Ch. 420 FLORIDA HOUSING ACT Ch. 420

Transcription

1 Ch. 420 FLORIDA HOUSING ACT Ch. 420 enable them, without financial assistance, to live, without overcrowding, in decent, safe, and sanitary dwellings. (6) "Rural areas" means an incorporated or unincorporated town, village, or other place which has a population consistent with the housing jurisdiction of the Farmers Home Administration of the United States Department of Agriculture. (7) "Secretary" means the Secretary of Community Affairs. History.-s. 3, ch Revolving Rural Land Acquisition and Site Development Assistance Trust Fund established.-there is established in the State Treasury a separate revolving trust fund to be called "the Revolving Rural Land Acquisition and Site Development Assistance Trust Fund." There shall be deposited into the fund all moneys appropriated by the Legislature or moneys received from any other source for the purpose of this part and all proceeds derived from the use of such moneys; however, interest earned on loans made from the fund as well as income earned by the fund invested pursuant to s shall be deposited to the General Revenue Fund of the state unallocated. The fund shall be administered by the department from moneys appropriated by the Legislature for that purpose. History.-ss. 4, 5, ch Loans authorized; purposes.- (1) The secretary is authorized to make loans to eligible borrowers for the acquisition and development of suitable sites for housing for persons of low or moderate income in rural areas of the state when he determines that: (a) A need for such housing exists as demonstrated by an approved feasibility letter from the appropriate agency. (b) Federal, state, or local assistance funds are available or are likely to be available to aid in the construction, maintenance, or support oflow or moderate income housing on such sites if developed. (c) Funding for land acquisition and site development is not readily available in the area from private sources. (2) Loan recipients shall use moneys borrowed from the fund to purchase or contract to purchase from any person, firm, corporation, municipality, county, or federal or state agency real property and provide for such improvements to the real property that the loan recipient and the secretary determine are reasonably necessary for development of housing and housing-related facilities for persons of low or moderate income. The secretary may authorize a loan for the site upon which the housing is to be situated and sites designated for other uses that are deemed to be necessary to such housing, as defined by the rules and regulations. (3) Such real property or any portion thereof purchased and developed under this part shall be made available to an eligible developer or sponsor for the purpose of construction of housing for persons oflow or moderate income, or directly to a qualified low or moderate income family, at such price and upon such terms as are consistent with the loan agreement. The loan recipient shall, by public notice 51 through publication in a newspaper having a general circulation in the community at least 30 days prior to the execution of any contract for the sale of such real property, invite proposals from, and make available all pertinent information to, eligible developers or any persons interested in undertaking to develop housing on such real property or any portion thereof. The loan recipient shall consider all such development proposals and other relevant factors, including, but not limited to, financial and legal factors and the construction and development capability of the persons making such proposals to carry them out. Such real property or any portion may be disposed of by the loan recipient, and in turn by the eligible developer, at a price not to exceed the actual prorated land costs, development costs, accrued taxes, and interest. History.-s. 6, ch ; s. 1, ch cf.-s Expiration of lending authority Terms of loan agreements.- (1) In addition to any terms or conditions which the secretary may require, each loan agreement shall include: (a) Provision for interest, which shall be set at 3 percent per annum. (b) Provision for a schedule for the repayment of principal and interest upon terms not to exceed 3 years. However, the secretary, upon review after the expiration of no less than 18 months of the original term, is authorized to extend the terms of a loan for an additional period not to exceed 2 years. (c) Provisions for reasonable security for the loan to insure the repayment of the principal and any interest accrued within the term specified. Reasonable security may include, but is not limited to: 1. A promissory note. 2. A mortgage from the eligible borrower on the property purchased and improved from the proceeds of the loan. 3. A pledge of unencumbered revenues of the eligible borrower. 4. Other forms of collateral acceptable to the secretary. (d) Provisions to insure that the land acquired shall be utilized for the development of housing and related services for persons of low or moderate income. (e) Provisions to insure, to the extent possible, that any accrued savings in cost due to the availability of these funds shall be passed on to persons oflow or moderate income in the form of lower prices or rents for dwellings constructed on such land. (f) Provision that no land acquired through assistance under this part shall be disposed of or alienated in any way except for the provision of housing for persons of low and moderate income in a manner that in no way violates Title VIII of the 1968 Civil Rights Act, which specifically prohibits discrimination based on race, color, religion, or national origin in the sale of vacant land to be used for residential purposes. (2) No single loan made under this section shall exceed the lesser of: (a) The development costs, as determined by rule of the secretary;

