FOR IMMEDIATE RELEASE: Tuesday, August 12, 2025
CONTACT: Christina Johnson
Tallahassee, Fla. – Today, Florida TaxWatch released an Update on the Implementation of the Live Local Act, to better understand how local governments have implemented certain provisions of Florida’s “Live Local Act” (the Act), and what has worked and what has not worked. The specific provisions of the Act in this report include the property tax exemptions and the streamlined zoning processes. Local governments have had two years to come to terms with the provisions of the Act, as most recently amended through Senate Bill 1730 which broadened the scope of the Act and increased protections for the development community.
Florida TaxWatch President and CEO Dominic M. Calabro said, “The demand for affordable housing is not new to most households in Florida. As inflation and cost of living continue to increase, the cost of housing and other necessary basic needs of individuals continue to be a financial challenge. According to the U.S. Department of Housing and Urban Development, households spending 30 percent or more of their income on housing expenses are considered cost burdened. Here in Florida, 35 percent of households were considered cost burdened in 2022.”
Florida TaxWatch Executive Vice President and General Counsel Jeff Kottkamp said, “The one income range where the affordable housing need is pronounced is the ‘missing middle,’ those households within the 80-120 percent Area Median Income (AMI) affordability threshold. This income level includes those who earn too much to qualify for traditional affordable housing but not enough to afford market-rate homes. These are our teachers, firefighters, police, and other professions who cannot afford to live near where they work. As the 2026 legislative session approaches, Florida TaxWatch urges legislators to continue to work closely with stakeholders to pursue measures to address the provision of affordable housing, especially for the missing middle.”
The Act was passed by the 2023 legislature, and later amended in 2024 and 2025, to address the growing demand for affordable housing by: (1) providing developers with financial and regulatory incentives to build more affordable housing units; (2) requiring local governments to prioritize the development of affordable housing units proposed following the specifications in the Act; (3) streamlining the process for the development of affordable housing; and (4) ensuring that a substantial portion of new housing units is available to a wide range of income levels. Specifically,
- Financial incentives—include the appropriation of state funding to the Florida Housing Finance Corporation and the establishment of a new corporate tax donation program;
- Property tax exemptions—portions of property used for affordable housing are eligible for property tax exemptions, ranging from 75 percent to 100 percent of the assessed value;
- Requirements of local governments—local governments are required to allow mixed use and multi-family development in areas zoned for commercial, mixed use, or industrial, as long as at least 40 percent of the housing units are affordable for 30 years;
- Simplified zoning—zoning processes are streamlined for affordable housing projects. Developers may proceed directly to permitting without first having to amend the local government’s comprehensive plan or zoning, or securing a variance, as long as certain requirements are met;
- Rent control—local governments are prohibited from imposing rent controls; and
- Enforcement—courts must prioritize actions against local governments alleged to be in violation of the Act and if developers win their case, they are entitled to receive up to $250,000 in fees from the lawsuit.
More than one-third of Florida households are designated as cost-burdened, and 16 Florida counties have at least one-third of their households with monthly housing costs of 30 percent or more. When most people think of affordable housing they think of housing for extremely low and low-income families. As shown in Table 2, the major metropolitan areas in Miami-Dade, Broward, Palm Beach, and Monroe counties are experiencing a deficit in housing that is affordable for all income ranges.
To encourage the development of affordable housing for this income range, the Act offers a 75 percent property tax exemption to those units that fall within the 80-120 percent Area Median Income affordability threshold. The Act allows local taxing authorities that meet certain requirements to “opt out” of this property tax exemption.
An increasing number of local taxing authorities that can opt out are opting out. Local officials cite what they consider to be “pro developer” provisions in the Act as the main reasons for opting out. The tax exemption provisions allow developers to maximize their profits without having to pass the savings on to their renters. Further, any reductions in property tax revenues created by the exemptions would need to be made up by the local taxing authority. So, the developers pay less property tax, the loss of which must then be made up by the taxpayers.
In a March 2025 report entitled “More States Are Using State-Level Tax Credits to Address Workforce and Affordable Housing Deficits,” Florida TaxWatch acknowledged that, although the Act has had positive impacts in helping to reduce the deficit of affordable housing, inflation, rising property taxes, and skyrocketing inflation continue to make housing less affordable for many Floridians. TaxWatch recommended that the legislature consider “creating state-level tax credits to strengthen the state’s array of housing initiatives,” including:
- A corporate income tax credit for homebuilders to help them build more single-family homes that are affordable to middle-income families;
- A state low-income housing tax credit for rental properties to augment the federal credit; and
- Credits for projects that adapt properties such as historic properties.
To learn more please click here.
About Florida TaxWatch
As an independent, nonpartisan, nonprofit government watchdog and taxpayer research institute, and the trusted “eyes and ears” of Florida taxpayers for more than 45 years, Florida TaxWatch (FTW) works to improve the productivity and accountability of Florida government. Its research recommends productivity enhancements and explains the statewide impact of fiscal and economic policies and practices on taxpayers and businesses. FTW is supported by its membership via voluntary, tax-deductible donations and private grants. Donations provide a solid, lasting foundation that has enabled FTW to bring about a more effective, responsive government that is more accountable to, and productive for, the taxpayers it has served since 1979. For more information, please visit www.floridataxwatch.org.
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