Guidance Updated for Tax Exemption in Florida

1. The Live Local Act provides a property tax exemption of up to 100% of the assessed value of qualifying housing units.
2. In order to qualify, a project must contain at least 71 housing units, and must serve occupants with household incomes equal to or less than 120% of AMI.
3. Qualifying projects are eligible for exemptions up to 100% of the assessed value for units serving occupants with household incomes at or below 80% of AMI.
4. Property owners must first apply for a Missing Middle Market Certification with Florida Housing before applying for a tax exemption.
5. The Middle Market Tax Exemption Certification Portal from Florida Housing went live on October 2, 2023.
6. Applications for the tax exemption must be submitted by December 31, 2023, to be eligible for the 2024 tax exemption.
7. Multifamily projects providing affordable housing for full-time students and graduate assistants are eligible for certification, regardless of occupation type. – Property owners are responsible for determining what level of exemption a unit qualifies for.
– Charges or fees that are a condition of occupancy are included in the maximum rental allowance.
– No utility allowance is required for Missing Middle certification.
– The rental market study should provide the average market rent for units by bedroom count, without differentiation.
– Property owners are responsible for maintaining and verifying documentation regarding tenant income and eligibility.
– Florida Housing will require owners to verify tenant rents and households in place as of January 1st, between January 1 – January 15, via attestation. 1. Property owners do not need to include the income of a non-occupant guarantor when calculating household income.
2. Any regular and periodic payments from assets or accounts should be included when assessing a tenant or household’s income.
3. Examples of such payments include retirement account or trust payments, social security benefits, and pensions.

https://www.bilzin.com/insights/publications/2023/12/florida-live-local-act-tax-exemption-guidance