Gov. Ron DeSantis signed Senate Bill 102, known as the Live Local Act, into law Wednesday in Naples, making it the largest investment in housing in the state’s history.
The new law provides $711 million in funds and tax incentives for affordable housing projects through the Florida Housing and Finance Corporation, aiming to increase much-needed inventory.
The bill was co-sponsored by South Florida lawmakers Sen. Alexis Catalayud and Rep. Demi Busatta Cabrera.
The move received praise by affordable housing advocates like Mark Hendrickson, the Executive Director of the Florida Association of Local Housing Finance Authorities.
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“I’ve been working in affordable housing literally for 47 years and there aren’t many days like this one where you can say, ‘Wow, something really great happened today,'" Hendrickson said.
What’s included in the new law?
The Live Local Act includes $259 million for low-interest loans for developers. $150 million of that is recurring for certain uses, such as projects near military installations. It also includes $252 million for local governments to preserve and produce housing, $100 million for the Hometown Heroes Program and $100 million for a loan program to alleviate inflation-related cost increases.
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Who stands to benefit?
First-time homebuyers who are considered front-line workers such as teachers, nurses and first responders would benefit.
The law will expand the Hometown Heroes Program down payment assistance by increasing the borrowing limit from $25,000 to $35,000.
“Being able to have folks who are teachers, police officers, firefighters, all these important things you can’t do it if they have to drive an hour or an hour and a half to get to work every day," DeSantis said. "We want people to be able to live in the community where they are working."
However, the new law has also drawn some criticism because it prevents local rent controls and in certain situations, could preempt local government rules on zoning, building heights and density.
Despite the criticism, Hendrickson said the Live Local Act is a win and will have a significant impact.
“I did a rough estimate and I think it will finance the construction, rehab, or the sale for homebuyers of somewhere between 20,000 to 25,000 units at least, so that’s significant. The key is, it will make a dent,” Hendrickson said. “This is serious money addressing a serious problem.”
Hendrickson added that in order to make a lasting impact, the funding needs to be consistent.