2 Ch. 420 FLORIDA HOUSING ACT (b) The value of the property as improved with the loan; or (c) Two hundred thousand dollars, unless it is determined by the secretary that any excess amount will be recovered through assured refunds before the maturity of the loan from sources such as utility companies and be used for pertinent facilities financed with the loan. History.--s. 7, ch ; s. 1, ch cf.-s Expiration of lending authority Rules and regulations; annual report.-the secretary is authorized to promulgate rules and regulations, on or before February 1, 1975, necessary to establish terms and conditions that will insure that the purposes of this part are carried out and the state's interests are adequately protected. The secretary shall submit to the Governor by June 30 an annual report with complete details of the amount loaned, interest earned, loan recipients, persons housed, and the balances on all loans outstanding at the end of each fiscal year. History.--s. 8, ch cf.-s Expiration of lending authority Default by borrower; power of the secretary.- (1) In the event of default on a loan, the secretary is empowered on behalf of the state to foreclose on any mortgage or security interest or commence any legal action to protect the interest of the state and recover the amount of the unpaid principal, accrued interest, and fees on behalf of the fund. (2) When a local government has secured a loan through the pledge of eligible revenues as security and subsequently there is a default on the loan, the secretary shall so certify to the Comptroller who shall forward the amount in default to the fund from any moneys so secured that may be due to the applicant under any revenue-sharing or tax-sharing fund established by the state, except as otherwise provided by the Florida Constitution. History.--s. 9, ch cf.--s Expiration of lending authority Failure or inability of the eligible borrower to cause housing to be developed on land purchased; recourse.-the secretary is authorized to take appropriate legal action to transfer title of the land to the state when: (1) A loan recipient does not cause the land to be developed for housing for persons and families oflow or moderate income within 3 years from the execution of the loan agreement, unless the secretary has extended the term of the loan. (2) It is jointly determined by the secretary and the loan recipient that, because of a change in the characteristics of the parcel acquired or because of a change in federal, state, or local programs, it is impossible for the land to be developed for housing for persons of low or moderate income. All land so acquired shall be administered by the secretary in accordance with s History.-s. 10, ch cf.--s Expiration of lending authority Disposition of property accruing to the state.-when, because of the effects of this part, title to lands is acquired by the state to be administered by the secretary, the following provisions shall apply: (1) Subject to the approval of the 1 Board of Trustees of the Internal Improvement Trust Fund, and pursuant to rules and regulations promulgated by the secretary and approved by such trustees, the secretary is empowered to make land so acquired available to eligible sponsors for the provision of housing for persons oflow or moderate income, and, in such cases, the conveyance and reconveyance procedures for state lands as provided in chapters 253 and 270 shall not apply. (2) When the secretary determines that it is not possible for the land to be developed for housing for persons oflow or moderate income, the land shall be sold in accordance with the conveyance and recon-. veyance procedures for state lands as provided in chapters 253 and 270, with all net proceeds to be deposited to the fund. History.-s. 11, ch 'Note.-See s. 15, ch , which abolished the Board of Trustees of the Internal Improvement Trust Fund by merging it into the Department of Natural Resources and transferring to that department all functions not transferred elsewhere by that act, and which effectively abolished the Internal Improvement Trust Fund by transferring all uncommitted balances and all future revenues to the Land Acquisition Trust Fund. Also see s. 10, ch , transferring all functions of the board relating to the issuance of permits, certificates, licenses, exemptions, and enforcement pursuant to ch. 253 to the Department of Environmental Regulation Lands; subject to taxation.-lands purchased under this part shall not be exempted from ad valorem taxation while title is held by the loan recipient. Such taxes shall accrue and be capitalized as part of the total development costs. History.--s. 12, ch Expiration of lending authority. The lending authority granted to the secretary under this part shall expire June 30, All unencumbered and repaid funds after this date shall revert and be transferred to the General Revenue Fund of the state, unallocated. Loan repayments received in the fund after June 30, 1979, shall revert and be transferred to the General Revenue Fund, unallocated, as they are received. History.-s. 14, ch

3 Ch. 421 PUBLIC HOUSING Ch. 421 CHAPTER 421 PUBLIC HOUSING PART I HOUSING AUTHORITIES LAW (ss ) PART II MISCELLANEOUS PROVISIONS (s ) PART I HOUSING AUTHORITIES LAW State's role in housing and urban development. Short title. Finding and declaration of necessity. Definitions. Creation of housing authorities. Appointment, qualifications and tenure of commissioners. Interested commissioners or employees. Removal of commissioners. Powers of authority. Operation not for profit. Financial accounting and investments. RenFals and tenant selection. False representations to obtain lower rent in housing accommodations; penalty. Cooperation of authorities. Eminent domain. Planning, zoning and building laws. Debentures. Form and sale of debentures. Provisions of debentures and trust indentures. Validation of debentures and proceedings. Remedies of an obligee of authority. Additional remedies conferrable by authority. Exemption of property from execution sale. Aid from Federal Government; tax exemptions. Reports. Liabilities of authority. Organization and establishment. Contracts and undertakings. Notes and bonds. Continuance of municipal housing authorities when municipality abolished; counties in excess of 400,000. Housing authorities in counties. Creation of regional housing authority. Area of operation of regional housing authority. Commissioners of regional authorities. Powers of regional housing authority; definitions. Rural housing projects. Execution of mortgages. Housing applications by farmers. Additional definitions. Supplemental nature of sections. Short title Defense housing; finding and declaration of necessity. Defense housing by authorities. Acting for Federal Government on defense housing. Cooperation by public bodies on defense housing. Bonds for defense housing legal investments. Defense housing contracts validated. Removal of restrictions for defense housing. Defense housing; definitions. Provisions supplemental. Organization and establishment of housing authorities validated. Contracts and undertakings ofhousing authorities validated. Notes and bonds of housing authorities validated. Area of operation of housing authorities for defense housing. Decreasing area of operation of regional authority. Authority for county excluded from regional authority. Authorities; creation, obligations, etc., validated. Housing authority, Pinellas County; limitation. Housing authority, Orange and Seminole Counties; limitation State's role in housing and urban development.