The Florida Senate
BILL ANALYSIS AND FISCAL IMPACT STATEMENT
(This document is based on the provisions contained in the legislation as of the latest date listed below.)
Prepared By: The Professional Staff of the Committee on Fiscal Policy
BILL: CS/CS/SB 328
INTRODUCER: Fiscal Policy Committee; Community Affairs Committee; and Senator Calatayud and
others
SUBJECT: Affordable Housing
DATE: February 2, 2024 REVISED:
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. Hunter Ryon CA Fav/CS
2. Hunter Yeatman FP Fav/CS
Please see Section IX. for Additional Information:
COMMITTEE SUBSTITUTE - Substantial Changes
I. Summary:
CS/CS/SB 328 amends various provisions of the Live Local Act (act), passed during the 2023
Regular Session, which made substantial changes and additions to affordable housing related
programs and policies at both the state and local level.
As it pertains to the act’s preemption of certain local zoning and land use regulations to expedite
the development of affordable housing, the bill:
 Preempts a local government’s “floor area ratio” for qualifying developments.
 Modifies the height preemption provisions to address situations where a qualifying
development is adjacent to single family parcels.
 Prohibits qualifying developments within one-quarter mile of a military installation from
utilizing the act’s administrative approval process and exempts certain airport impacted areas
from the act’s provisions.
 Clarifies that a local government’s “currently allowed” density, height, and floor area ratio
does not include any bonuses, variances, or other special exceptions provided in their
regulations.
 Requires developments authorized under the act to be treated as a conforming use even after
expiration of the development’s affordability period and after the expiration of the applicable
statutes.
 Modifies parking reduction requirements for qualifying developments located near certain
transportation facilities.
BILL: CS/CS/SB 328 Page 2
 Requires local governments to publish on its website a policy containing procedures and
expectations for the administrative approval of qualifying developments.
 Clarifies that only the affordable units in a qualifying development must be rental units.
 Requires a qualifying development within a transit-oriented development or area to be
mixed-use residential.
 Clarifies provisions concerning local government bonuses for height, density, and floor area
ratio for qualifying developments.
As it pertains to the act’s ad valorem tax exemptions for newly constructed multifamily
developments, the bill makes the following changes:
 Requires 10 units, rather than 70 units, to be set aside for income-limited persons and
families in Florida Keys to qualify for the exemption.
 Clarifies that the Florida Housing Finance Corporation’s (FHFC) duties are ministerial in
certifying eligibility for exemption, while local property appraisers maintain authority to
grant tax exemptions.
 Outlines the method for property appraisers to determine values of tax exempt units.
The bill also aligns certain .provisions of the local option property tax exemption with the
exemption for newly constructed developments for consist application of the law.
Finally, the bill appropriates $100 million in non-recurring funds from the General Revenue
Fund to the FHFC to administer the Florida Hometown Hero Program and makes one
programmatic change, and expands the authority for the FHFC to preclude developers from
participating in its programs for certain violations.
The bill takes effect upon becoming a law.
II. Present Situation:
Affordable Housing
One major goal at all levels of government is to ensure that citizens have access to affordable
housing. Housing is considered affordable when it costs less than 30 percent of a family’s gross
income. A family paying more than 30 percent of its income for housing is considered “cost
burdened,” while those paying more than 50 percent are considered “extremely cost burdened.”
What makes housing “affordable” is a decrease in monthly rent so that income eligible
households can pay less for the housing than it would otherwise cost at “market rate.”1 Lower
monthly rent payment is a result of affordable housing financing that comes with an enforceable
agreement from the developer to restrict the rent that can be charged based on the size of the
household and the number of bedrooms in the unit.2 The financing of affordable housing is made
possible through government programs such as the federal Low-Income Housing Tax Credit
Program and the Florida’s State Apartment Incentive Loan program.3
1
The Florida Housing Coalition, Affordable Housing in Florida, p. 3, available at: https://flhousing.org/wp-
content/uploads/2022/07/Affordable-Housing-in-Florida.pdf (last visited Jan. 6, 2024).
2
Id.
3
Id.
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Resident eligibility for Florida’s state and federally funded housing programs is typically
governed by area median income (AMI) levels. These levels are published annually by the U.S.
