HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/CS/HB 1239 Affordable Housing
SPONSOR(S): Appropriations Committee, State Affairs Committee, Lopez, V. and others
TIED BILLS: IDEN./SIM. BILLS: CS/CS/SB 328
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) State Affairs Committee 18 Y, 1 N, As CS Burgess Williamson
2) Appropriations Committee 28 Y, 1 N, As CS McAuliffe Pridgeon
SUMMARY ANALYSIS
In 2023, the Legislature passed the Live Local Act, which preempts certain county and municipal zoning and land use
decisions to encourage development of affordable multifamily rental housing in targeted land use areas. Counties and
municipalities must allow a multifamily or mixed-use residential rental development in any area zoned for commercial,
industrial, or mixed-use if the development meets certain affordability requirements.
The bill amends various provisions of the Live Local Act (act). As it pertains to the act’s preemption of certain local zoning
and land use regulations to expedite development of affordable housing, the bill:
Requires a county or municipality to authorize multifamily and mixed-use residential as allowable uses on any site
owned by a county or municipality, including any zoning district permitting commercial, industrial, or mixed uses.
Clarifies that qualifying affordable units must be rental units and the highest allowed density and height subject to
the preemption does not include bonuses, variances, or other special exceptions.
Provides that administrative approval of a proposed development does not require a public hearing or any other
action by a quasi-judicial board or reviewing body.
Modifies the height preemption for developments adjacent to single-family residential uses.
Limits the ability of local governments to restrict the intensity, as measured in floor area ratio (FAR), of a proposed
development beyond the highest amount currently authorized.
Prohibits qualifying developments located near a military installation and exempts certain airport impacted areas.
Clarifies the act does not limit a local government’s ability to grant a bonus, variance, or other special exception
for height, density, or FAR and provides that a proposed development is still eligible for height, density, or
intensity bonuses provided by local ordinance if certain conditions are satisfied.
Requires developments authorized under the act be treated as a conforming use even after expiration of the
development’s affordability period and after the expiration of the act.
Modifies parking reduction requirements for qualifying developments.
Provides the Florida Housing Finance Corporation (FHFC) may not require that certain low-income housing tax
credits or tax-exempt bond financing be a part of the funding structure for a Live Local Program project.
Grandfathers in applicants for proposed developments under current law, but allows those applicants to submit a
revised application to account for changes made by the bill.
As it pertains to the act’s ad valorem tax exemptions for affordable housing development, the bill:
Requires fewer units for developments located in the Florida Keys to be set aside for income-limited persons and
families.
Clarifies that the FHFC’s duties are ministerial, while local property appraisers maintain authority to grant tax
exemptions, and outlines the method for property appraisers to determine values of tax -exempt units.
The bill also expands the authority of the FHFC to preclude certain developers from participating in its programs.
The bill appropriates $100 million in nonrecurring funds from the General Revenue Fund to the FHFC to administer the
Florida Hometown Hero Program in the 2024-2025 fiscal year. The bill will have an indeterminate negative impact on local
governments. See FISCAL COMMENTS for further discussion.
This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
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DATE: 2/21/2024
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Present Situation
Affordable Housing
Housing is considered affordable when it costs less than 30 percent of a family’s gross income. 1 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.” Severely cost burdened
households are more likely to sacrifice other necessities such as healthy food and healthcare to pay for
housing, and to experience unstable housing situations such as eviction.
