2015 LEGISLATIVE SUMMARY

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1 2015 LEGISLATIVE SUMMARY

FHBA GOVERNMENTAL AFFAIRS Committee Chair Congratulations to everyone who participated in our lobbying and advocacy efforts including the members who attended Spring Conference, those involved in

organized, focused and informed! Greg Matovina Governmental Affairs Chair For me.

industry and ultimately, for the homeowners and other constituents that we serve.

2 FHBA GOVERNMENTAL AFFAIRS Committee Chair Congratulations to everyone who participated in our lobbying and advocacy efforts including the members who attended Spring Conference, those involved in individual bills that impact different areas of the State, members of the Governmental Affairs Committee, staff at the local associations and our FHBA staff who did a tremendous job of keeping us organized, focused and informed! Greg Matovina Governmental Affairs Chair For me. It was both gratifying and inspiring to watch the leadership provided by our FHBA staff, lobbyists, Executive Team, local staff and members as they worked together as a team to advocate for our industry and ultimately, for the homeowners and other constituents that we serve. It is the leadership and teamwork that made a very strong presence for FHBA in the halls of the Capitol this past session. Though one may be over powered, two can defend themselves and a cord of three strands is not easily broken. (Ecclesiastes 4:12). The 2015 session was a fantastic start to a new era at the State Capitol for FHBA. The new initiatives such as the grass roots lobbying tool or the legislative leave-behind have laid the foundation for many successful sessions to come! FHBA GOVERNMENTAL AFFAIRS TEAM Rusty Payton CEO / Chief Lobbyist rpayton@fhba.com O: (850) M: (850) Douglas Buck Governmental Affairs Director dbuck@fhba.com O: (850) M: (850) Kari Hebrank Lobbyist O: M: Robin Erb Legislative Assistant rerb@fhba.com O: (850) For more information about these issues and others, please contact us.

contractor requesting the creation of a master building permit program, the local government must establish a permit within 6 months of receipt of the written request.

3 RESIDENTIAL MASTER BUILDING PERMITS HB 1151 by Rep. Blaise Ingoglia (R-Spring Hill) and Sen. Jeff Brandes (R-St. Petersburg) HB 1151 creates a residential master building permit program whereby if a local building code administrator receives a written request from a licensed general, building, or residential contractor requesting the creation of a master building permit program, the local government must establish a permit within 6 months of receipt of the written request. The program achieves standardization, streamlines development and reduces time spent by local building departments during the building permit application process. In order to obtain a master building permit, builders must submit certain documents and a general construction plan to the local building department for review and approval. Check with you local building official to determine what documents are required to be submitted. The building department must review the general construction plan to determine compliance with the building code and approve or deny the master building permit application within 120 days after receiving a complete application. If approved, the builder receives a master building permit and permit number. To build to the master building permit, the builder must apply for a site-specific building permit and include the master building permit number with the application. The master building permit number may be submitted an unlimited number of times with the sitespecific building permit applications so long as the builder uses the model design contained in the master building permit and the permit is valid. Approved master building permits are valid until the Florida Building Code is updated. It is important to note that if a builder or design professional willfully violates these provisions, they may be fined $10,000 for each dwelling or town home built under the master building permit that does not conform to the master building permit on file with the local building department. The local governments may establish fees pursuant to s (7), F.S., for the master builder permit program. Upon passage of HB 1151, State Representative Blaise Ingoglia, a builder/developer and member of the Florida Home Builders Association, remarked, I am proud of the hard work our team did to get this legislation passed. Florida s new Master Builder Permit Program will help to streamline the residential permitting process. The free market is always better off when we can reduce redundancy and bureaucratic red tape in government.

distressed condominium without assuming developer liability. This provision was scheduled to terminate on July 1, 2016.

