Like the rest of the country, Florida faces an acute affordable housing crisis. The state's critical shortage is due in part to its explosion in population. Many who migrated, particularly during the COVID-19 pandemic, were able to afford housing and even bid up prices due to the inventory shortage in the Sunshine State.
A newly passed bill signed into law last week by Governor Ron DeSantis aims to ease this shortage through several strategies.
The bill, also referred to as "Live Local Act," intends to increase the affordable housing supply and restore the state's Sadowski Housing Trust Fund, which was initiated originally in 1992 to support investment in the affordable category. Yet, over the last few decades, more of the fund's capital was used for other purposes, according to a Green Street analysis of the bill. The Live Local Act represents the largest investment for housing efforts in the state's history and will invest $711 million in multiple programs, according to Green Street. Its features include:
- Property tax discounts and exemptions given affordable unit requirements are met and rents on those units are at least 10% below market rate;
- Tax credits for donations toward community development and housing projects for low-income housing;
- Low-cost loans to affordable housing developers;
- Down payment assistance and focused support for military communities.
But the bill will also make some changes that may not be as affordable-housing friendly. It will eliminate local municipalities being able to permit "any and all" rent control throughout Florida, which may drive up monthly leases when current residents vacate their rental units. Landlords will be the chief beneficiaries as rents rise across many markets in the state, Green Street says.
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