In 2023, the Florida Legislature enacted a groundbreaking law known as the Live Local Act, which was further amended in early 2024. This legislation significantly reshapes the landscape of affordable housing development by overriding certain city and county zoning regulations. For developers, this law provides a range of opportunities to construct multifamily residential projects while meeting affordable housing requirements. Below, we explore the key provisions and the incentives that make this law a game-changer for housing in Florida.

Key Provisions of the Live Local Act

1. Zoning Overrides
   • Multifamily residential developments can now be constructed even in zones where such uses were previously not permitted, provided the project is located in an area zoned for mixed-use, commercial, or industrial purposes.
   • To qualify, 40% of the units must be designated as affordable housing, with rental rates capped at 30% of 120% of the area’s median income (AMI). This threshold aligns with workforce housing standards, often close to market rates, making it feasible for developers.
   • Projects meeting these criteria must record a 30-year restriction on rents to maintain affordability.
2. Increased Density and Height Allowances

1. The allowable density for these projects must be at or below the highest density permitted elsewhere within the city.
2. Building heights can reach the maximum height authorized in any zoning district within a one-square-mile radius of the project site.
3. Transit-Oriented Development

1. Projects located within a half-mile of a major transit stop or a quarter-mile of any transit stop (as defined by local ordinance) qualify for additional flexibility.
2. Cities and counties must eliminate parking requirements for mixed-use projects situated in transit-oriented corridors, further incentivizing development near public transportation.
3. Tax Incentives
4. New construction projects with 70 or more affordable units are eligible for a 75% reduction in ad valorem taxes on each affordable unit for up to 30 years.
5. Streamlined Approvals
6. All qualifying projects must be administratively approved without requiring a public hearing, expediting the approval process and reducing potential obstacles.

Why This Law Makes Affordable Housing Development Attractive

The Live Local Act not only relaxes zoning and development restrictions but also introduces substantial financial incentives, making affordable housing projects in Florida highly attractive. Key advantages include:

• Flexible Unit Mix: Since only 40% of units need to meet affordability criteria, developers have significant latitude to include market-rate units or other uses, creating a more financially viable and profitable project.
• Tax Savings: The 75% ad valorem tax savings for 30 years provides long-term financial benefits for developers and property owners.
• Density and Height Flexibility: The ability to match the highest density and height allowances in the area enables developers to maximize project potential.
• Simplified Approvals: Eliminating the need for public hearings reduces delays and uncertainty, making it easier to get projects off the ground.

Conclusion

The Live Local Act represents a significant shift in Florida’s approach to affordable housing. By overriding restrictive zoning regulations and offering meaningful financial incentives, the law creates a pathway for developers to address housing needs while ensuring projects remain profitable. With its emphasis on transit-oriented development and streamlined processes, the law is poised to reshape communities across Florida and make affordable housing more accessible than ever before.

For developers and stakeholders looking to explore opportunities under this law, our firm provides experienced guidance to navigate the complexities of land use, zoning, and entitlement processes. Contact us today to learn how we can assist in making your project a success under the Live Local Act.