Affordable housing is defined in terms of household income. Resident eligibility for Florida’s state and
federally-funded housing programs is governed by area median income (AMI) or statewide median
family income,2 published annually by the United States Department of Housing and Urban
Development (HUD).3 The following are standard household income level definitions and their
relationship to the 2023 Florida statewide AMI of $85,500 for a family of four (as family size changes,
the income range also varies):4
Extremely low income – earning up to 30 percent AMI (at or below $ 24,850).5
Very low income – earning from 30.01 to 50 percent AMI ($24,851 to $41,450).6
Low income – earning from 50.01 to 80 percent AMI ($41,451 to $66,350). 7
Moderate income – earning from 80.01 to 120 percent of AMI ($66,351 to $102,600).8
Florida Housing Finance Corporation9
The Florida Housing Finance Corporation (FHFC) was created in 1997 as a public-private entity to
assist in providing a range of affordable housing opportunities for Floridians. 10 FHFC is a corporation
held by the state and housed within the Department of Commerce (Commerce). FHFC is a separate
budget entity and its operations are not subject to control, supervision, or direction by Commerce.11
The goal of 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, 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. 12
1 S. 420.0004(3), F.S.
2 The 2023 Florida SMI for a family of four was $85,500. U.S. Dept. of Housing and Urban Development, Income Limits, Access
Individual Income Limits Areas, available at https://www.huduser.gov/portal/datasets/il.html#year2023 (last visited Jan. 24, 2024).
3 HUD User, Office of Policy Development and Research, “Income Limits,” available at
https://www.hudus er.gov/portal/datasets/il.html#2023 (last visited Jan. 24, 2024) (SMI and AMI available under the "Access Individual
Income Limits Area” dataset).
4 U.S. Dept. of Housing and Urban Development, Income Limits, Access Individual Income Limits Areas, available at
https://www.huduser.gov/portal/datasets/il.html#2023 (last visited Jan. 24, 2024).
5 S. 420.0004(9), F.S.
6
S. 420.0004(17), F.S.
7 S. 420.0004(11), F.S.
8 S. 420.0004(12), F.S.
9 See generally National Council of State Housing Agencies, “About HFAs,” available at https://www.ncsha.org/about-us/about-hfas/
(last visited Jan. 24, 2024); See generally State of Florida Auditor General, “Florida Housing Finance Corporation Audit Performed
Pursuant to Chapter 2013-83, Laws of Florida,” https://flauditor.gov/pages/pdf_files/2017-047.pdf (last visited Jan. 24, 2024) (pursuant
to Ch. 2013-83, Laws of Fla., codified as s. 420.511(5), F.S., the Florida Auditor General conducted an operational audit of the
accounts and records of FHFC in November 2016).
10 Ch. 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.
11 S. 420.504(1), F.S.
12 See Fla. Housing Finance Corp., Ab out Florida Housing, https://www.floridahousing.org/about-florida-housing (last accessed Jan. 24,
2024).
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FHFC may preclude an applicant or an affiliate from participation in any of its programs under certain
circumstances if the applicant or affiliate has:
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.13
Land Use for Affordable Housing Development
All development, both public and private, and all development orders 14 approved by a local government
must be consistent with the local government’s comprehensive plan.15 The Growth Management Act
requires every county and municipality to create and implement a comprehensive plan to guide future
development.16 A comprehensive plan is intended to provide for the future use of land, which
contemplates a gradual and ordered growth, and establishes a long-range maximum limit on the
possible intensity of land use.
A locality’s comprehensive plan lays out the locations for future public facilities, including roads, water
and sewer facilities, neighborhoods, parks, schools, and commercial and industrial developments. A
comprehensive plan is made up of 10 required elements, each laying out regulations for a different
facet of development.17 The future land use element and the housing element are the most pertinent to
the bill.
The future land use element designates proposed future general distribution, location, and extent of the
uses of land. Specified use designations include those for residential, commercial, industry, agriculture,
recreation, conservation, education, and public facilities. The approximate acreage and the general
range of density or intensity of use must be provided for each land use category. 18 The specific use
and intensities for specific parcels are decided by a more detailed, implementing zoning map.19
The housing element sets forth guidelines and strategies for the creation and preservation of affordable
housing for all current and anticipated future residents of the jurisdiction, elimination of substandard
housing conditions, provision of adequate sites for future housing, and distribution of housing for a
range of incomes and types.20
13 S. 420.518(1)(a-f), F.S.
14 “Development order” means any order granting, denying, or granting with conditions an application for a development permit. S ee 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.
