Does a Florida neighborhood improvement district always need 75% of property owners to approve it before it can be created?

Plain-English summary

A state representative wrote on behalf of a constituent who was concerned that a neighborhood improvement district had been created without the 75 percent written property-owner approval the constituent associated with section 163.508. The Attorney General's office, having no information about the particular district, offered general comments about how these districts are created.

The short answer is that there is no single mandatory method. Part IV of Chapter 163, the Safe Neighborhoods Act, lets a city or county authorize the formation of safe neighborhood improvement districts by adopting a planning ordinance, and section 163.504(1) provides that such districts "may be created by one or more of the methods" in sections 163.506, 163.508, 163.511, and 163.512. Nothing requires a local government to satisfy all of those sections; it picks among the available methods. The 75 percent written-consent requirement is specific to the property owners' association district under section 163.508. By contrast, a local government neighborhood improvement district under section 163.506 is created by ordinance and does not require property-owner approval (though the governing body must consider rescinding the ordinance if 60 percent of district residents petition). Section 163.511 (special residential or business districts) calls for referendum approval, and section 163.512 covers community redevelopment neighborhood improvement districts. So whether 75 percent consent was needed depends on which type of district was created.

Currency note

This opinion was issued in 2011. Subsequent statutory amendments, court decisions, or later AG opinions may have changed the analysis. Treat this page as historical context, not current legal advice. Verify current law before relying on any specific rule, deadline, or remedy mentioned here.

Background and statutory framework

Part IV of Chapter 163, Florida Statutes, the Safe Neighborhoods Act (section 163.501), authorizes a municipality or county to form safe neighborhood improvement districts through a planning ordinance. Section 163.504(1) specifies that such districts may be created by one or more of the methods in sections 163.506, 163.508, 163.511, and 163.512, and that no district may overlap a municipality and the unincorporated area of a county except by interlocal agreement.

Each cited section is a distinct method:

• Section 163.506 creates a local government neighborhood improvement district by a separate ordinance for each district. It does not require property-owner approval. The ordinance sets boundaries, may authorize an ad valorem tax up to 2 mills and special assessments, designates the local governing body as the board of directors, and establishes an advisory council. The district can be dissolved by rescinding the ordinance, and the governing body must consider doing so on a petition signed by 60 percent of district residents.
• Section 163.508 creates a property owners' association neighborhood improvement district and requires, among other things, that at least 75 percent of property owners consent in writing to become members or shareholders of the association. Such a district continues as long as the association exists.
• Section 163.511 provides for special residential or business neighborhood improvement districts, with referendum approval.
• Section 163.512 addresses community redevelopment neighborhood improvement districts.

Because these are alternative methods, the consent or approval needed depends entirely on which one a local government used.

Common questions

Q: Does creating a neighborhood improvement district always require 75% owner consent?
A: No. The 75 percent written-consent requirement is specific to the property owners' association district under section 163.508. Other methods, like a local government district under section 163.506, do not require owner approval.

Q: How can a district be created without property owners signing off?
A: A local government neighborhood improvement district under section 163.506 is created by a local ordinance. Property owners do not have to consent, although the governing body must consider rescinding the ordinance if 60 percent of district residents petition.

Q: What are the different ways to create one of these districts?
A: Section 163.504(1) lists four methods: local government districts (163.506), property owners' association districts (163.508), special residential or business districts with a referendum (163.511), and community redevelopment districts (163.512).

Citations and references

Statutes:

• s. 163.501, Fla. Stat. (Safe Neighborhoods Act)
• s. 163.504(1), Fla. Stat. (formation by one or more methods)
• s. 163.506, Fla. Stat. (local government neighborhood improvement district)
• s. 163.508, Fla. Stat. (property owners' association district; 75% written consent)
• s. 163.511, Fla. Stat. (special residential or business district; referendum)
• s. 163.512, Fla. Stat. (community redevelopment neighborhood improvement district)

Source

• Landing page: https://www.myfloridalegal.com/ag-opinions/neighborhood-improvement-district-creation-of
• Original PDF: https://www.myfloridalegal.com/print/pdf/node/8175

Original opinion text

The Honorable Ari Abraham Porth

Representative, District 96

1300 Coral Springs Drive

Coral Springs, Florida 33071

Dear Representative Porth:

You ask about the interplay between sections 163.506 and 165.508, Florida Statutes. According to your letter, one of your constituents is concerned that a neighborhood improvement district was created without the 75 percent written approval described in section 163.508(2), Florida Statutes.

