Governor Ron Desantis signed the “Live Local Act” in Naples on Wednesday. Kathleen Passidomo, R-Naples who spearheaded the bill described it as a”multi-faceted bill of ideas and suggestions on how we can provide affordable, safe housing for our workers.” The bill’s main focus is providing housing to Florida residents near their workplaces. The bill passed with full support in the Senate.
The “Live Local Act” introduces new programs, allocates funds to current proven programs, and offers incentives to increase the affordable housing inventory in Florida. One new and notable program called the “Missing Middle” offers the owners of newly constructed or renovated units a tax exemption when they turn rentals currently leased at market rent into affordable rentals. Another new exemption will be given to developers who delegate 70 or more units of their projects to affordable housing. These incentives will also reduce the stigma around “affordable housing,” something very important to President Passidomo.
The bill allocates $711M to FL Housing Finance Corporation, which is the largest ever support for state housing in Florida. $259M of which was allocated to State Appartment Assistance Loan, which provides developers assistance to develop new affordable housing. $252M was provided to SHIP, a program that works with local governments to produce more housing units at a faster rate. $100M was provided to Florida Housing Finance Corp to alleviate inflations-related costs for previously approved projects, a huge problem developers are currently facing.
The last $100M of the funds was allocated to the Hometown Heroes program that was introduced last year. This amazing program helps law enforcement officers, firefighters, educators, healthcare professionals, childcare employees, and active military or veterans purchase a home where they serve through closing cost and down payment assistance. $100M was allocated to the fund when it was created last year. Roughly $72M of the fund was used so this bill will help replenish it and keep the program running. The “Live Local Act” also expands the eligibility requirements, so more hometown heroes will now be able to qualify.
The lack of affordable housing is not an easy problem to face. There are a variety of factors that influence housing affordability. One of the biggest factors is our fast-growing population. With so many people flocking to the free state of Florida, it creates more competition in the real estate market which drives up prices. Another major factor is the rising cost of goods and services, making the cost to build much higher than it was a few years ago.
The “Live Local Act” is a huge step in the right direction for Florida. The programs introduced, funds allocated to existing programs, and new incentives will begin to tackle the affordable housing experience so many of us locals have felt in recent years.
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