Florida Lawmakers Update Live Local Act But Leave 1-Mile Radius Intact

Glitch bill strengthens the law, while adding some protections for single-family neighborhoods

Florida lawmakers have passed a bill updating last year’s Live Local Act, offering some concessions to single-family neighborhoods while ultimately expanding the law’s purview even further.

The original Live Local Act was designed to increase workforce housing development, and its main provision allowed developers to bypass local zoning restrictions on projects where at least 40 percent of units are priced as workforce housing. The law requires local administrative approval, pre-empting community review.

Many local officials are critical of its top-down approach, concerned about the extent to which it interfered with their ability to manage city planning.

That is why the bill’s sponsors introduced the so-called 2024 glitch bill. “These are very large pieces of legislation,” Rep. Vicki Lopez, who represents the Miami metro in the state House, told Commercial Observer in a February interview. “There’s always more to improve.”

However, while the glitch bill was initially an attempt to assuage concerns of local officials, and came with the backing of the Florida League of Cities, an advocacy group, the final version kept two hotly debated provisions regarding building height allowances and where Live Local provisions can be applied, and then added new pre-emptions limiting the input of local governments.

“The original amendment to the Senate bill was a League of Cities amendment that was trying to give local governments back control of the issue,” said Keith Poliakoff, a partner with Government Law Group, who represents developers pursuing Live Local Act projects. “Fortunately, the Florida Legislature realized if they made those amendments it would undo [the original law]. So they actually made the law stronger to the chagrin of the local governments who were lobbying to make the law ineffective.” (The Florida League of Cities declined to comment.)

A key feature of the original Live Local Act was that developers can build up to the height of any building within a one-mile radius if a project met the Live Local affordability requirements.

Earlier iterations of the 2024 bill would have cut that radius down to a half-mile, but the final version keeps the one-mile radius, while carving out an exemption for single-family neighborhoods. In addition, lawmakers had debated whether to restrict Live Local’s application to industrial assets, but that remained intact.

To protect residential neighborhoods, the 2024 update requires that properties adjacent to single-family lots on at least two sides can be built up to three stories, the pre-existing allowed height in the zoning jurisdiction, or up to 150 percent of the tallest adjacent zoning jurisdiction.

“Instead of making a blanket change, [the law] was only enhanced in regards to that point of protecting single-family neighborhoods,” said Anthony De Yurre, a lawyer with Bilzin Sumberg, who was involved in developing the glitch bill.

The update law also expanded on the original version, introducing a floor area ratio (FAR) pre-emption parallel to the height and density allowances in the 2023 act, restricting FAR caps to 150 percent of the highest allowable FAR in the jurisdiction.

“There were two limitations to the original bill — one was FAR and one was parking,” De Yurre said. “We were given a new ceiling for density and height, but in many districts we ran out of square footage.”

The new bill also includes clarifications on how the Live Local Act interacts with other development bonuses or variances. In particular, the bill clarified that a Live Local Act project does not preclude a project from receiving other local development bonuses that affect density, height or FAR — and that these bonuses must be administratively approved. For example, projects that also qualify as transit-oriented developments can apply the associated bonuses.

Finally, the 2024 bill clarifies that the market-rate housing at a Live Local project can be for-sale units, allowing for a mixed project with market-rate condos and rentals with restricted pricing.

“It’s another opportunity for mixed income, which I think is the best part of the bill,” said De Yurre.

Meanwhile, residents feel completely blindsided by a planning process that essentially excludes them. During a public meeting addressing a 12-story Live Local project in Hollywood Beach, one resident registered her frustration. “We hear about the legislature, we hear about the governor,” Hollywood resident Helen Chervin said. “But he don’t live here. We do.”

The update bill has passed in both the House and Senate, and now goes to Gov. Ron DeSantis to await his signature.

Article Link: Florida Lawmakers Update Live Local Act But Leave 1-Mile Radius Intact
Author: CHAVA GOURARIE

Revisions Show Fla.’s Dedication To Affordable Housing Law

With the approval of significant revisions to a landmark affordable housing law they passed in 2023, Florida state lawmakers have reinforced their commitment to incentivizing an increase in much-needed housing supply, real estate attorneys and developers said.

The revised version of the Live Local Act passed 112-1 in the House on Wednesday following an earlier 40-0 vote in the Senate, but the ultimate version ended up with some surprises. While changes had been anticipated after tensions arose in some municipalities during the law’s rollout in regard to its preemptions of certain local controls on development and building size, several proposed pullbacks did not cross the finish line.

In the end, the most notable revisions ended up expanding the law’s reach, the real estate professionals told Law360, with most expecting the changes to help move affordable and workforce housing projects along and encourage more in the future.

“While the original Live Local Act made great strides in incentivizing development of much-needed affordable housing opportunities for Florida’s workforce, in practice we have found the ability to deliver these projects is often limited by local regulations that required excess parking to be provided in urban areas and placed limits on the amount of buildable square footage that could be accommodated,” said Jorge L. Navarro, a land use shareholder in the Miami office of Greenberg Traurig LLP. “I believe with these recent additional changes, more developers will be encouraged and incentivized to develop under the Live Local Act.”

The changes in S.B. 328 will take effect immediately if signed by Gov. Ron DeSantis, with the exception of a clarification to tax breaks stipulated to apply retroactive to Jan. 1. Applicants who already submitted proposals under the original law would have the option of proceeding under those rules or resubmitting the plans under the new version.

More Density, Less Parking

A few of the changes stood out as likely to have the most impact in the minds of these professionals.

Every source pointed to a new preemption for Floor Area Ratio — or the alternative Floor Lot Ratio measure used in some jurisdictions — prohibiting local governments from limiting FAR below 150% of the highest currently allowed level in their jurisdiction.

As noted by Miami attorney Steven J. Wernick, who just joined Day Pitney LLP as a partner, the omission of local preemption for FAR, which determines the buildable square footage, prevented many Live Local projects from accessing significant boosts in allowed height and density included in the original law.

Greenberg Traurig’s Navarro pointed to “very limited” existing FAR regulations in many commercial districts in unincorporated Miami-Dade County that had been established to accommodate low-rise shopping centers and office buildings and said this change will “go a long way in making these commercial districts viable sites for redevelopment as workforce housing.”

Revised language clarifying that only the qualifying affordable units in a Live Local multifamily development must be rentals and allowing for developers to mix in market rate for-sale condo units should also have a major impact, several sources said.

“The allowance of residential condominium product that is for sale within Live Local developments is also extremely attractive for developers, as it allows for mixed-income and mixed-use projects, allowing the workforce to remain within urban cores while offsetting construction costs,” said Asi Cymbal, chair of Cymbal DLT Cos., a Miami-based investment, development and construction firm.

S.B. 328’s requirement for a 20% reduction in parking requirements for Live Local Act projects within a half-mile of a “major transportation hub” that has parking available for residences within 600 feet and for the elimination of parking requirements for projects within transit-oriented development zones also drew widespread attention, although Henry Torres of Miami development firm The Astor Cos, said he thinks the reductions need to be even more widespread.