While this office has no information regarding the creation of the neighborhood improvement district in question, the following informal comments are offered in an effort to be of assistance. Part IV, Chapter 163, Florida Statutes, the "Safe Neighborhoods Act,"[1] authorizes the governing body of a municipality or county to form safe neighborhood improvement districts through the adoption of a planning ordinance. As stated in section 163.504(1), Florida Statutes,

"The governing body of any municipality or county may authorize the formation of safe neighborhood improvement districts through the adoption of a planning ordinance which specifies that such districts may be created by one or more of the methods established in ss. 163.506, 163.508, 163.511, and 163.512. No district may overlap the jurisdictional boundaries of a municipality and the unincorporated area of a county, except by interlocal agreement." (e.s.)

Sections 163.506, 163.508, 163.511, and 163.512, Florida Statutes, thus establish different methods of establishing neighborhood improvement districts. Nothing in the act states that a local governmental body must comply with all the provisions of sections 163.506, 163.508, 163.511, and 163.512, Florida Statutes; rather the act authorizes the creation of such districts by one or more of the methods set forth in the enumerated statutes.

Section 163.506, Florida Statutes, provides for the creation of a local government neighborhood improvement district, but does not require the approval of the property owners.[2] Pursuant to subsection (6) of the statute, a local government improvement district may be dissolved by the governing body by rescinding the ordinance creating the district. The governing body is required to consider rescinding the ordinance if presented with a petition containing the signatures of 60 percent of the residents of a district.

Section 163.508, Florida Statutes, provides for the creation of a property owners' association neighborhood improvement district and requires, among other things, that the property owners form an association in compliance with this section, or use an existing property owners' association in compliance with this section, which shall be a corporation, for profit or not for profit, and of which not less than 75 percent of all property owners within the proposed area have consented in writing to become members or shareholders. Pursuant to subsection (4) of this statute, a property owners' association neighborhood improvement district continues in perpetuity as long as the property owners' association created pursuant to this section exists under the applicable laws of the state.

Section 163.511, Florida Statutes, provides for the creation of special residential or business neighborhood improvement district and provides for referendum approval of such districts while section 163.512, Florida Statutes, addresses the conditions for creation of a community redevelopment neighborhood improvement district. Thus, sections 163.506 and 163.508 (as well as sections 163.511 and 163.512), Florida Statutes, set forth different methods of creating types of neighborhood improvement districts.

I trust the above informal comments may be of assistance.

Sincerely,

Joslyn Wilson

Assistant Attorney General

JW/srh

[1] Section 163.501, Fla. Stat.

[2] See s. 163.506(1), Fla. Stat., providing:

"After a local planning ordinance has been adopted authorizing the creation of local government neighborhood improvement districts, the local governing body of a municipality or county may create local government neighborhood improvement districts by the enactment of a separate ordinance for each district, which ordinance:

(a) Specifies the boundaries, size, and name of the district.

(b) Authorizes the district to receive a planning grant from the department.

(c) Authorizes the local government neighborhood improvement district to levy an ad valorem tax on real and personal property of up to 2 mills annually.

(d) Authorizes the use of special assessments to support planning and implementation of district improvements pursuant to the provisions of s. 163.514(16), including community policing innovations.

(e) Designates the local governing body as the board of directors of the district.

(f) Establishes an advisory council to the board of directors comprised of property owners or residents of the district.

(g) May prohibit the use of any district power authorized by s. 163.514.

(h) Requires the district to notify the Department of Legal Affairs and the Department of Community Affairs in writing of its establishment within 30 days thereof pursuant to s. 163.5055."