Learn more about the incentives offered through the Live Local Act.
The Live Local Act (“Live Local” or the “Act”) makes unprecedented changes to zoning law that impact and limit local government power. The Act requires counties and municipalities (“Local Government”) to administratively approve multifamily and mixed-use residential projects as permitted uses in any area zoned commercial, industrial, or mixed-use so long as 40% of the residential units are restricted as “affordable” for at least 30 years.
The Live Local Act appropriates the up to $150 million in recurring funds for the SAIL program, which must be used for affordable mixed-use projects that address urban infill, provide housing near military installations, and other criteria. This appropriation will be funded by increased revenue from the State Housing Trust Fund as a result of the Act. $109 million in non-recurring funds for the SAIL program for the 2023–2024 fiscal year. $252 million in non-recurring funds for the SHIP program for the 2023–2024 fiscal year.
The Live Local Act amends Chapter 196 (relating to tax exemptions) and Chapter 212 (relating to sales taxes) of the Florida Statutes. The Act provides for various tax incentives for developers to construct affordable housing projects including a tax tax refund of up to $5,000 for sales tax paid on building materials used in the construction of affordable housing units, and Ad Valorem property tax exemptions for developers & non-profits.
Leveraging the Live Local Act to pursue a multifamily or mixed-use residential project in any area zoned commercial, industrial, or mixed-use requires that 40% of the residential units are restricted as “affordable” for at least 30 years.
But what exactly is “Affordable”?
Affordable Housing is based on AMI (Area Median Income) and restricted to households not making more than a specified percentage of the area median income (AMI). This AMI is the greater of the median income for households within the entire state, the metropolitan statistical area (MSA) in which the project is located, or the county if the project is outside a MSA. This is then adjusted for household size with monthly rents (including utilities) not exceeding 30% of the tenant’s income.
Most affordable housing programs target household income of no more than 60% or 80% of AMI. The Live Local Act targets households making up to 120% of AMI.
