Florida 'Live Local Act' Provides Incentives to Build Affordable and Workforce Housing


On March 29, 2023, Governor Ron DeSantis signed Senate Bill 102, otherwise known as the Live Local Act, into law, representing the largest investment for housing efforts in Florida history. For your convenience we have summarized below the major sections of the bill that provide incentives to developers constructing affordable and workforce housing in Florida. Unless otherwise expressly provided below the law shall take effect July 1, 2023. As this is simply a summary of certain terms, please refer to Senate Bill 102 for specific language and requirements.

The Live Local Act Summary

A. County approval for affordable housing (Section 3 of the bill):

Current Law and Amendments:

Sunset:

What this means: A county must administratively authorize a proposed residential or mixed-use project on any parcel zoned as commercial, industrial, or mixed-use , without any comprehensive plan amendments, rezoning or other special approvals needed, provided that: (i) the project contains at least 40% affordable units at (ii) a density that does not exceed the highest density allowed on any parcel where residential use is allowed with (iii) a building height that does not exceed than the highest allowable building height for residential or commercial structures within one mile of the parcel and (iv) the project satisfies all other applicable land development regulations. If any other applicable land development regulations cannot be satisfied, then further action by the county may be required to obtain the necessary relief, but in no event shall a county require a comprehensive plan amendment or rezoning (or other special approval) to allow the use, building height, or density.

B. County Property for Affordable Housing (Section 4 of the bill):

What this means: A Developer will now be able to view the county’s property that is deemed appropriate for affordable housing without having to contact the county and enter into a long-term ground lease (rather than acquiring fee title to the property) for purposes of developing affordable housing.

C. Municipal Approval for Affordable Housing (Section 5 of the bill):

D. Municipal Property for Affordable Housing (Section 7 of the bill):

E. Property Tax Discounts/Exemptions (Section 8)

  1. The Nonprofit Ad Valorem Exemption (Leased Land)
    • The bill adds an exemption for Nonprofit’s land that meet the following;
    • Land is 100% owned by a nonprofit;
    • Nonprofit leases the property for a minimum of 99 years;
    • Land is predominately used for providing housing to ELI, VLI, LI, or MI persons.
      • This bullet three is meet if more than 50% of the improvements on the land are used for providing housing to the ELI, VLI, LI, or MI persons.
    • First applies to the 2024 tax roll and is repealed Dec. 31, 2059
    • What this means: A nonprofit can now receive an ad valorem exemption on its Land when a nonprofit enters into a 99-year ground lease with an affordable housing developer. If you are interested in pursuing this exemption, please contact us for more information. We can assist with drafting a ground lease in accordance with the proposed rule, or in putting you in touch with nonprofits currently holding land.
  2. The Missing Middle:
    • The bill adds an ad-valorem property tax exemption for portions of property in a multifamily project up to:
      • 75% of the assessed value if the project provides housing to natural persons or families whose annual household income is greater than 80% but no more than 120% AMI; or
      • 100% of the assessed value if the project provides housing to natural persons or families whose annual household income does not exceed 80%AMI.
    • Requirements:
      • Project must be newly constructed meaning that the improvements were substantially completed within five years before the earlier of (i) the date of an applicant's first submission of a request of certification; or (ii) an application for an ad-valorem exemption
        • Note, the definition of newly constructed may include substantial rehabilitation.
      • Project must contain more than 70 units dedicated to persons or households whose household incomes do not exceed 120% AMI.
      • Units must be rented for the lesser of (i) an amount that does not exceed the amounts specified by the most recent multifamily rental program income and rental limit chart posted by FHFC (derived from HUD); or (ii) 10% below the market rate.
      • Units must not be subject to an agreement with Florida Housing.
      • Cannot be used with the exemption provided in Paragraph G below.
    • Compliance:
      • To receive an exemption the property owner must submit to the property appraiser an application along with a certification notice from Florida Housing by March 1st. Please contract us for more information on the application and the certification.
    • Applicability:
      • First applies to the 2024 tax roll and sunsets on Dec. 31, 2059
    • What this means: All developers can now receive a property tax exemption on the portions of their properties used for affordable housing if their properties qualify, including market rate developers.

F. Affordable Housing Property Tax Exemption (Section 9 of the bill): 

What this means: This will allow a local government to adopt a property tax exemption for affordable housing developments. Note, this exemption has to be adopted by the local jurisdiction before its use.

G. Building Materials Sales Tax Refund (Section 12 of the bill): 

What this means: An affordable housing developer can now seek a refund for sales taxes paid for building materials used for an eligible unit. This refund can be substantial as it allows for a refund of $5,000 per eligible unit.

H. Corporation Tax Donation Credit or the "Live Local Credit" (Sections 21 and 34 of the bill):

What this means: This allows for a corporation to receive a tax credit for money’s contributed to Florida Housing for its SAIL program. This credit is highly complex and could be very beneficial to companies that have substantial revenue, which may have maximized their yearly 10% charitable deduction limit, and would also like to invest in affordable housing.

I. State-owned lands for Affordable Housing (Section 24 of the bill):

J.  Job Growth Grant Fund (Section 25 of the bill):

K. Amendments to the section 420.503's definition of Qualified Contract-Technical change (Section 27 of the bill):

L. Florida Housing Board of Directors (Section 28 of the bill):

M. Prohibition of Rent Control (Sections 2 and 6 of the bill):

What this means: This amendment will prevent a scenario that recently occurred in Orlando where a rent control ordinance appeared on the general election ballot. The amendment removes the statutory language which allows under certain circumstances a county or local government to pass an ordinance to impose rent controls.

The above provides a general summary to the major rules and amendments found in the Live Local Act. It should be noted that there are many nuances to the Live Local Act that are outside the scope of this summary. Whether you are interested in pursuing a certain provision of the Live Local Act or simply want to know more about what options may be available to your current or future development, we are here every step of the way to assist. Please feel free to contact us at your convenience.


Copyright ©2025 Nelson Mullins Riley & Scarborough LLP
National Law Review, Volume XIII, Number 93