Affordable Housing Property Tax Exemptions

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.
53
54 Be It Enacted by the Legislature of the State of Florida:
55
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 tax
able
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 perce
nt 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 tax
able
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
, m
ay 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, 202
8
.

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.