-the role of state government required by part I of chapter 421 (Housing Authorities Law), chapter 422 (Housing Cooperation Law), chapter 423 (Tax Exemption of Housing Authorities), and chapter 424 (Limited Dividend Housing Companies) is the responsibility of the Department of Community Affairs, and the department is the agency of state government responsible for the state's role in housing and urban development. History.-s. 18, ch Short title.-part I of this chapter may be referred to as the "Housing Authorities Law." History.-s. 1, ch , 1937; CGL 1940 Supp. 7100(3-a) Finding and declaration of necessity. -It is hereby declared that: (1) There exist in the state insanitary or unsafe dwelling accommodations and that persons of low income are forced to reside in such insanitary or unsafe accommodations; that within the state there is a shortage of safe or sanitary dwelling accommodations available at rents which persons of low in-

4 Ch. 421 PUBLIC HOUSING Ch. 421 come can afford and that such persons are forced to occupy overcrowded and congested dwelling accommodations; that the aforesaid conditions cause an increase in and spread of disease and crime and constitute a menace to the health, safety, morals and welfare of the residents of the state and impair economic values; that these conditions necessitate excessive and disproportionate expenditures of public funds for crime prevention and punishment, public health, welfare and safety, fire and accident protection, and other public services and facilities. (2) Slum areas in the state cannot be cleared, nor can the shortage of safe and sanitary dwellings for persons oflow income be relieved, through the operation of private enterprise, and that the construction of housing projects for persons of low income, as herein defined, would therefore not be competitive with private enterprise. (3) The clearance, replanning and reconstruction of the areas in which insanitary or unsafe housing conditions exist and the providing of safe and sanitary dwelling accommodations for persons oflow income, including the acquisition by a housing authority of property to be used for or in connection with housing projects or appurtenant thereto, are exclusively public uses and purposes for which public money may be spent and private property acquired and are governmental functions of public concern. (4) The necessity in the public interest for the provisions hereinafter enacted, is hereby declared as a matter of legislative determination. History.-s. 2, ch , 1937; CGL 1940 Supp. 7100(3-b) Def'mitions.-The following terms, wherever used or referred to in this part, shall have the following respective meanings for the purposes of this part, unless a different meaning clearly appears from the context: (1) "Authority" or "housing authority" shall mean any of the public corporations created by s (2) "City" shall mean any city or town of the state having a population of more than 2,500, according to the last preceding federal or state census. "The city" shall mean the particular city for which a particular housing authority is created. (3) "Governing body" shall mean the city council, the commission, or other legislative body charged with governing the city, as the case may be. (4) "Mayor" shall mean the mayor of the city or the officer thereof charged with the duties customarily imposed on the mayor or executive head of the city. (5) "Clerk" shall mean the clerk of the city or the officer of the city charged with the duties customarily imposed on the clerk thereof. (6) "Area of operation": (a) In the case of a housing authority of a city having a population ofless than 25,000, shall include such city and the area within 5 miles of the territorial boundaries thereof; and (b) In the case of a housing authority of a city having a population of 25,000 or more shall include such city and the area within 10 miles from the territorial boundaries thereof; provided however, that the area of operation of a housing authority of any city shall not include any area which lies within the 54 territorial boundaries of some other city as herein defined; and further provided that the area of operation shall not extend outside of the boundaries of the county in which the city is located and no housing authority shall have any power or jurisdiction outside of the county in which the city is located. (7) "Federal Government" shall include the United States, the Federal Emergency Administration of Public Works or any other agency or instrumentality, corporate or otherwise, of the United States. (8) "Slum" shall mean any area where dwellings predominate which, by reason of dilapidation, overcrowding, faulty arrangement or design, lack of ventilation, light or sanitary facilities, or any combination of these factors, are detrimental to safety, health and morals. (9) "Housing project" shall mean any work or undertaking: (a) To demolish, clear, or remove buildings from any slum area; such work or undertaking may embrace the adaption of such area to public purposes, including parks or other recreational or community purposes; or (b) To provide decent, safe and sanitary urban or rural dwellings, apartments or other living accommodations for persons of low income; such work or undertaking may include buildings, land, equipment, facilities and other real or personal property for necessary, convenient or desirable appurtenances, streets, sewers, water service, parks, site preparation, gardening, administrative, community, health, recreational, educational, welfare or other purposes; or (c) To accomplish a combination of the foregoing. The term "housing project" also may be applied to the planning of the buildings and improvements, the acquisition of property, the demolition of existing structures, the construction, reconstruction, alteration and repair of the improvements and all other work in connection therewith. (10) "Persons oflow income" shall mean persons or families who lack the amount of income which is necessary, as determined by the authority undertaking the housing project, to enable them, without financial assistance, to live in decent, safe and sanitary dwellings, without overcrowding. (11) "Debentures" shall mean any notes, interim certificates, debentures, revenue certificates, or other obligations issued by an authority pursuant to this chapter. (12) "Real property" shall include all lands, including improvements and fixtures thereon, and property of any nature appurtenant thereto, or used in connection therewith, and every estate, interest and right, legal or equitable, therein, including terms for years and liens by way of judgment, mortgage or otherwise and the indebtedness secured by such liens. (13) "Obligee of the authority" or "obligee" shall include any holder of debentures, trustee or trustees for any such holders, or lessor demising to the authority property used in connection with a housing

