Florida House Bill 1389 — New Live Local Affordable Housing Amendments

Changes to Property Eligible for Live Local

Florida House Bill 1389 furthers the Florida Legislature's focus on affordable housing by continuing to amend Live Local, the statewide statutory framework that preempts certain local land use approvals and implements related affordable housing tax incentives.

The bill further amends sections 125.01055 and 166.04151, Florida Statutes, to require local governments to authorize Live Local affordable housing residential uses on property owned by local governments, school districts, and also on properties larger than three acres that have been owned by religious institutions for at least 10 years, regardless of the underlying zoning of the property.

It also prohibits local governments from restricting Live Local project heights through “dimensional means,” such as through certain setback or stepback requirements.

HB 1389 also definitively states that farms and farm operations, as defined in Florida Statutes Section 823.14(3), are not considered commercial use under Live Local, and also excludes other properties from the application of Live Local, including Areas of Critical State Concern, certain open space and park zoning categories, and portions of property encumbered by recorded conservation districts.

Implications for Current Live Local Applicants

For projects that are already pending Live Local approval, HB 1389 codifies a pathway for the applicant to proceed under the prior version of the Live Local statute that existed at the time of the application. Furthermore, a local government must also allow an applicant to amend a pending application to account for the changes made in HB 1389.

Tax Abatement Considerations

Under Live Local’s tax abatement provisions in Florida Statutes Section 196.1978(3), HB 1389 further restricts the ability of local governments to opt-out of providing tax abatements for affordable housing, in that local governments may only opt-out of the tax abatement if the Shimberg Center for Housing Studies report “for each of the previous three years” showed that the applicable metropolitan statistical area had an excess of affordable housing units. Previously, local governments could opt-out if the most recent Shimberg Center report showed an excess of affordable housing.

Furthermore, even if a local government does opt-out of the tax abatement, the owner of a multifamily project that is issued a building permit on or after July 1, 2026 within four years before the effective date of the local government opt-out can still apply for and receive the tax abatement if the statutory requirements are met.

Practically speaking, while the changes to Live Local are not as expansive as in past legislative sessions, they still require local governments, developers, and lenders to review existing development applications and underlying land use and zoning to determine both the applicability and timing of the amendments made by HB 1389. Once signed by the Governor, the bill's July 1, 2026 effective date coupled with express references to prior statutory versions, makes early coordination with local staff and tax counsel essential for any near-term filings or redesigns.

For questions regarding HB 1389 or its application to your specific project or jurisdiction, please contact Carlton Fields' Government Law and Consulting team.