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Understanding “Live Local Act”

by Susan Sun Nunamaker · January 16, 2024

Dear Friends & Neighbors,

Windermere Blue Sunset (credit: Windermere Sun-Susan Sun Nunamaker)

(Please click on red links & note magenta)

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As a result of sunshine, zero income tax, retiring baby boomers, responsible policies implemented by Florida Governor Ron DeSantis to respect individual freedom during pandemic, etc., there has been tremendous population growth in state of Florida in recent decade. Several of our readers raised questions regarding the difference between Florida SB 102, SB 328, and HB 1239, concerning Live Local Act for Affordable Housing. Please refer to the result of search online, below:

The “Live Local Act” in Florida, signed into law by Governor Ron DeSantis on March 28, 2023, and effective from July 1, 2023 (with modifications in 2024 via SB328), is a significant legislative measure aimed at increasing affordable housing opportunities in the state. Here are some key aspects of the Act:

Development of Multifamily Rentals: The Act mandates local governments to authorize the development of multifamily rentals on sites zoned as mixed-use residential, commercial, or industrial. A crucial requirement is that at least 40% of the residential units in these developments must be affordable for individuals earning up to 120% of the local area median income (AMI), and this affordability must be maintained for at least 30 years.
Zoning and Land Use Changes: For proposed multifamily developments that meet the specified requirements, local governments are not allowed to require zoning or land use changes, special exemptions, conditional use approval, variances, or comprehensive plan amendments in relation to building height and densities. The Act specifies that the density of such developments should not be restricted below the highest allowed density on any unincorporated land in the county where residential development is allowed. As for the building height, it should not be less than the highest allowed height for a commercial or residential development located within one mile of the proposed development, or three stories, whichever is higher.
Tax Benefits: The Act offers significant tax exemptions for certain developments. Developments eligible for these exemptions are those that provide affordable housing units, with the level of rent restriction for the units determining the extent of the tax exemption. These exemptions apply to the 2024 tax roll and require certification from the Florida Housing Finance Corporation (FHFC).
Property for Affordable Housing: The Act also includes provisions for using county and municipal property for affordable housing. It requires counties and municipalities to prepare an inventory list of all real property within their jurisdiction deemed appropriate for affordable housing. This list must now include property owned by any dependent special district and be published on the county’s website to encourage potential development.
Sunset Clause: Notably, the Act includes a sunset clause, indicating that the amendment will expire on October 1, 2033.

The Live Local Act represents a comprehensive approach to addressing affordable housing challenges in Florida, offering a blend of regulatory changes and incentives to stimulate the development of affordable housing units

The “Live Local Act,” officially known as Senate Bill 102(2023), Housing, was enacted in Florida in 2023 with significant implications for affordable housing development. Here are some key aspects of the Act:

Affordable Housing Standards: The Act defines affordable housing as units where monthly rents, including taxes, insurance, and utilities, do not exceed 30% of the Area Median Income (AMI) for various income categories. These categories range from extremely low income (30% AMI) to moderate income (120% AMI).
Zoning and Land Use Changes: The Act simplifies the process for developing multifamily housing in areas zoned for commercial, industrial, or mixed-use. It allows developments to bypass certain zoning or land use changes, special exceptions, conditional use approvals, or comprehensive plan amendments, provided at least 40% of the units are affordable.
Density and Height Regulations: Local governments cannot restrict the density and height of these developments below certain thresholds. Specifically, density cannot be restricted below the highest allowed density on any residential land in the county, and height cannot be restricted below the highest allowed height for a commercial or residential development located within one mile of the proposed development, or three stories, whichever is higher.
Tax Benefits: The Act offers tax benefits for qualifying developments. These include ad valorem tax exemptions of up to 75% or 100%, depending on the income level of the residents and the affordability of the units.
Long-term Commitment: To qualify for these benefits, the affordable units must maintain their status for at least 30 years.
Parking Requirements: The Act also mandates counties to consider reduced parking requirements for projects containing at least 40% affordable units if the parcel is located within a half-mile of a major transit stop.
Property for Affordable Housing: The Act requires counties to include in their inventory lists any property deemed appropriate for affordable housing, including those owned by dependent special districts. These properties can be used for affordable housing through long-term ground leases.
Municipal Regulations: Similar provisions apply to municipalities, with some variations for municipalities that are predominantly residential.
Sunset Clause: The amendments introduced by the Act will expire on October 1, 2033.

The Live Local Act represents a substantial investment in housing efforts in Florida, aiming to increase the availability of affordable housing and make it easier for developers to undertake such projects. However, as with any large-scale legislative change, it’s likely that its implementation and impact will continue to evolve and be the subject of ongoing discussion and refinement.

Sources:

National Law Review: Breaking Down Florida’s Live Local Act
Holland & Knight: Florida’s New Live Local Act Offers Land Use and Tax Benefits

The Live Local Act, initially passed in Florida in 2023, is undergoing updates with Senate Bill 328 (2024), Affordable Housing, introduced by Senator Alexis Calatayud. This bill aims to refine and enhance the original legislation based on feedback received since its implementation.

