THE LIVE LOCAL ACT OF 2023
Senate Bill 102 by Senator Alexis Calatayud
Section-by-Section Summary
EMBARGOED UNTIL SB 102 IS FILED
Section 1: “Live Local” short title
Sections 2 and 6: Rent Control Prohibited
Removes provision in current law allowing local governments to impose rent control under certain circumstances (i.e., finding of a housing emergency, voter approval, etc.) This change forbids rent control under all circumstances.
Section 3: County Approval of Affordable Housing
Preempts counties on zoning, density, and height for certain multi-family developments in commercial areas with an affordable housing component
o A proposal to construct multi-family or mixed-use residential project in an area zoned for commercial or mixed-use may not require a zoning change or comprehensive plan amendment if developer commits to set aside at least 40% of the units as affordable for at least 30 years and serve incomes up to 120% AMI (approximately $94,000 for a family of four)
o County density and height restrictions for these projects is based on maximum limits of nearby developments.
o Such projects must satisfy all other requirements for multi-family developments (i.e., setbacks, parking, etc.) and are subject to an administrative approval process, which does not require full governing body approval.
o County must consider reducing parking requirements for these developments if located within one-half mile of a major transit stop.
o Sunsets 2033.
Removes ability for counties to bypass state and local laws to approve affordable housing in residential areas, but preserves this ability for commercial and industrial areas. Allows bypass provision to apply to SAIL deals, which current law prohibits.
Section 4: County-owned Property for Affordable Housing
Requires a county to publish on its website the list of county-owned property (including dependent special district property) that may be appropriate for affordable housing development. Current law requires counties to prepare an inventory of such property every 3 years, but provides no publication requirement.
Provides best practices for counties to apply when considering utilizing county-owned property for affordable housing.
Section 5: Municipal Approval of Affordable Housing
Identical to Section 3, as applied to municipalities.
Section 7: Municipal-owned Property for Affordable Housing
Identical to Section 4, as applied to municipalities
Section 8: Property Tax Discounts/Exemptions
Nonprofit Land Leased for Affordable Housing
Property tax exemption for land owned by nonprofit entity that is leased for a minimum of 99 years for the purpose of providing affordable housing.
Sunsets 2059.
“Missing Middle”
Incentive for newly constructed (within last 5 years) market rate developments to set aside a portion of units for tenants in the workforce AMI ranges:
o Up to 80% AMI unit (maximum of approximately $62,650 for a family of four) results in a 100% tax exemption for the unit;
o 81% up to 120% AMI unit (approximately $62,651 to $94,000 for a family of four) results in a 75% tax exemption for the unit;
Eligible developments must have at least 70 units and must offer rents for the specific units of at least 10% below market rate.
Units that are restricted through an agreement with FHFC do not qualify
May not qualify for both this exemption and the local option exemption in section 9
Sunsets 2059
Section 9: Local Option Affordable Housing Property Tax Exemption (50% AMI & below)
Authorizes counties and municipalities to offer through ordinance a property tax exemption to property owners who dedicate units for affordable housing at 50% AMI or below ($39,150 or less for a family of four).
Eligible developments must have at least 50 units and dedicate at least 20% for affordable housing.
Local government may exempt extremely-low income, very-low income units, or both.
If all units in the development will be used for affordable housing, then the local government can exempt up to 100% of the property tax for each unit; if less are dedicated for affordable housing, then the local government can exempt up to 75% of the property tax for each unit.
Sections 10, 11, 13, 14, 15, & 30: General Revenue Service Charge Redirect
Redirects up to $150 million annually of GR service charge on doc stamp revenues to the State Housing Trust Fund (up to $1.5 billion new funding for housing over 10 years).
Funds must be used for SAIL projects as specified in the bill: 70% for projects focused on infill, maximizing existing infrastructure, and projects near military installations; 30% for use and lease of public lands and other specific focuses such housing for elderly persons and young adults aging out of foster care, and projects in rural areas
Sunsets 2033.
Section 12: Building Materials Sales Tax Refund
Provides a refund for sales tax paid on building materials used to construct affordable housing developments funded through FHFC deals
Limited to $5,000 per affordable unit.
Sections 12, 18, & 38: Community Contribution Tax Credit Program
Existing program which encourages Florida businesses to make donations toward community development and housing projects for low-income persons in exchange for tax credits.
Raises total tax credits available annually under the program from $14.5 million to $25 million.
