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State v. Division of Bond Finance

Citations: 530 So. 2d 289; 13 Fla. L. Weekly 527; 1988 Fla. LEXIS 946; 1988 WL 93702Docket: No. 72232

Court: Supreme Court of Florida; September 1, 1988; Florida; State Supreme Court

Narrative Opinion Summary

In this appellate case, the state challenged the trial court's validation of housing revenue bonds up to $300 million issued by the Florida Housing Finance Agency and the Division of Bond Finance. The bonds, authorized in early 1988, were aimed at financing projects that meet federal low-income unit requirements. The trial court validated the bond issuance after determining that projects funded by tax-exempt bonds would adhere to federal low-income set-aside mandates, while taxable bond projects would allocate at least 20% of units for low-income tenants. The state argued that this allocation did not constitute a significant number, thus failing legislative intent. Nonetheless, the court found recent legislative amendments, specifically the 20% requirement, to align with both federal standards and public purposes, notably affordable housing promotion. The court emphasized that such policy decisions are under legislative, not judicial, purview. Furthermore, the court dismissed concerns over potential discrimination against individuals outside the targeted low-income groups, labeling them as collateral to the bond validation process. Consequently, the trial court's decision to affirm the bond issuance was upheld.

Legal Issues Addressed

Bond Issuance Authority and Validation

Application: The court confirmed the authority of the Florida Housing Finance Agency and the Division of Bond Finance to issue housing revenue bonds, finding compliance with statutory and federal requirements.

Reasoning: The trial court's order validating the revenue housing bond issue is affirmed.

Collateral Concerns in Bond Validation

Application: Concerns about discrimination against non-low-income individuals were deemed collateral and irrelevant to the bond's legality.

Reasoning: The court ruled that such concerns are collateral to the bond validation process and do not affect the legality of the bond issuance.

Judicial Review of Legislative Policy Decisions

Application: The court stated that objections to the percentage of low-income units pertain to legislative policy, which is not subject to judicial review.

Reasoning: The state's objection is seen as a challenge to policy decisions made by the legislature, which falls outside judicial review.

Legislative Intent and Compliance with Federal Standards

Application: The court found that the legislative amendments mandating a 20% low-income unit allocation are consistent with legislative intent and comply with federal standards.

Reasoning: The trial court found that recent legislative amendments, specifically subsection 420.509(14), which mandates the 20% requirement, serve a public purpose and comply with federal standards.

Public Purpose Requirement for Bond Issuance

Application: The court determined that the bonds serve a public purpose by promoting affordable housing, aligning with legislative and federal standards.

Reasoning: The court emphasized that promoting affordable housing is a valid public purpose.