Oppose Committee Substitutes for CS/HB 991 and CS/HJR 1257 

Bills Up Tomorrow at 8 a.m. in House Commerce Committee

COMMUNITY REDEVELOPMENT AGENCIES

Major Threat to Local Redevelopment Tools

CS/HB 991 (Giallombardo) is the House CRA bill. A Proposed Committee Substitute (PCS) to CS/HB 991 was just filed to be considered tomorrow, April 22, at 8:00 a.m. in the House Commerce Committee.

The PCS to CS/HB 991 would terminate nearly all existing Community Redevelopment Agencies (CRAs) and ban the creation or expansion of new ones, severely limiting the ability of cities to revitalize blighted areas and support affordable housing and economic development.

WHAT THE PCS DOES:

Mandates Termination of CRAs:

• All existing CRAs must terminate on the earlier of the date in their charter on July 1, 2025, or by September 30, 2045.

Prohibits New Projects and Debt After October 1, 2025, unless:

• The project is already appropriated or retained in the CRA’s FY 2025 budget.
• The project can be completed, and any new debt matured before the CRA’s termination date.

Limits Existing CRAs with Outstanding Bonds:

• CRAs with bonds maturing after 2045 may remain in existence only until those bonds mature.
• However, bond maturity dates cannot be extended.
• Local governments must adopt an amended CRA plan solely to meet remaining bond obligations.

Bans New CRAs and Boundary Expansions:

• No new CRAs may be created after July 1, 2025.
• No CRA boundaries may be expanded after July 1, 2025.

Exception Narrowly Applies:

• A limited exemption is provided only for county-created CRAs if the county is the sole contributor to the trust fund and its charter caps revenue collection. Even then, new bond debt is prohibited.

WHY IT MATTERS:

CRAs are essential tools that allow cities to reinvest in blighted, underserved areas using locally generated tax increment financing (TIF). This PCS would:

• Erase decades of successful community redevelopment efforts.
• Strip local governments of critical authority and flexibility.
• Jeopardize ongoing affordable housing, infrastructure, and economic development projects.

There is no demonstrated need for this sweeping preemption. It removes one of the only remaining local tools to address housing shortages, economic inequality, and downtown revitalization.

📢 WHAT YOU CAN DO:

• Immediately contact House Committee members and urge them to oppose PCS to CS/HB 991. (Click here for contact information)
• Emphasize how your CRA has successfully addressed blight, supported small businesses, or built affordable housing.
• Remind lawmakers this bill threatens long-term investments and local control without offering an alternative redevelopment mechanism.

Please contact David Cruz with any questions.

PROPERTY TAX BENEFITS FOR CERTAIN RESIDENTAL PROPERTIES

CS/HJR 1257 (Busatta) is a proposed constitutional amendment to establish a $50,000 exemption for certain residential properties with long-term lease agreements. Rental properties would also have a cap of 3% on the assessed value adjustment annually. A Proposed Committee Substitute (PCS) has been filed that adds the following:

Creates an Additional Homestead Exemption for First-Time Florida Homesteaders.

• The exemption would be in effect as of January 1, 2027, and applies to homes purchased on or after January 1, 2027.
• The term "first-time Florida homesteader" means a person who establishes a homestead within 1 year of purchasing a home and has not owned property in the previous 4 calendar years. 
• Persons who qualify will receive an additional homestead exemption equal to 50% of the homestead property's just value as of January 1 of the year the homestead is established. 
• This additional exemption applies for a period of 5 years or until the property is sold, whichever occurs first. 
• The additional exemption is reduced by 20% each year after the first 5 years.

📢 CS/HJR 1257 will also be considered by the House Commerce Committee tomorrow morning at 8 a.m. Please contact members of the Commerce Committee (click here) and urge them to oppose the PCS for CS/HJR 1257.

• There are no protections for how many rental properties these exemptions would apply to. The fiscal impact previously was $1.4 billion, reducing funds for public safety.
• We do not know the impact the first time Florida homesteader program will have on local governments and schools.
• These bills make major taxation policy changes late in session, with no study or evidence to support them incentivizing first-time homeownership.
• This first-time Florida homesteader proposal not only shifts the tax burden onto businesses and renters, but it also puts an additional burden on existing homestead property owners.

Please contact Charles Chapman with any questions.

Legislative Update on SB 1242 (CRAs):

Thanks to your advocacy, the Senate significantly scaled back SB 1242 (McClain) this afternoon. As amended in the Senate Rules Committee, the bill no longer mandates the termination of all CRAs by 2045, allows new CRAs to be created, and permits CRAs to continue funding projects and issuing new debt.

The bill still imposes some limitations: it prohibits changes to CRA boundaries, restricts CRA funding for certain activities (such as festivals), and requires CRAs to sunset according to the termination date in their adopted redevelopment plans. The bill also requires only new CRAs to be governed by the local government’s elected body, rather than an appointed board. The amendment reflects a meaningful compromise in response to concerns raised by cities.