tourist development tax revenue and/or tourist impact revenue over expenditure from prior years which has not been set aside for a specific purpose; and WHEREAS, at the April 17, 2024, BOCC meeting, the BOCC directed staff to draft an ordinance implementing the requirements of SB 1456; and WHEREAS, if Governor DeSantis signs SB 1456 or it otherwise becomes law, it will become effective July 1, 2024; and WHEREAS, in anticipation of SB 1456 becoming law, this ordinance is being placed before the Board of County Commissioners (BOCC) for approval and to authorize for these "accumulated surplus"funds to be transferred to an account to be held directly by the County or Land Authority and authorized for use in accordance with SB 1456; and Page 1 of 4 4026 WHEREAS, the expenditure of such"accumulated surplus"funds is subject to approval by a majority vote of the BOCC; and WHEREAS, the Board adopted Ordinance 011-2023 at its June 21, 2023, meeting which established a separate account established for special public facility projects which was at that time anticipated to be expanded by legislation to include affordable housing; and WHEREAS, a policy was also adopted regarding how the special public facilities fund will be funded which is being revised to allow for funds to be used as set forth in SB 1456; and WHEREAS, with the passage of SB 1456, the policy for"special public facilities" projects will be revised as needed to authorize for "accumulated funds"to be used for the affordable housing in accordance with SB 1456; and WHEREAS, the separate account for special public facilities will remain in place under the tourist management plan and in accordance with the revised policy; and WHEREAS, the BOCC will adopt a policy or resolution setting forth the process for distribution and expenditure of the accumulated funds for affordable housing in accordance with the requirements as set forth in SB 1456; and WHEREAS, because this ordinance is intended to implement legislation that is limited to the use of certain funds accumulated by September 30, 2024, the Board finds no purpose would be served by codifying this ordinance into the Monroe County Code of Ordinances. NOW THEREFORE BE IT ORDAINED BY THE BOARD OF COUNTY COMMISSIONERS OF MONROE COUNTY, FLORIDA: SECTION 1: The Monroe County Board of County Commissioners (BOCC) hereby, 1. Finds Monroe County, is designated as Areas of Critical State Concern (ACSC)that levies a tourist development tax pursuant to s. 125.0104, Florida Statutes and a tourist impact tax pursuant to s. 125.0108, Florida Statutes; 2. Authorizes accumulated surplus from such taxes collected through September 30, 2024, not to exceed $35 million, whether held by the County directly or by the Monroe County Comprehensive Plan Land Authority to be used for purposes of providing housing that is: (a) "Affordable" as that term is defined in F.S. 420.0004; and (b) Available to employees of private sector tourism-related businesses in the county. 3. Any housing financed with funds from the surplus may be used only to provide housing that is affordable, as defined in F.S. 420.0004, for a period of no less than 99 years. Page 2 of 4 4027 4. Expenditure of such funds for projects must be approved by a majority vote of the BOCC. 5. The term "accumulated surplus" means the accumulated excess of revenue over expenditure from prior years which has not been set aside for a specific purpose. 6. The BOCC will adopt a policy or resolution setting forth the process for distribution and expenditure of accumulated funds for affordable housing in accordance with the conditions as set forth in SB 1456. SECTION 2: SEVERABILITY. If any portion of this ordinance is for any reason held invalid or declared to be unconstitutional, inoperative or void, such holding shall not affect the remaining portions of this ordinance. If this ordinance or any provision thereof shall be held to be inapplicable to any person,property or circumstances, such holding shall not affect its applicability to any other person, property or circumstances. SECTION 3: CONFLICT WITH OTHER ORDINANCES. All ordinances or parts of ordinances in conflict with this ordinance are hereby repealed to the extent of said conflict. SECTION 4: TRANSMITTAL. This Ordinance shall be filed with the Department of State. SECTION 5: EFFECTIVE DATE. This Ordinance shall be effective on July 1, 2024 provided that SB 1456 has become law. SECTION 6: CODIFICATION. The Clerk shall transmit this ordinance to the Municipal Code Corporation for publication on the appropriate website but Municipal Code Corporation is directed NOT to codify this ordinance in the Monroe County Code of Ordinances. PASSED AND ADOPTED by the Board of County Commissioners of Monroe County, Florida, at a regular meeting of said Board held on the 15th day of May 2024. Mayor Holly Merrill Raschein, District 5 Mayor Pro Tem James K. Scholl, District 3 Commissioner Michelle Lincoln, District 2 Commissioner Craig Cates, District 3 Commissioner David Rice, District 4 Page 3 of 4 4028 (SEAL) BOARD OF COUNTY COMMISSIONERS Attest: KEVIN MADOK, Clerk OF MONROE COUNTY, FLORIDA By: By: As Deputy Clerk Mayor Approved for legal sufficiency: Christine Limbert-Barrows Sr. Assistant County Attorney Monroe County Attorney's Office Page 4 of 4 4029 "e11UYY 'u BUSINESS IMPACT ESTIMATE! Meeting Date: May 15,2024 Proposed Ordinance Title/Reference: An ordinance authorizing the use of accumulated surplus from the Tourist Development Tax and Tourist Impact Tax