Live Local Act

Background

• On March 29, 2023, Governor DeSantis signed Senate Bill 102, which is known as the Live Local Act. 
• It passed unanimously in the Senate, and passed in the House 103-6.
• It addresses a variety of housing policies including funding, tax incentives, and substantial amendments to the state’s housing strategy such as providing incentives to developers to construct affordable and workforce housing in the state. 
• It is being touted as the largest investment for housing efforts in Florida history. 
• This applies to all local governments in the State of Florida.
• It is effective July 1, 2023.

Land Use Standards

• Under the Live Local Act, local governments cannot regulate the use, density, or height of an affordable housing development if a rental project is:
  • Multifamily or mixed-use residential in any area zoned commercial, industrial, or mixed-use.
  • At least 40% of the units are affordable for households up to 120% of Area Median Income (AMI) for at least 30 years. 
  • If the property is zoned mixed-use, at least 65% of the square footage of the project is residential. 
  • Local governments cannot require a development meeting the above noted requirements to obtain a zoning/land use change, special exception, conditional use approval, variance, or comprehensive plan amendment for use, density, or height. 
• Provided a project meets the above noted requirements, local governments must administratively approve these projects, meaning no public hearing can be required.
• Under the Live Local Act, affordable housing developments are entitled to the following:
  • Use – allowed to build multifamily rental or mixed-use within commercial, industrial, or mixed-use zoning without a zoning or comprehensive plan amendment. 
  • Density – multifamily is entitled to the highest density allowed on any land in the City where residential development is permitted. 
  • Height – multifamily development is allowed to be constructed at the highest allowed height for a commercial or residential development located within the jurisdiction within one mile of the proposed development, or three stories, whichever is higher.   
• In no case shall a local government require a comprehensive plan amendment, rezoning, special exception, variance to allow the use, building height, or density.

Funding Mechanisms

• The Live Local Act provides up to $811 million for affordable housing programs in the state. 
• This is divided into State Housing Initiatives Partnership (SHIP), State Apartment Incentive Loan (SAIL) program, Hometown Hero Program, Inflation Response Program, and the Live Local Tax Donation Program.  
• This includes up to $100 million in a new tax credit program. 

Property Tax Incentives

• Nonprofit Ad Valorem Exemption 
  • Allows a nonprofit that owns 100% of the land who enters into a 99-year ground lease with an affordable housing developer to have an exemption added to their land. 
• The Missing Middle 
  • Allows Ad Valorem tax exemptions for portions of a property in a multifamily project up to 75% of the assessed value if the project provides housing to persons or families whose annual household income is greater than 80% but no more than 120% AMI; or
  • 100% of the assessed value if the project provides housing to persons or families whose annual household income does not exceed 80% AMI.
  • To receive the exemption, the property owner must submit to the Property Appraiser an application along with a certification notice from Florida Housing by March 1st of each year. 
  • All developers can receive a property tax exemption on the portions of their properties used for affordable housing if their properties qualify, including market rate developers.