5 Ch. 421 PUBLIC HOUSING Ch. 421 project, or any assignee or assignees of such lessor's interest or any part thereof, and the Federal Government when it is a party to any contract with the authority. History.-s. 3, ch , 1937; CGL 1940 Supp. 7100(3-e); s. 1, ch , 1941; s. 1, ch , 1953; s. 24, ch. 57 1; s. 1, ch Creation of housing authorities.- (!) In each city, as herein defined, there is hereby created a public body corporate and politic to be known as the "Housing Authority" of the city; provided, however, that such authority shall not transact any business or exercise its powers hereunder until or unless the governing body of the city by proper resolution shall declare that there is need for an authority to function in such city. The determination as to whether there is such need for an authority to function: (a) May be made by the governing body on its own motion; or (b) Shall be made by the governing body upon the filing of a petition signed by 25 residents of the city asserting that there is need for an authority to function in such city and requesting that the governing body so declare. (2) The governing body may adopt a resolution declaring that there is need for a housing authority in the city if it shall find that: (a) Insanitary or unsafe il).habited dwelling accommodations exist in such city; or (b) There is a shortage of safe or sanitary dwelling accommodations in such city available to persons of low income at rentals they can afford. In determining whether dwelling accommodations are unsafe or insanitary said governing body may take into consideration the degree of overcrowding, the percentage of land coverage, the light, air, space and access available to the inhabitants of such dwelling accommodations, the size and arrangement of the rooms, the sanitary facilities, and the extent to which conditions exist in such buildings which endanger life or property by fire or other causes. (3) In any suit, action or proceeding involving the validity or enforcement of or relating to any contract of the authority, the authority shall be conclusively deemed to have become established and authorized to transact business and exercise its powers hereunder upon proofofthe adoption of a resolution by the governing body declaring the need for the authority. Such resolution or resolutions shall be sufficient if it declares that there is such need for an authority and finds in substantially the foregoing terms, no further detail being necessary, that either or both of the above enumerated conditions exist in the city. A copy of such resolution duly certified by the clerk shall be admissible in evidence in any suit, action or proceeding. History.-s. 4, ch , 1937; CGL 1940 Supp. 7100(3-d) Appointment, qualifications and tenure of commissioners.- (!) When the governing body of a city adopts a resolution as aforesaid, the mayor with the approval of the governing body shall promptly appoint five persons as commissioners of the authority created for said city. Three of the commissioners who are first appointed shall be designated to serve for terms 55 of 1, 2 and 3 years respectively; and the remaining two of such commissioners shall be designated to serve for terms of 4 years each, from the date of their appointment. Thereafter commissioners shall be appointed as aforesaid for a term of office of 4 years except that all vacancies shall be filled for the unexpired term. No commissioner of an authority may be an officer or employee of the city for which the authority is created. A commissioner shall hold office until his successor has been appointed and has qualified. A certificate of the appointment or reappointment of any commissioner shall be filed with the clerk and such certificate shall be conclusive evidence of the due and proper appointment of such commissioner. A commissioner shall receive no compensation for his services, but he shall be entitled to the necessary expenses, including traveling expenses, incurred in the discharge of his duties. (2) The powers of each authority shall be vested in the commissioners thereof in office from time to time. Three commissioners shall constitute a quorum of the authority for the purpose of conducting its business and exercising its powers and for all other purposes. Action may be taken by the authority upon a vote of a majority of the commissioners present, unless in any case the bylaws of the authority shall require a larger number. The mayor with the concurrence of the governing body shall designate which of the commissioners appointed shall be the first chairman, but when the office of the chairman of the authority thereafter becomes vacant, the authority shall select a chairman from among its commissioners. An authority shall select from among its commissioners a vice chairman, and it may employ a secretary, who shall be executive director, technical experts and such other officers, agents and employees, permanent and temporary, as it may require, and shall determine their qualifications, duties and compensation. For such legal services as it may require, an authority may call upon the chief law officer of the city or may employ its own counsel and legal staff. An authority may delegate to one or more of its agents or employees such powers or duties as it may deem proper. History.-s. 5, ch , 1937; CGL 1940 Supp. 7100(3-e); s. 1, ch Interested commissioners or employees.-no commissioner or employee of an authority shall acquire any interest, direct or indirect, in any housing project or in any property included or planned to be included in any project, nor shall he have any interest, direct or indirect, in any contract or proposed contract for materials or services to be furnished or used in connection with any housing project. If any commissioner or employee of an authority owns or controls an interest, direct or indirect, in any property included or planned to be included in any housing project, he shall immediately disclose the same in writing to the authority and such disclosure shall be entered upon the minutes of the authority. Failure so to disclose such interest shall constitute misconduct in office. History.-s. 6, ch , 1937; CGL 1940 Supp. 7100(3-f).

