Summary of HB 7031 Tax Provisions - Housing
On June 16, 2025, the Florida House and Senate approved HB 7031, which amends and refines various property tax exemptions originally passed under the Live Local Act; and further introduces a couple of new property tax exemptions that support the development of workforce and affordable housing. As we wait for the Governor to sign the bill into law, for your convenience, we have provided below a high-level summary of some of the notable sections found in the bill that provide incentives to developers constructing affordable and workforce housing in Florida. As this is simply a high-level summary of certain terms, please refer to HB 7031 for specific language and requirements. Note, more information is soon to follow, but please feel free to contact us at your convenience should you have any questions or concerns.
Nonprofit Land Lease Exemption Expansion
HB 7031 extends the existing ad valorem tax exemption to land that is owned entirely or is leased from a housing finance authority by a nonprofit entity provided the land is leased for a minimum of 99 years and for the purpose of providing affordable housing. This provision will take effect for the 2026 tax roll and it will be repealed on December 31, 2059.
State-Owned Land Affordable Housing Exemption
HB 7031 includes a new tax exemption under Fla. Stat. Section 196.19781 for state-owned land being used for affordable housing. Generally, to be eligible for the exemption, projects must: (1) be built on land owned by the state, (2) be subject to a lease or restrictive use agreement to provide affordable housing for at least 60 years, and (3) include more than 70 affordable or workforce housing units. The owner or operator of the property must file for the exemption annually by March 1st. Property that does not provide at least 70 units of affordable housing on January 1st of any year is no longer eligible for the exemption. Eligibility is determined by the property appraiser. This exemption will be in effect for the 2026 tax roll.
Government Entity Land Lease Exemption
HB 7031 adds a new exemption under Fla. Stat. Section 196.19782 for newly constructed multi-family affordable housing on land owned by governmental entities. Qualifying governmental entities include: a state government body or agency, a political subdivision, or the federal government. Generally, to qualify, the multi-family project must have more than 70 units dedicated to housing natural persons or families at 120% AMI and below, and subject to a lease or restrictive use agreement from a government entity for a period of at least 30 years for the purpose of creating affordable housing. Eligibility is determined by the property appraiser, and the provision is effective for the 2026 tax roll.
Extension to Projects with Local Housing Finance Authority Agreements
HB 7031 broadens the exemption under Fla. Stat. Section 196.1978 to include owners receiving tax-exempt bonds from local housing finance agencies. Prior to HB 7031, the exemption did not explicitly cover affordable housing projects receiving tax-exempt bonds from local housing finance agencies under Chapter 159, Part IV. By extending this exemption, the legislature aims to support affordable housing projects funded by local housing finance authorities.
Missing Middle Exemption Successor Rights
HB 7031 adds language explicitly allowing property tax exemptions for multi-family properties to transfer to new owners.
This article was written with assistance of summer associate Anna Davis.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