“For the regular neighborhoods, that really doesn’t do a whole lot,” he said, noting that the current regulations in Miami-Dade County require more than one parking spot per unit, even though households in the studio apartments that he has planned for two Live Local projects tend to have one or no cars.

Another provision that drew mention from every source was a clarification that in determining the so-called “missing-middle tax exemption” in the law, local property appraisers must include a proportionate amount of the residential common areas and land on the property, in addition to just the square footage of the qualifying units.

“The expanded tax exemptions will further incentivize owners of existing multifamily buildings to designate units for workforce housing with reduced rental rates and assist with making construction of new workforce housing projects more financially feasible,” Navarro said.

Height Considerations

One of the most prominent changes initially proposed in S.B. 328 that made it through the Senate were revisions to the preemptions on height entitlements for qualifying projects.

The Live Local Act currently allows developers to build up to the greatest height allowed within a mile of the proposed qualifying development, but S.B. 328 was initially drafted to narrow that range to a quarter of a mile and to let local governments restrict the height to the higher of three stories or 125% of the tallest building on the adjacent properties, if all adjacent buildings are three stories or fewer.

The revisions appeared to possibly address opposition that arose in Miami Beach over a proposal to build a high-rise tower next to the city’s historic, mid-rise Ocean Drive strip. But the version that passed kept the 1-mile radius intact and added height restrictions only for properties adjacent to neighborhoods zoned for single-family homes.

Several sources said it was right to protect single-family neighborhoods, but some expressed surprise that the revisions stopped there.

“This change will provide for a more gradual transition of height and density from these submarkets into urban cores, which should benefit local municipalities and residents, Cymbal said, but he added, “We will have to continue finding ways for municipalities and developers to work together to preserve the existing character of an area.”

Similarly, Wernick said: “I had expected to see the legislature consider more carveouts for where there has been pushback from local communities concerned with loss of character. They did that with respect to protecting airport flight path areas, but I was surprised the legislature did not address the applicability of Live Local projects in historic districts or areas of critical environmental concern.”

Anthony De Yurre, a partner at Bilzin Sumberg Baena Price & Axelrod LLP, also said he was surprised that lawmakers decided to ban Live Local projects from areas near airports.

“Airports are large sources of employment for workforce tenants, and this prevents those employees from living closer to their jobs,” he said.

Government Law Group PLLC’s Keith Poliakoff, who has represented local governments and developers, also noted that lawmakers considered eliminating industrial properties from the field of those the Live Local Act opened up for affordable housing development but ultimately left that provision untouched.

“This law also helped to satiate the fears of developers who worried that the law could be going away,” Poliakoff said of S.B. 328. “There are numerous projects that have been sidelined by municipalities who had hoped the law would be amended in their favor. These changes will enable these projects to resume, which will help the legislature to produce its desired goal.”

Outlook

For the most part, the revisions drew predictions that they will keep the ball rolling on the Live Local Act and draw in more developers and lead to more affordable and workforce housing supply.

“Many developers were waiting for revisions to tweak projects or update pro formas,” De Yurre said. “I see the changes as enhancing the ability for these projects to get approved, financed and built.”

Day Pitney’s Wernick said he expects to see an increase in Live Local projects in the urban core and communities with mixed-use districts that are experiencing growth in population.

“S.B. 328 buttons up ambiguities from the original legislation adopted in 2023, giving comfort to developers who’ve been sitting on the sideline that the Live Local Act is here to stay,” he said.

Further clarification of the rules and regulations should draw in more developers, especially for mixed-use and mixed-income developments, Cymbal said, although he cautioned that there will still be projects that will end up not making financial sense to pursue.

Although lawmakers have shown a commitment to the Live Local Act and cleared some potential roadblocks that will likely entice more developers to participate, Government Law Group’s Poliakoff said more challenges are also likely to crop up.

“Unfortunately, I see more uncertainty created by many of these changes, which will prompt municipalities to modify their codes to block its applicability. As a result, I believe these changes will spur more litigation until the courts finally tell the local governments that they must apply the law as written,” he said. “I believe that this first amendment to the Live Local Act will certainly not be the last.”

–Editing by Haylee Pearl.

Article Link: Revisions Show Fla.’s Dedication To Affordable Housing Law
Author: Nathan Hale

Florida residents are in court over a cemetery’s future

Every morning, Elijah Wooten walks through the Westview Community Cemetery. On this particular morning, he’s wearing a loose polo shirt, slacks and a Korean War Veteran cap pulled down over his gray hair. The hair spills out from underneath the hat and runs down as sideburns.

He walks across the unkempt field of the cemetery, a landscape that shifts from uncut grass and weeds to dirt that turns to mud after a rain.

Cement vaults that cover graves are close together, offering little space for Wooten to reach his family’s plot. He’s got a slight wobble, but he keeps a good pace for a 91-year-old.

His family’s graves are covered in granite stone and inscribed with names and bible verses. They are among the most maintained of the 400 or so graves.

He picks up a plastic bottle and small cardboard boxes and takes them to the dumpster.

“Anything that I can do to make the place look better, I do,” says Wooten, who has lived in Pompano Beach his entire life.

The cemetery is lined with white-painted cement vaults. The first few rows are freshly painted in holy-white, but the condition of the cement vaults get progressively worse the further away you get from the cemetery’s entrance.

Most headstones, if they exist, are split or crumbling. Figurines of Jesus and the Virgin Mary lay on their side, missing limbs. And, in one case, a vault is cracked so badly that the casket underneath is exposed to the harsh rain and sun and moisture of South Florida.

The abhorrent state of the historic Black cemetery is at the center of a legal battle over who is in charge of its operation, upkeep and land — some of which was sold to a developer who planned to build an industrial office park until it was voted down by the city’s Planning and Zoning board last November.

The cemetery is run by a nonprofit board of four Trustees who were behind the 2020 sale. The board’s validity is being disputed in court by a new board, elected in 2022 by community members and made up of Pompano Beach residents, most of whom have family buried in the cemetery.

For some, it’s an example of the far reaching effects of segregation on Black communities across the country, who have largely relied on elders and activists to push for preservation with little help from municipal, state or the federal governments.

Antoinette Jackson is the chair of the Department of Anthropology at the University of South Florida. She has worked for years archiving and preserving the history of Black cemeteries in Tampa and around the country.

“That cemetery [Westview] is an example of what happens when there has been a continual tension of trying to maintain a cemetery with limited resources,” she said. “All those layers of things that they’re dealing with underscore the systemic nature of what segregation often meant to Black cemeteries and Black communities.”

Jackson runs the Black Cemetery Network, an online community that works to preserve archives and physical sites of Black cemeteries across the country. It started as a way for others like her to communicate about their preservation efforts.

“The big, thousand foot level is the preservation of history and the comprehensive understanding of communities, which come with acknowledgement that these cemeteries and these communities were there, and sometimes are still there,” she said.

Keeping that history alive in Black communities has long been the job of elders and activists.

Ramona La Roche has been part of many of those efforts throughout Florida and her homeland in South Carolina. Now she works to archive genealogies in Black cemeteries throughout the South.