6 Ch. 421 PUBLIC HOUSING Ch Removal of commissioners.-for inefficiency or neglect of duty or misconduct in office, a commissioner of an authority may be removed by the mayor with the concurrence of the governing body, but a commissioner shall be removed only after he shall have been given a copy of the charges at least 10 days prior to the hearing thereon and had an opportunity to be heard in person or by counsel. In the event of the removal of any commissioner, a record of the proceedings, together with the charges and findings thereon, shall be filed in the office of the clerk. History.-s. 7, ch ; 1937; CGL 1940 Supp. 7100(3-g); s. 2, ch Powers of authority.-an authority shall constitute a public body corporate and politic, exercising the public and essential governmental functions set forth in this chapter, and having all the powers necessary or convenient to carry out and effectuate the purpose and provisions of this chapter, including the following powers in addition to others herein granted: (1) To sue and be sued; to have a seal and to alter the same at pleasure; to have perpetual succession; to make and execute contracts and other instruments necessary or convenient to the exercise of the powers of the authority; and to make and from time to time amend and repeal bylaws, rules and regulations, not inconsistent with this chapter, to carry into effect the powers and purposes of the authority. (2) Within its area of operation, to prepare, carry out, acquire, lease and operate housing projects; to provide for the construction, reconstruction, improvement, alteration or repair of any housing project or any part thereof. (3) To arrange or contract for the furnishing by any person or agency, public or private, of services, privileges, works, or facilities for, or in connection with, a housing project or the occupants thereof; provided, however, that notwithstanding any other power or provision in this chapter, the authority shall not construct, lease, control, purchase or otherwise establish in connection with or as a part of any housing project or any other real or any other property under its control, any system, work, facilities, plants or other equipment for the purpose of furnishing utility service of any kind to such projects or to any tenant or occupant thereof in the event that a system, work, facility, plant or other equipment for the furnishing of the same utility service is being actually operated by a municipality or private concern in the area of operation or the city or the territory immediately adjacent thereto; provided, further, that nothing herein shall be construed to prohibit the construction or acquisition by the authority of any system, work, facilities or other equipment for the sole and only purpose of receiving utility services from any such municipality or such private concern and then distributing such utility services to the project and to the tenants and occupants thereof; and, notwithstanding anything to the contrary contained in this chapter or in any other provision of law, to include in any contract let in connection with a project, stipulations requiring that the contractor and any subcontractors comply with requirements as to minimum wages and maximum hours oflabor, and comply with any conditions which the Federal Government may have attached to its financial aid of the project. (4) To lease or rent any dwellings, houses, accommodations, lands, buildings, structures or facilities embraced in any housing project and, subject to the limitations contained in this chapter, to establish and revise the rents or charges therefor; to own, hold and improve real or personal property; to purchase, lease, obtain options upon, acquire by gift, grant, bequest, devise, or otherwise any real or personal property or any interest therein; to acquire by the exercise of the power of eminent domain any real property; to sell, lease, exchange, transfer, assign, pledge or dispose of any real or personal property or any interest therein; to insure or provide for the insurance of any real or personal property or operations of the authority against any risks or hazards; to procure or agree to the procurement of insurance or guarantees from the Federal Government of the payment of any such debts or parts thereof, whether or not incurred by said authority, including the power to pay premiums on any such insurance. (5) To invest any funds held in reserves or sinking funds, or any funds not required for immediate disbursement, in property or securities in which savings banks may legally invest funds subject to their control; to purchase its debentures at a price not more than the principal amount thereof and accrued interest, all debentures so purchased to be canceled. (6) Within its area of operation: to investigate into living, dwelling and housing conditions and into the means and methods of improving such conditions; to determine where slum areas exist or where there is a shortage of decent, safe and sanitary dwelling accommodations for persons of low income; to make studies and recommendations relating to the problem of clearing, replanning and reconstruction of slum areas, and t he problem of providing dwelling accommodations for persons of low income, and to cooperate with the city, the county, the state or any political subdivision thereof in action taken in connection with such problems; and to engage in research, studies and experimentation on the subject of housing. 56 (7) Acting through one or more commissioners or other person or persons designated by the authority; to conduct examinations and investigations and to hear testimony and take proof under oath at public or private hearings on any matter material for its information; to administer oaths, issue subpoenas requiring the attendance of witnesses or the production ofbooks and papers and to issue commissions for the examination of witnesses who are outside of the state or unable to attend before the authority, or excused from attendance; to make available to appropriate agencies, including those charged with the duty of abating or requiring the correction of nuisances or like conditions, or of demolishing unsafe or insanitary structures within its area of operation, its findings and recommendations with regard to any building or property where conditions exist which are dangerous to the public health, morals, safety or welfare. (8) To exercise all or any part or combination of powers herein granted. No provisions of law with respect to acquisition, operation or disposition of

