During a recent city council meeting, officials discussed the potential implications of opting out of the middle-income property tax exemption established by the Live Local Act of 2023. This law provides a 75% exemption on the assessed value of affordable housing units for developments catering to families earning between 80% and 100% of the area median income (AMI).

City staff presented the council with the option to research the advisability of opting out of this exemption, which is permitted under Florida statutes. The council had previously opted not to participate in a similar exemption and is now considering whether to maintain or withdraw from this new opportunity. The decision to opt out would take effect in January 2025, should the council choose to proceed.

Bradley, a staff member, noted the complexity of estimating the financial impact of this exemption due to numerous variables and the rarity of its application in the city. He emphasized that any property owners currently benefiting from the exemption would continue to do so even if the city opts out later this year.

The Florida Housing Coalition has suggested that maintaining the exemption could be beneficial, particularly in conjunction with potential inclusionary zoning regulations. These regulations would require developers to allocate a percentage of units in new multifamily developments as affordable housing. The coalition indicated that the tax exemption could serve as a tool to incentivize compliance with such regulations.

The council is currently conducting an affordable housing study, which will inform future decisions regarding inclusionary zoning. Members expressed a consensus to opt out for the current year, allowing for further evaluation and information gathering before making a long-term decision. The council plans to revisit the issue next year, keeping the door open for future adjustments based on the outcomes of the ongoing study and community feedback.