New Florida Bill Allocates $711 million to Affordable Housing
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Florida LIVE LOCAL ACT – New bill allocates $711 million to affordable housing and tax breaks to incentivize developers

by Laura Graves on April 5, 2023
Florida LIVE LOCAL ACT – New bill allocates $711 million to affordable housing and tax breaks to incentivize developers

Florida Governor Ron DeSantis has signed the Live Local Act, a new affordable housing legislation that is expected to inject $711 million into housing programs and encourage developers with major tax breaks. The law will supersede local governments’ zoning, density, and height requirements for affordable housing in areas zoned for commercial or mixed-use development. Local municipalities will also no longer have the ability to enforce rent control unless it is during a housing emergency. In addition, the act requires local governments to permit multi-family or mixed-use residential projects that reserve at least 40% of the residential component for affordable housing for a minimum of 30 years. For projects that allocate at least 65% of the square footage to residential, counties cannot restrict the height of the proposed development below what’s currently allowed within one mile of the planned project.

The new legislation is expected to provide significant benefits for developers of affordable housing and mixed-use projects, which were previously hindered by zoning and density restrictions. This move is likely to unlock stalled projects across the state, where the need for affordable housing has reached record highs. The funding will be distributed among the State Apartment Incentive Loan (SAIL) program, the State Housing Initiatives Program (SHIP), a competitive loan program, and the Florida Hometown Heroes Housing Program. Furthermore, the act increases the amount of tax credits available through the Community Contribution Tax Credit Program for affordable housing and provides up to a $5,000 sales tax refund for building materials used to construct affordable housing units that were funded by FHFC.

The Live Local Act is a significant step towards addressing Florida’s affordable housing crisis, which has been exacerbated by the pandemic and a surge in out-of-state migration. The $711 million in funding will go a long way towards filling the funding gaps that have stalled many affordable housing projects across the state.

The legislation’s provisions will also help incentivize developers to build affordable housing by offering major tax breaks and superseding local zoning and density requirements for affordable housing in areas zoned for commercial or mixed-use development. This will give developers more flexibility to build affordable housing where it is needed most, while also ensuring that it is done in a sustainable and responsible way.

One of the most significant provisions of the Live Local Act is the requirement for local governments to allow multifamily or mixed-use residential projects that set aside at least 40% of the residential component for affordable housing for a period of at least 30 years. This will help ensure that affordable housing is available to those who need it most for years to come.

The Act also provides funding for a variety of programs aimed at increasing affordable housing options for Floridians, including the State Apartment Incentive Loan program, the State Housing Initiatives Program, and the Florida Hometown Heroes Housing Program. The latter program offers homeownership assistance to first responders, military personnel, and teachers, among others.

Overall, the Live Local Act is a positive step towards addressing Florida’s affordable housing crisis and ensuring that all Floridians have access to safe, affordable housing. By incentivizing developers, providing funding for affordable housing programs, and requiring local governments to allow for affordable housing in certain developments, the Act will help to create more affordable housing options and improve the lives of countless Floridians.

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A global award-winning realtor with deep connections to the Miami and South Florida real estate landscape, Laura has become THE “go-to” realtor in the residential real estate market. She is a leader in her field with a reputation of being fiercely protective of her clients and their interests and needs. Shrewd, astute negotiation skills along with innovative marketing strategies set her apart from others in her field.  She has a proven track record with thousands of transactions under her belt and over $500 Million in sales over the past 20 years. Laura truly cares about her clients and her greatest reward is knowing that many of them have become life long friends. Contact Laura today.

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