§ 8.7-19. Workforce housing impact fee mitigation program.

A.

In Chapter 420, Florida Statutes, the Florida Legislature directly recognizes the critical shortage of affordable housing in the State of Florida for very low to moderate income families, the problems associated with rising housing costs in the state, and the lack of available housing programs to address these needs. In recognition of these problems and the state's encouragement to local governments to work in partnership with the state and private sector to solve these housing problems, the county finds a need for local programs to stimulate and provide for the development of workforce housing for moderate income persons.

B.

In recent years the median home purchase price in Polk County has increased by one hundred twenty (120) per cent and recent hurricanes have resulted in increased homeowners' insurance rates. As a result, the board finds that there is a need for homeownership opportunities for moderate income persons in the county.

C.

The board desires to provide incentives to develop and provide workforce housing stock within the county so that moderate income persons who desire to live and to work in the county may have access to housing, and thus to offset the negative consequences of the shortage of such housing.

D.

To accomplish this objective the board finds that it is fair and reasonable to create a workforce housing impact fee mitigation program to reduce the burden of impact fees on moderate income persons and encourage the development of workforce housing.

E.

To be eligible for a workforce housing impact fee mitigation, the residential construction must qualify as workforce housing and meet the following requirements:

1.

Any person seeking a workforce housing impact fee mitigation for an owner-occupied residential construction shall file with the county manager a Polk County impact fee mitigation application for workforce housing prior to receiving a certificate of occupancy for the proposed residential construction. The application shall contain the following:

a.

The name and address of the owner;

b.

The legal description of the residential construction;

c.

The proposed selling price of the residential construction;

d.

A notarized affidavit affirming that the residential construction qualifies as workforce housing and that it shall be occupied by moderate income persons;

e.

Evidence that the residential construction shall be occupied as the legal homestead of the owner; and

f.

A copy of a fully executed and recordable lien upon the residential construction in the amount of the impact fees mitigated hereunder and that contains a due on sale clause requiring the payment of the mitigated impact fees in the event the residential construction is sold within seven (7) years from the date of the issuance of a certificate of occupancy and no longer qualifies as workforce housing. Such lien shall have priority over all other liens except for first mortgages, taxes and other governmental liens and assessments. In lieu of imposition of a lien for a period of seven (7) years, and with the concurrence of the county manager, the applicant may post an irrevocable letter of credit payable by a financial institution, acceptable to the county, to ensure payment of the impact fees in the event the property no longer qualifies for the workforce housing impact fee mitigation during the seven-year period. The irrevocable letter of credit shall contain no conditions upon the obligation of the issuer for the payment of the principal amount and any interest due thereon.

2.

Any person seeking a workforce housing impact fee mitigation for a rental residential construction located within a qualifying multifamily rental project shall file with the county manager a Polk County impact fee mitigation application for workforce housing prior to receiving a certificate of occupancy for the proposed residential construction. The application shall contain the following:

a.

The name and address of the owner;

b.

The legal description of the residential construction;

c.

The proposed rental rates;

d.

Evidence that the residential construction shall be occupied by moderate income persons;

e.

Evidence that the residential construction is part of a multifamily project, which is funded by a governmental affordable housing program; and

f.

A copy of a fully executed and recordable lien upon the residential construction in the amount of the impact fees mitigated hereunder and that requires the payment of the mitigated impact fees in the event the residential construction fails to meet the restrictions of workforce housing as provided herein within the seven-year period following the issuance of the certificate of occupancy such that the property no longer qualifies as workforce housing and is no longer occupied by moderate income persons. Such lien shall have priority over all other liens except for first mortgages, taxes and other governmental liens and assessments. In lieu of imposition of a lien for a period of seven (7) years, and with the concurrence of the county manager, the applicant may post an irrevocable letter of credit payable by a financial institution, acceptable to the county, to ensure payment of the impact fees in the event the property no longer qualifies for the workforce housing impact fee mitigation during the seven-year period. The irrevocable letter of credit shall contain no conditions upon the obligation of the issuer for the payment of the principal amount and any interest due thereon.

3.

If the residential construction meets the requirements above for owner occupied or rental workforce housing, it shall be eligible to receive a workforce housing impact fee mitigation in the amount of fifty (50) per cent of the impact fees due for such residential construction, subject to the limitations on mitigation availability pursuant to paragraph G below.

4.

Throughout the seven-year impact fee mitigation period, the county reserves the right to audit the records of the person or owner granted the workforce housing impact fee mitigation in order to ensure continued compliance with the requirements described in the mitigation application and this section 8.7-19. In the event the residential construction fails to meet the requirements of the workforce housing impact fee mitigation as provided herein within the seven-year period following the issuance of the certificate of occupancy such that the property no longer qualifies as workforce housing and is no longer occupied by moderate-income persons, the mitigated impact fee amount shall be immediately due and payable; provided, however, if during the seven-year period following the issuance of the certificate of occupancy, the owner seeks to convey the subject property in accordance with the Polk County short sale impact fee waiver policy, and all terms, conditions and restrictions set forth in such policy have been met, then the board shall have the authority to: (1) waive up to the full amount of the mitigated impact fees for said property which would otherwise be due as a result of the conveyance; (2) release any claim of lien the county may have filed against the property in accordance with this section 8.7-19; and (3) determine the amount of compensation that shall be charged to the owner, if any, as consideration for such waiver and release. In making its determination as to whether to grant such waiver and release and, if granted, the amount of compensation to be charged, the board shall apply the Polk County short sale impact fee waiver policy guidelines as adopted, and may be amended from time to time, by the board by resolution.

5.

Any applicant or owner who submits an application for workforce housing impact fee mitigation pursuant to this section and desires the immediate issuance of a certificate of occupancy prior to approval of the application shall pay prior to the issuance of the certificate of occupancy the impact fees imposed herein. Any difference between the amount paid and the amount due, should the county manager approve and accept the application, shall be refunded to the applicant or owner.

F.

The amount of the impact fees shall not be increased to replace any revenue lost due to the workforce housing mitigation program.

G.

To provide certainty for annual budgeting and capital improvement planning for the capital facilities, the total amount of workforce housing impact fee mitigation granted pursuant to this section shall not exceed two hundred fifty thousand dollars ($250,000.00) in any fiscal year, without the direction and approval of the board.

(Ord. No. 18-048, § II(2.09), 7-24-18)