She was part of a push to preserve the remains of 31 people buried under an auditorium in Charleston.

“They initially wanted to place the bones at another Black church. The community protested,” she said. Ultimately the bones were buried back in the spot where they were found.

“We marched from The College of Charleston back to the burial site and we actually put each of the remains in its own separate small box, and then they were put in one coffin, and then we reinterred it.”

La Roche says the City of Charleston paid for the burial celebration. In Florida, cities like Tampa and Deerfield Beach have bought back properties from developers who discovered human remains on the land.

Until recently, help from governments has been limited. Some states, like Florida, have moved to help the preservation of land and archives. Still, development is an ever-present threat to the land as the state’s population increases.

A Florida law, approved by Gov. Ron DeSantis last May, created a Historic Cemeteries Advisory Council and provided over a million dollars for organizations to buy land where remains were found.

Progress has been slower on the federal level, where the African-American Burial Grounds Preservation Act has been introduced in the Senate. It would make grants available for preserving African American burial grounds.

Westview Cemetery’s history dates to the 1950s

In 1952, Black businessman Paul Hunter donated the land — all 15 acres of it — to be used for burying Black residents after the city passed a racist law banning the integration of the city-run cemetery. Although the law has since been repealed, the cemetery still caters to mostly Black residents of Pompano Beach.

Burials are also inexpensive — $1,600 — which caused financial challenges for the current board, according to their former chair. They sold what they said was an unused parcel of about 5 acres for just over $1 million in 2020 and vowed to use the money to revitalize the cemetery.

Community members haven’t seen much improvement.

Residents challenged the sale of the land in court. That challenge failed.

The new owners, the development company KZ Copans, said they contracted a company to search for remains on the land but found none. Longtime city residents contest that claim.

The fate of what remains of the Westview Community Cemetery is now tied up in court.

In recent years, more public attention and awareness has emerged surrounding Black cemeteries and their erasure.

In 2015, Deerfield Beach residents came forward with testimony that land purchased by a developer held remains of their family members. It took three separate archeological surveys to find remains. The land was then turned into a memorial park with support from the developer and the city.

Cemetery land is sold

In 2020, unbeknownst to the Pompano Beach community, two members of the Westview Community Cemetery board signed away 4.3 acres of cemetery land to Jacob Zebede and KZ Copans for $1.29 million.

A year later, a group of residents sued to have the contract between the board and KZ Copans voided. They claimed the board had been running afoul of their own bylaws, which prohibited sale of any cemetery land and required nine members. This board only had four.

That lawsuit failed in 2020.

An appeal was also shot down by the state’s Fourth District Court of Appeal.

‘A second bite at the apple’

In January 2022, a group of residents upset at the state of the cemetery held a community meeting and started to vet candidates for a new board. They held elections in accordance with bylaws and formed a new nine-member board.

Last May, a group of four residents, including one newly named board member, filed a lawsuit against the old board, alleging they changed bylaws to work in their favor, stopped holding meetings and elections and allowed themselves to be paid for serving on the board.

Through the lawsuit, they hope a judge will rule that the newly elected members are the rightful Board of Trustees for the cemetery.

“I heard about what was going on, I just felt that it was wrong and I wanted to get involved because I wanted to help right the wrong,” said Sonya Williams-Finney, who was elected to the new board.

Williams-Finney grew up in Pompano Beach and has family buried at the cemetery. Because of bad record keeping, she does not know the location of her family’s graves. About 30 percent of the graves are unidentified, according to records.

In a motion to dismiss the lawsuit, the old-board’s lawyer Jonathan Heller, wrote that the new lawsuit is “trying to take a second bite at the apple, before a new judge.”

The judge in the case, Jeffrey Levenson, allowed the case to move forward and it is currently pending in county court.

‘Better be careful what you ask for’

During a Pompano Beach Planning and Zoning Board meeting last Nov. 15, Keith Poliakoff, an attorney for KZ Copans, gave a presentation to the board and dozens of fuming residents about his vision for Westview Cemetery’s future.

In a video portion of the presentation, workers are seen pressure washing and re-painting vaults that cover the caskets. However, when WLRN visited the site in January only a few rows of vaults near the cemetery’s entrance had been repainted and cleaned. Paint buckets were left sprawled throughout the cemetery near vaults and headstones.

The money from the sale — about $1.2 million — would pay for things like painting and pressure cleaning the vaults, paving the roads and a new irrigation system, according to a budget Poliakoff presented. He also said the developer pledged another $600,000 if the zoning change is granted. That money, he noted, would be used for a digital archive project and other improvements.

When Walter Hunter came to the microphone, he was berated by jeers. Hunter was the president and CEO of the cemetery board and initiated the sale of the land.

“The time has come to breathe new life into Westview Cemetery,” he said, calling the decision to sell the land as “the most difficult decision that we could ever make.”

Poliakoff’s mission was to get the board to change the zoning for the land so that KZ Copans could construct an industrial office building there. The board voted unanimously against the zoning change.

“The ownership will go back to the drawing board if it has to, and it will say, ‘okay, fine, if we have to turn this into a waste transfer station under the code, that’s what we’ll do.’ And sometimes, you know, you better be careful what you ask for,” Poliakoff warned community members.

Tundra King, a member of the Planning and Zoning Board, chastised Poliakoff and some of her colleagues who wanted to see documentation of the dedication of the cemetery.

“I’ve heard you go back and forth as to ‘there may not be history that’s in writing’ or ‘no one has been able to produce certain things in writing.’ You have the history sitting right here in the audience,” she said, referring to the dozens of community members.

“We know that a lot of things from the African American community back in that time was not properly documented.”

Vacant land and the future

The fight is not over. The Planning and Zoning vote was just a recommendation that the city and county now have from the board.

What those two governing bodies do and the result of pending litigation will shape the future of hundreds of Pompano Beach residents that wish to be buried near their families.

Broward County judge plans to start hearing arguments from attorneys in March.

As for Wooten, his fight to preserve his family’s graves at Westview continues.

“I’ve been doing this for the last, what, two years, two and a half years now. … Anything, anything, anything can be done that I can do to make the place look better, I do.”

Article Link: Florida residents are in court over a cemetery’s future
Author: Gerard Albert

Live Local Act Changes ‘Favorable To Developers’ Approved, But Battles Likely To Rage On

The Florida Legislature passed broad changes to its year-old affordable housing law, closing what many developers and land use attorneys saw as loopholes that allowed local governments to block projects while adding more rules that municipalities could potentially leverage to hold back projects.

The Florida House of Representatives passed the changes by a 112-1 vote on Wednesday, three weeks after the amendments to the law known as the Live Local Act unanimously passed the Senate. The legislation will immediately go into effect once signed by Gov. Ron DeSantis, and it includes provisions to give developers with existing proposals under the law the opportunity to amend their plans to fit within the new standards.

“As written, it is definitely more favorable for developers,” said Keith Poliakoff, a land use attorney at Fort Lauderdale-based Government Law Group.

But Poliakoff said the broad changes only added “more confusion to the bill” that will ultimately give municipalities more ways to push back against proposals that the law aims to compel them to approve.

