HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/CS/HB 627 Housing
SPONSOR(S): Ways & Means Committee, State Affairs Committee, Busatta Cabrera, Lopez, V. and others
TIED BILLS: IDEN./SIM. BILLS: CS/SB 102
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) State Affairs Committee 18 Y, 3 N, As CS Burgess Williamson
2) Ways & Means Committee 19 Y, 2 N, As CS Berg Aldridge
3) Appropriations Committee
SUMMARY ANALYSIS
The bill makes substantial revisions to affordable housing related programs and policies at the state and local
level. With regards to the Florida Housing Finance Corporation (FHFC), the bill:
 Provides up to $150 million in additional annual funding to the State Apartment Incentive Loan (SAIL)
program for certain specified purposes, establishes a dedicated revenue source for the funding, and
provides for a 2033 sunset.
 Provides for a sales tax refund of up to $5,000 for building materials used for FHFC-funded units.
 Creates a tax donation program to allow corporate taxpayers to direct up to $100 million annually to the
SAIL program.
 Codifies and revises the Florida Hometown Hero down payment assistance program.
 Adds appointees by the leader of each chamber of the Legislature to the FHFC Board of Directors.
 Revises certain existing FHFC processes and procedures.
With regards to other state-level resources, the bill revises the State Housing Strategy to align with current best
practices and goals, updates policies concerning state-owned lands to increase the availability of those lands
for affordable housing, expands Job Growth Grant Fund eligibility to include public infrastructure projects that
support affordable housing, and raises tax credits available through the Community Contribution Tax Credit
Program from $14.5 to $25 million.
With regards to local governments, the bill preempts certain local government requirements to allow for
streamlined development of affordable housing in commercial, industrial, and mixed-use zoned areas under
certain circumstances, removes a local government’s ability to approve affordable housing on residential
parcels by bypassing state and local laws that may otherwise preclude such development, removes the ability
of local governments to impose rent controls in certain circumstances, requires local governments to
electronically publish the inventory of publicly-owned properties that may be appropriate for affordable housing
and policies for issuing expedited building orders and development permits, and provides an exception to
evacuation time requirements for the Keys Workforce Housing Initiative.
The bill introduces three ad valorem property tax exemptions for: land owned by a non-profit entity that is
leased for a minimum of 99 years for the purpose of providing affordable housing; rent-restricted units within a
newly constructed development that sets aside at least 70 units for affordable housing for households earning
120 percent of area median income or less; and property owners who dedicate units for affordable housing for
households earning 60 percent of area median income or less, subject to approval of an ordinance by the
county or municipality.
The bill has a significant fiscal impact on the state and local governments. See II. FISCAL ANALYSIS AND
ECONOMIC IMPACT STATEMENT for further discussion.
This bill may be a county or municipality mandate requiring a two-thirds vote of the membership of the
House. See Section III.A.1 of the analysis.
This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
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 FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
AFFORDABLE HOUSING
Present Situation
Housing is considered affordable when it costs less than 30 percent of a family’s gross income. 1 A
family paying more than 30 percent of its income for housing is considered “cost burdened,” while those
paying more than 50 percent are considered “extremely cost burdened.” Severely cost burdened
households are more likely to sacrifice other necessities such as healthy food and healthcare to pay for
housing, and to experience unstable housing situations such as eviction.
Affordable housing is defined in terms of household income. Resident eligibility for Florida’s state and
federally-funded housing programs is governed by area median income (AMI) or statewide median
family income,2 published annually by the United States Department of Housing and Urban
Development (HUD).3 The following are standard household income level definitions and their
relationship to the 2022 Florida statewide AMI of $78,300 for a family of four (as family size changes,
the income range also varies):4
 Extremely low income – earning up to 30 percent AMI (at or below $ 23,500);5
 Very low income – earning from 30.01 to 50 percent AMI ($23,501 to $39,150);6
 Low income – earning from 50.01 to 80 percent AMI ($39,151 to $62,650); 7 and
 Moderate income – earning from 80.01 to 120 percent of AMI ($62,651 to $94,000).8
Florida Housing Finance Corporation9
The Florida Housing Finance Corporation (FHFC) was created in 1997 as a public-private entity to
assist in providing a range of affordable housing opportunities for Floridians. 10 FHFC is a corporation
held by the state and housed within the Department of Economic Opportunity (DEO). FHFC is a
separate budget entity and its operations are not subject to control, supervision, or direction by DEO. 11
The goal of FHFC is to increase the supply of safe, affordable housing for individuals and families with
very low to moderate incomes by stimulating investment of private capital and encouraging public and
private sector housing partnerships. As a financial institution, FHFC administers federal and state
resources to finance the development and preservation of affordable rental housing and assist
homebuyers with financing and down payment assistance. 12
1 S. 420.0004(3), F.S.
2 The 2022 Florida SMI for a family of four was $79,300. U.S. Dept. of Housing and Urban Development, Income Limits, Access
Individual Income Limits Areas, available at https://www.huduser.gov/portal/datasets/il.html#2022 (last visited Feb. 20, 2023).