Department of Housing and Urban Development for every county and metropolitan area.4
Florida Statutes categorizes the levels of household income as follows:
 Extremely low income – households at or below 30% AMI;5
 Very low income – households at or below 50% AMI;6
 Low income – households at or below 80% AMI;7 and
 Moderate income – households at or below 120% AMI.8
Florida Housing Finance Corporation
The Florida Housing Finance Corporation (FHFC) is a public-private entity created by the
Legislature in 1997 to assist in providing a range of affordable housing opportunities for
Floridians.9 The FHFC is a corporation held by the state and housed within the Department of
Commerce (department). The FHFC is a separate budget entity and its operations are not subject
to control, supervision, or direction by the department.10
The goal of the FHFC is to increase the supply of safe, affordable housing for individuals and
families with very low to moderate incomes by stimulating investment of private capital and
encouraging public and private sector housing partnerships. As a financial institution, the FHFC
administers federal and state resources to finance the development and preservation of affordable
rental housing and assist homebuyers with financing and down payment assistance.
The FHFC may preclude an applicant or an affiliate from participation in any of its programs
under certain circumstances if the applicant or affiliate has:11
 Made a material misrepresentation or engaged in fraudulent actions in connection with any
corporation program.
 Been convicted or found guilty of, or entered a plea of guilty or no contest to, a crime in any
jurisdiction which directly relates to the financing, construction, or management of
affordable housing or the fraudulent procurement of state or federal funds.
 Been excluded from any federal funding program related to the provision of housing.
 Been excluded from any Florida procurement programs.
 Offered or given consideration, other than the consideration to provide affordable housing,
with respect to a local contribution.
 Demonstrated a pattern of noncompliance and a failure to correct any such noncompliance
after notice from the corporation in the construction, operation, or management of one or
more developments funded through a corporation program.
4
U.S. Department of Housing and Urban Development, Income Limits, Access Individual Income Limits Areas – Click Here
for FY 2023 IL Documentation, available at https://www.huduser.gov/portal/datasets/il.html#2021 (last visited Jan. 8, 2024).
5
Section 420.0004(9), F.S.
6
Section 420.0004(17), F.S.
7
Section 420.0004(11), F.S.
8
Section 420.0004(12), F.S.
9
Chapter 97-167, Laws of Fla. From 1980 through 1997, the former Florida Housing Finance Agency, placed within the
former Department of Community Affairs, performed similar duties.
10
Section 420.504(1), F.S.
11
Section 420.518(1)(a-f), F.S.
BILL: CS/CS/SB 328 Page 4
Zoning and Land Use Preemption for Affordable Developments
The Growth Management Act requires every city and county to create and implement a
comprehensive plan to guide future development.12 All development, both public and private,
and all development orders13 approved by local governments must be consistent with the local
government’s comprehensive plan unless otherwise provided by law.14 The Future Land Use
Element in a comprehensive plan establishes a range of allowable uses and densities and
intensities over large areas, and the specific use and intensities for specific parcels15 within that
range are decided by a more detailed, implementing zoning map.16
The Live Local Act (act)17 preempts certain county and municipal zoning and land use decisions
to encourage development of affordable multifamily rental housing in targeted land use areas.
Specifically, the act requires counties and municipalities to allow a multifamily or mixed-use
residential18 rental development in any area zoned for commercial, industrial, or mixed-use if the
development meets certain affordability requirements.19 To qualify, the proposed development
must reserve 40 percent of the units for residents with incomes up to 120% AMI, for a period of
at least 30 years.
Additionally, the local government may not restrict the density20 of qualifying developments
below the highest allowed density on land within its jurisdiction where residential development
is allowed, and may not restrict the height below the highest currently allowed height for a
commercial or residential development in its jurisdiction within 1 mile of the proposed
development or 3 stories, whichever is higher.
An application for a development must be administratively approved and no further action is
required from the governing body of the local government if the development satisfies the local
government’s land development regulations for multifamily in areas zoned for such use and is
otherwise consistent with the jurisdiction’s comprehensive plan.
12
Section 163.3167(2), F.S.
13
“Development order” means any order granting, denying, or granting with conditions an application for a development
permit. See s. 163.3164(15), F.S. “Development permit” includes any building permit, zoning permit, subdivision approval,
rezoning, certification, special exception, variance, or any other official action of local government having the effect of
permitting the development of land. See s. 163.3164(16), F.S.
14
Section 163.3194(3), F.S
15
When local governments make changes to their zoning regulations or comprehensive plans some structures may no longer
be in compliance with the newly approved zoning and may be deemed a “nonconforming use.” A nonconforming use or
structure is one in which the use or structure was legally permitted prior to a change in the law, and the change in law would
no longer permit the re-establishment of such structure or use.