“Although some of the fixes were good, there are still so many open issues that there’s no doubt that more litigation is going to ensue, that more municipalities are going to figure out ways to block it,” Poliakoff said.

The Live Local Act first passed the Florida Legislature with broad bipartisan support last year and went into effect in July. It’s meant to spur the development of affordable and workforce housing through a mix of tax incentives and density bonuses. It also includes a rule that compels local governments to approve projects without a public hearing if they maintain at least 40% of units as workforce housing.

Among the most significant changes to the law passed by the Legislature as SB 328 this week was the addition of language that prevents municipalities from using floor-area ratio, a measure of density in a development commonly referred to as FAR, as a criteria to deny administrative approval of projects.

The omission of FAR was flagged by land use attorneys as a gap in the legislation when it initially passed as a way local governments could try to exercise control over the approval of projects.

In the most high-profile example, Miami Beach used the lack of guidance on FAR to push back against Jesta Group’s planned redevelopment of the Clevelander South Beach hotel and bar into an 18-story residential tower.

The new language added to the law compels local municipalities to administratively approve projects so long as the proposals don’t exceed 150% of the maximum FAR allowed under the area’s development codes if the project fits within the law’s other provisions.

The Live Local Act applies to residential developments in land zoned for commercial, industrial or mixed-use that have a minimum of 70 units and set aside at least 40% of those units as units affordable for tenants making no more than 120% of area median income. In Miami-Dade County, that’s a salary of $86,760 for a single person, in Broward County it’s a $80,640 salary and in Palm Beach County it’s a $81,840 salary.

Initial amendments proposed in January sought to remove industrial zoning from the law’s scope, but that change was ultimately walked back. Poliakoff said the first round of proposed amendments were mostly offered by local governments and that the Legislature reconsidered their impact on the law’s effectiveness.

“The initial proposal was borne by the municipalities in an attempt to render Live Local useless,” he said. “All of those changes that they tried to make, including limiting where it can go, limiting the height, limiting the density, limiting its applicability, were all killed by the Legislature.”

The current law ties the maximum height of a proposed development to equal the allowed height of any building within a 1-mile radius.

Amendments proposed in January sought to reduce that radius to a quarter-mile. The changes passed this week keep the 1-mile rule but exclude any existing buildings that received “any bonus, variance, or other special exception for height” as an incentive for development from being used to calculate a new project’s maximum height.

Legislators also created new rules in the law for projects with at least 25 single-family homes on at least two sides of the proposed site. The legislation limits the height at those parcels to whichever is tallest between the site’s maximum allowed height under local zoning rules or 150% of the tallest adjacent building, but no less than three stories.

The amendments passed this week also expand Live Local’s reach into parking requirements for proposals near transit stops, which had previously not been addressed in the legislation.

It allows proposals within a half-mile of transit hubs to include 20% less parking than required by zoning in many cases and eliminates parking requirements entirely for mixed-use projects in transit-oriented development zones seeking approval under its rules.

Other changes were made along the margins that affect which sites qualify under the law and, in some cases, the minimum number of units.

Projects within a quarter mile of a military installation cannot be administratively approved, and the law, once signed, will not apply to parcels directly under an airport runway or within federally determined airport noise zones.

Properties in “areas of critical state concern,” which includes the Florida Keys and other environmentally sensitive swaths of the state, will only need a minimum of 10 units to qualify for consideration under Live Local Act provisions.

Rep. Ashley Viola Gantt, a Democrat whose district includes Allapattah and other parts of Miami-Dade County, was the only state lawmaker in either house to vote against the amendments. A spokesperson at her office didn’t respond to Bisnow’s request for comment.

The changes to the law do little to quash unease and pushback from local governments about the loss of control over project approval. In South Florida, Doral passed a six-month moratorium on any Live Local Act applications, which recently expired. Weston considered a resolution that would require public hearings for all affordable housing proposals.

The latest high-profile fight over a Live Local proposal is playing out in Bal Harbour, where local officials in the wealthy neighborhood are pushing back against a plan to add more than 500 apartments to the Bal Harbour Shops using the law’s provisions.

Local officials’ latest move to block the proposal is an ordinance that would ban developments from including different entrances for a project’s affordable and market-rate components.

“This session’s amendments to Live Local are just the start because municipalities and governmental agencies are going to continue to put roadblocks in the way of its implementation,” Poliakoff said. “I foresee that each year going forward there are going to be amendments made.”

Article Link: Live Local Act Changes ‘Favorable To Developers’ Approved, But Battles Likely To Rage On
Author: Matt Wasielewski

“Beneficial to developers”: Florida Legislature approves tweaks to Live Local Act

Amendments loosen floor area ratio restrictions for projects with affordable rentals

Government Law Group’s Keith Poliakoff and Berger Singerman’s Javier Vazquez (Government Law Group, Berger Singerman, Getty)

Florida lawmakers approved changes to the Live Local Act that are expected to benefit developers planning affordable housing projects.

The state House on Wednesday passed a slew of tweaks with a 112-1 vote, three weeks after the Senate first approved the changes. The legislation won’t be final until Gov. Ron DeSantis signs it into law.

The Live Local Act was approved last year to alleviate the state’s housing predicament. Although some Florida areas have struggled with an affordable housing shortage for decades, the issue was exacerbated starting in late 2020 due to an influx of out-of-state residents and record rent hikes. The crisis is especially pronounced in South Florida, a major recipient of the influx of residents, which experienced record rent hikes from 2020 to 2022.

The Live Local Act incentivizes construction of affordable and workforce-priced rentals by giving developers major tax breaks, as well as allowing them to build taller buildings with more units than allowed in counties and municipalities and whiz by local government approvals. Developers must designate at least 40 percent of units for rent at or below 120 percent of the area median income for at least 30 years to qualify under the Live Local Act. For mixed-use projects, at least 65 percent of the total square footage must be residential to qualify.

But last year’s law failed to address another project size restriction that counties and cities could invoke: floor area ratio. The floor area ratio, or FAR, is a general measure of a project’s massing through a ratio of a building’s total floor area to the development site’s size. Because the law failed to lift FAR restrictions, it rendered its provisions allowing for greater height and density useless, experts said. Also, last year’s law failed to provide exemptions for parking requirements.

“The local FAR requirements survived [in last year’s law], so no matter what density and height you were giving the developer, when they put pencil to paper, they were still being hamstrung by FAR requirements and parking requirements,” said Javier Vazquez, a zoning and land use attorney. “This year’s legislation definitely benefits the developer because the holes that existed in last year’s bill had to do with issues that were not thought through.”

Under the new law, Live Local Act projects can be 150 percent of the “highest currently allowed” FAR in the county or city where they would rise.

The latest amendments reduce parking requirements for some Live Local Act projects. Developments that are a half-mile from a major transportation hub or 600 feet from available parking such as a garage can get at least a 20 percent reduction of the required parking. A Live Local Act project that’s in a transit-oriented development could be built with no parking at all. In addition, counties and cities could consider allowing for less parking at Live Local Act projects within a quarter mile of a transit stop.