3 HUD User, Office of Policy Development and Research, “Income Limits,” available at
https://www.huduser.gov/portal/datasets/il.html#2022 (last visited Feb . 20, 2023) (SMI and AMI available under the "Access Individual
Income Limits Area” dataset).
4 U.S. Dept. of Housing and Urban Development, Income Limits, Access Individual Income Limits Areas, available at
https://www.huduser.gov/portal/datasets/il.html#2022 (last visited Jan. 25, 2023).
5 S. 420.0004(9), F.S.
6
S. 420.0004(17), F.S.
7 S. 420.0004(11), F.S.
8 S. 420.0004(12), F.S.
9 See generally National Council of State Housing Agencies, “About HFAs,” available at https://www.ncsha.org/about-us/about-hfas/
(last visited Feb. 20, 2023); See generally State of Florida Auditor General, “Florida Housing Finance Corporation Audit Performed
Pursuant to Chapter 2013-83, Laws of Florida,” available at https://flauditor.gov/pages/pdf_files/2017-047.pdf (last visited Feb. 20,
2023) (pursuant to Ch. 2013-83, Laws of Fla., codified as s. 420.511(5), F.S., the Florida Auditor General conducted an operational
audit of the accounts and records of FHFC in November 2016).
10 Ch. 97-167, Laws of Fla. From 1980 through 1997, the former Florida Housing Finance Agency, placed within the former Department
of Community Affairs, performed similar duties.
11 S. 420.504(1), F.S.
12 See Fla. Housing Finance Corp., Ab out Florida Housing, https://www.floridahousing.org/about-florida-housing (last accessed Feb. 28,
2023).
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 FHFC is governed by a board of directors composed of the Secretary of DEO as an ex officio and
voting member, or a senior-level agency employee designated by the secretary, and eight members
appointed by the Governor from the following, subject to confirmation by the Senate:
 One member actively engaged in the residential home building industry;
 One member actively engaged in the banking or mortgage banking industry;
 One member who is a representative of those areas of labor engaged in home building;
 One member with experience in housing development who is an advocate for low-income
persons;
 One member actively engaged in the commercial building industry;
 One member who is a former local government elected official; and
 Two citizens of the state who are not principally employed as members or representatives of
any of the aforementioned groups.13
Members are appointed for four-year terms and vacancies are filled for the unexpired term. 14 The
Governor may suspend a member for cause, including failure to attend three meetings in a 12-month
period, and suspended members are subject to removal or reinstatement by the Senate. 15 Members
receive no compensation for services, are entitled to necessary expenses, and must file full and public
disclosure of financial interests.16
FHFC Homeownership Programs
FHFC’s primary function is administering a variety of programs to assist in the development and
rehabilitation of affordable housing stock, provide low interest loans for first-time homebuyers, provide
down payment assistance and reduce closing costs, and assist in the housing side of disaster recovery.
The following programs focus primarily on aiding first-time homebuyers into stable homeownership by
reducing mortgage payments and onerous one-time costs associated with purchasing a home.
Homebuyer Loan Programs
FHFC’s homebuyer loan programs offer 30-year fixed-rate first mortgage loans originated by a network
of participating lenders throughout Florida. The programs are offered to eligible first-time homebuyers 17
who meet income, purchase price and other program criteria; can qualify for a loan; and successfully
complete a homebuyer education course.18 Borrowers who qualify for a first mortgage program may
access one of FHFC’s down payment assistance (DPA) programs. 19
Down Payment Assistance
FHFC administers multiple DPA programs available to first time homebuyers utilizing a FHFC first
mortgage loan product. DPA is typically offered as a low- or zero-rate loan, in the form of a second
mortgage,20 to secure funding for down payments, closing costs, mortgage insurance premiums, or
principal reduction to the first mortgage.21 FHFC DPA programs are funded from a mix of sources
including documentary stamp tax revenue, special legislative appropriation, and FHFC program
income, which is primarily returned loan money. The various programs differ in terms of eligibility
13
S. 420.504(3), F.S.
14 S. 420.504(4), F.S.
15 Id.
16 S. 420.504(6), (7), F.S.
17 The IRS definition of “first-time homebuyer,” generally accepted by Florida agencies and corporations, is a person who has not
owned and occupied their primary residence for the past three years. See Homebuyer Overview, FHFC, available at
https://www.floridahousing.org/programs/homebuyer-overview-page (last visited Feb. 24, 2023).
18 FHFC funds homebuyer loans through various transaction types, including (a) the specified pool market, (2) tax-exempt bonds, and
(3) forward delivery/To Be Announced (TBA) market.
19 See Florida Housing Finance Corporation, 2020 Annual Report, p. 13, available at https://www.floridahousing.org/data-docs-
reports/annual-reports (last visited Feb. 24, 2023).
