Florida’s recent legislative session has ushered in a wave of new laws and budget allocations set to significantly reshape the state’s real estate landscape. These changes aim to tackle critical issues such as affordable housing shortages, property tax burdens, and protections for property owners, impacting both residential and commercial sectors across the state.
Florida’s Legislative Wins for Property Owners
The 2025 legislative session is being hailed as a major success for Florida’s property owners and the broader real estate market. Key initiatives include:
- Down-Payment Assistance: A substantial $50 million has been earmarked for down-payment assistance programs, specifically targeting essential workers like teachers and first responders, to facilitate homeownership.
- My Safe Florida Home Program: An additional $280 million has been allocated to this program, designed to help homeowners fortify their properties against hurricanes and other natural disasters.
- Business Rent Tax Repeal: Perhaps the most significant win for commercial property owners is the repeal of the Business Rent Tax, a move projected to save Florida businesses over $900 million.
The Live Local Act: A Mixed Bag for Affordable Housing
The Live Local Act, enacted in 2023 and further amended in 2024 and 2025, aims to alleviate Florida’s housing affordability crisis through tax incentives, zoning flexibility, and funding for housing programs. While it has spurred some affordable housing projects, its implementation has faced criticism and mixed results.
Key Takeaways:
- Tax Incentives: The act offers property tax exemptions for developers building affordable rental housing. Developers can receive a 75% exemption for units targeting middle-income families (80%-120% of area median income) and a 100% exemption for units targeting lower-income families (less than 80% of area median income).
- Zoning Flexibility: The act provides more flexible zoning rules for affordable housing projects in commercial, industrial, and mixed-use areas, overriding local height, density, and site-use regulations under certain conditions.
- Funding for Housing Programs: It ensures full funding for the State Apartment Incentive Loan (SAIL) and State Housing Incentive Partnership (SHIP) programs through the Sadowski Trust Fund. The Hometown Heroes Program, offering down-payment and closing-cost assistance for eligible first-time homebuyers, has also been codified into state statute.
- Public Land Inventory: Counties and cities are now required to identify and list publicly owned land suitable for affordable housing projects.
- Opt-Out Provision: A significant point of contention is the provision allowing counties, cities, and school districts to opt out of the 75% property tax exemption for middle-income housing through a supermajority vote, provided they have a surplus of affordable housing. Many communities have exercised this option, impacting the act’s reach.
Challenges and Criticisms
Despite its intentions, the Live Local Act has drawn criticism. Some local officials argue that the act infringes on local authority and that developers may prioritize tax incentives over genuine affordability. Concerns have also been raised about the strain on existing infrastructure due to increased density and the potential for projects to bypass public hearing requirements. While the act has led to plans for over 31,000 new housing units, the long lead times for construction mean most are not yet available.
New Protections for Property Owners
In addition to housing initiatives, new laws have been passed to protect property owners from unlawful occupants. Property owners, particularly those with commercial and vacation rentals, can now take quicker legal action to remove squatters, providing a much-needed recourse against costly disruptions.
Sources
- Homeownership License Plate | Florida Realtors, | Florida Realtors.
- Live Local Act: Questions and answers, The Palm Beach Post.
- Early results of Florida’s Live Local Act mixed for affordable housing, The Palm Beach Post.
- Florida Lawmakers Approve Ending Business Rent Tax, Law360.
- New Florida laws will impact property owners: Here’s what to know, FOX 35 Orlando.