Since the Live Local Act’s adoption last year, many municipal elected officials and residents have been angered by the possibility that developers can bypass zoning and land use regulations. In South Florida, the contention is most pronounced in Bal Harbour. Whitman Family Development, owner of high-end Bal Harbour Shops, filed an application under the act to build up to 275-foot-tall towers with 528 residential units, a 70-key hotel and 46,000 square feet of retail at the 18-acre property. Following an uproar from Bal Harbour elected officials and residents, as well as officials from nearby municipalities, Whitman sued Bal Harbour after the village took steps the developer deemed counter to its project. The council had voted to allow the village manager to protect Bal Harbour’s quality of life.

Vazquez, of Berger Singerman, said that many developers held back from Live Local Act projects last year due to the legislation’s “holes.” He expects the tweaks to unleash a flurry of proposals and contention.

“One of the interesting things we will see now that Live Local is being cleaned up …. When developers start moving forward by right with developments that exceed the allowed local regulations, we will see more and more conflicts between municipalities and developers,” he said, adding that some cities still could welcome the proposals. Others “will push back hard.”

The amendments did give some protections to counties and cities angered by Live Local. If a project is surrounded on two or more sides by parcels zoned for single-family homes and near at least 25 contiguous houses, the project’s height will be capped to the tallest of either 150 percent of the tallest adjacent building, the highest currently allowed height on the site or to three stories.

Keith Poliakoff, a zoning, land use and development agreements attorney, said this year’s bill originally was drafted to curtail last year’s Live Local Act provisions and catered to municipalities’ pushback to the law. During the session, legislators “flipped it on them” and made the bill even stronger in favor of developers.

“It is beneficial to developers, but in my opinion may not go far enough,” said Poliakoff, of Government Law Group.

The amendments carved out an exemption for densities, heights and FARs, saying they can be over the “highest currently allowed” uses in cities and counties.

But they can’t be over those of other Live Local Act projects or developments that received special exemptions on densities, heights and FARs. This carve out should be scrapped, Poliakoff said, because otherwise “municipalities will make everything a special exception to prevent people from being able to use Live Local Act.”

Also, the amendments say that a Live Local Act project that fails to set 40 percent of its units at below market rates would be given a chance to cure the issue. But if it doesn’t, then it would simply be treated as a “nonconforming use” but doesn’t have to be knocked down, meaning no penalties will be levied on developers that don’t set units at affordable rates, Poliakoff said.

Future state legislative sessions are likely to pick up more amendments of the Live Local Act.

“This is not the last time you are going to see Live Local on the Florida legislative agenda,” Poliakoff said. “This is only the beginning.”

Article Link: “Beneficial to developers”: Florida Legislature approves tweaks to Live Local Act
Author: Lidia Dinkova

Newly amended Live Local Act bill heads to state Senate for a vote

Among the proposed amendments are tax abatements for landlords and parking breaks for projects near train stations.

Tax abatements for landlords and parking breaks for projects near train stations are among the provisions of an amended Live Local Act bill headed to the Florida Senate for a vote.

The SB 328 bill was proposed by State Senator Alexis Calatayud (R-South Miami), who co-sponsored the passage of the original Live Local Act enacted last year.

The state law provides tax incentives and development rights to developers who reserve at least 40% of their units for households that earn up to 120% of a county’s area median household income. It includes granting developers the highest density a municipality or county allows, and requiring that those projects are approved administratively and without a vote from local elected officials.

The latest version of the bill unanimously passed the senate fiscal policy committee Jan. 31. It is scheduled to come before the state senate Feb.7. Additional amendments may be published by Feb. 6 prior to the vote, said Anthony De Yurre, a partner of Miami-based Bilizin Sumberg.

Among the provisions is a clarification that owners of apartment buildings completed in the past five years who reserve at least 70 units for affordable housing can seek property tax abatements of up to 100% for those units as well as a “proportionate share of the residential common areas, including land,” states the bill’s text. Currently, the tax abatement only applies to the units.

The amended law would also allow landlords in the Florida Keys to pursue Live Local Act tax abatements if at least 10 units are set side for affordable or workforce housing.

Other proposed amendments include:

  • Requiring cities and counties to reduce parking requirements by 20 percent for mixed-use Live Local Act projects within a half-mile of a train or bus station, if the area is pedestrian friendly or within 600 feet of on-street parking, a lot, or garage.
  • Clarifying that developers are entitled to the highest floor area ratio (FAR) a city or county allows.
  • Budgets $100 million from the general revenue fund to implement the Florida Hometown Hero Program to provide mortgage loans of up to $35,000 at 0% interest for full-time employees of Florida-based employers.
  • Allowing developers to use the Live Local Act on industrial zoned properties that are not on the waterfront or by a port. An earlier version of SB 328, proposed in January, would have made industrial zoned lands ineligible for Live Local Act projects.
  • Enables developers to build to the maximum height a city allows within a one mile radius of a project’s site – except if it is adjacent on two sides of a single-family zoned neighborhood with at least 25 contiguous single family homes. In that case, the developer is limited to 150% of the maximum height allowed with a quarter mile of the proposed development, or three stories, whichever is taller.
  • Prohibits Live Local Act projects within one-quarter of a mile of an airport runway and within any airport noise zone.
  • Stipulates that Live Local Act projects within a quarter mile of a military installation “may not be administratively approved.”
  • Grandfathers building rights obtained via the act, but only if that project provides affordable housing during the required 30-year period. Builders who violate that 30-year minimum must be provided a reasonable amount of time to fix the violation or the property will be treated as a nonconforming use.

Conflicts have arisen since the passage of the Live Local Act between local governments and developers over how the law can be enacted. The South Florida cities of Doral, Weston, and Florida City enacted moratoriums on Live Local Act projects. And in Bal Harbour, Whitman Family Development filed suit against the village government to force it to process its application to add 600 residential units and 70 hotel rooms to the Bal Harbor Shops.

But as the new version of the law is drafted, developers and state legislators have sought to address concerns brought by city and county officials, Bilizin Sumberg’s De Yurre said.

“Cities that get education on the Live Local Act realize that it is an unprecedented tool to face an unprecedented problem of housing affordability,” he added.

Article Link: Newly amended Live Local Act bill heads to state Senate for a vote
Author: Erik Bojnansky

Florida’s Live Local Act Has People Picking Sides

Developers love the affordable housing law — the first of its kind in the nation — for the same reasons that local officials are starting to loathe it.

Even its critics think Florida’s Live Local Act is working. In fact, they think it’s working too well.

Local politicians are concerned that the new state law encouraging development of rent-restricted workforce housing is encroaching on their authority as it prohibits public hearings on such projects and overrides land development rules in cities and counties.

In response, state legislators feeling the pushback are proposing bills to amend — and perhaps undermine — the 6-month-old law.

“The Florida Legislature has done a complete 180 based on local government political pressure,” said real estate attorney Keith Poliakoff, a partner at Government Law Group in Fort Lauderdale. The Live Local Act was a bipartisan measure that had tremendous support during the 2023 legislative session. It passed on votes of 103-6 in the Florida House and 40-0 in the Florida Senate.