4 CONDOMINIUM BULK BUYER LIABILITY HB 791 Condominium Bulk Buyer Liability by Rep. George Moraitis (R-Ft. Lauderdale) and Sen. Jeremy Ring (D-Margate) HB 791 contains several provisions relating to Condominium and Home Owner s Associations, including the FHBA priority which allows bulk buyers to purchase units from a distressed condominium without assuming developer liability. This provision was scheduled to terminate on July 1, Thanks to the passage of HB 791, the termination of the provision is delayed until July 1, During the economic downturn, policymakers needed to encourage investments in distressed condominiums. Allowing bulk buyers to purchase units without assuming all of the liability of a developer proved to be a popular solution. The bill as originally filed contained the important extension, but also provided for bulk buyers to concede the ability to effectuate changes in the condominiums bylaws. Thanks to Rep. Moraitis and Sen. Ring, the bills were amended to provide for extending the liability protections without diminishing voting rights of bulk buyers. Why are condominium association issues important to FHBA? Former Chairman of the FHBA Governmental Affairs Committee, Jeff Spear, summed it up well; In certain urban areas of Florida, it is nearly impossible to build horizontally. Many FHBA members have to build vertically just to maintain a business. I am thankful that FHBA recognizes these issues are important to many members like myself.

5 CONSTRUCTION DEFECTS HB 87 by Rep. Kathleen Passidomo (R-Naples) and Senator Garrett Richter (R-Naples) In order to speed the resolution of construction defect claims and reduce the need for litigation, Chapter 558, Florida Statutes, was created in 2003 to provide an alternative dispute resolution process. Before a lawsuit can be initiated against a contractor, subcontractor, supplier, or design professional, the claimant must serve a written notice and provide the party with an opportunity to resolve the alleged defect. As practical experience with the operation of this law, known as the Construction Defects Law grew, it became clear that several modifications to the law would facilitate its operation in helping to resolve construction defect claims. HB 87 included the following changes to Chapter 558, the construction defects law, to address these issues: To help speed up resolution, the claimant s notice to the contractor will now have to identify the location of each alleged construction defect, so the contractor will not have to hunt all over the property for them. New language expedites the exchange of relevant documents between the owner and the contractor, in particular the owner s maintenance records and other documents related to the discovery, investigation, causation, and extent of the alleged defects. Clarifies that the Chapter 558 process and certain statutory warranties are triggered by the local government s issuance of any certificate of occupancy that allows for occupancy or use of the entire building or improvement, regardless of what the local government might call that document, e.g., a temporary certificate of occupancy. FHBA Member Sue Miller, President of Ellzey Construction in Pensacola, had this to say about the passage of HB 87: Whether you build a handful of custom homes per year or high-rise condominiums, the passage of HB 87 means you will be presented with more specific information regarding alleged construction defects and be better equipped to address the issue prior to formal litigation. This is a win for all contractors and home owners.

For example, a locality may ask a developer to perform improvements on a public street in anticipation of the increased traffic that a development may bring. In some cases, this is a fair request.

6 PRIVATE PROPERTY RIGHTS HB 383 Private Property Rights by Rep. Katie Edwards (D-Sunrise), Rep. Keith Perry (R-Gainesville) Sen. Diaz de la Protilla (R-Miami) For years, local governments have pursued arrangements with developers to extract certain concessions in exchange for the opportunity to develop. For example, a locality may ask a developer to perform improvements on a public street in anticipation of the increased traffic that a development may bring. In some cases, this is a fair request. However, some local governments seem all too willing to stretch the boundaries to the limit. Rep. Keith Perry, a co-prime sponsor and FHBA member commented: As a contractor and active member of FHBA, I experience first-hand the financial hurdles local governments place upon homebuilders. HB 383 puts local governments on notice that any concessions at the time of permitting must be rational and related. In a victory for NAHB membership and property rights advocates, the U.S. Supreme Court on June 25, 2013, issued a decision that directly affects the law that applies to such conditions, called exactions. That case is Koontz v. St. Johns River Water Management District. In the case of Koontz vs. St. Johns Water Management District, the United States Supreme ruled that a government cannot deny a land-use permit based on a landowner s refusal to accede to the government s demands to either turn over property or pay money to the government unless there is an essential nexus and rough proportionality between the government s demand on the landowner and the effect of the proposed land use. HB 383 creates a cause of action for landowners to recover damages where a local or state governmental entity imposes such a prohibited exaction. Plaintiffs under the cause of action are required to provide pre-suit notice to the governmental entity to allow an opportunity to explain or correct the prohibited exaction without further litigation. If the suit is necessary, the bill requires the governmental entity to prove the exaction complies with the standards set by the U.S. Supreme Court while the property owner must prove damages.

