Real estate plays a major role in this year’s Florida legislative session.
Lawmakers will take up proposals this session that would streamline approvals for rural master-planned communities, tweak the controversial Live Local Act, and target homeowners associations. Also up for votes are numerous proposals for property tax alleviation for homeowners who receive a homestead exemption.
The session starts today. Here’s what’s on tap for real estate:
Live Local tweaks
Sen. Alexis Calatayud, a Republican representing a portion of Miami-Dade County, proposed an expansion of the Live Local Act, a workforce housing law that’s riled some counties and municipalities since it was approved in 2023.
Live Local allows developers to bypass local zoning regulations and public meetings if they designate 40 percent of the units in their projects for households earning up to 120 percent of the area median income.
They can obtain approvals administratively and build up to the tallest height permitted within a mile and the highest density allowed in a jurisdiction. It also grants developers property tax exemptions.
South Florida developers have seized on the legislation with a flurry of applications, while some municipalities have decried the Live Local Act for curtailing their say over development. The law has been especially contentious in the tri-county region’s small coastal communities that have maintained strict development regulations and fought back large projects.
Calatayud’s Senate Bill 1548 would expand Live Local to include properties owned by counties, municipalities and schools districts, and it would curb localities’ ability to restrict height via setbacks and stepbacks. The proposal would clarify that farms and farm operations aren’t commercial properties and don’t qualify for Live Local projects.
Affordability
Legislators also want to extend the affordability requirement under the Live Local Act.
Under the law, the below-market units have to remain as such for at least 30 years. House Bill 675/Senate Bill 756 aim to increase this to 50 years.
It would also tighten the affordability requirements for developers to get tax abatements. The law allows landlords to obtain a 75 percent property tax break for all units designated for households earning from 80 percent to 120 percent of the AMI. The bills would drop the upper thresholds to 100 percent of the AMI.
Post-hurricane rebuilding
Last year, the legislature approved SB 180, titled “Emergencies,” part of which banned local governments from imposing comprehensive plan amendments, land development regulations and site plan approval procedures that could be deemed “more restrictive or burdensome.” The law applies to counties and municipalities included in federal disaster declarations within 100 miles of a hurricane’s track.
It’s meant to remove roadblocks to rebuilding after three hurricanes hit the state in 2024, imposing the restrictions through 2027. For all future hurricanes, the law restricts tighter development regulations for a year.
But the controversial proposal riled some local governments that argued it further erodes “home rule” authority over development regulations and potentially opens the door to developers invoking SB 180 over any local zoning change that stands in the way of proposed projects. Several South Florida municipalities joined as plaintiffs in a lawsuit last year against SB 180, including Bal Harbour, Fort Lauderdale, Homestead and Palm Beach.
Sen. Nick DiCeglie, a Republican from St. Petersburg, filed Senate Bill 840, partly curbing the previous legislation.
This proposal would hand more control back to counties and cities over development rules, rolling back previously imposed limits.
It would roll back the temporary ban on local regulations tied to 2024’s hurricanes until this year. For future storms, it would limit the one-year ban on zoning changes to damaged properties only.
It also would narrow the scope of SB 180 to cities and municipalities within 50 miles of a hurricane’s track, while allowing localities to enforce a reconstruction moratorium if it’s to address stormwater, flood management and potable water supply, or sewer repairs.
Rural homebuilding
Landowners of at least 10,000 acres could bypass county and municipal zoning and other regulations under Senate Bill 354/House Bill 299, as long as they meet certain development conditions, including the creation of affordable housing.
Creating “Blue Ribbon Projects,” the proposals add to initiatives that stirred controversy over their potential erosion of local governments’ say over growth and development, and concerns over suburban sprawl.
Under the proposals, 60 percent of the land must be reserved for environmental conservation, wildlife corridors, agriculture or other open spaces, and the rest can be developed with up to 12 units per acre. At least 20 percent of residential units must be affordable, workforce housing, or homes for people who qualify under the Florida Hometown Hero Program, including teachers and police.
Qualifying projects can be approved administratively, allowing them to bypass public hearings.
Rep. Lauren Melo, a Naples Republican, and Sen. Stan McClain, a Republican representing Ocala, sponsored the bills.
New York-based investment manager Ruane Cunniff, which has amassed roughly 80,000 acres in north Florida counties since 2017, is backing the bills through an affiliate, including hiring lobbyists pushing for the legislation, independent investigative journalist Jason Garcia reported. Ruane Cunniff has paid at least $230 million for land in rural areas.
Tax breaks
After Gov. Ron DeSantis floated the idea last year of eliminating property taxes for homesteaded residences, lawmakers put forth options to achieve it this session.
The move would require constitutional amendments and approval from Florida voters in November.
The resolutions would exempt property taxes funding school districts and mandate that county and municipal budgets for law enforcement should not be reduced.
House joint resolution 201, filed by Republican Rep. Monique Miller of Palm Bay, would eliminate all non-school property taxes for homes. Miller’s joint resolution 203 proposes to increase the value of homestead exemptions by $100,000 each year for 10 years starting in 2027, phasing out property taxes by 2037.
HJR 205, filed by Republican Rep. Juan Carlos Porras, who represents part of Miami-Dade County, would eliminate property taxes for homeowners who are 65 and older.
Rep. DeFuniak Springs, a Republican representing a portion of the Panhandle, filed HJR 207, proposing to add homestead exemptions for 25 percent of the home’s assessed value after all other exemptions are applied.
Local governments, including Orlando and Orange County, have warned the proposals could hit budgets for parks, infrastructure maintenance and improvements, fire departments and other services.
HOAs
Porras is going after homeowners associations this session.
Residents living in HOAs across the state have accused some board members of wrongdoing including election interference, misappropriation of funds, unjustified assessment increases, and bullying and retaliation against those who speak out.
The most extreme case was at the Hammocks in West Kendall, South Florida’s largest HOA on 3,800 acres and with 18,000 residents.
Porras, the majority of whose district consists of the Hammocks, proposed legislation that would allow residents to disband their HOAs. But attorneys say it won’t work.
Under House Bill 657, residents could start the dismantling process with a petition signed by 20 percent of homeowners, which the board must vote on at a meeting and also set the termination rules, requiring approval by two-thirds of homeowners. The plan of termination would be filed in court, and a termination trustee, such as the board or someone appointed, would oversee the dismantling of the HOA, including the sale of assets.
Experts in HOA law said this would be difficult, because HOAs own infrastructure such as stormwater and sewer systems, landscaping and roads, and not just sellable assets such as maintenance equipment.
“You may be dissolving the actual corporation, but how are you going to split up the assets?” said attorney Carolina Sznajderman Sheir. “Who is going to take responsibility for maintaining the roadways [and other infrastructure]? Who is going to be responsible for operating, maintaining and insuring this?”
Counties and municipalities would be reluctant to assume responsibility for this infrastructure partly because it could mean increasing taxes to maintain common areas that only HOA residents use, attorneys said.
HB 657 has other provisions, some of which attorneys hailed. It would create a Community Association Court, alleviating the backlog of HOA and condo association cases at circuit courts.