“Senators and House members on both sides of the aisle came together to adopt this plan,” said Poliakoff. “What they did not factor was that the bill would have tremendous pushback, and looked at with venom by cities and counties throughout the state.”

The law has stirred a herd of developers to qualify for its benefits by proposing mixed-income multifamily developments on sites zoned for commercial use.

“Every single client I have with a [property development] project has asked for an analysis as a Live Local and a regular project,” said Miami-based attorney Anthony De Yurre, a partner in the land development and government relations group at law firm Bilzin Sumberg. “Why? They are just trying to get projects built in an impossible environment to get projects built because of construction costs, financing costs and insurance costs.”

To qualify as a Live Local rental apartment development, at least 40 percent of the units must have below-market rents, and they must be reserved for tenants who earn less than 120 percent of area median income. Area median income ranges from $64,215 a year in Miami-Dade County to $70,331 a year in Broward County and $76,066 a year in Palm Beach County, according to U.S. Census data. The Live Local Act defines affordable rents as those below 30 percent of the tenant’s income.

City and county leaders in Florida have criticized the Live Local Act because it can subordinate the application of local land development rules to the state law, overriding local zoning and limits on building height and density.

“Normally, I would tell you that you can’t build an apartment complex in a commercial plaza. That’s where the public is supposed to go. But what Live Local says is, yes, you can do that,” said Eric Power, the director of planning and development services in Deerfield Beach, during his presentation on the Live Local Act at a recent meeting of the city commission. “Live Local also takes away our ability to regulate certain things related to height and density.”

One of the first controversies stemming from the new state law erupted when Montreal-based Jesta Group proposed redeveloping the five-story Clevelander hotel and bar in Miami Beach as an 18-story residential building, where 40 percent of the units would have below-market rents and the unrestricted units would be sold as condos. The former mayor of Miami Beach denounced the proposal to redevelop the iconic Clevelander at 1020 Ocean Drive as a threat to historic Art Deco buildings throughout the city.

“I hope my successor and our next commission build upon my antipathy for your very horrible idea,” Dan Gelber wrote in a letter of protest to Jesta Group just before his six-year tenure as mayor ended in November, due to term limits. “Ocean Drive is the postcard of our Miami Beach, and your idea would effectively destroy it.”

Florida Gov. Ron DeSantis cited the state’s brisk population growth and its upward pressure on the cost of housing at a ceremonial event last March when he signed the 106-page Live Local Act into law. “We’ve got to make sure our infrastructure and our housing supply are able to sustain this growth,” DeSantis said. “There are some creative things in this legislation which I think will make a big difference.”

DeSantis highlighted $711 million of additional funding for housing-related programs and various tax breaks under the Live Local Act, which took effect July 1. The governor left unsaid the Live Local Act’s power to usurp local control of land development in the name of affordable workforce housing. The new state law also prohibits commissions and boards in cities and counties from holding public hearings on Live Local projects or voting on such projects. A development that complies with Live Local requires only administrative approval by municipal staff.

“The problem with the state legislature trying to impose zoning rules on individual cities is that zoning is not a one-size-fits-all proposition,” said Fort Lauderdale Mayor Dean Trantalis. “For people in Tallahassee to tell people in Fort Lauderdale they should realign their zoning to accommodate affordable housing shows a naivete on their part, in thinking that they can dictate something a thousand miles away as to how these cities operate. It doesn’t work that way.”

Resistance from local governments has led to moratoriums on processing Live Local development plans in Doral and Florida City, two Miami-Dade County municipalities. Other jurisdictions are addressing the new state law one project at a time. For example, the Pembroke Pines City Commission voted 3-2 in November to approve a 50-unit townhouse development by Miami-based Lennar on a 6.7-acre site, and one motive was to preclude the possibility of a Live Local project there. “We would have no control over any of that happening,” said Iris Siple, vice mayor of Pembroke Pines. “Someone could just come and put what they want there.”

The proposed revisions to the Live Local Act that are moving through the current session of the Florida Legislature would restrict which projects would be eligible for Live Local designations, as well as their size relative to nearby buildings. One such revision would restrict the maximum height of a building to those in a quarter-mile perimeter, while another would prohibit developers from pursuing Live Local developments in industrial zones. On the other hand, some modifications would affirm that a Live Local project can be as dense as the densest development in a local jurisdiction, and that Live Local projects near mass transit stops could have fewer than the required number of parking spaces.

Other local governments are dragging their feet as they process applications for development plans based on Live Local, Poliakoff said. “There is not a governmental entity out there that is not slow-playing the applications in hopes the new law [revising the Live Local Act] will take effect, so they can deny the plans they have sitting on their desk.”

Some of his clients, however, are worried about possible changes to the law. “My clients are incredibly upset,” Poliakoff said. “I have five Live Local projects that are pending at municipalities, three of which will be destroyed as a result of the language proposed, if the new law passes.”

Perhaps the hottest issue is the maximum height of projects based on the Live Local Act. The law limits the height of a qualified development with affordable housing units to the height of the tallest building within one mile of the development site. But new legislation would shrink that perimeter from within a mile of the development site to within a quarter-mile.

The quarter-mile perimeter to determine maximum building height is one of several proposed revisions to the Live Local Act in bills that were introduced in the current session of the Florida Legislature. Another proposal would prohibit developers from pursuing Live Local developments with rent-restricted residential units in industrial zones.

“My hope is that there will be a legislative compromise,” said Poliakoff. “My hope is that they will allow industrial back into the mix, and that they will grandfather in any project that applied under the existing law.”

But certain changes to the Live Local Act could be a deal breaker for some developers who plan to take advantage of the state law.

For example, Brooklyn-based Condra Property Group wants to use the Live Local Act to replace a cluster of low-rise motels near the beach in Hollywood with a 282-unit, mixed-income apartment building that would be 18 stories — the same height as the Margaritaville Hollywood Beach Resort, which is within one mile of the site. But if the area that determines maximum building height shrinks to within a quarter-mile, Condra Property Group would likely be limited to the site’s current maximum of five stories.

If the proposed quarter-mile perimeter becomes law, Condra will cancel its plan to build the apartment building with 282 units, 114 of them rent-restricted affordable units, and will instead revive an older plan for a hotel project, said Allen Konstam, managing principal of Condra Property Group.

“We would scrap the Live Local plans. We would go back to developing a hotel,” Konstam said. “We’ve spent over a million dollars to redo the plans [under the Live Local Act] and resubmit them to the city. But we would scrap our plan for affordable housing if we had to develop a five-story residential building.”

Konstam and his partners, Mark Drachman and Ira Chaimovitz, are hardly alone. The Live Local Act also has induced other developers to venture into apartment developments with rent-restricted units, largely because market-rate units can comprise 60 percent of the total residential units on a site where it would be prohibited by a municipal code. Tax benefits in the law provide incentives as well, including exemption from property tax on rent-restricted apartments.

But as a catalyst for development, tax incentives appear to pale in comparison to the power to put residential developments in non-residential zones of cities and counties.

