SB 1350 full text · Session Watch

Florida Senate - 2026 SB 1350 By Senator McClain 9-01090A-26 20261350__

1 A bill to be entitled

2 An act relating to affordable housing property tax

3 exemptions; amending s. 196.1978, F.S.; defining the

4 term “LURA”; revising the definition of the term

5 “newly constructed”; revising conditions under which

6 multifamily projects are considered property used for

7 a charitable purpose and are eligible to receive an ad

8 valorem property tax exemption; revising the list of

9 units in multifamily projects which property

10 appraisers are required to exempt; providing that

11 certain annual compliance reports and statements from

12 the Florida Housing Finance Corporation are

13 presumptive evidence that certain properties meet

14 certain limitations; authorizing production of the

15 annual compliance report by certain entities;

16 requiring the corporation to review and approve annual

17 compliance reports; requiring that certain property

18 owners receive a specified statement from the

19 corporation upon approval of the compliance report;

20 specifying that certain portions of property are

21 presumed eligible for a specified certification notice

22 upon submission of a certain agreement to the

23 corporation; authorizing certain owners of property to

24 submit a request to the corporation for a

25 certification notice at a specified time; authorizing

26 such owners to specify in the request for

27 certification notice the rent amount that will be

28 charged instead of certain required information;

29 authorizing such owners to submit a LURA instead of

30 certain required information; requiring property

31 appraisers to issue verification letters to property

32 owners under certain conditions; specifying

33 requirements for site plans; requiring property

34 appraisers to issue verification letters or provide

35 the reasons for ineligibility under certain

36 circumstances; providing that projects that have

37 received verification letters are exempt from a

38 specified ordinance; providing that property in

39 multifamily projects is eligible to receive an

40 exemption under certain circumstances; revising

41 requirements for taxing authorities electing not to

42 exempt certain property; authorizing property in

43 multifamily projects to receive a tax exemption under

44 certain circumstances; authorizing the Department of

45 Revenue to adopt emergency rules; providing that such

46 rules are effective for a specified timeframe and may

47 be renewed under certain conditions; providing for

48 expiration of such authority; providing applicability;

49 amending s. 420.6075, F.S.; revising the date by which

50 the Shimberg Center for Housing Studies must submit a

51 certain report to the Legislature; providing an

52 effective date.

54 Be It Enacted by the Legislature of the State of Florida:

56 Section 1. Present paragraphs (n) and (o) of subsection (3)

57 of section 196.1978, Florida Statutes, are redesignated as

58 paragraphs (p) and (q), respectively, new paragraphs (n) and (o)

59 are added to that subsection, and paragraphs (a), (b), (d), (e),

60 (f), and (l) and present paragraph (o) of that subsection are

61 amended, to read:

62 196.1978 Affordable housing property exemption.—

63 (3)(a) As used in this subsection, the term:

64 1. “Corporation” means the Florida Housing Finance

65 Corporation.

66 2. “LURA” means a land use restriction agreement with a

67 term of not less than 3 years, recorded in the official records

68 of the county in which the property is located, which requires

69 that the property be used to provide housing to natural persons

70 or families meeting the definition of extremely-low-income,

71 very-low-income, low-income, or moderate-income persons as

72 provided in s. 420.0004.

73 3. “Newly constructed” means an improvement to real

74 property which was substantially completed within 2 5 years

75 before the date of an applicant’s first submission of a request

76 for a certification notice pursuant to this subsection.

77 4. 3. “Substantially completed” has the same meaning as in

78 s. 192.042(1).

79 (b) Notwithstanding ss. 196.195 and 196.196, portions of

80 property in a multifamily project are considered property used

81 for a charitable purpose and are eligible to receive an ad

82 valorem property tax exemption if such portions meet all of the

83 following conditions:

84 1. Provide affordable housing to natural persons or

85 families meeting the income limitations provided in paragraph

86 (d).

