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Leon County
Board of County Commissioners Agenda Item#18 January 27, 2026 |
| To: | Honorable Chairman and Members of the Board |
| From: | Vincent S. Long, County Administrator |
| Title: | Request to Schedule the First and Only Public Hearing to Consider a Local Option Affordable Housing Property Tax Exemption for March 10, 2026 |
| Review and Approval: | Vincent S. Long, County Administrator |
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Department/Division Review and Approval: |
Ken Morris, Assistant County Administrator Shington Lamy, Assistant County Administrator Abigail Thomas, Director, Human Services & Community Partnerships |
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Lead Staff/ Project Team: |
Jelani Marks, Housing Services Manager |
Statement of Issue:
This item seeks Board approval to schedule the first and only public hearing to consider a proposed ordinance to establish a County ad valorem property tax exemption to rental properties with 50 or more units that dedicate a subset of the units for low-income households and are not eligible for existing affordable housing exemptions provided by the State of Florida.
Fiscal Impact:
This item has a fiscal impact. The ad valorem property tax exemption on eligible rental properties is anticipated to result in a nominal reduction in County tax revenue. The proposed exemption would be for new and existing smaller rental developments (with total units between 50 and 69 units) which are not eligible for existing affordable housing exemptions provided by the State of Florida. Additionally, in accordance with Florida Statutes, the exemption would only apply to the units dedicated to eligible low-income households and the exemption would only be for County tax bill (city and school taxes would remain the same). Most modern multifamily rental developments have 70 or more units and are eligible for existing affordable housing exemptions.
Staff Recommendation:
Option #1: Schedule the first and only Public Hearing to consider an Ordinance amending Chapter 11, with the adoption of a new Article VI, of the Leon County Code of Laws (LCC), to create an ad valorem property tax exemption entitled “Local Option Affordable Housing Tax Exemption” (Attachment #1, subject to revisions as necessary) for March 10, 2026, at 6:00 p.m.
Report and Discussion
Background:
On October 14, 2025, the Board requested an agenda item and draft ordinance to consider incentivizing the construction of affordable housing through a County property tax exemption as provided in Florida Statutes (Live Local Act). This item seeks Board approval to schedule the first and only public hearing to consider a proposed ordinance to establish a County ad valorem property tax exemption for rental properties with 50 or more units that dedicate a subset of units for low-income households and are not eligible for existing affordable housing exemptions provided by the State of Florida (Attachment #1).
This item would advance the following FY 2022 – FY 2026 Strategic Initiative:
Continue to leverage County funding in partnership with local stakeholders to secure state and federal funding to build affordable rental housing for very low- and low-income families. (2023-18)
This Strategic Initiative aligns with the Board’s Quality of Life Strategic Priority:
(Q4) Support and promote access to basic healthcare, mental health, affordable housing, and homeless prevention services to our community members most in need.
Leon County is committed to increasing and preserving the stock of affordable housing in the community. As mentioned in previous agenda items, according to the Shimberg Center for Housing Studies at the University of Florida (Shimberg), the highest affordable housing need in Leon County is affordable rental units for very low-income households earning 50% or less of the Area Median Income (AMI) ($46,150 for a household of four). To address this need, the County has provided $5.8 million in direct funding over the past five years and has authorized approximately $198 million in bond financing that has or will develop more than 1,200 affordable rental units over the next 12-18 months in the community.
Projects that receive direct funding or bond financing authorization from the County also receive state affordable housing funds through the Florida Housing Finance Corporation (FHFC). For rental development projects that receive FHFC funding, Florida Statutes provides an exemption on all ad valorem property taxes (i.e., counties, municipalities, school board, etc.). As a result, the projects that received County investment are exempt from local property taxes as long as they continue to provide affordable housing to low-income households.
In 2023, the Florida Legislature adopted the Live Local Act to spur greater development of affordable housing in the State. Prior to the legislation, only affordable housing projects owned by not-for-profit organizations or projects receiving FHFC funding were eligible for property tax exemptions. The landmark legislation expanded the property tax exemption to newly constructed for-profit rental developments with 70 or more total units which do not receive FHFC funding and include units dedicated to low-income households. The intent of the legislation is to incentivize the private sector to develop and dedicate rental units for low-income households. This property tax exemption is administered by FHFC.
Additionally, the Live Local Act established a local option property tax exemption to incentivize smaller and existing for-profit rental developments to provide affordable housing for low-income households. The legislation authorized local governments (counties and cities) to provide property tax exemptions for new and existing rental developments with at least 50 total units which do not receive FHFC funding and include units dedicated for low-income households. The exemption is limited to the ad valorem property taxes levied by the local government authorizing the exemption. As mentioned earlier, all affordable housing projects funded by the County in recent years (direct or bond authorization) have also been funded by the FHFC and are therefore exempt from all property taxes.
On October 14, 2025, the Board directed staff to provide an agenda item to consider a draft ordinance to establish an ad valorem property tax exemption for rental developments consistent with the Legislature’s adoption of the Live Local Act. The following Analysis provides further details on the property tax exemption authorized under the Live Local Act and presents the proposed Ordinance which would build on the County’s ongoing efforts to address the highest affordable housing need.
Analysis:
Local Option Affordable Housing Property Tax Exemption
In an effort to increase affordable housing by for-profit developers, the Live Local Act expanded the property tax exemption to newly constructed rental developments with 70 or more units that do not receive FHFC funding. The new rental developments can receive up to 100% property tax exemption on units dedicated for low-income households (80% or below AMI); and/or up to 75% property tax exemptions for units dedicated for moderate income households (between 80% and 120% AMI). This property tax exemption is administered and certified by FHFC and applies to all local tax authorities (i.e., counties, cities, school boards, etc.).
