Florida's affordable and workforce housing landscape continues to evolve with the filing of two significant pieces of legislation: House Bills 923 and 943, both filed by Representative Lopez. These bills propose substantial amendments to the Live Local Act that directly affect developers and landowners.
Just two years ago, the Live Local Act represented a landmark shift in Florida's approach to affordable and workforce housing development. It has been described as the most aggressive state-level housing reform effort in the nation. As we detailed in our initial analysis, Senate Bill 102 (2023) introduced groundbreaking incentives for affordable and workforce housing development, including preemptions against certain local government regulations. The Act underwent significant amendments in early 2024 through Senate Bill 328, summarized here. These amendments refined several provisions and addressed concerns raised by local governments and stakeholders during the initial implementation phase of the Live Local Act. However, for the development industry, the amendments were a mixed bag of both positive and negative changes.
House Bills 923 and 943 represent the latest legislative effort to fine-tune Florida's affordable housing framework and broader land development regulations. Together these bills seek to address implementation challenges that have emerged with the Live Local Act’s land use preemptions and tax incentives.
A summary of the most important provisions of House Bills 923 and 943 follows.
I. Key Provisions of House Bill 923 (Tax)
Land Owned by Nonprofits Tax Program - Section 196.1978(2)(b), Fla. Stat.
- Ownership: adds governmental entities as eligible lessors (in addition to a qualified s. 501(c)(3) nonprofit entity).
- Qualifying Property: clarifies that land and improvements are exempt from taxation.
- Minimum Time Period: reduces the minimum time period from 99 years to 90 years.
Missing Middle Ad Valorem Property Tax Program - Section 196.1978(3), Fla. Stat. (proposed as Section 196.1978(4), Fla. Stat.)
- Verification Letter: provides a process for the property appraiser to issue a verification letter within 30 days of a request stating that, if constructed and leased as described in the project’s site plan, the project qualifies for the exemption. A verification letter received before the adoption of an opt-out ordinance is exempt from the opt-out ordinance.
- Transferability: clarifies that a person who purchases property eligible to continue receiving the exemption may continue to receive the exemption as long as the project continues to qualify; notes that foreclosing parties may void the sworn statement restricting the units to affordable for 3 years or continue with the exemption, at the option of the foreclosing party.
- Minimum Unit Count: reduces the number of required units from a minimum 71 to at least 1 unit (or as otherwise required, for adaptive reuse projects).
- Adaptive Reuse: for a conversion of an existing nonresidential building or structure into multifamily or mixed-use residential housing, provides that adaptive reuse projects as defined in section 196.1979(1) are eligible for the exemption if at least 20% of the project’s residential unit are affordable.
- Substantial Rehabilitation: defines newly constructed projects to include projects that were substantially rehabilitated within 5 years of the property owner’s first submission of an exemption certification.
- Land Use Administrative Approval Process: provides a tax exemption of at least 75% of the assessed value of all affordable units developed under sections 166.04151(7) or 125.01055(7) (Live Local Act land use administrative approval process).
- Tenant Income: clarifies that as long as an originally-qualified tenant continues to reside in a unit, that unit remains eligible: namely, the tenant’s income must be either between 80% AMI and 120% AMI or below 80% AMI at the time the lease is executed. If the tenant’s income increases, then the unit remains eligible provided that the tenants voluntarily vacate the unit and the next tenant satisfies the income thresholds.
- Opt Out: requires the Shimberg Center annual housing reports to identify a surplus of housing at the “0-120 percent AMI” level for 3 consecutive years in order to adopt an opt-out ordinance or resolution and clarifies that projects receiving an exemption prior to the opt-out ordinance are grandfathered, including if the subsequent owner, transferee or assignee applies for the exemption. Finally, the taxing authority must conduct a needs assessment prior to opting out of the exemption that must be presented publicly at the time of consideration of the opt-out resolution or ordinance.
- Attorneys’ Fees: provides attorneys’ fees to prevailing parties who otherwise qualify for the exemption but are adversely affected by an ordinance or resolution to opt out of the exemption.
99-Year LURA Ad Valorem Property Tax Program - Section 196.1978(4), Fla. Stat. (proposed as Section 196.1978(5), Fla. Stat.)
- Minimum Unit Count: reduces the number of required units from a minimum 71 to at least 1 unit.
- Adaptive Reuse: provides that adaptive reuse projects as defined in section 196.1979(1) are eligible for the exemption if at least 20% of the project’s residential unit are affordable.
- LURA: provides that the land use restriction agreement must be with Florida Housing Finance Corporation or a housing finance authority pursuant to part IV of chapter 159, Florida Statutes.
- Penalty: reduces the penalty to 100% of the total value of the ad valorem tax exemption received to date (instead of the amount financed by the corporation multiplied by each year remaining in the agreement).
Local Government Ad Valorem Property Tax Program - Section 196.1979, Fla. Stat.
- Adaptive Reuse: defines adaptive reuse projects as a conversion of an existing nonresidential building or structure into multifamily or mixed-use residential housing.
- Minimum Unit Count: provides that adaptive reuse projects may have less than 50 units if at least 20% of the project’s residential units meet the requirements of the exemption.
- Live Local Land Use: provides that qualifying developments under sections 166.04151(7) or 125.01055(7) (Live Local Act land use administrative approval process) may abate up to 20% of the development’s ad valorem property tax for a period of 10 years by paying an amount equal to 20% of the total amount of the ad valorem property taxes at the time a building permit is issued for the qualifying development.
- Florida Housing Finance Corporation: requires Florida Housing Finance Corporation to adopt monitoring and compliance standards to receive an exemption under this section.
New Programs or Proposals
- Discretionary Sales Surtax: provides that the proceeds of the local government infrastructure surtax and any accrued interest may be expended to construct or rehabilitate affordable housing.
- Florida Housing Revitalization Act: creates a new program aimed at historic rehabilitation, with a state tax credit equal to 20% of the total qualified expenses up to a credit of $2.5 million in rehabilitating a certified historic structure that has been approved by the National Park Service and that will be used exclusively for at least five years for workforce or affordable housing.
II. Key Provisions of House Bill 943 (Land Use)
Land Use Discretionary Approval Process – Section 125.01055(6), Fla. Stat. (Counties) & Section 166.04151(6), Fla. Stat. (Municipalities)
- Mandatory Approval: requires the local government governing body to approve affordable housing if the owner is a religious institution, at least 40% of the residential units are affordable for at least 30 years, the parcel is not within 500 feet of a military installation or a commercial service airport, and if all state and local laws and regulations are met (except land use or zoning regulations).
Land Use Administrative Approval Process – Section 125.01055(7), Fla. Stat. (Counties) & Section 166.04151(7), Fla. Stat. (Municipalities)
- Definitions: defines “allowable use,” “commercial use,” “industrial use,” “areas zoned for mixed use” and “planned unit development.”
- Qualifying Properties & Zoning Districts: deems property owned by the local government, a district school board, or a religious institution, property zoned planned unit development permitted for commercial, industrial, or mixed use, or any zoning district not solely zoned for use as a single-family home or duplex as eligible for the administrative approval process.
- Development Agreements, Covenants & DRIs: provides that local governments cannot require an amendment to a DRI, development agreement, or restrictive covenant for qualifying projects.
- Non-residential Uses: provides that a local government may not require more than 10% of the total square footage to be used for nonresidential purposes.
- Lot Size & Coverage: prohibits the local government from directly or indirectly restricting the maximum lot size for a qualifying project and prohibits the maximum lot coverage from dropping below 70%.
- Density, Floor Area Ratio and Height: provides that density, FAR and height are based on the highest allowed in the local government’s jurisdiction, not the highest currently allowed.
- Quasi-Judicial Boards: prohibits hearings before any quasi-judicial board of the local government.
- Parking Reduction: requires a parking reduction by at least 20% for qualifying projects or a 100% reduction for structures that are 20,000 square feet or less.
- Expedited Timeframes: requires the local government to approve a building permit plan review within 60 days and prioritize permit plan review for qualifying projects over other development projects.
- Attorneys’ Fees & Expedited Litigation: awards attorney’s fees to the prevailing party in any legal dispute related to the Live Local Act and provides an expedited legal process for legal disputes related to the Live Local Act.
- Waiver of Live Local Eligibility: prohibits local governments from conditioning a development permit or development order on the waiver, forbearance or abandonment of the right to use the administrative approval process.
- Live Local Act Moratoria Prohibited: prohibits a moratorium with the effect of delaying the permitting or construction of a multifamily project that otherwise qualifies for the ad valorem tax exemptions in sections 196.1978 and 196.1979, Florida Statutes or the administrative approval process.
- Airport-Impacted Areas: clarifies that airport impacted areas are limited to commercial service airports as defined in section 332.0075(1), Florida Statutes.
New Programs or Proposals
- Fair Housing Act Discrimination: prohibits local governments from discriminating against affordable housing as defined in section 420.0004(3), Florida Statutes and waives sovereign immunity for causes of action based on the application of this section (applies retroactively).
- Impact Fee Reduction: requires a 20% impact fee exception or waiver for projects using the administrative approval process.
- Historic Landmarks: requires the governing body of the local government which designates the character of private property as a historic landmark without the property owner’s consent to find, based on substantial competent evidence, that the historic significance of the subject property is commensurate, to an equal or greater degree, with property that is already designated as a historic landmark within the local government.
- Urban Infill: requires a local government to administratively approve an urban infill development and prohibits a comprehensive plan amendment, rezoning or variance.
- Community Planning Act – Definition of Compatibility: deems all residential land use categories compatible with each other.
- Increasing Height or FAR: provides that the approval of an increase to height or FAR in the local government’s land development regulations shall be by ordinance with a simple majority vote.
- Accessory Dwelling Units: requires local governments to adopt an ordinance allowing accessory dwelling units in any area zoned for single-family residential use.
- SAIL Funding for Veterans and Essential Service Workers: provides that SAIL funds may be used to provide housing near United States Department of Veterans Affairs medical centers or outpatient clinics and to provide housing in areas of critical housing shortage for essential service and high-demand career employees through a public-private housing partnership with major public and private sector employers for whom housing shortages are affecting recruitment and retention of workers.
- Expedited Foreclosure for Abandoned Property: provides that a claimant may file a motion with the trial court for a judicial determination that the residential property is abandoned real property, upon which the trial court will set a date and time for a hearing on the motion within between 15 and 25 days after filing the motion.
- School-Board Owned Property: clarifies that property owned by a district school board that is not suitable for educational purposes be declared as surplus by the district school board.
Conclusion
As House Bills 923 and 943 progress through the legislative process, our team will continue to provide analysis of their potential impacts on Florida's real estate development landscape. These bills could have significant and positive effects for many developers and landowners in Florida.
Building on our extensive coverage of the Live Local Act's evolution, we will continue to track these bills as they advance. If you have specific questions about how these bills might affect planned or potential projects, contact our Land Development, Zoning & Environmental Group.
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