87 2.a. Are within a newly constructed multifamily project

88 that contains more than 50 70 units dedicated to housing natural

89 persons or families meeting the income limitations provided in

90 paragraph (d); or

91 b. Are within a newly constructed multifamily project in an

92 area of critical state concern, as designated by s. 380.0552 or

93 chapter 28-36, Florida Administrative Code, which contains more

94 than 10 units dedicated to housing natural persons or families

95 meeting the income limitations provided in paragraph (d).

96 3. Are rented for an amount that does not exceed the amount

97 as specified by the most recent multifamily rental programs

98 income and rent limit chart posted by the corporation and

99 derived from the Multifamily Tax Subsidy Projects Income Limits

100 published by the United States Department of Housing and Urban

101 Development or 90 percent of the fair market value rent as

102 determined by a rental market study meeting the requirements of

103 paragraph (l), whichever is less.

104 (d)1. The property appraiser shall exempt units in

105 multifamily projects, as follows :

106 a. Seventy-five percent of the assessed value of the units

107 in multifamily projects that :

108 (I) Meet the requirements of this subsection and are used

109 to house natural persons or families whose annual household

110 income is greater than 80 percent but not more than 120 percent

111 of the median annual adjusted gross income for households within

112 the metropolitan statistical area or, if not within a

113 metropolitan statistical area, within the county in which the

114 person or family resides; or

115 (II) For the first taxable year after the property obtains

116 a certificate of occupancy, are subject to a LURA and are

117 dedicated to housing natural persons or families whose annual

118 household income is greater than 80 percent but not more than

119 120 percent of the median annual adjusted gross income for

120 households within the metropolitan statistical area or, if not

121 within a metropolitan statistical area, within the county in

122 which the person or family resides. ~~and~~

123 b. From ad valorem property taxes , the units in multifamily

124 projects that :

125 (I) Meet the requirements of this subsection and are used

126 to house natural persons or families whose annual household

127 income does not exceed 80 percent of the median annual adjusted

128 gross income for households within the metropolitan statistical

129 area or, if not within a metropolitan statistical area, within

130 the county in which the person or family resides ; or

131 (II) For the first taxable year after the property obtains

132 a certificate of occupancy, are subject to a LURA and dedicated

133 to housing natural persons or families whose annual household

134 income does not exceed 80 percent of the median annual adjusted

135 gross income for households within the metropolitan statistical

136 area or, if not within a metropolitan statistical area, within

137 the county in which the person or family resides .

138 2. When determining the value of a unit for purposes of

139 applying an exemption pursuant to this paragraph, the property

140 appraiser must include in such valuation the proportionate share

141 of the residential common areas, including the land, fairly

142 attributable to such unit.

143 (e) 1. To be eligible to receive an exemption under this

144 subsection, a property owner must submit an application on a

145 form prescribed by the department by March 1 for the exemption,

146 accompanied by a certification notice from the corporation to

147 the property appraiser. The property appraiser shall review the

148 application and determine whether the applicant meets all of the

149 requirements of this subsection and is entitled to an exemption.

150 A property appraiser may request and review additional

151 information necessary to make such determination. A property

152 appraiser may grant an exemption only for a property for which

153 the corporation has issued a certification notice and which the

154 property appraiser determines is entitled to an exemption.

155 2. For portions of property subject to a LURA and used to

156 house natural persons or families meeting the income limits

157 specified in paragraph (d) and rented for an amount meeting the

158 limits specified in subparagraph (b)3., an annual compliance

159 report and statement from the corporation meeting the

160 requirements of this subparagraph are presumptive evidence that

161 such portions of property meet the income limits of paragraph

162 (d) and the rent limits of subparagraph (b)3. The annual

163 compliance report may be produced by a county, municipality, or

164 other entity approved by the corporation to produce reports for

165 the purpose of determining compliance with LURAs for affordable

166 multifamily rental housing developments. The corporation shall

167 review and approve such annual compliance reports. A property

168 owner seeking an exemption pursuant to this subsection must

169 receive a statement from the corporation upon approval of the

170 compliance report specifying the number of units on January 1

171 that were used to house natural persons or families meeting the

172 income limits of sub-subparagraph (d)1.a. or sub-subparagraph

173 (d)1.b. and complying with the rent limits of subparagraph (b)3.

