Real estate played a central role in this year’s Florida Legislature, with about a dozen bills put forth at the start of the session in January.
They took aim at major industry issues, including homeowners and condo associations, Live Local Act affordability timelines, and controversial building rules favorable to developers. Also on their agenda was Florida’s most talked about proposal, Gov. Ron DeSantis’ drive to nix property taxes on homesteads.
But lawmakers closed their session on Friday, approving a fraction of the real estate proposals. Much of the stalled legislation was due to impasses between the Senate and House of Representatives.
Lawmakers are required to approve just one piece of legislation –– the state budget –– but the two chambers failed to agree on that, too. A special session is expected next month to pass a budget before the July 1 deadline, followed by a second special session on redistricting.
The property tax issue also is expected to come up at a potential third special session later this year. But it would require approval from voters statewide.
Other approved bills won’t be final until signed by DeSantis.
Here’s a look at the real estate items that passed and the many that fizzled out.
What legislators did:
Slip ‘n’ slide
Lawmakers paved the way for Jeffrey Soffer’s Fontainebleau Miami Beach’s controversial plan to add waterslides to the resort, bypassing a local historic preservation board, despite objections from residents and politicians, including the city’s mayor.
Live Local Act reach widened
Legislators also broadened the scope of the controversial Live Local Act.
So far, the act, which targets the affordable housing crisis by permitting bigger projects as long as 40 percent of units are for households earning up to 120 percent of the area median income, has applied to commercial, industrial and mixed-use sites.
Under HB 1389, developers also can build on land owned by counties, municipalities and school districts as long as the sites are in these jurisdictions. Also, the local governments and school districts that own the land must co-file project applications with the developers.
The bill further expands Live Local to properties more than 3 acres owned by religious institutions and home to a house of worship for at least a decade. The legislation mandates that a sanctuary must remain operational after a Live Local Act project is completed.
Sen. Alexis Calatayud and Rep. Mike Redondo, both Republicans representing Miami-Dade County, sponsored the bill.
Lawmakers scrapped a clause that would have made it easier to build accessory dwelling units in single-family neighborhoods. The amendment would have mandated local governments pass ordinances that ADUs can be approved without public hearings, variances, or conditional use or special permits.
Insurance reform
In an attempt to wean properties off the state-run insurer of last resort, Citizens Property, lawmakers passed SB 1028.
It requires Citizens to create clearinghouses for admitted carriers and surplus lines insurers that can potentially take over policies for condo buildings and commercial properties from Citizens. The clearinghouses have to be set up by Jan. 1 of next year.
Surplus carriers aren’t licensed in Florida but legally can provide insurance here, generally picking up riskier properties. Consumers often have fewer protections if they go with a surplus carrier, including if the insurer becomes insolvent.
Citizens would put its existing policies through the clearinghouses to determine whether the properties can be insured on the private market, either to admitted or surplus carriers. If the premium with a surplus carrier is within 15 percent of the Citizens premium, the policyholder has to switch out. If the premium is more than 15 percent higher than what Citizens offers, the policyholder can choose whether to switch insurers.
It’s uncertain whether DeSantis will sign the bill.
The legislation appears to have been supported by wholesale brokerage firm Ryan Turner Specialty, lawmakers said, potentially creating a lucrative role for the firm as administrator of the clearinghouses.
Agricultural enclave development
SB 686 makes it easier to develop residential real estate on agricultural land still used for farming or crops, as long as it’s surrounded by developed parcels or those approved for development.
Landlords can apply to local jurisdictions to certify their land as agricultural enclaves. If successful, they can apply for single-family home developments.
The county or municipality that has oversight can’t impose development regulations on agricultural enclaves that are more restrictive than those for similar project applications with comparable densities.
What legislators didn’t do:
A property tax break –– not so fast
In another policy turning Florida into a magnet for well-heeled residents, the Sunshine State has been abuzz over a proposal to eliminate property taxes on primary homes.
DeSantis first floated the idea last year, and the House followed through this session with seven measures aimed at property tax relief.
Some called for eliminating taxes for homeowners 65 and older, and others targeted high homestead exemptions or increasing the exemptions until they are fully phased out. All would require 60 percent approval from voters in a November referendum.
A resolution entirely scrapping non-school property taxes on homesteads was approved by the House, but the Senate never picked up the item.
But DeSantis said the measure will be hashed out during a special session.
Local governments worry the tax cuts will hurt them financially, since the proposal prohibits cuts to police and fire departments. The measure would make a $13.3 billion dent annually in counties and municipalities’ budgets, according to Florida’s Revenue Estimating Conference.
Still, the mere pitch of scrapping property taxes has furthered Florida’s reputation as a haven from high-tax states.
No love for HOAs and COAs
A Republican whose district consists mostly of the Hammocks in West Kendall, Rep. Juan Carlos Porras, put forth HB 657, which would have given homeowners an escape route from HOAs.
Experts called out the bill for its potential complicating factors. Roads, stormwater and sewer systems, lakes, landscaping and other infrastructure are owned by HOAs, and the question of who would take ownership of those assets and pay for their upkeep is difficult to resolve, attorneys said.
The House approved the bill on March 5, but the Senate didn’t put it up for a vote.
The biggest HOA and COA reform in recent years came in 2024, with new laws that criminalized withholding and destroying records, and accepting kickbacks.
Live Local Act strengthening fizzles out
HB 675/SB 756 aimed to increase the Live Local Act affordability timeline, but it fizzled out.
The legislation would have mandated projects’ affordable and workforce housing units remain as such for 50 years, more than the current requirement for 30 years.
It also would have tightened the requirement for developers to get the tax abatement. Currently, they can get a 75 percent break on units for households earning 80 percent to 120 percent of the area median income, with the bills aiming to lower the upper threshold to 100 percent of the AMI.
Blue Ribbon Projects
A measure that would have made it easier to develop large projects in rural areas also petered out.
HB 299/SB 354 would have allowed landowners of at least 10,000 acres to bypass zoning regulations and public hearings, as long as they met criteria such as reserving 20 percent of units as affordable or workforce housing. The proposals would have required 60 percent of the land to be reserved for environmental conservation, agriculture or other open spaces, and allowed the rest to be developed with up to 12 units per acre.
The legislation was backed by an affiliate of New York-based investment manager Ruane Cunniff, which has spent at least $230 million amassing roughly 80,000 acres in north Florida counties since 2017, investigative journalist Jason Garcia reported.
Hurricane rebuilding reform
Lawmakers curbed local development regulations on post-hurricane construction last year, approving SB 180 in an attempt to ease rebuilding after a storm.
Counties and cities fear it weakens their authority, alleging developers use it to bypass local zoning. The law now faces litigation from South Florida municipalities including Bal Harbour, Fort Lauderdale, Homestead and Palm Beach.
Republican Sen. Sen. Nick DiCeglie, of St. Petersburg, tried to claw back some provisions in SB 180 and restore local authority on development by putting forth SB 840.
The legislation would have rolled back the temporary ban on local regulations from 2027 to this year. For future storms, it would have limited the one-year ban on zoning changes to damaged properties only, and would have curbed SB 180 to only apply to jurisdictions within 50 miles, instead of 100 miles, of a hurricane’s track.
But DiCeglie’s proposal would have allowed counties and cities to enforce a reconstruction moratorium if it’s to address stormwater, flood management, water supply or sewer repairs.
Representatives in the House didn’t take up the bill.