20 A second mortgage is a subordinate mortgage made while the original is still in effect.
21 Only one FHFC DPA program can be used by a borrower.
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 (ranging up to 120 percent AMI), requirements (such as also having been approved for a first mortgage
through FHFC), and terms (some including forgivable loans).
Hometown Heroes Program
In 2022, pursuant to the 2022 General Appropriations Act, 22 FHFC created the Hometown Heroes
Program, a new homeownership assistance program. 23 Under the program, eligible purchasers have
access to zero-interest rate loans to reduce the amount of down payment and closing costs from
$10,000 to a maximum of 5 percent or $25,000, whichever is less. Loans must be repaid when the
property is sold, refinanced, rented, or transferred unless otherwise approved by FHFC.
Such loans are available to those first-time homebuyers seeking first mortgages whose family incomes
do not exceed 150 percent of the state or local AMI, whichever is greater, and are employed in certain
necessary professions such as law enforcement officers, educators, healthcare professionals, and
active military or veterans (combining the previous Salute our Soldiers Program). 24 The requirement to
be a first-time homebuyer does not apply to those qualifying as servicemembers or veterans.
FHFC was appropriated $100 million in 2022 to establish the Hometown Heroes Program. 25 As of
January 16, 2023, the program has provided over $49 million in assistance in 3,363 loans.
Funding for Affordable Housing
FHFC draws and administers funds from federal programs through federal tax credits and HUD 26 and
from the state through the State Housing Trust Fund and Local Government Housing Trust Fund. 27
Both state trust funds are funded by documentary stamp taxes, ad hoc individual legislative
appropriations, and through program income, which consists primarily of funds from successful loan
repayment that is recycled into the program it came from.
Documentary Stamp Tax
The documentary stamp tax imposes an excise tax on deeds or other documents that convey an
interest in Florida real property. The tax comprises two taxes imposed on different bases at different tax
rates. The first tax rate is 70 cents on each $100 of consideration for deeds, instruments, or writings
whereby lands, tenements, or other real property or interests that are granted, assigned, transferred,
conveyed, or vested in a purchaser.28 The second tax rate is 35 cents per each $100 of consideration
for certificates of indebtedness, promissory notes, wage assignments, and retail charge account
agreements.29 Revenue collected from the documentary stamp tax is divided between the General
Revenue Fund and various trust funds 30 according to the statutory formula in ch. 201, F.S.
Housing Trust Funds
The State Housing Trust Fund, administered by FHFC,31 is “to be used for new construction and
substantial rehabilitation of housing, to improve the state’s ability to serve first-time homebuyers, and to
increase the affordability and availability of the housing stock in the State of Florida.” 32 The 1992
22 HB 5001, specific appropriation 2289 (2022 Reg. Session).
23 Florida Housing Finance Corporation, Florida Hometown Heroes Housing Program, available at
https://www.floridahousing.org/programs/homebuyer-overview-page/hometown-heroes (last visited Feb. 24, 2023).
24 See Eligible Occupations for FL Hometown Heroes Loan Program, available at https://www.floridahousing.org/docs/default-
source/programs/homebuyers/hometown-heroes/eligible-occupations.pdf?sfvrsn=238ff57b_6 (last visited Feb. 24, 2023).
25 Ch. 2022-156, Laws of Fla (specific appropriation 2289).
26 See ss. 420.507(33) and 159.608, F.S.
27 S. 201.15, F.S.
28 S. 201.02(1), F.S.
29 Ss. 201.07 and 201.08, F.S.
30 The Land Acquisition Trust Fund, the State Transportation Trust Fund, the State Economic Enhancement and Development Trust
Fund, the General Inspection Trust Fund, the Water Protection and Sustainability Pro gram Trust Fund, the Resilient Florida Trust Fund,
the State Housing Trust Fund, and the Local Government Housing Trust Fund.
31 Ch. 92-317, ss. 1-35, Laws of Fla; s. 420.0005, F.S.
32 Ch. 88-376, s. 2, Laws of Fla.; s. 420.003(5), F.S. (1988).
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 Sadowski Act increased documentary stamp tax rates and provided for a certain proportion of
documentary stamp tax revenues to be distributed to the State Housing Trust Fund. A large portion of
these funds are utilized in the State Apartment Incentive Loan (SAIL) Program.
The Local Government Housing Trust Fund, administered by FHFC, 33 is used to fund the State
Housing Initiatives Partnership (SHIP) Program, which was created “for the purpose of providing funds
to local governments as an incentive for the creation of partnerships to produce and preserve
affordable housing.”34 A certain proportion of documentary stamp tax revenues are distributed to the
Local Government Housing Trust Fund.
SAIL Program
The SAIL program is administered by FHFC and provides low-interest loans on a competitive basis to
multifamily affordable housing developers.35 These funds often serve to bridge the gap between the
development’s primary financing and the total cost of t