174 (f) 1. To receive a certification notice, a property owner

175 must submit a request to the corporation on a form provided by

176 the corporation which includes all of the following:

177 a. 1. The most recently completed rental market study

178 meeting the requirements of paragraph (l).

179 b. 2. A list of the units for which the property owner seeks

180 an exemption.

181 c. 3. The rent amount received by the property owner for

182 each unit for which the property owner seeks an exemption. If a

183 unit is vacant and qualifies for an exemption under paragraph

184 (c), the property owner must provide evidence of the published

185 rent amount for each vacant unit.

186 d. 4. A sworn statement, under penalty of perjury, from the

187 applicant restricting the property for a period of not less than

188 3 years to housing persons or families who meet the income

189 limitations under this subsection.

190 2.a. Portions of property that are subject to a LURA and

191 are specified in the LURA as dedicated to providing housing to

192 natural persons or families meeting the income limits specified

193 in paragraph (d) and to being rented for an amount meeting the

194 limits specified in subparagraph (b)3., are presumed eligible

195 for a certification notice for the term of the agreement upon

196 submission of such agreement to the corporation with the request

197 for certification.

198 b. For the first request for a certification notice after

199 receiving a certificate of occupancy, an owner of portions of

200 property meeting the requirements of sub-subparagraph a. may

201 submit a request to the corporation for a certification notice

202 immediately after the date on which the property obtains a

203 certificate of occupancy and is placed in service. In the

204 request for a certification notice pursuant to this sub

205 subparagraph, the owner of the property may specify the rent

206 amount that will be charged upon occupancy for each unit

207 dedicated to housing natural persons or families meeting the

208 income limits specified in paragraph (d) instead of the

209 information required by sub-subparagraph 1.c.

210 c. The owner of portions of property meeting the

211 requirements of sub-subparagraph a. may submit a LURA with the

212 request for a certification notice instead of the information

213 required by sub-subparagraph 1.d.

214 (l) A rental market study submitted as required by sub

215 subparagraph (f)1.a. ~~subparagraph (f)1.~~ must identify the fair

216 market value rent of each unit for which a property owner seeks

217 an exemption. Only a certified general appraiser as defined in

218 s. 475.611 may issue a rental market study. The certified

219 general appraiser must be independent of the property owner who

220 requests the rental market study. In preparing the rental market

221 study, a certified general appraiser shall comply with the

222 standards of professional practice pursuant to part II of

223 chapter 475 and use comparable property within the same

224 geographic area and of the same type as the property for which

225 the exemption is sought. A rental market study must have been

226 completed within 3 years before submission of the application.

227 (n) Upon the request of a property owner, the property

228 appraiser must issue a letter to verify that a multifamily

229 project, if constructed and leased as described in the site

230 plan, qualifies for the exemption under this subsection. To

231 qualify, the site plan must specify requirements for use of the

232 property which match the requirements for the exemption under

233 this subsection, including the number of units dedicated to

234 housing natural persons and families meeting the income limits

235 of subparagraph (d) and the rent amounts that will be charged

236 upon occupancy for such units. Within 30 days after receipt of

237 the request described in this paragraph, the property appraiser

238 shall issue a verification letter or provide the reasons the

239 project is ineligible for the exemption. A project that has

240 received a verification letter before the adoption of the

241 ordinance described in paragraph (q) is exempt from the

242 ordinance.

243 (o) Property in a multifamily project which received an

244 exemption pursuant to subparagraph (d)1. is eligible to receive

245 such exemption for each subsequent consecutive year that the

246 property meets the criteria of paragraph (b) and the successive

247 owner applies for and receives the exemption.

248 (q)1. ~~(o)1.~~ Beginning with the 2025 tax roll, a taxing

249 authority may elect, upon adoption of an ordinance or resolution

250 approved by a two-thirds vote of the governing body, not to

251 exempt property under sub-subparagraph (d)1.a. located in a

252 county specified pursuant to subparagraph 2., subject to the

253 conditions of this paragraph.

