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Item O02 02 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 August 21, 2024 Agenda Item Number: 02 2023-2722 BULK ITEM: No DEPARTMENT: County Attorney TIME APPROXIMATE: STAFF CONTACT: Nathalia M. Archer/Bob Shillinger AGENDA ITEM WORDING: Discussion and direction regarding 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 employees of private sector tourism-related businesses in the County in accordance with Ch. 2024-219, Laws of Fla. ITEM BACKGROUND: Chapter 2024-219, Laws of Florida, (SB 1456), was signed by the Governor and became effective on July 1, 2024. It provides that counties designated as Areas of Critical State Concern (ACSC) 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 for purposes of providing housing that is Affordable, as defined in F.S. 420.0004 for employees of private sector tourism-related businesses in the county, whether held by the county directly or by a land authority in the county, created pursuant to F.S. 380.0663. The accumulated surplus may not exceed $35 million. Any housing financed with funds from the surplus must remain affordable, as defined in F.S. 420.0004 for a period of no less than 99 years. 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. Expenditure of such funds is subject to approval by a majority vote of the BOCC. At the May 15, 2024, BOCC meeting, the BOCC approved Ordinance 018-2024 which authorized "accumulated surplus" funds to be transferred to an account to be held directly by the County or Land Authority for use in accordance with the legislation. 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 Chapter 2024-219, Laws of Florida. 2272 Staff is requesting discussion and direction regarding the process for distribution and expenditure of the accumulated funds for affordable housing in accordance with the conditions as set forth in Chapter 2024-219, Laws of Florida. PREVIOUS RELEVANT BOCC ACTION: At the April 17, 2024, BOCC meeting, the Board directed 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. At the May 15, 2024, BOCC meeting, the Board approved Ordinance No. 018-2024 which authorized "accumulated surplus" funds to be transferred to an account to be held directly by the County or Land Authority for use in accordance with provisions of SB 1456 with adoption of a policy or resolution setting forth the process for distribution and expenditure of the accumulated funds to be approved by the Board at a later date. INSURANCE REQUIRED: No CONTRACT/AGREEMENT CHANGES: N/A STAFF RECOMMENDATION: Discussion and Direction DOCUMENTATION: Monroe County Ordinance No. 018-2024 Ch. 2024-219, Laws of Fla. FINANCIAL IMPACT: Discussion has no fiscal impact. 2273 ORDINANCE NO. 018 -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 2274 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 2275 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 Yes Mayor Pro Tem James K. Scholl, District 3 Yes Commissioner Craig Cates, District 1 Yes Commissioner Michelle Lincoln, District 2 Yes Commissioner David Rice, District 4 Yes Page 3 of 4 2276 (SEAL)„ BOARD OF COUNTY COMMISSIONERS 4gAttestlTIiv MADOK,Clerk OF MONROE COUNTY, FLORIDA } a IF � h� ✓ ft may'{ �d3 �is _ _ _ By; ' n Apeput Clerk Mayor Approved for legal,sufficiency: MONROE COUNTY ATTORNEY _ SPPAgV-P AS TO FOMI: CHRISTINE LIMBERT,BARROWS -' -- - - - - 'ASSISTANT COUNTY.ATTORNEY - - _.DATE.-5L17/24 - Christine Limbert-Barrows Sr. Assistant County Attorney Monroe County Attorney's Office CD n : (:D CD w Page 4 of 4 2277 �V� N Keys\em s xom IKEY IZEN IN/Inny Isla.11dsvoll€; Wic€, The Florida Keys Only Daily Newspaper Est, 1876 PO Box 1800,Key West Ft.33041 P:(941)206-1025 F:(305)294-0168 fegats@keysnews.com MONROE CO TOURIST DEVELOPMENT COUNCIL 1201 WHITE ST# 102 KEY WEST FL 33040-3328 Account: 419561 Ticket: 3928037 PUBLISHER'S AFFIDAVIT STATE OF FLORIDA NOTICE OF INTENTION TO CONSIDER COUNTY OF MONROE ADOPTION OF COUNTY ORDINANCE Dated at Key West,Florida,this 4thday NOTICE IS HEREBY GIVEN TO WHOM IT (S May, 024. (SEAL)KEVIN MADOK,Clerk of the Cir- Befare the undersigned authority personally appeared MAY