“The reality is people are planning attainable housing for two reasons,” Poliakoff said. “Sixty percent of it doesn’t need to be attainable, and they can maximize density and height in an area that otherwise would have prohibited it.”

The Live Local Act also can apply to planned residential developments that are under construction as well as existing properties that have undergone a major renovation.

For example, the law provides a property tax exemption on affordable housing units that led the developer of Laguna Gardens, a complex in Miami Gardens, to take the exemption on all 341 units in the garden-style apartment development now under construction on 14 acres next to Hard Rock Stadium. The developer, Miami-based Cymbal DLT, broke ground about a year ago, before the Live Local Act was enacted, and expects tenants to start moving in within 60 days. Asi Cymbal, who leads Cymbal DLT, said the below-market monthly rents will start at $2,000 for one-
bedrooms and $3,000 for two-bedrooms.

The Live Local Act can exempt rent-restricted units in a newly constructed (or substantially rehabilitated) residential development from property tax if the development has at least 70 rent-restricted units reserved for tenants who earn below 120 percent of area median income.

“We made a financial decision that by lowering the rents by 10 to 20 percent off what we could have charged, we’re actually making more money due to the tax savings Live Local provides,” Cymbal said. “The city has no involvement with this. If we had asked for more density under Live Local, that would have overlapped city guidelines, and perhaps they would have a say on it, but Live Local dominates and controls. We didn’t have to do that.”

Like Cymbal, Matthew Whitman Lazenby hadn’t planned to become an affordable housing developer until Live Local encouraged him to add a multifamily component to his family’s landmark retail property, Bal Harbour Shops. The upscale open-air shopping mall, anchored by Neiman Marcus and Saks Fifth Avenue, is in the village of Bal Harbour, an affluent suburb of Miami Beach.

“Without the Live Local Act, we wouldn’t be in the multifamily development business,” said Lazenby, whose family has been in the real estate business for four generations. “That wasn’t something we were contemplating seriously.”

Now he plans to leverage the state law to develop 600 residential units, including 240 affordable housing units with below-
market rents, on the periphery of Bal Harbour Shops. The mall is part of an 18-acre property along Collins Avenue, north of Miami Beach. Height doesn’t appear to be an issue, Lazenby said, because the planned residential development at Bal Harbour Shops would be 275 feet tall, shorter than a 320-foot hotel across the street from the shopping center. Lazenby said he hasn’t decided whether to sell the 360 unrestricted apartments as condos or rent them at market rates. Either way, he said, “we’re using the market-rate housing that we otherwise wouldn’t have been able to build to subsidize the cost of the affordable housing.”

It remains to be seen whether revising the Live Local Act or leaving it essentially unchanged will put Florida closer to finding a fix for unaffordable housing. State Sen. Alexis Calatayud and Rep. Vicki L. Lopez introduced identical bills on Jan. 9 in the Florida Senate and House, respectively. Senate Bill 328 has advanced from the Florida Senate’s Committee on Community Affairs to its Committee on Fiscal Policy. House Bill 1239 is now under review by the Florida House’s State Affairs Committee.

Senate Bill 328 and House Bill 1239 propose revisions to the law that include prohibiting Live Local developments on industrial sites and shrinking the area that determines the maximum height of a Live Local development to within a quarter-mile..

More expansive is a pending proposal to loosen parking requirements for Live Local projects near mass transit stops. The parking proposal, originally introduced as Senate Bill 386, is now an amendment to Calatayud’s SB 328, De Yurre said.

“That was an important addition because people need housing. They don’t need parking,” he said. “Local parking requirements are not driven by market demand. They are driven by requirements that have been on the books since before the advent of remote work, Uber, mass transportation and the like.”

De Yurre said the Live Local Act, as is, has worked well because it has encouraged developers to start residential projects they otherwise wouldn’t have started.

“That’s the bottom line here. I have a bunch of [clients with] projects that were shelved. The clients have dusted them off, and we’re resubmitting them as Live Local projects,” he said. “This is the only way we can continue to move the state forward. Our Achilles’ heel is going to be this affordability crisis.”

Article Link: Florida’s Live Local Act Has People Picking Sides
Author: MIKE SEEMUTH

Tall Tower Tussles

Florida’s new law promotes affordable housing. Local leaders hate it.

South Florida’s got an affordable housing shortage. And why wouldn’t it?

An unprecedented migration of wealth and business has flowed into the state, sending demand for homes and rentals soaring — as well as prices. Developers are exuberant, building ever more lavish and pricey units to capture this new, well-heeled consumer.

So how do you entice construction of housing that’s reasonably priced for those who are getting priced out?

With a bit of leverage and a whole lot of incentives. Florida last year approved the Live Local Act, which promised to ease the burden of two things builders hate: taxes and zoning restrictions.

Developers are now allowed to pitch ultra-tall projects that bypass local limits on building heights— so long as they designate 40% of their project’s units as “affordable” to people of certain income thresholds.

That’s unleashed a flood of proposals for income-restricted, or “workforce,” housing. But it’s also drawn the ire of local officials who aren’t pleased with the unusually tall tower plans cropping up in their towns, which state law declares must be approved.

Now, legislators are looking to change the law, less than one year since it was enacted, and before almost any proposed project has gotten under way.

This week, we look look at the highs and lows of Florida’s attempt to build more reasonably priced rental housing.

A Plot Twist! (And a Tax Break)

Laguna Gardens (Photo: Jo Palma and Partners)

Asi Cymbal didn’t intend to build workforce housing when he broke ground on a luxury apartment community in Miami Gardens.

Halfway through construction, things changed.

The Live Local Act was signed into law while his firm, Cymbal DLT, was underway on the 341-unit rental development, called Laguna Gardens. And that new law dangled a perk that was hard to ignore: a 70% property tax reduction for any portion of the project designated as “affordable,” Cymbal said.

So Cymbal DLT went all-in — and declared every single apartment as such, with plans to lease them at below-market rates.

“Nothing’s changed with the project other than the rents,” Cymbal said of the low-rise development. “And that decision was made because of the financial incentive that was provided.”

Rents at Laguna Gardens—where amenities include a lap pool, a meditation garden and a “metaverse room” — now start at $2,000 for a one-bedroom, instead of $2,300 as originally planned, he said. That makes them accessible to tenants who earn up to 120% of the area’s median income — or $86,760 for a single-person household, according to state guidelines.

”Attainable luxury housing” is what Cymbal now calls it: “That’s housing that our hometown heroes can afford —our local police officers, teachers and nurses,” he said.

Cymbal is looking to retroactively apply the Live Local law to his other projects, including a rental community in Dania Beach that’s been open for over a year. He’s considering placing rent restrictions on 71 units there, the minimum required by law, as a way of realizing property tax deductions.

And he’s exploring doing the same within the $1.5 billion waterfront hotel and restaurant district he’s planning in Fort Lauderdale. There, the 71 rent- restricted units could be nestled among luxury condos in a neighborhood that will also offer a yacht valet, he said.

For now, Laguna Gardens is among the first projects in Florida to welcome middle-income tenants under the new law. Move-ins start in March.