254 2. A taxing authority must make a finding in the ordinance

255 or resolution that annual housing reports ~~the most recently~~

256 published by the Shimberg Center for Housing Studies ~~Annual~~

257 ~~Report, prepared~~ pursuant to s. 420.6075 identify ~~, identifies~~

258 that a county that is part of the jurisdiction of the taxing

259 authority is within a metropolitan statistical area or region

260 where , for each of the previous 3 years, the number of

261 affordable and available units in the metropolitan statistical

262 area or region is greater than the number of renter households

263 in the metropolitan statistical area or region for the category

264 entitled “0-120 percent AMI.”

265 3. An election made pursuant to this paragraph may apply

266 only to the ad valorem property tax levies imposed within a

267 county specified pursuant to subparagraph 2. by the taxing

268 authority making the election.

269 4. The ordinance or resolution must take effect on the

270 January 1 immediately succeeding adoption and shall expire on

271 the following ~~second~~ January 1 ~~after the January 1 in which the~~

272 ~~ordinance or resolution takes effect~~ . The ordinance or

273 resolution may be renewed before ~~prior to~~ its expiration

274 pursuant to this paragraph if the taxing authority makes the

275 same finding required in subparagraph 2 .

276 5. The taxing authority proposing to make an election under

277 this paragraph must advertise the ordinance or resolution or

278 renewal thereof pursuant to the requirements of s. 50.011(1)

279 prior to adoption.

280 6. The taxing authority must provide to the property

281 appraiser the adopted ordinance or resolution or renewal thereof

282 by the effective date of the ordinance or resolution or renewal

283 thereof.

284 7. Notwithstanding an ordinance or resolution or renewal

285 thereof adopted pursuant to this paragraph : ,

286 a. Property in a multifamily project that received an

287 exemption pursuant to sub-subparagraph (d)1.a. before the

288 adoption or renewal of such ordinance or resolution may continue

289 to receive such exemption for each subsequent consecutive year

290 that the same owner or each successive owner applies for and is

291 granted the exemption.

292 b. Property in a multifamily project for which the first

293 certification notice request was submitted before adoption or

294 renewal of such ordinance or resolution, and which would have

295 otherwise received the exemption if such ordinance or resolution

296 had not been adopted or renewed, may receive the exemption for

297 the year the owner applies for and is granted the exemption, and

298 for each subsequent consecutive year that the same owner or each

299 successive owner applies for and is granted the exemption.

300 Section 2. (1) The Department of Revenue is authorized,

301 and all conditions are deemed met, to adopt emergency rules

302 under s. 120.54(4), Florida Statutes, for the purpose of

303 implementing the amendments to s. 196.1978, Florida Statutes,

304 made by this act. Notwithstanding any other law, emergency rules

305 adopted under this section are effective for 6 months after

306 adoption, and may be renewed during the pendency of procedures

307 to adopt permanent rules addressing the subject of the emergency

308 rules.

309 (2) This section expires July 1, 2028.

310 Section 3. The amendments made by this act to s. 196.1978,

311 Florida Statutes, first apply to the 2027 tax roll.

312 Section 4. Subsection (2) of section 420.6075, Florida

313 Statutes, is amended to read:

314 420.6075 Research and planning for affordable housing;

315 annual housing report.—

316 (2) By September 30 ~~December 31~~ of each year, the Shimberg

317 Center for Housing Studies shall submit to the Legislature an

318 updated housing report describing the supply of and need for

319 affordable housing. This annual housing report must ~~shall~~

320 include:

321 (a) A synopsis of training and technical assistance

322 activities and community-based organization housing activities

323 for the year.

324 (b) A status report on the degree of progress toward

325 meeting the housing objectives of the department’s agency

326 functional plan.

327 (c) Recommended housing initiatives for the next fiscal

328 year and recommended priorities for assistance to the various

329 target populations within the spectrum of housing need.

330 Section 5. This act shall take effect July 1, 2026.