Key aspects of Senate Bill 328 include:

Restriction on Location: It repeals the provision that allowed Live Local projects to be located in industrial areas.
Building Heights and Floor Area Adjustments: The bill makes adjustments to regulations concerning building heights and floor area, tailoring them to fit local contexts better.
Proximity to Military Installations: Projects within a quarter-mile of a military installation cannot be administratively approved, a new restriction introduced in SB 328.
Mixed-Use Requirements: The bill specifies that Live Local projects near transit-oriented developments should be mixed-use residential rather than entirely residential. This adjustment ensures a balance between residential and commercial uses in specific areas.
Affordability Period and Statute Expiration: It ensures that Live Local developments will continue to be recognized as an allowable use even after the development’s affordability period and the expiration of the statute, except for developments that violate affordability requirements.
Rental Unit Clarification: SB 328 clarifies that non-restricted units in a development may be offered for sale or lease, but affordable units must remain as rental units.
Administrative Approval Process: Counties and cities are required to post their procedures for the administrative approval of Live Local projects on their websites, enhancing transparency.
Substantial Rehabilitation for Tax Exemption: The bill clarifies that units that have been substantially rehabilitated may qualify for a “missing middle” property tax exemption, broadening the scope of projects eligible for tax benefits.
Reduction in Units for the Florida Keys: The bill reduces the number of units in developments located in the Florida Keys that must be set aside for income-limited households, from 70 to 10 units.
Clarification of FHFC Duties and Property Appraiser Authority: The Florida Housing Finance Corporation’s duties in certifying eligibility for the missing middle exemption are clarified as ministerial, while Property Appraisers maintain the ultimate authority to grant exemptions.
Funding for the Hometown Heroes Program: The bill appropriates $100 million to the FHFC for the Hometown Heroes Program, supporting housing for essential workers.
Parking Provision Strengthening: An amendment by Sen. Rosalind Osgood strengthens parking provision requirements for Live Local projects, especially those near transportation stops or hubs.

These amendments reflect a responsive approach to the practical challenges and feedback encountered during the initial implementation of the Live Local Act. The bill is currently progressing through the legislative process. For more detailed information and the latest updates on Senate Bill 328, you can visit the Florida Senate’s website.

The modifications to the Live Local Act in 2024, as proposed in Senate Bill 328and its House equivalent HB 1239 (2024), Affordable Housing, address various concerns raised about the original 2023 legislation. Key changes and considerations include:

Exclusion of Industrial Properties: The 2024 bill removes industrial properties from the areas where developers could receive tax breaks for building affordable housing. This amendment responds to concerns from places like Pasco County, where officials voiced that the original law was counterproductive to their efforts to attract more businesses.
Concerns in Pasco County: David Goldstein, the chief assistant county attorney in Pasco, acknowledged the positive changes in the 2024 legislation, particularly the exclusion of industrial properties. However, he highlighted ongoing concerns regarding the impact on valuable commercial sites in Pasco County, stressing the need for balanced development that supports both living and working locally.
Affordability and Tax Breaks: Goldstein pointed out a case where a developer is using the tax breaks to offer what he considers market-rate rents (e.g., two-bedroom homes for $2,000 a month) rather than truly affordable housing. This usage of tax breaks, according to Goldstein, does not align with the intended purpose of providing affordable housing, especially when it impacts the county’s ability to provide essential public services.
Floor Area Ratio Restrictions: The bill proposes that a county cannot

The proposed amendments in Senate Bill 328 for the 2024 update to the Live Local Act, following the feedback on the 2023 legislation, address several key areas:

Exclusion of Industrial Areas: Recognizing concerns from regions like Pasco County, the 2024 bill removes industrial properties from the list of areas where developers could get tax breaks for building affordable housing. This change aims to balance the need for both commercial business growth and affordable residential development.
Affordability and Tax Break Concerns: There’s a notable case in Pasco County where the current tax breaks are being used by developers to offer what are essentially market-rate rents, instead of truly affordable housing. This situation is seen as contrary to the intent of the Act, especially when it impacts the ability of the county to fund essential public services.
Floor Area Ratio and Building Height Adjustments: The bill proposes that counties cannot restrict the floor area ratio of a Live Local development below the highest allowed ratio in areas where residential development is permitted. Additionally, it amends the height entitlements for such projects, reducing the reference distance from 1 mile to a quarter-mile. It also introduces a provision where, if adjacent buildings are 3 stories or less, the county may restrict the height of the new development to 135% of the tallest adjacent building or 3 stories, whichever is higher.
Committee Approvals and Legislative Progress: The bill has passed unanimously in the Senate Community Affairs Committee and is now moving to the Fiscal Policy Committee before it reaches the Senate floor. The House equivalent, HB 1239, filed by Representative Vicki Lopez, is yet to be assigned to committees.

These amendments reflect an effort to refine the legislation, taking into account the practical impacts and feedback from various stakeholders, to better align with the goals of increasing affordable housing while respecting local development priorities.

For more detailed information and updates, you can follow the progress of Senate Bill 328 and HB 1239through the Florida Legislature’s website or through news outlets covering Florida politics and legislation.

***It is legislation such as these that would help to prevent any Floridian city to become inundated by much homelessness such as what had happened to Seattle or San Francisco.