New Florida law addressing rental shortages allows multifamily developers to go where no one has gone before

Affordable housing remains a national issue, with available multifamily properties still scarce and monthly rents rising, albeit at a slower pace in the second quarter of the year.

According to the Tampa Bay Economic Development Council, Florida is among the states with the greatest shortage of multifamily properties, and the Sunshine State gained more than 444,000 new residents during the pandemic between July 2021 and July 2022.

To ease the burden on renters, Florida lawmakers introduced Senate Bill 102 - the Live Local Act. The bill, recently signed into law by Gov. Ron DeSantis, is expected to create more affordable rental housing by providing new tax breaks for families, financing, streamlining permits and bypassing some areas of the state.

The law, which took effect July 1, will allow new apartment development in some previously restricted areas, such as commercial and industrial zones in Florida, and is a boon for developers who have had trouble building new multifamily properties to meet demand.

"Personally, I think it's an excellent measure. It allows developers to enter areas that zoning previously did not allow," Matteo Ramirez, a partner in the real estate brokerage firm Gridline Properties from Miami, told Benzinga. There was pressure on the price for everyone, and we are not building as fast as we need to meet the demand."

The Live Local Act is also getting praise from lenders like David Drew, Florida regional president of Centennial Bank, which is committing more than $300 million to finance affordable housing development across Southeast Florida by 2023.

"The Live Local Act is one step forward to offer developers an incentive to move into affordable housing, a sector that will be more resilient in demand as economic conditions change and interest rates remain higher," Drouy told Multi-Housing News

South Floridians specifically face one of the nation's most significant rent-to-income gaps, particularly low-income elderly households. Aging Floridians on fixed incomes are struggling to keep up with rising costs of living.

Last year, Kathleen Sarmiento of the Miami-based Alliance on Aging highlighted the deficit for Florida's seniors when she told the University of South Florida's WUSF Public Radio, “If you're living on Social Security, honestly, I don't know how you can afford to live in Florida because housing costs high".

Romero believes the new legislation will lead to the development of affordable housing for seniors in Florida on a fixed income.

"The rent increase is a matter that affects all residents regardless of age. In the case of senior citizens, it's especially difficult because of their fixed income situation along with federal government guidelines that tend to move at a much slower pace than state and local guidelines," he said. "SB 102 encourages entrepreneurs and opens the boundaries of development for affordable housing, which should have a positive effect on the supply, and therefore on the stabilization of rent."

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