CONCERN that on May 15,2024, cuit Court and at 9:00 A.M.or as soon thereafter as Ex Officio Clerk of the Board of Coun- the matter may be heard,at the Har- ty Commissioners of Monroe County, vey Government Center, 1200 Truman Florida Jill Kelli D}Benedetto ,who on oath says that he or she is Avenue, Key West, Florida,the Board 05/04/24-KWC of County Commissioners of Monroe 419561 3928037 County, Florida, Intends to consider The legal advertising representative of the Key West Citizen, a five day newspa- adopting the fallowing ordinance: per published in Key West,in Monroe County, Flo6cla;that the attached copy of AN UNCODIFIED ORDINANCE OF THE advertisment,being a legal notice in the matter of NOI TDC Surplus Ordinance BOARD OF COUNTY COMMISSIONERS (BOCC} OF MONROE COUNTY, FLOR- was published in said newspaper in the issues of: IDA, AUTHORIZING THE U SE OF AC- CUMULATED SURPLUS FROM TOUR- IST DEVELOPMENT TAX AND TOURIST Saturday, May 4,2024 IMPACT TAX REVENUES COLLECTED THROUGH SEPTEMBER 30, 2024 NOT TO EXCEED $35 MILLION, WHETHER HELD BY THE COUNTY DIRECTLY OR BY Affiant further says that the Key West Citizen is a newspaper published in Key THELAND AUTHORITY I PHVOH�F PURPOSE OOv West,in said Monroe County, Florida and that the said newspapers has hereto- HOUSING THAT I5 AFFORDABLE,AVAIL- fore been continuously published in said Monroe County,Florida Tuesday thru ABLE TO EMPLOYEES OF PRIVATE SEC- Saturday weekly,and has been entered as periodicals matter at the post office in THE COUNTY1 INLACCORDA14CESWITH Key West, in said Monroe County,Florida,for a period of 1 year next preceding CSICS15B 1455;PROVIDING FOR SEVER• the first publication of the attached copy of advertisement;and affiant further says ABILITY, PROVIDING FOR THE REPEAL OF ALL ORDINANCES INCONSISTENT that he or she has neither paid nor promised any person,firm or corporation any HEREWITH AND PROVIDING AN EFFEC• discount,rebate,commission or refund for the purpose of securing this advertise- TIVE DATE. ment for publication in the said newspaper. The proposed ordinance may be In- spected by the public at the Monroe County webs Ile by viewing the agenda packet for the May 15,2024, meeting, which will be ht posted beginningrtt on May 9,2024 at:http:llmonraecauntyfl.lgm2, conttcitizensklefault.aspx. The ordl- (Signaturo of Affiant) nance may also be viewed at the Mon- roe County Attorney's office at 1111 12 Affirmed and subscribed before me this 17th day of May 2024 th St.Ste.408 Key West,FL 33040. The ppublic can partldpate In the May 15, meeting of the Board of County Commissioners of Monroe (Notary Public Signature) County, FL by attending In person or via Zoom.The zoom link can be found In the agenda at httpJlmonroecounty- L_aura M Robins fl,igm2.comlcitlzens/de€auit.aspx. (Notary Public Printed Name) (Notary Seal) ADA ASSISTANCE:If you are a person with a disability who needs special M commission expires 9f26/2026 accommodations In order to particle Y p pats In this proceeding,please contact the County Administrator's Office, by photting (305)252.4441,between the Personal) Known X Produced Identification_ hours of 8:30aum—S:ODp.m., prior to Y the scheduled meeting;If you are hear- ing or volco•Impalred,call"711", Live Type of Identification Produced Closed-Captioning is available via our YP (Notary l Y Seal) web portal 0 Itttp:/Imonroecounty- fl.ignt2.com/Citlzens/Default.aspx for al ak1 all Florida of the Monroe County Board F?oEary PtAIIG GB4l hR f d all F of County Commissioners. 11C I.Iy�pmrrtls6iofi FiM�82636 Expi(es 11.2$12026 2278 GVS COURTq° o: A Kevin Madok, CPA - �o ........ � Clerk of the Circuit Court& Comptroller Monroe County, Florida �z cooN May 20, 2024 Department of State Administrative Code & Register 500 S Bronough Street Tallahassee FL 32399-0250 To Whom It May Concern, Attached is a copy of Uncodified Ordinance No. 018-2024 of the Board of County Commissioners 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. This Ordinance was adopted by the Monroe County Board of County Commissioners at a regular meeting, held in formal session, on May 15, 2024. Should you have any questions please feel free to contact me at(305) 292-3550. Respectfully Submitted, Kevin Madok, CPA, Clerk of the Circuit Court& Comptroller& ex-officio to the Monroe County Board of County Commissioners by: Liz Yongue, Deputy Clerk cc: County Administrator County Attorney MuniCode BOCC File KEY WEST MARATHON PLANTATION KEY 500 Whitehead Street 3117 Overseas Highway 88770 Overseas Highway Key West, Florida 33040 Marathon, Florida 33050 Plantation Key, Florida 33070 2279 irr ' pw' I FLORIDA DEPARTMENT Of'STAT'E" RON DESANTIS CORD BYRD Governor Secretary of State May 21, 2024 Honorable Kevin Madok Clerk of the Circuit Court Monroe County 500 Whitehead Street, Suite 101 Key West, Florida 33040 Dear Kevin Madok, Pursuant to the provisions of Section 125.66, Florida Statutes, this will acknowledge receipt of your electronic copy of Monroe County Ordinance No. 018-2024, which was filed in this office on May 20, 2024. Sincerely, Matthew Hargreaves Administrative Code and Register Director MJH/wlh R. A. Gray Building • 500 South Bronough Street • Tallahassee, Florida 32399-0250 Telephone: (850) 245-6270 2280 CHAPTER 2024-219 Committee Substitute for Committee Substitute for Senate Bill No. 1456 An act relating to counties designated as areas of critical state concern; amending s. 380.0552, F.S.; adding certain requirements to local compre- hensive plans relating to a hurricane evacuation study; amending s. 380.0666, F.S.; revising the powers of the land authority; providing requirements for conveying affordable housing homeownership units; providing lien status prioritization for certain purposes; amending s. 420.9075, F.S.; excluding land designated as an area of critical state concern within a specified timeframe from award requirements made to specified sponsors or persons for the purpose of providing eligible housing as a part of a local housing assistance plan; providing for expiration and retroactive applicability; authorizing counties that have been designated as areas of critical state concern to use specified tourist development tax and tourist impact tax revenue for affordable housing for certain employ- ees; requiring that housing financed with such funds maintain its affordable housing status for a specified timeframe; requiring that the expenditure of certain funds be subject to approval by a majority vote of the board of county commissioners of an eligible county; defining the term "accumulated surplus"; providing an effective date. Be It Enacted by the Legislature of the State of Florida: Section 1. Paragraph (a) of subsection (9) of section 380.0552, Florida Statutes, is amended to read: 380.0552 Florida Keys Area; protection and designation as area of critical state concern.— (9) MODIFICATION TO PLANS AND REGULATIONS.— (a) Any land development regulation or element of a local comprehensive plan in the Florida Keys Area may be enacted, amended, or rescinded by a local government, but the enactment, amendment, or rescission becomes effective only upon approval by the state land planning agency. The state land planning agency shall review the proposed change to determine if it is in compliance with the principles for guiding development specified in chapter 27F-8, Florida Administrative Code, as amended effective August 23, 1984, and must approve or reject the requested changes within 60 days after receipt. Amendments to local comprehensive plans in the Florida Keys Area must also be reviewed for compliance with the following: 1. Construction schedules and detailed capital financing plans for wastewater management improvements in the annually adopted capital improvements element, and standards for the construction of wastewater treatment and disposal facilities or collection systems that meet or exceed 1 CODING: Words sin are deletions; words underlined are additions. 2281 Ch. 2024-219 LAWS OF FLORIDA Ch. 2024-219 the criteria in s. 403.086(11)for wastewater treatment and disposal facilities or s. 381.0065(4)(1) for onsite sewage treatment and disposal systems. 