Local Ad Valorum Tax Exemption For Affordable Multifamily Housing

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In 2023, the Florida Legislature passed Senate Bill 102, known as the Live Local Act, which created Section 196.1979, Florida Statutes. This law authorizes local governments to offer property tax exemptions to support the development and preservation of affordable multifamily housing.

On June 4, 2024, the St. Lucie County Board of County Commissioners adopted Ordinance No. 24-018, establishing a local Ad Valorem Tax Exemption program in accordance with the Live Local Act. The exemption helps promote the continued development and retention of affordable housing in St. Lucie County.

The exemption period begins with the 2025 tax roll and will expire on December 31, 2028, unless extended by future Board action under Section 196.1979, Florida Statutes.

View the Ordinance

Eligibility Requirements

In accordance with Section 196.1979, Florida Statutes, and St. Lucie County Ordinance No. 24-018, a property owner may apply for a local affordable housing property tax exemption if the following criteria are met:

1. Income Limits – The property must house persons or families whose annual household income:

a. Is greater than 30% but not more than 60% of the median annual adjusted gross income (AMI) for St. Lucie County; or

b. Does not exceed 30% of the median annual adjusted gross income for St. Lucie County.

2. Project Size – The property must be part of a multifamily project with at least 50 residential units, of which 20% or more are designated as affordable housing under Section 196.1979, Florida Statutes.

3. Rent Limits – Affordable units must be rented for an amount no greater than the most recent income and rent limits published by the Florida Housing Finance Corporation (FHFC) or 90% of fair market rent as established by a qualified market study under Section 42-218(g), whichever is less.

4. Code Compliance – The property may not have been cited for code violations three or more times within the 24 months preceding the application. All cited violations must be corrected before submitting an application. The property must not have unpaid fines or charges related to prior code violations. Payment of fines before a final determination will not disqualify the property if all other requirements are met.

Affordable Housing Tax Exemption

(a) Exemption Amounts

• 75% of the assessed value of each affordable residential unit if fewer than 100% of the project’s units are designated affordable.

• 100% of the assessed value if all units in the project are designated as affordable housing.

(b) Vacancy Provision – If a unit that qualified for the exemption in the prior year is vacant on January 1, it may continue to qualify if the unit remains restricted for affordable housing and the owner is making a reasonable effort to lease it to eligible households.

FHFC Multi-Family Rent and Income Limits