Winter Park Partially Opts Out Of Affordable Housing Law
Winter Park has made history as the first city in Central Florida to partially opt out of the affordable housing law, known as the Live Local Act. This unanimous decision by city leaders aims to safeguard the city’s budget by preventing tax breaks for middle-income housing developers until at least 2027.
Changes To The Affordable Housing Law
The Live Local Act, introduced by state lawmakers in 2023, was designed to tackle Florida’s affordability crisis. It allowed large-scale developers to claim a 75% tax break on units for families earning between 80% and 120% of the area median income (AMI). In Orange County, this means incomes between $77,200 and $115,800 for a family of four. A recent amendment, however, permits municipalities to opt out of this tax break if there are more units than qualifying families in the metro area.
A study by the University of Florida’s Shimberg Center for Housing Studies revealed that the Orlando area has 799 more units in the 80% to 120% AMI range than families earning that amount. This finding allows governments in Orange, Osceola, Lake, and Seminole counties to utilize the new provision of the affordable housing law.
Budget Protection And Financial Impact
Maitland, a neighboring city, raised concerns first, noting that two major apartment complexes built in the last five years claimed the tax break, creating a 3% budget deficit. Winter Park leaders pointed out that apartment complexes are among their top taxpayers, contributing an average of $325,000 per complex this year. To protect their budget, they felt it necessary to take this vote.
“We have to. We have to,” stated Mayor Sheila DeCiccio, referencing the situation in Maitland.
Support For Low-Income Housing Continues
Crucially, the vote does not affect tax breaks for low-income housing developments. The same Shimberg Center study highlighted a shortage of around 380,000 apartment units for individuals earning up to $54,050, or up to $77,200 for a family of four in the Orlando metro area. These developments are still eligible for up to a 100% tax break for qualifying units.
Broader Consequences
The shortage of affordable housing was evident just a few miles from Winter Park City Hall, where the Creighton family faced eviction due to financial struggles. Their story underscores the continuing need for affordable housing and community support.
Maitland and other municipalities are expected to follow Winter Park’s lead and vote to block additional tax breaks soon. Furthermore, cities in Sumter, Marion, and Brevard counties may also opt out of the middle-income housing provision of the affordable housing law, as they too have more units than needed for qualifying families.
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