revenues collected through September 30, 2024, in an amount not to exceed$35 Million for the purpose of providing affordable housing to private section tourism- related businesses upon passage of Senate Bill 1456. The Proposed Ordinance® does ❑ does not fall under one of the following enumerated exceptions:! ® The proposed ordinance is required for compliance with Federal or State law or regulation; ❑ The proposed ordinance relates to the issuance or refinancing of debt; ® The proposed ordinance relates to the adoption of budgets or budget amendments,including revenue sources necessary to fund the budget; ❑ The proposed ordinance is required to implement a contract or an agreement, including, but not limited to, any Federal, State, local, or private grant or other financial assistance accepted by the county government; ❑ The proposed ordinance is an emergency ordinance; ❑ The ordinance relates to procurement;or ❑ The proposed ordinance is enacted to implement the following: a. Part II of Chapter 163, Florida Statutes, relating to growth policy, county and municipal planning, and land development regulation, including zoning, development orders, development agreements and development permits; b. Sections 190.005 and 190.046,Florida Statutes,regarding community development districts; c. Section 553.73,Florida Statutes,relating to the Florida Building Code;or d. Section 633.202,Florida Statutes,relating to the Florida Fire Prevention Code. Summary of Proposed Ordinance and Statement of Public Purpose to be Served: This Ordinance authorizes the use of accumulated surplus from the Tourist Development Tax and Tourist Impact Tax revenues collected through September 30,2024,in an amount not to exceed$35 Million for the purpose of providing affordable housing for private sector tourism-related businesses in the County upon passage of Senate Bill 1456.The legislature has previously determined that the provision of affordable housing by a governmental entity constitutes a public purpose and is in the best interest,health,safety and welfare of the public. Estimate of Direct Economic Impact on Private/For Profit Businesses:- a. Estimate of Direct Business Compliance Costs: This Ordinance is not intended to impact any businesses in Monroe County. b. New Charges/Fees on Businesses Impacted:No change. C. Estimate of Regulatory Costs:No change. Good Faith Estimate of Number of Businesses Likely Impacted:None Any Additional Information: Business impact statement must be posted on the county's website no later than the date the notice of proposed enactment is published. 2 F.S.125.66(3)(c)(2023) 4030 ENROLLED 2024 Legislature CS for CS for SB 1456 20241456er 1 2 An act relating to counties designated as areas of 3 critical state concern; amending s . 380 . 0552, F. S . ; 4 adding certain requirements to local comprehensive 5 plans relating to a hurricane evacuation study; 6 amending s . 380 . 0666, F. S . ; revising the powers of the 7 land authority; providing requirements for conveying 8 affordable housing homeownership units; providing lien 9 status prioritization for certain purposes; amending 10 s . 420 . 9075, F. S . ; excluding land designated as an 11 area of critical state concern within a specified 12 timeframe from award requirements made to specified 13 sponsors or persons for the purpose of providing 14 eligible housing as a part of a local housing 15 assistance plan; providing for expiration and 16 retroactive applicability; authorizing counties that 17 have been designated as areas of critical state 18 concern to use specified tourist development tax and 19 tourist impact tax revenue for affordable housing for 20 certain employees; requiring that housing financed 21 with such funds maintain its affordable housing status 22 for a specified timeframe; requiring that the 23 expenditure of certain funds be subject to approval by 24 a majority vote of the board of county commissioners 25 of an eligible county; defining the term "accumulated 26 surplus"; providing an effective date . 27 28 Be It Enacted by the Legislature of the State of Florida: 29 Page 1 of 5 CODING: Words :ci5ieken are deletions; words underlined are additions . 4031 ENROLLED 2024 Legislature CS for CS for SB 1456 20241456er 30 Section 1 . Paragraph (a) of subsection (9) of section 31 380 . 0552, Florida Statutes, is amended to read: 32 380 . 0552 Florida Keys Area; protection and designation as 33 area of critical state concern .- 34 (9) MODIFICATION TO PLANS AND REGULATIONS .- 35 (a) Any land development regulation or element of a local 36 comprehensive plan in the Florida Keys Area may be enacted, 37 amended, or rescinded by a local government, but the enactment, 38 amendment, or rescission becomes effective only upon approval by 39 the state land planning agency. The state land planning agency 40 shall review the proposed change to determine if it is in 41 compliance with the principles for guiding development specified 42 in chapter 27F-8, Florida Administrative Code, as amended 43 effective August 23, 1984, and must approve or reject the 44 requested changes within 60 days after receipt . Amendments to 45 local comprehensive plans in the Florida Keys Area must also be 46 reviewed for compliance with the following: 47 1 . Construction schedules and detailed capital financing 48 plans for wastewater management improvements in the annually 49 adopted capital improvements element, and standards for the 50 construction of wastewater treatment and disposal facilities or 51 collection systems that meet or exceed the criteria in s . 