In addition to the statewide tax exemption programs administered by FHFC, the Live Local Act authorizes local governments (counties and cities) to further encourage and incentivize development of affordable rental units that do not meet the statewide criteria. Pursuant to Section 196.1979, Florida Statutes, a local government can adopt an ordinance to provide rental developments with at least 50 units the following:
Up to 100% property tax exemption when all units are dedicated to households that are 60% or below AMI.
Up to 75% property tax exemption on eligible units when at least 20% of units are dedicated to households that are 60% or below AMI.
Similar to the property tax exemption certified by FHFC for larger projects, the local option exemption only applies to the units dedicated to low-income households (i.e., 60% or below AMI); property taxes are levied on units not dedicated to low-income households in a development. However, unlike the property tax exemption certified by FHFC for larger projects, the local option exemption is also available to existing rental developments under the same eligibility conditions. FHFC only authorizes property tax exemptions for new construction. Another differentiation from the larger projects certified by FHFC is that the local option exemption is limited to the ad valorem property taxes levied by the local government granting the exemption. The property tax exemption does not apply to other governmental entities (i.e., school boards, special districts, etc.) or special assessments (solid waste, stormwater, etc.). The authority to adopt the local option property tax exemption is limited to counties and cities respectively. Locally, the City of Tallahassee is exploring but has not yet adopted a property tax exemption. The following describes the proposed Ordinance that would build on the County’s ongoing efforts to increase the stock of affordable housing needs in the community.
Proposed Ordinance
Consistent with the authority provided in Section 196.1979, Florida Statutes, the proposed Ordinance would provide an exemption of ad valorem property taxes (general fund and EMS MSTU) levied solely by the County to rental developments with at least 50 total units and include units dedicated to eligible low income households. The proposed Ordinance would provide:
100% property tax exemption for rental developments that dedicate all units to households that are 60% or below AMI.
75% property tax exemption on eligible units for rental developments that dedicate at least 20% of the units for households that are 60% or below AMI.
The proposed Ordinance would only apply to the County’s portion of the tax bill (general fund and EMS MSTU), not taxes levied by the other local governments or taxing authorities (i.e., City of Tallahassee, Leon County Schools, etc.). In addition, the exemption would not apply to any fee or special assessments levied by the County such as solid waste or stormwater fees. The exemption to County property taxes would only apply to the units that are dedicated to eligible low-income households (i.e., 60% or below AMI); County property taxes would be levied on units not dedicated to low-income households. Eligible developments could receive property tax exemption as long as they recertify annually with the County.
As required by Florida Statutes, the proposed Ordinance designates the County’s Housing Services Division as the local entity that would be responsible for developing, receiving, and reviewing applications for certification of County property tax exemption. Property owners would apply for the exemption on the County’s website. Applications for the proposed local affordable housing tax exemption would be developed and made available online. The applications would be reviewed in conjunction with the Housing Finance Authority of Leon County (HFA) to verify that projects meet the requirements of the County ordinance for certification. The HFA, is a dependent special district of the County established by the Board to provide capital investment and bond financing for affordable housing rental development projects.
Once a property is certified, the Housing Services Division would provide the developer with a certification letter and notify the Property Appraiser's Office. Pursuant to Florida Statutes and the proposed Ordinance, the Property Appraiser will make the final determination on whether a development is eligible for the County property tax exemption. The developer is required to recertify with the County annually to verify units are dedicated to low-income households and re-apply to the Property Appraiser annually.
If adopted, the incentive of the property tax exemption will initially be made available beginning with the 2027 property tax roll. Florida Statutes requires an ordinance be adopted prior to January 1 of the year the property tax exemption is proposed to take effect. Property owners seeking the exemption for the 2027 tax year would need to submit an application for certification to the County’s Division of Housing Services by January 15, 2027. Once the Division of Housing Services ensures that the applicant meets the affordability criteria, a complete application for the tax exemption would need to be sent by the property owner seeking the exemption to the Property Appraiser's Office for final approval and processing by March 1, 2027.
To promote the property tax exemption, the Housing Services Division and Department of Development Support and Environmental Management (DSEM) will work with the HFA to notify potential developers. The property tax exemption will be promoted on the County website, and the Housing Services Division will actively engage the local and statewide rental developers’ associations as well as local property management companies. Additionally, the Housing Services Division will coordinate with Community and Media Relations Office (CMR) to promote the application launch date and deadline through the County’s social media, and traditional media outlets.
Pursuant to Florida Statutes, the proposed Ordinance would sunset after four years in order to facilitate the opportunity for the County to evaluate the fiscal impact and effectiveness of the tax exemption. At that point, the Board may adopt a new ordinance to renew the proposed exemptions. The proposed Ordinance would be an additional resource to the County to incentivize developers to construct units dedicated to low-income individuals and families. Therefore, it is recommended the Board schedule the first and only public hearing to adopt the proposed Ordinance for March 10, 2026, at 6:00 p.m.
Options:
Schedule the first and only Public Hearing to consider an Ordinance amending Chapter 11, with the adoption of a new Article VI, of the Leon County Code of Laws, to create an ad valorem property tax exemption entitled “Local Option Affordable Housing Tax Exemption” (Attachment #1, subject to revisions as necessary) for March 10, 2026, at 6:00 p.m.
Do not schedule the first and only Public Hearing to consider an Ordinance amending Chapter 11, with the adoption of a new Article VI, of the Leon County Code of Laws, to create an ad valorem property tax exemption entitled “Local Option Affordable Housing Tax Exemption”.
Board direction.
Recommendation:
Option #1
Attachment: