Since it was first introduced in 2023, Florida’s Live Local Act — a $711 million package that provides developers with tax breaks and bypasses local zoning restrictions to create more affordable and workforce housing — has always caused controversy. Local municipalities and residents argue that increased building heights will destroy the character of neighborhoods, while an affordable housing component could lead residents to the suburbs.
Not surprisingly, it’s back in the headlines. governor of florida Ron DeSantis recently signed bill SB 328, amending the original Local Live Act. Original bill offers tax breaks to developers Multifamily Mixed-use residential property with a minimum of 70 units in any area zoned commercial, industrial or mixed-use. At least 40% of these units must put on hold Affordable housing is defined as those earning 120% of the area median income (AMI) and is available for up to 30 years.
The revised bill establishes height limits for single-family residential areas and prohibits Local Living Act projects within airport flight paths, noise zones and areas that exceed airport height limits. The bill also allows counties to opt out of providing property tax exemptions to developers if the number of affordable housing units available in a metro area is greater than the number of renter households that meet the income criteria of 80 to 120 percent of AMI. Additional clarifications aimed at alleviating uncertainty.
but With the new revisions, some projects that were already in their preliminary foundation stages were canceled altogether. Since the bill was introduced specific goals Florida’s most densely populated areas include jacksonvilleSouth Florida, Sarasota/Bradenton, Orlando-Kissimmee,as well as tampa bay areathe rebound was very fierce.
Local government is angry about local life
DeBary Mayor Karen Chasez said via email daytona beach news magazine:
“In my view, the Local Living Act is regrettable because it weakens the city’s ‘what goes where’ planning that our residents rightly expect us to define through future land use maps and development codes. Planning. When we define areas as suitable for industrial or commercial use, it is a deliberate process that the Local Living Act will allow property owners to place apartments in those locations. have Transportation, infrastructure, schools, etc. That Must be available for residential development, but not necessarily so For commercial or industrial use.
Developers and municipalities at odds over local life
Original local instant bill It was originally planned Increase the number of housing units in some of Florida’s densest cities, thereby improving affordability for residents priced out of high housing prices. This prompted resistance from local governments, which began delaying the processing of development approvals.
Landlords and developers are clashing with local municipalities, allegedly using tax breaks to delay approval of projects under the new law. After senior bar harbor store The Village of Bal Harbor has pumped the brakes as its owner announced a multimillion-dollar mixed-use expansion that will include a 17-story boutique hotel and 600 residential units. Local officials directed the city attorney to investigate the possibility of a moratorium on the development.
Developers take revenge A lawsuit was filed against the city, asking the Florida Circuit Court to force the city to approve the plan. The 161-page complaint alleges the city instituted new restrictions to prevent the development from moving forward, and highlights a city memo saying building workforce housing would jeopardize the city’s “standing as a unique and elegant community.” community” and its “status as a luxury destination.” ,” and the safety and security of residents and communities.
An amended bill signed by Governor DeSantis in May sets height limits for single-family residential zones and prohibit Live Local Act projects are located in airport flight paths, noise zones, and areas that exceed airport altitude restrictions. The bill also allows counties to opt out of providing property tax exemptions to developers if the number of affordable housing units available in a metro area is greater than the number of renter households that meet the income criteria of 80 to 120 percent of AMI. Additional clarifications aimed at alleviating uncertainty.
What Local Live’s amendments mean for developers and residents
Land technologywebsite procurement technology and Developer data, provides a detailed analysis of what the DeSantis amendment will actually mean for developers. They came to the following conclusions:
- A 22% reduction Where does the land available to affordable housing developers come from? used to be at first suggested Located in five of Florida’s densest metropolitan areas.
- Land available for such development is 6.6 billion square feet less than 30.2 billion square feet that used to be can be based on the original legislation.
“I would say we have at least six affordable housing projects falling by the wayside because of these new use restrictions near the airport.” Jack Kramer said, A partner at law firm Stearns Weaver Miller, which has offices across Florida, told the Financial Times Phoenix, Florida.
“When you extend the runway, you take over a large area of downtown Tampa, which disqualifies those properties from participating in Live Local,” explained Cremer’s colleague Nicole Neugebauer MacInnes. “We’re seeing this across the state. This is the case because [the law] The way it is written is suitable for airports. It doesn’t say “large commercial Tampa International Airport,” nor does it say these small, small-plane airports. It just says airport.
Discounts for developers
The amendment does not change the law that has angered many municipalities, but instead gives developers tax breaks Land formerly zoned industrial.
“The fact that we can still see one of these buildings being built in an industrial zone, where we normally don’t allow residential buildings, is really about,” Doral Mayor Christi Fraga told The Florida Phoenix. “Local authorities have zero say in this? I think that’s a worrying issue.
Potential vulnerabilities cause concern for municipalities
The Local Live bill attempts to solve a problem that many people face main Cities: Workforce Housing Needs. workforce housing Intend Affordable for essential city workers including law enforcement officers, teachers and government employees. However, oversight of standards for who joins and exits the workforce remains 30 years period Many believe that keeping the rules open to abuse is a nearly impossible task.
“Audit whether 40% of the units are actually responsible For rent workforce housing is basically It’s just an affidavit,” Christy Fraga told Phoenix, Florida. “I don’t think there’s enough oversight or enforcement on this, and really all the responsibility falls on the city.
Recent study finds Florida housing overrated
A A recent study Research from Florida Atlantic University and Florida International University found that the South Florida market is overvalued by nearly 35%, suggesting the region may be in the midst of a housing bubble.
“This trend does worry me because home prices are still rising in the Miami metropolitan area, but they are not rising in other measured areas of Florida,” said Ken H. Johnson, a real estate economist at Florida State University’s College of Business. Ken H. Johnson said in a report.
other new report from National Low Income Housing Council Studies have found that the average minimum wage earner in Florida would have to work about 100 hours a week to afford a one-bedroom home in the state.
Despite the differences between what people earn and what they can afford, research Dave Ramsey Solution Finding a market crash is unlikely. Florida varies by region. house price has landed in west florida Due to the increase in construction volume, but them Other aspects have also increased area Due to low inventory. luxury real estateProjects like new apartments are financially out of reach for working-class Floridians who desperately need affordable housing.
final thoughts
While the Live Local bill is much-needed help for Florida’s housing crisis, it’s unlikely become Enough, especially with the recent revisions. Florida is currently facing a widening gap between rich and poor. On the one hand, it is home to millions of tourists and has many millionaires living in luxurious homes. in anotherThe working and middle classes are struggling to make ends meet.
this An excellent opportunity for investors to provide decent housing at a reasonable price. As with many expensive cities, e.g. New York, san franciscoand angelsco-living is a growing trend that allows investors to own single-family homes They rented Next to the room. Websites such as Coliving.com, live togetherand pad division Therefore, “co-living” (a fancy term for having roommates) has become increasingly popular recently. Florida’s major metropolitan areas appear ready to embrace it.
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