16
Richard Grosso, A Guide to Development Order "Consistency" Challenges Under Florida Statutes Section 163.3215, 34 J.
Envtl. L. & Litig. 129, 154 (2019) citing Brevard Cty. v. Snyder, 627 So. 2d 469, 475 (Fla. 1993).
17
The “Live Local Act”, Ch. 2023-17, Laws of Fla., made various changes to affordable housing related programs and
policies at the state and local levels, including zoning and land use preemptions favoring affordable housing, funding for state
affordable housing programs, and tax provisions intended to incentivize affordable housing development.
18
For mixed-use residential, at least 65 percent of the total square footage must be used for residential purposes.
19
See ss. 125.01055(7) and 166.04151(7), F.S.
20
“Density” means an objective measurement of the number of people or residential units allowed per unit of land, such as
residents or employees per acre, see s. 163.3164(12), F.S. While the act expressly preempted density, it did not address
intensity. Intensity is often measured in terms of floor area ratio (FAR). FAR is the measurement of a building’s floor area in
relation to the parcel or lot that the structure is built on. For a general overview of FAR, see: Metropolitan Council, Local
Planning Handbook, Calculating Floor Area Ratio, available at: https://metrocouncil.org/Handbook/Files/Resources/Fact-
Sheet/LAND-USE/How-to-Calculate-Floor-Area-Ratio.aspx (last visited Jan. 5, 2024).
BILL: CS/CS/SB 328 Page 5
A local government must consider reducing parking requirements for these developments if they
are located within one-half mile of a major transit stop, as such term is the local government’s
land development code, and the major transit stop is accessible from the development.
These provisions do not apply to recreational and commercial working waterfronts in industrial
areas, and only mixed-use residential developments must be authorized under these provisions in
areas where commercial or industrial capacity is exceptionally limited.
The act specifically requires that except as otherwise provided in the act, a qualifying
development must comply with all applicable state and local laws and regulations.
These provisions are effective until October 1, 2033.
Live Local Ad Valorem Property Tax Exemptions
The ad valorem tax21 or “property tax” is an annual tax levied by counties, municipalities, school
districts, and some special districts based on the taxable value of property as of January 1 of each
year.22 The Florida Constitution allows the Legislature to exempt from ad valorem taxation
portions of property that are used predominantly for educational, literary, scientific, religious or
charitable purposes.23 The Legislature has implemented these exemptions and set forth criteria to
determine whether property is entitled to an exemption.24
Property Tax Exemption for Newly Constructed Developments
The Live Local Act established a new ad valorem tax exemption for owners of newly
constructed multifamily rental developments who use a portion of the development to provide
affordable housing.25 Eligible property includes units in a newly constructed multifamily
development containing more than 70 units dedicated to housing natural persons or families
below certain income thresholds. However, units subject to an agreement with FHFC are not
eligible for the exemption.
“Newly constructed” is defined as an improvement substantially completed within 5 years before
the property owner’s first application for this exemption. The units must be occupied by such
individuals or families and rent limited so as to provide affordable housing at either the 80 or 120
percent AMI threshold. Rent for such units also may not exceed 90 percent of the fair market
value rent as determined by a rental market study.
21
For an in depth review of ad valorem taxation and the specific taxes discussed herein, see Florida Senate Committee on
Appropriations, Bill Analysis and Fiscal Impact Statement, CS/SB 102 (2023) pages 30-34, Feb. 24, 2023, available at
https://flsenate.gov/Session/Bill/2023/102/Analyses/2023s00102.ap.PDF (last visited Jan. 7, 2024).
22
Both real property and tangible personal property are subject to tax. Section 192.001(12), F.S., defines “real property” as
land, buildings, fixtures, and all other improvements to land. Section 192.001(11)(d), F.S., defines “tangible personal
property” as all goods, chattels, and other articles of value capable of manual possession and whose chief value is intrinsic to
the article itself.
23
FLA. CONST. art. VII, s. 3(a).
24
Section 196.196, F.S.
25
Section 196.1978(3), F.S.
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Qualified property used to provide affordable housing at the 80 to 120 percent AMI threshold
receives an exemption of 75 percent of the assessed value of the affordable units, while such
property providing affordable housing up to the 80 percent AMI threshold receives a complete ad
valorem tax exemption for the affordable units.
To receive this exemption, a property owner must submit an application by March 1 to the
property appraiser, accompanied by a certification notice from the FHFC. To receive a FHFC
certification, a property owner must submit a