7 property by other public bodies shall be applicable to an authority unless the Legislature shall specifically so state. History.-s. 8, ch , 1937; CGL 1940 Supp. 7100(3-h). 'Note.- Adams v. Housing Authority of City of Daytona Beach, 60 So.2d 663(1952). cf.- ss , , Validation, etc., of acts. s Rural housing projects Operation not for profit.-it is the policy of this state that each housing authority shall manage and operate its housing projects in an efficient manner so as to enable it to fix the rentals for dwelling accommodations at the lowest possible rates consistent with its providing decent, safe and sanitary dwelling accommodations, and that no housing authority shall construct or operate any such project for profit, or as a source of revenue to the city. To this end an authority shall fix the rentals for dwellings in its project at no higher rate than it shall find to be necessary in order to produce revenues which, together with all other available moneys, revenue, income and receipts of the authority from whatever sources derived, will be sufficient: (1) To pay, as the same shall become due, the principal and interest on the debentures of the authority; (2) To meet the cost of, and to provide for, maintaining and operating the projects, including the cost of any insurance, and the administrative expenses of the authority; and (3) To create, during not less than the 6 years immediately succeeding its issuance of any debentures, a reserve sufficient to meet the largest principal and interest payments which will be due on such debentures in any one year thereafter, and to maintain such reserve. History.-s. 9, ch , 1937; CGL 1940 Supp. 7100(3-i) Financial accounting and investments.-a complete and full financial accounting and audit shall be made annually by a certified public accountant, and a copy of said report shall be filed with the governing body not less than 90 days after the close of each fiscal year. Provided, however, that it shall not be necessary to make a financial accounting and audit of federal funds furnished housing authorities by the Federal Government and which are audited annually by said Federal Government if a copy of such federal audit is furnished to the governing body. History.-s. 3, ch Rentals and tenant selection.- (!) In the operation or management of housing projects an authority shall at all times observe the following duties with respect to rentals and tenants selection: (a) It may rent or lease the dwelling accommodations therein only to persons of low income and at rentals within the financial reach of such persons of low income; (b) It may rent or lease to a tenant dwelling accommodations consisting of the number of rooms, but no greater number, which it deems necessary to provide safe and sanitary accommodations to the proposed occupants thereof, without overcrowding; and PUBLIC HOUSING Ch (c) It shall not accept any person as a tenant in any housing project if the person or persons who would occupy the dwelling accommodations have an annual net income in excess of five times an annual rental of the quarters to be furnished such person or persons, except that in case of families with three or more minor dependents, such ratio shall not exceed 6 to 1; in computing the rental for this purpose of selecting tenants, there shall be included in the rental the average annual cost, as determined by the authority, to occupants of heat, water, electricity, gas, cooking range and other necessary services or facilities, whether or not the charge for such services and facilities is in fact included in the rental. (2) Nothing contained in this section or s , shall be construed as limiting the power of an authority to vest in an obligee the right, in the event of a default by the authority, to take possession of a housing project or cause the appointment of a receiver thereof, free from all the restrictions imposed by this or the preceding section. (3) This section shall not apply to housing facilities financed by loans made for the purpose of providing such facilities for domestic farm labor pursuant to s. 514 of the Federal Housing Act of History.-s. 10, ch , 1937; s. 1, ch , 1939; CGL 1940 Supp. 7100(3-j); s. 7, ch , 1945; s. 1, ch cf.- s Rural housing projects False representations to obtain lower rent in housing accommodations; penalty. Whoever makes a false statement or representation, knowing it to be false, or knowingly fails to disclose a material fact in order to obtain a lower rent for housing accommodations in a low rent housing development operated pursuant to chapter 421, than the rental such person is required to pay pursuant to federal or state statutes, schedule of rents or rules and regulations as determined and fixed by housing authorities created pursuant to chapter 421, aforesaid, shall be guilty of a misdemeanor of the second degree, punishable as provided in s or s ; and each such false statement or representation or failure to disclose a material fact as aforesaid shall constitute a separate offense. History.- s. 1, ch ; s. 362, ch Cooperation of authorities.-any two or more housing authorities may join or cooperate with one another in the exercise, either jointly or otherwise, of any or all of their powers for the purpose of financing, including the issuance of bonds, debentures, notes or other obligations and giving security therefor, planning, undertaking, owning, constructing, operating or contracting with respect to a housing project or projects located within the area of operation of any one or more of said authorities. For such purpose, an authority may by resolution prescribe and authorize any other housing authority or authorities, so joining or cooperating with it, to act on its behalf with respect to any or all such powers. Any authorities joining or cooperating with one another may by resolutions appoint from among the commissioners of such authorities an executive committee with full power to act on behalf of such au-

