Central Florida Towns Opt Out of Live Local Act

At least two local governments in Central Florida have opted out of the state’s Live Local Act property tax exemptions for developers of workforce housing—and more towns in the area may follow suit.

The act, adopted last year, encourages the development of workforce housing by preempting local zoning restrictions if the developer reserves 40% of the units in the project for workforce housing, with rents capped at 120% of the area median income (AMI).

The new law, which provides property tax exemptions for workforce housing, has spawned a bevy of multifamily and mixed-use projects including workforce housing components in Florida.

Earlier this year, the Live Local Act was amended to allow local governments to opt out of the 75% property tax exemption for units occupied by middle-income tenants earning between 80% and 120% of AMI, but only if the University of Florida’s Shimberg Center for Housing Studies determines the area has an adequate number of affordable middle-income housing units.

The amendment, which does not apply to units occupied by tenants earning less than 80% of AMI—units eligible for 100% property tax exemptions—also requires a two-thirds approval for the opt-out by local governments.

Under contract with the Florida Housing Finance Corp., the Shimberg Center produces a statewide rental market survey that quantifies the affordable housing needs in Florida counties.

The center has found that across four-county areas of Central Florida, which includes Lake, Seminole, Orange and Osceola, there is actually a surplus of housing units for households earning 80% to 120% of AMI, making them eligible for opt-outs of Live Local Act tax exemptions.

The government bodies in Winter Park and Lake County have decided to opt out of the Live Local Act tax exemptions, Spectrum News 13 reported.

“We’re not anti-apartments here in Lake County. We need apartments, but what we don’t need is an overabundance,” said Carey Baker, a Lake County property appraiser, the outlet reported. “I believe the marketplace ought to supply our needs—the free market—and not let government have a heavy hand in mandating what kind of housing we have in Lake County.”

Lake County, to the west and north of Orlando, has a population of about 410,000. Leaders in Winter Park, a city in Orange County with a population of slightly less than 30K, voted at a July 10 meeting to opt out of the Live Local Act tax exemptions.

According to the report, city leaders in nearby Maitland also are considering an opt-out.