Florida’s legislative landscape is undergoing significant changes impacting housing and development, most notably with the Live Local Act. These reforms aim to address affordable housing challenges, enhance building safety, and reduce business costs, reflecting a proactive approach to the state’s evolving economic and demographic needs.
Florida’s Live Local Act: Reshaping Housing Development
The Live Local Act, particularly with the amendments in Senate Bill 1730 effective July 1, 2025, is set to transform Florida’s housing market. This legislation streamlines the development of affordable housing by:
- Mandating administrative approval for qualifying affordable housing projects, bypassing traditional zoning and preservation board reviews.
- Facilitating the construction of mixed-use residential developments, including on parcels owned by religious institutions.
- Reducing parking requirements by 15% for such projects.
These changes are expected to increase the availability of affordable housing, creating new opportunities for buyers, especially first-time homeowners. Walt Bianchi, a mortgage broker, emphasizes the importance for prospective homeowners and investors to understand these legislative shifts and their potential impact on financing options and property valuations.
Enhanced Condo Safety Regulations
In response to the 2021 Surfside condominium collapse, Florida has enacted new laws requiring stricter inspections and financial reserves for condominiums and cooperatives. These regulations apply to buildings that are:
- At least three stories, 25 years or older, and within three miles of the coastline.
- At least 30 years old if further away from the coast.
Key requirements include:
- Milestone Structural Inspections: Conducted by licensed engineers or architects.
- Structural Integrity Reserve Studies: Identifying necessary funding for future repairs.
- Fully Funded Reserves: Associations can no longer waive or underfund reserves for critical components like roofs, elevators, and concrete, which must now be fully funded.
These measures aim to prevent unsafe conditions and ensure structural integrity, though they may lead to increased costs for some property owners through special assessments. Buyers are now advised to investigate association reserves and will receive copies of inspection reports and reserve studies.
Elimination of the Business Rent Tax
Florida is poised to eliminate the sales tax on commercial leases, effective October 1, 2025. This tax, levied since 1969, has made Florida unique as the only state with such a charge. The complete repeal of this tax is expected to enhance Florida’s appeal as a low-tax state, benefiting commercial landlords and tenants alike. This move marks the first statewide tax elimination since 2006, underscoring Florida’s commitment to fostering a business-friendly environment.
Leadership in Housing Initiatives
Governor Ron DeSantis has appointed Fox "Reynolds" Henderson to the Florida Housing Finance Corp., an organization established four decades ago to promote affordable housing. Henderson, a managing partner of Continental Pacific (CP) and founder of other real estate investment companies, brings extensive experience in real estate development and community involvement. His appointment reinforces the state’s dedication to addressing affordable housing challenges through innovative and fiscally sustainable solutions.
Sources
- Gov. DeSantis appoints longtime Panhandle civic player to Florida Housing group, Florida Politics.
- New Florida Law Requires Reserves for Condo, Co-op Repairs, Behind The Hedges.
- Florida’s Live Local Act Set to Transform St. Augustine’s Housing Landscape, ACCESS Newswire.
- Florida Ends Business Rent Tax Effective in October 2025, The National Law Review.