8 Ch. 421 PUBLIC HOUSING Ch. 421 thorities with respect to any or all of their powers, as prescribed by resolutions of such authorities. History.-s. 11, ch , 1937; CGL 1940 Supp. 7100(3-k); s. 1, ch , Eminent domain.-an authority shall have the right to acquire by the exercise of the power of eminent domain any real property which it may deem necessary for its purposes under this chapter after the adoption by it of a resolution declaring that the acquisition of the real property described therein is necessary for such purposes. An authority may exercise the power of eminent domain in the manner provided in chapters 73 and 74. Property already devoted to a public use may be acquired in like manner, provided that no real property belonging to the city, the county, the state or any political subdivision thereof may be acquired without its consent. History.-s. 12, ch , 1937; CGL 1940 Supp. 7100(3-1) Planning, zoning and building laws. All housing projects of an authority shall be subject to the planning, zoning, sanitary and building laws, ordinances and regulations applicable to the locality in which the housing project is situated. In the planning and location of any housing project, an authority shall take into consideration the relationship of the project to any larger plan or long-range program for the development of the area in which the housing authority functions. History.--s. 13, ch , 1937; CGL 1940 Supp. 7100(3-x) Debentures.- (!) An authority may issue debentures from time to time in its discretion, for any of its corporate purposes. An authority may also issue refunding debentures for the purpose of paying or retiring debentures previously issued by it. An authority may issue such types of debentures as it may determine, including debentures on which the principal and interest are payable: (a) Exclusively from the income and revenues of the housing project financed with the proceeds of such debentur~s, or with such proceeds together with a grant from the federal government in aid of such project; (b) Exclusively from the income and revenues of certain designated housing projects whether or not they were financed in whole or in part with the proceeds of such debentures; or (c) From its revenues generally. Any of such debentures may be additionally secured by a pledge of any revenues of any housing project, projects or other property of the authority. (2) Neither the commissioners of an authority nor any person executing the debentures shall be liable personally on the debentures by reason of the issuance thereof. The debentures and other obligations of an authority, and such debentures and obligations shall so state on their face, shall not be a debt of the city, the county, the state or any political subdivision thereof, and neither the city or the county, nor the state or any political subdivision thereof shall be liable thereon, nor in any event shall such debentures or obligations be payable out of any funds or properties other than those of said authori- 58 ty. The debentures shall not constitute an indebtedness within the meaning of any constitutional or statutory debt or bond limitation or restriction. History.-s. 14, ch , 1937; CGL 1940 Supp. 7100(3-y) Form and sale of debentures.- (!) Debentures of an authority shall be authorized by its resolution and may be issued in one or more series and shall bear such dates, mature at such times, bear interest at such rates, not exceeding '[7.5] percent per annum, be in such denominations, be in such form, either coupon or registered, carry such conversion or registration privileges, have such rank or priority, be executed in such manner, be payable in such medium of payment, at such places and be subject to such terms of redemption, with or without premium, as such resolution or its trust indenture may provide. (2) The debentures may be sold at not less than par at public sale held after notice published once at least 5 days prior to such sale in a newspaper having a general circulation in the city and in a financial newspaper published in the City of Chicago, Illinois, or in the City of New York, New York, provided, however, that such debentures may be sold at not less than par to the Federal Government at private sale without any public advertisement. (3) In case any of the commissioners or officers of the authority whose signatures appear on any debentures or coupons shall cease to be such commissioners or officers before the delivery of such debentures, such signatures shall, nevertheless, be valid and sufficient for all purposes, the same as if such commissioners or officers had remained in office until such delivery. Any provision of any law to the contrary notwithstanding, any debentures issued pursuant to this chapter shall be fully negotiable. (4) In any suit, action or proceedings involving the validity or enforceability of any debenture of an authority or the security therefor, any such debenture reciting in substance that it has been issued by the authority to aid in financing a housing project to provide dwelling accommodations for persons oflow income shall be conclusively deemed to have been issued for a housing project of such character and said project shall be conclusively deemed to have been planned, located and constructed in accordance with the purposes and provisions of this chapter. History.-s. 15, ch , 1937; CGL 1940 Supp. 7100(3-z). 'Note.-Bracketed numeral substituted for "6" by the editors to confonn to ch Provisions of debentures and trust indentures.-in connection with the issuance of debentures or the incurring of obligations under leases and in order to secure the payment of such indentures or obligations, an authority, in addition to its other powers, shall have power: (1) To pledge all or any part of its gross or net rents, gross or net fees or gross or net revenues to which its right then exists or may thereafter come into existence. (2) To covenant against pledging all or any part of its rents, fees and revenues, or against mortgaging all or any part of its real or personal property, to which its right or title then exists or may thereafter come into existence or against permitting or suffer-

