Florida’s Live Local Act (Senate Bill 102), signed by Governor Ron DeSantis on March 28, 2023. Effective as of July 1, 2023, it introduces significant land use, zoning, and tax benefits for developers:
Land Use and Zoning Highlights:
- Senate Bill 102 requires local governments to approve multifamily rental developments on sites zoned for mixed-use residential, commercial, or industrial use. In a proposed multifamily project, at least 40% of residential units must be affordable. This affordability must extend to individuals making up to 120% of the local AMI for a minimum of 30 years.
- Counties or municipalities cannot demand additional approvals for building height, zoning, density, etc., if the multifamily development meets the affordable housing requirement.
- Once the Threshold Requirement is met, the local jurisdiction must allow the highest permissible density and at least a three-story height for the proposed development. The maximum height is determined based on the highest allowed height within 1 mile of the development.
Tax Benefits of the Live Local Act:
- Qualifying developments can receive a 75% or 100% ad valorem tax exemption. Units affordable to individuals earning up to 80% of the AMI qualify for 100% exemption, while those earning 80% to 120% of the AMI receive a 75% exemption.
- These exemptions apply from the 2024 tax roll onward and require certification from the Florida Housing Finance Corporation (FHFC).
- The Act defines eligible property as a newly constructed multifamily project with over 70 units dedicated to housing individuals or families below specific income thresholds. The units must have restricted rent to offer affordable housing at the designated AMI levels.
- Exemptions apply statewide without needing further approval from local governments.
- Property owners must file a certification form with the FHFC and submit an application to the local property appraiser by March 1 to qualify for the exemption.
- FHFC’s certification process involves a market study, unit list, rent details, and a sworn statement committing to affordable housing.
- Exemptions are valid until December 31, 2059, and can be revoked if improperly granted within the last 10 years.
This Act aims to stimulate the creation of affordable housing in Florida by incentivizing those who meet specific criteria. Given the complexity of the new regulations, investors and owners will need to work with experienced agents and legal experts. These professionals will be able to provide guidance on compliance to navigate the changing landscape. We at Florida Land Brokers are here to help. Contact us at 360-901-9329 or send us a message on our website.
