August 2024 Edition
The Ledger is your source for the latest updates, stories, and insights on the Live Local Act (LLA) and its profound impact on affordable housing across Florida. Every month, we delve into the transformative projects, legislative updates and community voices that are shaping the future of housing for Florida’s workforce.
Stay informed with in-depth features on innovative developments, learn about implementation strategies of leading municipalities and explore the dynamic conversations within communities about urban planning and housing initiatives.
The Ledger is more than just a newsletter—it’s your gateway to understanding how policy and practice converge to create a more inclusive and affordable housing landscape in Florida.
Featured Story:
Properties Leveraging LLA
Biscayne Companies is moving forward with a new affordable housing project in Brownsville. The developer has proposed a 240-unit rental community on a 2.4-acre site at 2140 Northwest 22nd Avenue. Source
Bay County Commissioners are urging state approval for the Patriot Pointe workforce housing development in Callaway. This multi-family project, spearheaded by Royal American Management and Green Mills Holdings, is planned for a 6-acre site near Tyndall Air Force Base.
Meanwhile, developer Daniel Abreu has secured a $16 million loan from Ocean Bank to fund a new affordable housing project in Miami under the program. The project, located at 1090 Northwest 79th Street, will feature a 12-story building with 144 apartments. Source
Spotlight:
Ocoee to Implement LLA
The City of Ocoee is taking steps to implement LLA to address the growing need for affordable housing. Ocoee officials are working on adapting local ordinances to align with the program`s provisions. This move is part of the city’s broader effort to ensure that more affordable housing options are available to its residents, particularly for the workforce. The city’s proactive approach underscores the importance of local government action in making housing more accessible and affordable for all. Source
Hotel Conversions: Unlocking Affordable Housing Opportunities
While renovations of existing buildings typically don't qualify (for now) as new construction under the LLA, hotel conversions have managed to carve out a unique space. What makes these projects stand out, and why have they gained approval?
Hotel conversions go beyond simple renovations. They transform underutilized or obsolete hotels into much-needed housing, offering a fast and cost-effective solution to affordable housing shortages—especially in high-demand areas where new construction is both expensive and time-consuming.
According to a report published by the Florida Apartment Association, adaptive reuse, including hotel conversions, has emerged as a vital strategy. These projects not only help meet housing needs but also revitalize neglected properties. Additionally, a handful ofhotel conversions are among the first properties accepted into the Missing Middle Tax Exemption Program.These are not the only benefits available for projects of this type either.
For instance, The Teale in Kissimmee has been successfully transformed into affordable housing units with support from the Osceola County Housing Trust and Hope Partnership. This project is revitalizing a key area along the U.S. 192 corridor, meeting significant local demand. Similarly, Palm Gardens in Orlando, previously the Ambassador Hotel, has been repurposed with federal funding through the American Rescue Plan Act, playing a crucial role in combating homelessness in the city.
These hotel conversions highlight how innovative approaches can expand affordable housing. As communities continue to seek solutions to housing shortages, repurposing hotels can offer a practical and scalable approach. What are your thoughts on the impact of these conversions compared to building new units from the ground up? Could other types of properties be similarly repurposed to help alleviate housing challenges?
Implementation Insights:
The Missing Middle Exemption opt-out provision
The opt-out provision has stirred significant debate among cities and counties. This provision allows local governments to deny property tax exemptions for affordable housing developments under certain conditions, which could reshape the landscape for both developers and municipalities.
To qualify for this opt-out, the county must demonstrate a surplus of affordable rental housing for individuals earning up to 120% of the Area Median Income (AMI). Additionally, the opt-out decision requires approval by a two-thirds majority vote from the governing body and must be reviewed and voted on annually.
Lake County Sets Precedent in Central Florida: In July, Lake County made headlines as the first in Central Florida to exercise this opt-out provision. Soon after, Winter Park’s City Commission unanimously voted to opt out, citing concerns over potential revenue losses. Maitland is also expected to follow suit in the near future.
Impact on Municipal Finances: Cities like Winter Park are particularly worried about the potential loss of tax revenue from large apartment complexes that would have qualified for the exemption. For example, two prominent complexes in Winter Park contribute approximately $325,000 each in annual property taxes to the city. By opting out of the exemption program, the city aims to protect this crucial source of revenue.
Challenges for Developers: The opt-out provision’s requirement for annual review introduces a significant element of uncertainty for developers. This uncertainty complicates efforts to secure financing and makes it challenging to plan long-term projects, especially in regions where the exemption status might change from year to year. Developers are now faced with a more unpredictable landscape as they navigate the evolving policies around affordable housing in Florida.
Aside from Winter Park and Lake County, Pasco, Seminole and Osceola Counties have also opted out.
How opt-out provision will impact the development of affordable housing? Should maintaining tax revenue take precedence over expanding affordable housing options? How can developers navigate the uncertainty introduced by these annual reviews?
These questions are crucial as we consider the path forward for affordable housing in Florida. We are eager to hear your thoughts!
Community Voices:
Bay County Commissioners Push for Workforce Housing Development Approval
Bay County Commissioners are advocating for the state to approve the proposed Patriot Pointe workforce housing development in Callaway. The project, led by Royal American Management and Green Mills Holdings, is planned for a 6-acre parcel near Tyndall Air Force Base and aims to address the local housing needs of military personnel and the surrounding community. Source