SADOWSKI AFFORDABLE HOUSING TRUST FUND At the conclusion of the budget Special Session, the House and Senate reached a final agreement on the fiscal year 2015-2016 budget which included good news for

Legislation that would have permanently reduced the amount of doc stamps coming into the Housing Trust Funds EVERY year was defeated. 3. Another $4.4 million of general revenue and another $3.

7 SADOWSKI AFFORDABLE HOUSING TRUST FUND At the conclusion of the budget Special Session, the House and Senate reached a final agreement on the fiscal year budget which included good news for affordable housing funds. 1. Housing appropriations from the Housing Trust Funds are $175 million, up from last year. 2. Legislation that would have permanently reduced the amount of doc stamps coming into the Housing Trust Funds EVERY year was defeated. 3. Another $4.4 million of general revenue and another $3.9 million from the SEED Trust Fund will be spent to fund homeless and other housing projects. WHAT DO THESE PROGRAMS DO? WHO DO THEY SERVE? SHIP funds can be used for rehabilitation/renovation of existing housing stock to allow seniors to age in place or to provide retrofitting for persons with special needs; SHIP funds can be used to move the existing housing stock and provide first time home buyers with down payment and closing cost assistance, as well as rehabilitation and retrofit; SAIL funds can be used to rehabilitate existing apartments in dire need of repair or to build new units where needed; apartments that house Florida s most vulnerable populations, such as the elderly and persons with disabilities; SAIL and SHIP programs span from homeless to the moderate income essential workforce; The beauty of both SHIP and SAIL is that they are flexible and can meet changing needs and priorities within the same program framework. WHAT IS THE NEED FOR THESE PROGRAMS? Over 900,000 very low income Floridians pay more than 50% of their income on housing they are one missed paycheck away from homelessness; Florida has the fourth largest homeless population in the nation Barbara Revels, President of Coquina Real Estate & Construction, states that the Sadowski Housing Trust Funds help local builders provide affordable housing to Flagler County s very low and low income home buyers that may otherwise may not be able to own a home. Remodelers also benefit from the funds when performing emergency repair and rehab to eliminate health and safety issues that pose a threat to residents.

UNLICENSED ACTIVITY ENFORCEMENT FUNDS A key function of any governmental agency is the protection of the health and welfare of its citizens. The licensing of contractors fulfills this mission.

At the request of FHBA, the state fully funded contractor unlicensed activity funds within the Department of Business and Professional regulation to the tune of $250,000.

8 UNLICENSED ACTIVITY ENFORCEMENT FUNDS A key function of any governmental agency is the protection of the health and welfare of its citizens. The licensing of contractors fulfills this mission. Just as important is the investigation and prosecution of non-licensees, an activity which requires financial resources. At the request of FHBA, the state fully funded contractor unlicensed activity funds within the Department of Business and Professional regulation to the tune of $250,000. These funds go to the Department of Business and Professional Regulation to increase enforcement actions against unlicensed individuals. Unlicensed contractors take business away from licensed contractors who have taken the time, and spent the money, to comply with various state and local laws. The funds also go towards increasing stings and sweeps and is not to be used for public relations campaigns. We want the bad guys off the street. Unlicensed contractors are a threat to not only our businesses but to the unsuspecting homeowner. Monies provided by DBPR provide the resources for the Manatee-Sarasota Building Industry Association to work in cooperation with local authorities on programs to catch and prosecute unlicensed contractors, which in turn protects the health, safety and welfare of the public. During the last 18 months Sarasota and Manatee Counties Code Enforcement Divisions have issued over 140 citations for unlicensed and unpermitted activities. said Jon Mast CGC, Chief Executive Officer of Manatee-Sarasota BIA

ONE-YEAR DELAY IN MANDATORY BLOWER DOOR TESTING, MECHANICAL VENTILATION AND SECONDARY FIRE ELEVATOR The 2015 regular legislative session resulted in a historical meltdown between the House and Senate.

