Report reveals challenges in the Live Local Act’s implementation and calls for new strategies to help middle-income Floridians afford homes.
Florida TaxWatch, a non-partisan government watchdog organization, has released a new report on the implementation of the state’s landmark Live Local Act, highlighting both its successes and the persistent challenges in addressing Florida’s affordable housing crisis.
The report, “Update on the Implementation of the Live Local Act,” specifically focuses on the Act’s property tax exemptions and streamlined zoning processes, noting that while the legislation has spurred some development, it has not adequately met the needs of the “missing middle”—residents who earn too much to qualify for traditional affordable housing but not enough to afford market-rate homes.
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The “missing middle” is a significant group in Florida’s economy, including essential workers like teachers, firefighters, and police officers who often struggle to live near where they work. Florida TaxWatch Executive Vice President and General Counsel Jeff Kottkamp points out that this income bracket, which falls between 80% and 120% of the Area Median Income (AMI), is particularly underserved by existing affordable housing initiatives.
According to the U.S. Department of Housing and Urban Development, a household is considered “cost-burdened” if it spends 30% or more of its income on housing expenses. In 2022, a staggering 35% of Florida households were cost-burdened, a figure that has likely grown due to inflation and rising living costs.
Passed in 2023 and amended in 2024 and 2025, the Live Local Act aimed to boost affordable housing by offering developers financial and regulatory incentives. These included streamlined zoning processes and property tax exemptions for affordable housing units.
The Act simplified development by allowing multi-family and mixed-use projects in commercial, mixed-use, or industrial zones without needing extensive plan amendments or variances, provided that at least 40% of the units are affordable for 30 years.
However, the report reveals a critical issue with the property tax exemptions designed to encourage development for the “missing middle.”
While the Act provides a 75% property tax exemption for units within the 80-120% AMI range, local taxing authorities have the option to “opt out.” An increasing number of these authorities are doing just that, citing concerns that the exemptions primarily benefit developers without guaranteeing savings are passed on to renters. Furthermore, the loss of property tax revenue must be covered by other taxpayers, creating a financial burden on local communities.
READ: DeSantis Budget Vetoes Praised By Florida TaxWatch For Saving Taxpayers Millions
As the 2026 legislative session approaches, Florida TaxWatch is urging lawmakers to work with stakeholders to find new solutions. The organization is recommending the creation of state-level tax credits to complement the Live Local Act and other existing housing initiatives. These proposed tax credits include:
- A corporate income tax credit for homebuilders to incentivize the construction of affordable single-family homes for middle-income families.
- A state low-income housing tax credit to supplement the federal credit, providing a stronger incentive for rental property developers.
- Credits for projects that involve the adaptation of historic properties for housing purposes.
By focusing on these new strategies, Florida TaxWatch believes the state can more effectively address the needs of its essential workforce and ensure that affordable housing is not just for the lowest income brackets but also for the “missing middle” that forms the backbone of its communities.
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