Florida is expected to experience outsized population growth over the next five years. The state’s population is projected to increase by roughly five percent through 2028, outpacing the country’s forecast growth rate of three percent over the same period. Florida’s lack of sufficient supply of affordable housing will continue to increase with the growing population. According to National Low Income Housing Coalition (NLIHC), Florida has a shortage of 642,811 affordable and available rental units for those at or below 50 percent of area median income (AMI). To increase the supply of affordable housing, the state of Florida enacted the Live Local Act in March 2023. The legislation includes the following:
- Proposes a record $711 million for affordable housing programs including: $252 million for State Housing Initiatives Partnership (SHIP) Program, $259 million for State Apartment Incentive Loan (SAIL) Program, $100 million for the Florida Hometown Hero Housing Program, and $100 million for Florida Housing Finance Corporation (FHFC) to implement a loan program to alleviate inflation-related cost increases for FHFC-approved housing projects.
- Creates a new affordable housing property tax exemption for non-FHFC multifamily developments of 70 affordable units or more.
- Expedites permit approvals and development orders for affordable housing projects.
- Authorizes cities and counties to provide property tax incentives for developments that serve households at 60 percent AMI or below.
- Creates a new sales tax refund for certain affordable developments.
- Requires local governments to post expedited permitting procedures online.
The Live Local Act has successfully increased the availability and preservation of affordable housing in Florida. Berkadia has financed $1.8 billion between 2020 and 2023 to support the creation of affordable housing in Florida through partnerships with the state, cities, and counties. Recently, they participated in the sale and financing of Lauderhill Point, an affordable housing community in Fort Lauderdale.
To learn more about Berkadia Affordable Housing’s experience in Florida, connect with an advisor today.