Affordable housing bill clears Florida legislature, heads to governor’s desk

TALLAHASSEE, Fla. (FLV) – The state legislature approved an affordable housing bill aimed at incentivizing companies to build more workforce housing units.

The bill, which now heads to Gov. Ron DeSantis, was approved by the Florida House Friday in a 103-6 vote and unanimously last week in the Senate. 

The legislation prohibits government-imposed rent controls while maintaining funding for workforce housing and offering incentives for remodeling older homes.

The bill allocates $259 million for the State Apartment Incentive Loan program, also known as SAIL, including $150 million in new and recurring funds.

The proposed legislation seeks to incentivize the construction of new projects in close proximity to existing affordable housing units with the goal of providing residents of older units a new home while at the same time rebuilding and updating older buildings.

The bill would increase funding for Florida’s Hometown Heroes by $100 million and broaden the program’s eligibility to include the entire state’s local workforce.

A major component of this bill would eliminate local government’s ability to impose rent control under all circumstances, including ballot measures such as in Orange County.

Another provision allows businesses to contribute up to $100 million annually towards the Florida Housing Finance Corporation instead of paying parts of their corporate and insurance taxes.

Under the proposed legislation, the sales tax paid on materials used to create affordable housing units would be refunded up to $5,000 per unit.

The legislation also appropriates $100 million in additional gap financing for projects struggling with unexpectedly high construction costs in order to combat inflation and material price hikes.

Additionally, the bill creates a new “Missing Middle” tax exemption for developments that set aside a minimum of 70 housing units and are at least 10% below market rate.

Rep. Demi Busatta Cabrera, R-Coral Gables, delivered remarks in support of the legislation.

“The ‘Live Local Act’ is a transformational, market-driven combination of policies that provides attainable housing options for Floridians at every income level and stage of life,” said Cabrera.

Rep. Angie Nixon, D-Jacksonville, expressed concerns regarding the rent control ban included in the bill, which could override Orange County voters’ referendum decision to implement rent control.

“They voted to pass an ordinance that would limit rent increases for a year to see what would happen,” said Nixon. “We can’t continually strip away the voices of the voters. That’s what you’re doing here today.”