How Florida’s Live Local Act 2024 Creates Opportunities for Affordable Housing

As Florida grapples with a growing housing affordability crisis, particularly in bustling Miami—one of the nation’s least affordable cities—the state is taking a bold step forward with the Live Local Act 2024. This innovative legislation seeks to reshape the housing landscape by providing critical solutions that support the real estate and development market. By emphasizing the importance of “living local,” the Act aims to combat rising housing costs while fostering sustainable community development that benefit all Floridians.

The Live Local Act introduces two key components: zoning preemption, which grants additional development capacity, and tax exemptions that help finance affordable housing projects. These measures are designed to allow developers to maximize a project’s potential while meeting the pressing needs of the community. Under Live Local, developers can secure extra units, increase building heights, and leverage expedited timelines while enabling a mix of workforce housing and market-rate units.

Here’s how development teams can leverage Live Local across the state.

Understanding the Opportunities

Recognizing the opportunities created by Live Local is crucial for developers and stakeholders aiming to navigate Florida’s changing housing market. To take advantage of these benefits, projects must include at least 40% multifamily units that are rented at 120% of the Area Median Income (AMI) for a duration of 30 years, while also limiting the non-residential component to a maximum of 35%.

Expedited Timeline

One of the most significant advantages is the shift to an expedited administrative approval process, eliminating the need for lengthy public hearings. This streamlined approach drastically reduces the typical timeline for project approval in Miami, which can take a year or even longer—up to 2 years if rezoning is necessary.

As long as projects comply with all non-Live Local regulations like setbacks and open space, they can move forward much more quickly. Anthony De Yurre, Partner at Bilzin Sumberg, highlights this efficiency, stating, “We were recently able to get a project approved in under a month.”

Zoning Flexibility

Live Local expands opportunities for multifamily residential development by permitting such projects in areas zoned for commercial and industrial uses. This change eliminates restrictions that historically barred residential uses in these zones. As a result, developers gain access to more sites without having to navigate lengthy rezoning and comprehensive plan amendment processes. “This approach enables projects to proceed directly into permitting,” says De Yurre, “And it promotes a mixed-use composition that better meets community needs.”

Increased Density

Live Local significantly enhances development potential by allowing developers to utilize the maximum density allowances from any zone within the municipality, as well as the maximum height allowances from any zone within one mile of their project site. This increased flexibility enables developers to leverage these higher-density options, making it easier for projects to become financially viable. “Sometimes, one or two stories can make all the difference,” says De Yurre. “Developers can make projects pencil that previously wouldn’t have worked.”

Parking Reductions

Developers are not obligated to include parking spaces for Transit Oriented Developments (TODs). Furthermore, developments located within half a mile of a major transportation hub benefit from a 20% reduction in parking requirements. Although parking can serve as an attractive amenity for tenants, constructing parking facilities in urban settings can be expensive. This provision allows developers to weigh the importance of parking for tenants against the associated costs.

Tax Benefits

A 75% tax exemption is available for projects with at least 71 units rented at up to 120% of the Area Median Income (AMI) or 90% of market rate rents and household income. For a 100% tax exemption, a portion of these 71 units must be rented at or below 80% of AMI or 90% of market rate rents and household incomes capped at 80% AMI. When determining property value with Live Local, the assessment will include the proportional share of residential common areas and land value.

We recommend consulting a land use attorney, such as those at Bilzin Sumberg, to help you evaluate your options and determine the right unit mix for your project.

Making Deals Work

Although the Live Local Act offers promising opportunities for affordable housing developments, challenges remain in its implementation, as not all jurisdictions are completely on board. Collaborating with your consultant team, including your land use attorney and site civil engineer, is essential to educate stakeholders about the legislation’s intent and foster acceptance and cooperation. Development teams are successfully navigating local interpretations of the Live Local Act by working closely with municipal authorities to align their projects with community needs and expectations.

Moving Forward in Florida

By leveraging Live Local, developers gain an alternative approach to underwriting deals in a region that has long struggled to deliver profitable housing solutions. Ultimately, it serves as a valuable tool for increasing operational income and minimizes the probability of project delays, enabling more efficient and effective housing developments.

Ready to move forward with affordable housing in Florida? Connect with Taylor.