Lawmakers Want to Fix Florida’s Affordable Housing Law

Florida lawmakers could fine-tune the Live Local Act, the state’s 2023 affordable housing law, to accelerate construction and remove regulatory barriers. 

Specifically, the proposed updates aim to lower financing hurdles for developers and counteract municipal resistance to new projects, per CoStar.

Tax Incentives

House Bill 923, filed by Rep. Vicki Lopez, proposed a key change to the current tax incentive structure. 

Currently, developers receive tax breaks—75% for units affordable at 120% of an area’s median income and 100% for units at 80%—only upon project completion.

The bill would allow developers to claim these benefits earlier, once a site plan gains preliminary approval.

Many projects have struggled to secure financing under the current system, as lenders hesitate to approve funding without upfront tax credits. Earlier access to incentives could significantly boost participation in the program.

Local Roadblocks

House Bill 943 seeks to prevent Florida municipalities from undermining affordable housing developments. 

Some cities have imposed height and density limits, parking requirements, and additional permit fees to stall projects under the Live Local Act.

The new legislation would prohibit such restrictions, ensuring approved projects can move forward without unnecessary hurdles.

“This legislation removes unnecessary barriers to affordable housing development, streamlines approval processes, and modernizes land use policies,” Rep. Lopez stated.

Developers argue that municipal pushback has hindered efforts to address Florida’s housing crisis, despite the law’s original intent.

Developer Response

Developers have been cautious about utilizing the Live Local Act, citing initial ambiguities.

For example, Shoma Group, a Miami-based developer, hesitated to engage with the program when it first launched. However, after last year’s updates, the company proceeded with Shoma 88, a 405-unit apartment complex with 40% workforce housing.

With Florida’s population surging 8.5% since 2020, affordable housing remains a critical issue.

State officials argue that continued refinements to the Live Local Act are necessary to spur construction and address rising rental costs.

Next Steps

The proposed changes have strong legislative backing, with companion bills already filed in the Senate.

Given previous updates passed with bipartisan support, lawmakers are optimistic about securing these new reforms before the legislative session concludes on May 2.

As real estate attorney Anthony De Yurre noted, “The only way to get out of this problem is to build. That’s it. There’s no other solution.”