The Florida Housing Finance Corporation has recently updated its guidance surrounding the Multifamily Middle Market Certification and its application process, as established by the Live Local Act. This initiative is significant for property owners and investors in the multifamily housing sector, providing a structured pathway to tax exemptions that can enhance affordability and accessibility in housing.
Overview of the Tax Exemption Program
Under section 196.1978, F.S., the Live Local Act introduces an ad valorem tax exemption program specifically for multifamily properties. Starting in 2024, eligible property owners can apply for this exemption, which offers a substantial opportunity to reduce property taxes.
To initiate the exemption process, applications submitted to local property appraisers must include a certification notice issued by Florida Housing. It’s important to note that while this certification is a crucial component of the application, it does not constitute a final approval of the tax exemption. The local property appraiser retains the authority to grant or deny the exemption based on the provided documentation.
Properties that qualify for consideration must offer a minimum of 71 qualified units of affordable housing to income-eligible individuals or families for at least three years. Depending on the fulfillment of eligibility criteria, these properties may be eligible for either a 75% or 100% tax exemption. Additionally, the rents and incomes for these units must adhere to specific limits, being either the most recent Florida Housing posted rent and income rates (75% tax exemption requires rent and income at 120% AMI and 100% tax exemption requires rent and income at 80% AMI) or 90% of the market rent determined through the necessary rental market study, whichever is lower between the Florida Housing posted rent or 90% of the market rent.
Key 2025 Live Local Certification Application Updates
Applicants interested in pursuing the exemption under section 196.1978, it is essential to be aware of the following updated key deadlines:
1. Portal Opening: The Multifamily Middle Market (MMM) portal will open on September 30, 2024, to accept requests. Applicants must ensure their requests are submitted to Florida Housing by December 19, 2024, no later than 3 p.m. This is a departure from the 2024 application procedure where applications were able to be submitted until December 31, 2023.
2. Rents and Tenants: By January 1, 2025, property owners must have appropriate rents and eligible tenants in place for the units under consideration.
3. Confirmation of Unit and Rent List: Owners are required to confirm or update their unit and rent lists between January 1 and January 15, 2025, with submissions due by 3 p.m.
4. Issuance of Certification Notices: Florida Housing will send out certification notices to property owners and local property appraisers no later than February 15, 2025.
5. Final Submission to Local Property Appraisers: If an owner receives a certification notice, they must submit this notice, along with an application and any required documentation, to their local property appraiser by March 1, 2025.