52 403 . 086 (11) for wastewater treatment and disposal facilities or 53 s . 381 . 0065 (4) (1) for onsite sewage treatment and disposal 54 systems . 55 2 . Goals, objectives, and policies to protect public safety and 56 welfare in the event of a natural disaster by maintaining a 57 hurricane evacuation clearance time for permanent residents of 58 no more than 24 hours . The hurricane evacuation clearance time Page 2 of 5 CODING: Wordsn are deletions; words underlined are additions . 4032 ENROLLED 2024 Legislature CS for CS for SB 1456 20241456er 59 shall be determined by a hurricane evacuation study conducted in 60 accordance with a professionally accepted methodology and 61 approved by the state land planning agency. For purposes of 62 hurricane evacuation clearance time : 63 a . Mobile home residents are not considered permanent 64 residents . 65 b . The City of Key West Area of Critical State Concern 66 established by chapter 28-36, Florida Administrative Code, shall 67 be included in the hurricane evacuation study and is subject to 68 the evacuation requirements of this subsection . 69 Section 2 . Subsection (14) is added to section 380 . 0666, 70 Florida Statutes, to read: 71 380 . 0666 Powers of land authority.—The land authority shall 72 have all the powers necessary or convenient to carry out and 73 effectuate the purposes and provisions of this act, including 74 the following powers, which are in addition to all other powers 75 granted by other provisions of this act : 76 (14) For affordable housing homeownership units, to require 77 compliance with the income requirements under paragraph (3) (a) 78 at the time of conveyance each time a unit is conveyed. The 79 original land authority funding or contribution shall be 80 memorialized in a recordable perpetual deed restriction. If the 81 purchase receives state or federal funding and that state or 82 federal funding program requires a priority lien position over 83 the land authority deed restriction, the land authority funding 84 or contribution may be subordinate to a first purchase money 85 mortgage and the state or federal funding lien . 86 Section 3 . Paragraph (g) of subsection (5) of section 87 420 . 9075, Florida Statutes, is amended to read: Page 3 of 5 CODING: Wordsn are deletions; words underlined are additions . 4033 ENROLLED 2024 Legislature CS for CS for SB 1456 20241456er 88 420 . 9075 Local housing assistance plans; partnerships .- 89 (5) The following criteria apply to awards made to eligible 90 sponsors or eligible persons for the purpose of providing 91 eligible housing: 92 (g) 1 . All units constructed, rehabilitated, or otherwise 93 assisted with the funds provided from the local housing 94 assistance trust fund must be occupied by very-low-income 95 persons, low-income persons, and moderate-income persons except 96 as otherwise provided in this section. 97 2 . a . At least 30 percent of the funds deposited into the 98 local housing assistance trust fund must be reserved for awards 99 to very-low-income persons or eligible sponsors who will serve 100 very-low-income persons, and at least an additional 30 percent 101 of the funds deposited into the local housing assistance trust 102 fund must be reserved for awards to low-income persons or 103 eligible sponsors who will serve low-income persons . 104 b . This subparagraph does not apply to a county or an 105 eligible municipality that includes or has included within the 106 previous 5 years an area of critical state concern designated by 107 the Legislature for which the Legislature has declared its 108 intent to provide affordable housing. This sub-subparagraph 109 expires on July 1, 2029, and applies retroactively. 110 Section 4 . (1) A county that has been designated as an area 111 of critical state concern by law or by action of the 112 Administration Commission pursuant to s . 380 . 05, Florida 113 Statutes, and that levies a tourist development tax pursuant to 114 s . 125 . 0104, Florida Statutes, and a tourist impact tax pursuant 115 to s . 125 . 0108, Florida Statutes, may use any accumulated 116 surplus from such taxes collected through September 30, 2024, Page 4 of 5 CODING: Words :ci5ieken are deletions; words underlined are additions . 4034 ENROLLED 2024 Legislature CS for CS for SB 1456 20241456er 117 not to exceed $35 million, whether held by the county directly 118 or by a land authority in the county created pursuant to s . 119 380 . 0663, Florida Statutes, for the purpose of providing housing 120 that is • 121 (a) Affordable, as defined in s . 420 . 0004, Florida 122 Statutes; and 123 (b) Available to employees of private sector tourism- 124 related businesses in the county. 125 (2) Any housing financed with funds from the surplus 126 described in subsection (1) may be used only to provide housing 127 that is affordable, as defined in s . 420 . 0004, Florida Statutes, 128 for a period of no less than 99 years . 129 (3) Expenditure of such funds is subject to approval by a 130 majority vote of the board of county commissioners for any such 131 county designated as an area of critical state concern . 132 (4) For purposes of this section, the term "accumulated 133 surplus" means the accumulated excess of revenue over 134 expenditure from prior years which has not been set aside for a 135 specific purpose . 136 Section 5 . This act shall take effect July 1, 2024 . Page 5 of 5 CODING: Wordsn are deletions; words underlined are additions . 4035