By: Elizabeth Somerstein, Esq.
For Israeli real estate developers and investors operating or considering activity in the United States, the Florida housing market offers unique opportunities, among other things, in light of the developments in the framework of the Live Local program. This plan is intended to increase the supply of housing through “by-right” development tracks for multifamily housing projects that include income-restricted units. The “4.0” version, which is expected in 2026, expands the program’s applicability both in terms of land types and in terms of tax benefits.
In practice, this opens up new possibilities for development on land that in the past was not economically viable, especially in infill areas and in the suburbs. At the same time, the plan supports more efficient rental models, with shorter occupancy times, and proposes tax mechanisms that may improve the expected cash flow.
New Lands: Expanding Development Possibilities
Live Local 4.0 is expected to expand the possibility of obtaining “per-credit” development permits for a wider range of properties, subject to the integration of income-restricted units. Currently, the plan applies mainly to land for commercial, industrial or mixed uses, as well as to areas with flexible planning designations. The proposed amendments extend the law’s application to properties owned by local authorities, educational institutions, and religious institutions, subject to certain restrictions, thereby significantly increasing the supply of potential land for development.
Tax Benefits and Key Considerations
The program provides property tax benefits (ad valorem) for income-restricted units in projects that meet the requirements of the law. Eligibility depends on the rate of the discounted units, the requirements relating to rent and the tenants’ income, as well as the ownership and operation structures of the project. As part of an investment examination, it is important to focus on the mix of apartments, the scope of compliance requirements, the duration of the benefits, the clawbacks, and the method of valuing the property.
The Greenspoon Marder team accompanies Israeli entrepreneurs and investors in selecting sites, formulating a planning strategy and obtaining rights, planning affordable housing plans, and meeting regulatory and tax requirements.
