Interoffice Memorandum
DATE: October 1, 2024
TO: Mayor Jerry L. Demings and County Commissioners
THROUGH: N/A
FROM: Tanya Wilson, AICP, Director
Planning, Environmental, and Development
Services Department
CONTACT: Alan Marshall, Assistant to Director
PHONE: (407) 836-5884
DIVISION: N/A
ACTION REQUESTED: title
Live Local Tax Exemption Options
body
PROJECT: Live Local Act Tax Exemption Options
PURPOSE: On August 30, 2024, staff gave a presentation to the Board outlining recent legislative updates to the Live Local Act (LLA) (2024) and the changes needed to update the current Live Local Standard Operating Procedures and Zoning Guidelines along with a template Land Use Restriction Agreement (LURA) necessary to ensure affordability. As part of the presentation, staff also provided context to the state and local ad valorem tax exemption programs authorized under LLA for qualifying affordable housing developments. The current state “Missing Middle” program, authorizing tax exemptions for qualifying projects with rents between 80 and 120% Area Median Income (AMI), was utilized by 14 projects for the 2025 tax year. Most of the units identified for tax relief were proposed at the 120% AMI threshold.
This past legislative session, HB 7073 provided the opportunity for local taxing authorities to “opt out” of the state program if a surplus of affordable units were identified by the state’s Shimberg Report. The December 2023 Shimberg Report identified a small 799-unit surplus in the Orlando-Kissimmee Metropolitan Statistical Area (MSA), allowing Orange County the opportunity to opt out. Most counties and several cities within the MSA approved a Resolution to opt out. The Board discussed that even though the Shimberg Report data identified a small surplus of affordable units, those units are at the highest end of the market rents at or above 120% AMI range. The overall view of the data shows huge deficits in rental units proposed at 30-60 % AMI. The original LLA also provided for a local tax exemption option for units with rents up to 60% AMI. It was determined last year that the County would evaluate the effectiveness of the state “Missing Middle” program before considering a local option.
The Board requested that staff bring forward a work session on October 29, 2024 that provides the requirements relating to “opting out” of the state tax program and alternatively establish a local affordable housing tax exemption program to better manage the deficit in units below 60% AMI.
This item if for informational purposes item, only. No action is requested.
BUDGET: N/A