Housing

LEGISLATION THAT PASSED 

Live Local IV – This is the third session in a row the Legislature passed a revision to the Live Local Act that was originally passed in 2023 to increase the state’s stock of affordable and workforce housing. That bill appropriated $711,000 for housing programs, created tax incentives, and preempted local control over zoning, density, height restrictions, and rent control. This session,  HB 1389:

• Expands where local governments must allow multifamily and mixed-use developments to include land zoned for commercial, industrial, or mixed use and land owned by counties, cities, school districts, and religious institutions.
• Makes it harder for local governments to opt out of Live Local property tax exemptions by requiring that the local availability of affordable units has exceeded the demand for each of the previous three years, rather than the most recent year.
  
• Provides that the owner of a property that was issued a building permit within 4 years before the effective date of a ordinance or resolution that opts out, may apply for and continue to be granted the exemption.
  
• Prohibits local governments from restricting the height of a proposed development through the use of setbacks or stepbacks.
• Mandates a study to evaluate the efficacy of using mezzanine finance or second-position short-term debt and the potential of tiny homes in meeting the need for affordable housing.  

A House amendment to the Senate amendment right before passage changed the opt out provision from a complete elimination of the option to the above language and removed the requirement that local governments pass an ordinance to allow Accessory Dwelling Units. The chambers accepted the other’s changes.

Mobile Home Assistance – SB 594 will add short-term lot rental assistance for mobile home owners as an allowable program expense under local housing distributions, allow rehabilitation and emergency repairs funds to be used for mobile home owners, and remove the existing 20 percent funding cap on manufactured housing expenditures. The House and Senate had identical bills.

Homes for Veterans Property Management Incentive Pilot Program – SB 1602 creates the pilot program in Broward, Escambia, Hillsborough, and Santa Rosa counties to provide landlords with incentives to lease eligible dwelling units to veterans who are participating in the federal Supportive Housing program. Landlords may receive proportional funding to compensate for up to forty days during which a dwelling is vacant before the veteran is able to move in. Funds are also available to cover property loss caused by the veteran above the amount of the deposit money, up to $2,000. The bill passed both chambers unanimously.

LEGISLATION THAT DID NOT PASS

Accessory Dwelling Units (ADUs) – SB 48 would require local governments to allow ADUs, sometimes known as accessory apartments or granny flats, in single-family residential areas.  The bill also prohibits denial of a homestead property tax exemption solely because a property contains an ADU and requires separate taxation if the ADU is rented. OPPAGA is required to produce a study of mezzanine financing and tiny homes for potential inclusion in affordable housing solutions. Florida TaxWatch supports the promotion of ADUs. A similar bill passed the Senate last session, but a House amendment was not accepted. The full Senate approved its bill, but the House did not vote on it. In addition, the House removed the ADU provision from SB 1389 (above) right before passage, but the study on financing and tiny homes survived.

Disclosure of Estimated Taxes – SB 856 would have require online property listings to include estimated ad valorem taxes, rather than displaying the current owner’s taxes, to give prospective buyers a more accurate picture of future tax liabilities. Florida TaxWatch contends this overdue change is needed because Save Our Homes often make a property’s current tax bill much lower than it will be when the home is reassessed without having accrued any SOH benefit.  SB 856 passed the full Senate. The House did not pass it, but both original tax packages included this provision, so it may be revisited in conference.

Blue Ribbon Projects – HB 299 and SB 354 looked to establish a statewide approach for qualifying blue ribbon projects to streamline large-scale development while maintaining land preservation and affordable housing efforts. Qualifying landowners would be able to bypass traditional zoning and comprehensive plan amendments in exchange for dedicating at least 20 percent of the housing for affordable housing development and 60 percent of the land for long-term conservation and environmental commitments. The landowner would receive dollar-for dollar credits against several local government fees. The two similar bills made it to their respective floors but ultimately fell short.

Tax Credits for Contributions to Assist Homebuyers – SB 1672 and HB 311 would create a new tax credit for employers who contribute to their employees’ homebuying expenses. SB 1672 would also allow credits for contributions to state-approved down payment programs, such as Hometown Heroes. The bills allow a 100% tax credit against corporate income or insurance premium taxes for employer contributions to down payment or closing costs, capped at $5,000 per employee. While these bills are dead, this tax credit was included in the original House tax package, so it could be revisited in conference.

Affordable Housing – HB 675 would have increased the time period for which rental units must remain affordable to qualify for the Live Local zoning variance from 30 years to 50 years. The bill would decrease the maximum area median income used to determine eligibility for the Live Local ad valorem tax exemption for 75 percent of the assessed value of affordable housing units from 120 percent to 100 percent of the AMI. It also proposed eliminating documentary stamp taxes on deeds and other qualifying home purchase instruments for moderate-income first-time buyers.  SB 756, and SB 752 also contain the elimination of documentary stamp taxes on deeds and other qualifying home purchase instruments for moderate-income first-time buyers, but they never moved.

Housing Tax Credit – HB 51 would create a new $2,000 tax credit for businesses that provide discounted housing to formerly homeless employees, with an additional $1,000 credit for housing converted from previously idle property.