2. Goals, objectives, and policies to protect public safety and welfare in the event of a natural disaster by maintaining a hurricane evacuation clearance time for permanent residents of no more than 24 hours. The hurricane evacuation clearance time shall be determined by a hurricane evacuation study conducted in accordance with a professionally accepted methodology and approved by the state land planning agency. For purposes of hurricane evacuation clearance time: a. Mobile home residents are not considered permanent residents. b. The City of Key West Area of Critical State Concern established by chapter 28-36, Florida Administrative Code, shall be included in the hurricane evacuation study and is subject to the evacuation requirements of this subsection. Section 2. Subsection (14) is added to section 380.0666, Florida Statutes, to read: 380.0666 Powers of land authority.—The land authority shall have all the powers necessary or convenient to carry out and effectuate the purposes and provisions of this act, including the following powers, which are in addition to all other powers granted by other provisions of this act: (14) For affordable housing homeownership units, to require compliance with the income requirements under paragraph (3)(a) at the time of conveyance each time a unit is conveyed. The original land authority funding or contribution shall be memorialized in a recordable perpetual deed restriction. If the purchase receives state or federal funding and that state or federal funding program requires a priority lien position over the land authority deed restriction, the land authority funding or contribution may be subordinate to a first purchase money mortgage and the state or federal funding lien. Section 3. Paragraph (g) of subsection (5) of section 420.9075, Florida Statutes, is amended to read: 420.9075 Local housing assistance plans; partnerships.— (5) The following criteria apply to awards made to eligible sponsors or eligible persons for the purpose of providing eligible housing: (g)1. All units constructed, rehabilitated, or otherwise assisted with the funds provided from the local housing assistance trust fund must be occupied by very-low-income persons, low-income persons, and moderate- income persons except as otherwise provided in this section. 2.a. At least 30 percent of the funds deposited into the local housing assistance trust fund must be reserved for awards to very-low-income 2 CODING: Words sin are deletions; words underlined are additions. 2282 Ch. 2024-219 LAWS OF FLORIDA Ch. 2024-219 persons or eligible sponsors who will serve very-low-income persons, and at least an additional 30 percent of the funds deposited into the local housing assistance trust fund must be reserved for awards to low-income persons or eligible sponsors who will serve low-income persons. b. This subparagraph does not apply to a county or an eligible municipality that includes or has included within the previous 5 years an area of critical state concern designated by the Legislature for which the Legislature has declared its intent to provide affordable housing. This sub- subparagraph expires on July 1, 2029, and applies retroactively. Section 4. (1) A county that has been designated as an area of critical state concern by law or by action of the Administration Commission pursuant to s. 380.05, Florida Statutes, and that levies a tourist develop- ment 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 the purpose of providing housing that is: (a) Affordable, as defined in s. 420.0004, Florida Statutes; and (b) Available to employees of private sector tourism-related businesses in the county. (2) Any housing financed with funds from the surplus described in subsection (1) 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. (3) Expenditure of such funds is subject to approval by a majority vote of the board of county commissioners for any such county designated as an area of critical state concern. (4) For purposes of this section, 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. Section 5. This act shall take effect July 1, 2024. Approved by the Governor May 31, 2024. Filed in Office Secretary of State May 31, 2024. 3 CODING: Words strieken are deletions; words underlined are additions. 2283