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During the 2023 Florida Legislative Session, Governor DeSantis signed Senate Bill 102 – the Live Local Act – to provide developers with incentives to construct affordable and workforce housing across the State of Florida.
One important component of the Live Local Act is the “Missing Middle” ad valorem tax exemption, which provides developers with an opportunity to claim up to a 100% exemption from ad valorem property taxes for qualifying workforce housing units. The Missing Middle Ad Valorem Tax Certification Program, which is being administered by the Florida Housing Finance Corporation, is available for application now.
On November 29, 2023, Florida Housing Finance Corporation released a new Frequently Asked Questions document with important answers related to the application process and details for eligible units. Specifically, the FAQ document confirms that:
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Ratio utility billing systems or other submetering for electricity, gas, and water are not included in the maximum rental allowance.
- Units rented to full-time students and graduate assistants qualify for the program so long as the project otherwise meets the requirements of the statute.
- The exemption is based on the income of the household members residing in the unit, so the income of a guarantor on a lease is not included in determining whether the tenant qualifies for an affordable or workforce housing unit.
Stearns Weaver is actively monitoring all aspects of the Live Local Act, including the funding opportunities, ad valorem exemption programs, land use preemption implementation across the State of Florida, as well as any legislative changes during the upcoming legislative session.
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