Contained in the failed building code bill were provisions delaying the implementation of mandatory blower door testing, changes in mechanical ventilation rates and requirements to install a

9 ONE-YEAR DELAY IN MANDATORY BLOWER DOOR TESTING, MECHANICAL VENTILATION AND SECONDARY FIRE ELEVATOR The 2015 regular legislative session resulted in a historical meltdown between the House and Senate. When the House adjourned 3 days early, several legislative measures were left pending, including HB 915, the building code bill. Contained in the failed building code bill were provisions delaying the implementation of mandatory blower door testing, changes in mechanical ventilation rates and requirements to install a secondary fire elevator in high-rises. Delaying these provisions were important as the market-place was not prepared to accommodate the requirements. Builders and their associated trades were not aware nor were they up-to-speed on best building practices to pass this new blower door test. Also, questions remained whether or not enough raters were available to avoid unnecessary delays in testing in certain pockets of the state. Several high-rises were already planned, designed and even pre-sold without the secondary fire-elevator. It was estimated that 120 high-rise developments would be canceled unless the requirement for a secondary fire elevator could be delayed. In lieu of complaining about the process as other groups were prone to do, FHBA Leadership and lobbyists developed a strategy to resurrect these key issues during the budget special session. When the dust settled, the budget implementing bill provided for a one-year delay (until June 30, 2016) of mandatory blower door testing, changes in mechanical ventilation rates and secondary fire elevators in high-rises. The tenacity exhibited by this organization is demonstrated not just by the fact a delay of these provisions was secured, but also by the fact FHBA managed to get a policy issue included in the state budget. I could not be more proud of the FHBA leaders, volunteers and staff who worked tirelessly to accomplish this task, said Jerry Linder, FHBA President.

10 3QUESTIONS YOUR FHBA LEGISLATIVE TEAM WORKS TO ANSWER: HOW CAN MEMBERS REDUCE UNNECESSARY BUSINESS EXPENSES? WHAT CAN BE DONE ABOUT OVER REGULATION? HOW CAN BUILDING BE MADE EASIER IN FLORIDA? These and more issues affect the building industry s business environment. Tell us how we can better resolve these concerns for you during the 2016 Legislative Session. Contact Rusty Payton, FHBA CEO, at rpayton@fhba.com or call

LET S FACE IT OUR JOBS ARE BEING INFLUENCED BY NON-BUILDERS Let s face it, you must be a part of the decision making process that is happening at the Capitol.

11 LET S FACE IT OUR JOBS ARE BEING INFLUENCED BY NON-BUILDERS Let s face it, you must be a part of the decision making process that is happening at the Capitol. Join forces with the Florida Home Builders Association (FHBA), your leading builder advocate, to fight unnecessary fees and seek ways to stop burdensome regulations. THE FHB PAC 1000 CLUB hammers home the financial support necessary to elect pro-builder candidates who share our ideas and understand building is a vital part of Florida s economy. Become a 1,000 Club Member today and be: Invited to exclusive receptions and meetings with key Legislators where you can voice your concerns, Given priority consideration for the delivery of checks to candidates, and Recognized in publications and at meetings as an advocate of the building industry. Become a member and ensure your building industry grows in strength and numbers Join today! Call Rusty Payton at or rpayton@fhba.com BE THE FHB PAC 1000 CLUB All contributions to the FHB PAC are considered political contributions and are non deductible as a business expense for Federal Income Tax purposes.

12 The Florida Home Builders Association 2600 Centennial Place Tallahassee, FL

BUILDING & FIRE CODE REGULATIONS

BUILDING & FIRE CODE REGULATIONS 2015 LEGISLATIVE GUIDE FHBA GOVERNMENTAL AFFAIRS TEAM Rusty Payton CEO / Chief Lobbyist rpayton@fhba.com O: (850) 402-1841 M: (850) 567-1073 Douglas Buck Governmental Affairs Director dbuck@fhba.com O: