– The Live Local Act, signed into law by Florida Gov. Ron DeSantis, allows for the development of multifamily rentals on certain zoned sites with affordable housing requirements.
– The Act mandates that at least 40% of residential units in a proposed multifamily development must be affordable for individuals making up to 120% of the local area median income.
– The Act also mandates that local jurisdictions apply the highest allowed density and maximum height to proposed multifamily developments.
– Eligible developments under the Act may receive a 75% or 100% ad valorem tax exemption, depending on the level of rent restriction for the units. – The Act allows for the development of multifamily rentals on sites zoned for mixed-use residential, commercial, or industrial, with at least 40 percent of units being affordable for at least 30 years.
– The Act exempts compliant multifamily developments from needing additional land use, zoning, or comprehensive plan approvals, and requires local jurisdictions to apply the highest allowed density and height restrictions for nearby developments.
– There may be issues with determining maximum density in some jurisdictions, but overall the Act aims to increase the availability of affordable and workforce housing in Florida. – The Act provides ad valorem tax exemptions of 75 percent or 100 percent for certain developments, based on the level of rent restriction for the units.
– To qualify for the tax exemptions, a multifamily project must contain over 70 units dedicated to housing individuals or families below specific income thresholds.
– The exemption first applies to the 2024 tax roll and will be repealed on Dec. 31, 2059.
– Property owners must file a certification form with the Florida Housing Finance Corporation and submit an application by March 1 to the local property appraiser, accompanied by the certification notice from the FHFC to receive the exemption. – Property owners must submit a request form with a recent market study, unit list, rent amounts, and a sworn statement for affordable housing.
– The FHFC administers the certification process, including deadline publication, request review, and notification to property owners.
– Improperly granted exemptions within the last 10 years will result in tax lien, taxes owed plus a penalty of 50% and 15% annual interest.
– For questions or assistance with Act requirements, contact one of the authors.
– In Miami-Dade, the area median income is $68,300 and upper income threshold for all programs is $81,960. Units restricted from 120-140% AMI do not count toward the minimum of 70 units required by the Live Local Act. – This alert is not a substitute for legal advice and should not be used as the sole source of information when dealing with a legal problem.
– Laws in different jurisdictions are constantly changing, so the information provided may not be up to date.
– Receipt of this information does not create an attorney-client relationship.
– If specific legal questions arise, it is recommended to consult the authors of the publication or other competent legal counsel.
https://www.hklaw.com/en/insights/publications/2023/08/floridas-new-live-local-act-offers-land-use-and-tax-benefits
Leave a Reply