9 ing any lien on such revenues or property; to covenant with respect to limitations on its rights to sell, lease or to otherwise dispose of any housing project or any part thereof; and to covenant as to what other, or additional debts or obligations may be incurred by it. (3) To covenant as to the debentures to be issued and as to the issuance of such debentures in escrow or otherwise, and as to the use and disposition of the proceeds thereof; to provide for the replacement of lost, destroyed or mutilated debentures; to covenant against extending the time for the payment of its debentures or interest thereon; and to redeem the debentures, and to covenant for their redemption and to provide the terms and conditions thereof. (4) To covenant, subject to the limitations contained in this chapter, as to the rents and fees to be charged in the operation of a housing project or projects, the amount to be raised each year or other period of time by rents, fees and other revenues, and as to the use and disposition to be made thereof; to create or to authorize the creation of special funds for moneys held for construction or operating costs, debt service, reserves, or other purposes, and to covenant as to the use and disposition of the moneys held in such funds. (5) To prescribe the procedure, if any, by which the terms of any contract with the holders of debentures may be amended or abrogated, the amount of debentures the holders of which must consent thereto, and the manner in which such consent may be given. (6) To covenant as to the use of any or all of its real or personal property; and to covenant as to the maintenance of its real and personal property, the replacement thereof, the insurance to be carried thereon and the use and disposition of insurance moneys. (7) To covenant as to the rights, liabilities, powers and duties arising upon the breach by it of any covenant, condition, or obligation, and to covenant and prescribe as to events of default and terms and conditions upon which any or all of its debentures or obligations shall become or may be declared due before maturity, and as to the terms and conditions upon which such declaration and its consequences may be waived. (8) To vest in a trustee or trustees or the holders of debentures or any proportion of them the right to enforce the payment of the debentures or any covenants securing or relating to the debentures; to vest in a trustee or trustees the right, in the event of a default by said authority, to take possession and use, operate and manage any housing project or part thereof, and to collect the rents and revenues arising therefrom and to dispose of such moneys in accordance with the agreement of the authority with said trustee; to provide for the powers and duties of a trustee or trustees and to limit the liabilities thereof; and to provide the terms and conditions upon which the trustee or trustees or the holders of debentures or any proportion of them may enforce any covenant or rights securing or relating to the debentures. PUBLIC HOUSING Ch (9) To exercise all or any part or combination of the powers herein granted. History.-s. 16, ch , 1937; CGL 1940 Supp. 7100(3-aa) Validation of debentures and pro ceedings.- (1) A housing authority shall have the right, if it deems it expedient, to determine its authority to issue any debentures, and the legality of all proceedings had or taken in connection therewith, in the same manner and to the same extent, except as otherwise provided in this section, as provided in chapter 75 for the determination by a county, municipality, taxing district, or other political district or subdivision of its authority to incur bonded debt or to issue certificates of indebtedness and of the legality of all proceedings had or taken in connection therewith. (2) The petition to validate such debentures, and the proceedings had or taken in connection therewith, shall be filed by the housing authority in the Circuit Court for the county in which is located the city for which said housing authority was created, except that whenever it appears that a housing authority is empowered to function in more than one county the Circuit Court of any county in the whole or any part of which the housing authority is empowered to function shall have jurisdiction of the cause in the same manner as provided in said chapter whenever a municipality, taxing district or other political district or subdivision shall extend into more than one county. (3) The notice required by s shall be addressed to the taxpayers and citizens of the city for which such housing authority has been created and of the county, or counties, in the event such housing authority is empowered to function in more than one county, in the whole or any part of which the housing authority is empowered to function; and by the publication of such notice as required by said chapter 75 all taxpayers and citizens of such city and such county or counties, as the case may be, shall be considered as parties defendant to such proceedings, and the Circuit Court in which the proceeding is brought shall have jurisdiction of all of the same as if they were named defendants in the petition filed pursuant to said chapter and personally served with process. (4) In the event no appeal is taken within the ti:nc prescribed by said chapter, or if taken, and the decree validating said debentures is affirmed by the Supreme Court, the decree of the Circuit Court validating and confirming the issuance of the debentures of the housing authority shall be forever conclusive as to the validity of said debentures against the housing authority and against all taxpayers and citizens of the city for which said housing authority was created and of the county or counties in the whole or part of which the housing authority is empowered to function; and the validity of said debentures shall never be called in question in any court in this state. Debentures of a housing authority, when issued under the provisions of said chapter, shall have stamped or written thereon by the proper officers of the housing authority issuing the same, the words: "Validated and Confirmed by Decree of the Circuit Court," specifying the date when such decree was rendered and the court in which it was