Sections 20, 32, 39, & 40: Live Local Corporate Tax Donation Program
Creates a new tax donation program to allow taxpayers to direct their payments to FHFC for use as SAIL funds.
Annual cap of $100 million.
Funds will be available for the same use as other SAIL funds, except FHFC may use up to $25 million of the receipts for “large-scale projects of significant regional impact.”
Applies only to corporate income tax and insurance premium tax.
Sections 21 & 22: State-owned Lands for Affordable Housing
Requires the state to assess whether nonconservation state lands are suitable for use as affordable housing and consider opportunities to transfer such lands to local governments for affordable housing.
Section 23: Job Growth Grant Fund
Expands Job Growth Grant Fund eligibility to specifically authorize public infrastructure projects that support affordable housing.
Sunsets 2033.
Section 24: State Housing Strategy
Modernizes the 1988 State Housing Strategy to align with current best practices and goals.
Provides guidelines and direction to various affordable housing-related organizations.
Directs OPPAGA to review the state and local affordable housing efforts and highlight innovative affordable housing solutions via annual, rotating reports.
Section 25: Qualified Contracts (technical change)
Amends a 2022 provision pertaining to the qualified contract process, whereby certain affordable housing rental developments at year 14 can request FHFC to find a purchaser for the development to continue to operate it under the affordable housing restrictions. The change conforms a single definition to federal law.
Section 26: Florida Housing Finance Corporation Board of Directors
Places one member appointed by each of the President of the Senate and Speaker of the House of Representatives on the Board of Directors of FHFC.
Sections 27 & 28: Annual LBR Report on Maximizing Federal Affordable Housing Funds
Requires FHFC to include in its annual LBR, for informational purposes, the amount of state funds necessary to use all incoming federal housing funds in order to maximize production of new, affordable multi-family housing units.
Sunsets 2033.
Section 29: SAIL – Rental Housing for Persons in Foster Care
Broadens FHFC ability to approve SAIL funding for permanent rental housing for persons in foster care or aging out of foster care by removing the requirement that the housing be “on a campus” that provides housing for such persons.
Sections 33 and 41: Hometown Hero Housing Program
Codifies the Hometown Hero downpayment assistance loan program, initially enacted in proviso in 2022, for first-time homebuyers with incomes at or below 150% AMI.
Eligible borrowers must be seeking to purchase a home as a primary residence and be employed full-time by a Florida-based employer. Applicants who are servicemembers or veterans are not required to be first-time homebuyers.
Loan amount is a minimum of $10,000 and up to 5% of first mortgage loan, not to exceed $35,000. Loans are 0% interest and payable when property is sold, refinanced, rented, or transferred.
Appropriates $100 million in nonrecurring funds from the General Revenue Fund to implement the evergreen program.
Section 34: Technical Assistance - Affordable Housing on County/Municipal Land
Authorizes FHFC to contract with a private entity to provide technical assistance to local governments to facilitate the use or lease of county or municipal property for affordable housing purposes.
Section 36: Expedited Processing of Building Permits
Requires local governments to maintain a public written policy outlining procedures for expediting permits and development orders for affordable housing projects.
Various current laws require permits and development orders to be expedited, including those for affordable housing.
Section 42: SHIP Appropriation
Appropriates $252 million in nonrecurring funds from the Local Government Housing Trust Fund to FHFC for the SHIP program.
Section 43: SAIL Appropriations
Appropriates $150 million in recurring funds from the State Housing Trust Fund to FHFC to implement section 30 (GR Service Charge Redirect to SAIL).
Appropriates $109 million in nonrecurring funds from the State Housing Trust Fund to FHFC for the SAIL program.
Section 44: Construction Housing Inflation Response Funding
Appropriates $100 million in nonrecurring funds from the General Revenue Fund to FHFC to implement a competitive assistance loan program for new construction projects in the development pipeline that have not commenced construction and are experiencing verifiable cost increases due to market inflation. Eligible projects are those that accepted an invitation to enter credit underwriting from July 1, 2020 through June 30, 2022. Any funds not awarded as of December 31, 2023, will be used for the SAIL program.
Section 45: Finding of Important State Interest
Section 46: Effective Date
July 1, 2023, unless otherwise provided.
Property tax exemptions (sections 8 and 9) first apply to 2024 tax roll.
Section 44 (Construction Housing Inflating Response Funding) takes effect upon becoming a law.
Sections 16, 17, 19, 31, 35, & 37: Clarifying, Corrective, or Non-substantive Changes