15 S. 163.3194(3), F.S
16 S. 163.3167(2), F.S.
17 S. 163.3177(6), F.S. The 10 required elements include capital improvements; future land use plan; transportation; general sanitary
sewer, solid waste, drainage, potable water, and natural groundwater aquifer recharge; conservation; recreation and open space;
housing; coastal management; intergovernmental coordination; and property rights. Throughout statutes exist plans and program s that
may be added as optional elements.
18 S. 163.3177(6)(a), F.S.
19 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).
20 S. 163.3177(6)(f), F.S.
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A comprehensive plan is implemented through the adoption of land development regulations 21 that are
consistent with the plan and that contain specific and detailed provisions necessary to implement the
plan.22 Such regulations must, among other prescriptions, regulate the subdivision of land and the use
of land for the land use categories in the land use element of the comprehensive plan. 23 Substantially
affected persons have the right to maintain administrative actions that ensure land development
regulations implement and are consistent with the comprehensive plan. 24
Development that does not conform to the comprehensive plan may not be approved by a local
government unless the local government amends its comprehensive plan first. State law requires a
proposed comprehensive plan amendment to receive two public hearings, the first held by the local
planning board and subsequently by the governing board. 25 Following the hearings, the local
government must transmit the plan to several statutorily identified reviewing agencies, including
Commerce, for review.26 Most plan amendments are placed into the expedited state review process,
while plan amendments relating to large-scale developments are placed into the state coordinated
review process.27
Live Local Act
The Live Local Act, which became law in 2023, preempts certain county and municipal zoning and land
use decisions to encourage development of affordable multifamily rental housing in targeted land use
areas.28 Specifically, counties and municipalities must allow a multi-family or mixed-use residential29
rental development in any area zoned for commercial, industrial, or mixed-use if the development
meets certain affordability requirements.30 To qualify, the proposed development must reserve 40
percent of the units for residents with incomes up to 120 percent AMI, for a period of at least 30 years.
Local governments are prohibited from restricting the density31 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 one mile of the proposed development or three stories, whichever
is higher.32
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
21 “Land development regulations” means ordinances enacted by governing bodies for the regulation of any aspect of development a nd
includes any local government zoning, rezoning, subdivision, building construction, or sign regulations or any other regulati ons
controlling the development of land, except that this definition does not apply in s. 163.3213. See s. 163.3164(26), F.S.
22 S. 163.3202, F.S.
23 Id.
24 S. 163.3213, F.S.
25 Ss. 163.3174(4)(a) and 163.3184, F.S.
26
S. 163.3184, F.S.
27 See ss. 163.3184 and 380.06, F.S. In the Expedited State Review Process, DEO reviews and approves or amends the proposed
comprehensive plan amendment. This process can take 4 to 6 months. The State Coordinated Review Process is a more thorough,
complex, multi-phase process. For more information, see Florida Department of Economic Opportunity, Amendments that Must Follow
the State Coordinated Review Process; Procedures and Timeframes, https://floridajobs.org/community-planning-and-
development/programs/community-planning-table-of-contents/amendments -that-must-follow-the-state-coordinated-review-process-
procedures-and-timeframes (last visited Jan. 24, 2024).
28 Ch. 2023-17, ss. 3, 5, Laws of Fla., codified as ss. 125.01055(7) and 166.04151(7), F.S.
29 For mixed-use residential, at least 65 percent of the total square footage must be used for residential purposes. Ss. 125.01055(7)(a)
and 166.04151(7)(a), F.S.
30 Ss. 125.01055(7)(a) and 166.04151(7)(a), F.S.
31 “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. See s.
163.3164(22), F.S. 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, https://metrocouncil.org/Handbook/Files/Resources/Fact-Sheet/LAND-USE/How-to-Calculate-
Floor-Area-Ratio.aspx