The proposed Transit-Oriented Development Act (TOD Act) aims to improve transportation infrastructure and address housing shortages in Florida by establishing regulations for transit-oriented development (TOD) zones and rural livable urban village (LUV) areas. Local governments are required to adopt ordinances to create these zones by December 1, 2026, and must allow for mixed-use developments that combine residential and commercial uses. The bill prohibits local governments from imposing certain building regulations, such as maximum building heights and floor area ratios, within these areas, promoting higher density development near transit infrastructure. Once a TOD zone is established, it cannot be reduced or eliminated, even if a transit stop closes.

The bill also introduces new legal provisions for property owners and housing organizations adversely affected by local regulations that violate the act, allowing them to take legal action against local governments. It specifies that these parties shall prevail unless the local government can demonstrate, by clear and convincing evidence, that the regulation serves a compelling governmental interest and is the least restrictive means of achieving that interest. The bill waives sovereign immunity for local governments regarding liabilities created under this section and encourages collaboration among public transit providers and local governments to develop land within TOD zones, with net proceeds from such developments allocated to a designated fund for public transit operations and improvements. The act is set to take effect on July 1, 2026.