“We’re certainly the first to implement it, in fact,” Cymbal said.

Clubhouse at Laguna Gardens (Photo: Jo Palma and Partners)

Brawls, Barbs and Canadian Bacon

Jesta Group proposal for 18-story tower in Miami Beach

Applying the Live Local Act hasn’t been easy for most anyone else. Developers across the state have filed plans for tall towers, with affordable units, and they’re getting a hefty serving of backlash in return.

“I have not seen a single project being approved under Live Local in the state of Florida,” land use attorney Keith Poliakoff said in an interview this week. “I have only seen pushback, by every municipality across the board, to prohibit its implementation.”

Here’s a rundown of that resistance:

🥊 Miami Beach: In a plan derided by the former mayor as “the worst idea ever,” Montreal developer Jesta Group suggested a 30-story building on South Beach’s iconic Ocean Drive. The structure would tower over everything else on the low-rise Art Deco strip.

Jesta scaled back its plan to 18 stories. And local officials responded: “Not since Canadian bacon was introduced into breakfast tables has Canada been responsible for something so thoughtless,” Dan Gelber, the Miami Beach mayor at the time, said.

🥊 Bal Harbour: A luxury mall owner set off an uproar last week, when it filed plans for a residential project that would rise 275 feet—about five times higher than what local law allows in this village of 3,000 people.

The blueprints, by the owners of Bal Harbour Shops, propose 600 “high-end” residential units, 70 hotel rooms and over 45,000 square feet of retail space, Axios reported. Forty percent of the residential units will be designated as “affordable,” with rent caps— which, the mall owners says, allows the project to supersede the area’s height restrictions.

The village’s Mayor said the fight against the project is headed to court.

🥊 The city of Doral, home to Donald Trump’s Blue Monster golf course, placed a six-month moratorium in July on all new proposals invoking the Live Local Act.

🥊 Pasco County voted to sue any developer seeking to invoke the new law.

Proposed hotel and apartment development by Bal Harbour Shops

From Boardwalk Hotel…to Apartments to ….?

New York developer Allen Konstam has been buying up low-slung motels along Hollywood’s boardwalk since 2021. And last year, he and his partners were readying plans to build a new luxury hotel and beach club on their site.

Once Florida passed the Live Local Act, they had a different idea.

Konstam’s firm, Condra Property Group, spent over $1 million to redo its development plans. And it proposed instead to build an 18-story condo and workforce rental tower— along a beachside stretch where building heights are capped by local law at five stories.

“What we need is more housing,” Konstam said in an interview. “So we looked into it, and it made financial sense to go that route.”

While not in line with Hollywood’s zoning, an 18-story plan is legal under Florida’s Live Local Act, which allows properties with affordable housing to be built to the same height of any building within one mile. Condra’s site is less than a mile away from the Margaritaville Hollywood Beach Resort, which is an 18-story property, Konstam said.

Having extra height is key to making an affordable housing plan work, he said. Because extra height means he can build more units, and have a larger number of market rate apartments and condos to offset the 40% of units he must lease at below market rates.

He said Hollywood officials rejected Condra’s tower plan— even though it should be legal.

“It looks like were going to be switching back to a hotel,” Konstam said.

Condra Property Group proposed an 18-story tower in Hollywood

That’s a Wrap?

Florida state lawmakers introduced a pair of bills this month that would scale back the scope of the Live Local Act, and give local officials tighter control over building heights in their towns.

If the changes are approved, affordable housing developers would no longer be able to build as high as the tallest building within a mile. Instead, they’d have to be comparable in height to buildings within one quarter of a mile.

And if their project abuts a building that’s three stories or less, the project’s height will be limited to 125% of the neighbor’s stature — about 5 stories max, says attorney Keith Poliakoff, managing partner of the Government Law Group.

Poliakoff — the attorney who represented Condra in its 18-story Hollywood plan, as well other builders filing affordable projects — said the changes, if approved, would effectively quash any future workforce housing proposals in Florida.

“The legislature got it right the first time,’“ Poliakoff said. “A developer is simply not going to develop workforce housing out of goodness of their heart without an incentive to do so.”

A Texas Win In Takings Dispute ‘Could Have A Chilling Effect’

While U.S. Supreme Court justices may very well overturn a lower court ruling in a Texas takings dispute, a decision in favor of the state could open the floodgates for states across the country to avoid making payments in alleged takings disputes, experts say.

Justices earlier this week heard oral arguments in Devillier v. Texas, a case involving an alleged taking of property following the state putting up a barrier along a portion of Interstate 10 and multiple storms later rolling through the area. Areas along the interstate flooded allegedly as a result of the barriers, and owners claim the state has unconstitutionally taken value from their land.

Experts expect the high court to reverse a lower court decision that had found in favor of Texas, cautioning that a win for Texas in the Supreme Court could embolden various states to claim they are not liable for alleged takings.

“Texas’ argument could have a chilling effect if it’s found to be valid,” said Keith Poliakoff, co-founder of Government Law Group PLLC, noting that states would then cite the Devillier case as precedent in future cases.

“It’s unbelievable that it even made its way to the Supreme Court. To me, as someone who practices in the government field, it’s hard to imagine that Texas truly believes that it can take private property without compensation solely because Congress failed to draft a law on point in regards to their taking,” Poliakoff added.

Plaintiffs first filed in state court, and the suits were then consolidated as one federal court case. Most recently, the Fifth Circuit said private owners can’t sue state governments in federal court over takings disputes.

“The Devillier case is an important case that will define property rights and dictate whether property owners have any recourse against a state for a taking,” said Tina Nguyen, a partner at Baker Botts LLP. “The U.S. Supreme Court’s answer will define the property rights throughout the United States and stands to resolve disagreement within the circuits on this question.”

“At the heart of the case is the simple question of whether a property owner can sue a state for a taking, when the Fifth Amendment provides that no ‘private property [shall] be taken for public use without just compensation,'” Nguyen added.

The 14th Amendment applies the Fifth Amendment to states.

Justices in oral arguments, particularly Justice Elena Kagan, suggested courts are in place to protect violations of the Constitution, even if states or Congress have failed on that front, Poliakoff noted.

“To me, it is likely that the Supreme Court will overturn the decision of the appellate tribunal,” Poliakoff said. “I believe that the Supreme Court fully recognizes in other decisions that the takings clause in the Fifth Amendment is the highest law in the land and can’t be ignored … because Congress has not enacted a statute specifically on the point. I’m not sure yet what grounds they will overturn it on.”

But just exactly what road map may be drawn up in terms of how owners go about pursuing takings claims against states remains to be seen, experts say.

“Justices do believe there is a federal floor,” Kevin King, a partner at Covington & Burling LLP, said in reaction to oral arguments Tuesday. “There is debate about what that minimum would look like. [Justices believe] there is some kind of process available under federal law, in state court or some other way.”

“If a state under its own laws provides a process to vindicate Fifth Amendment claims, that’s going to be sufficient,” added King, who believes the high court will side with the plaintiffs.

Counsel for Texas couldn’t be immediately reached for comment Thursday.

“Our position is based on the Supreme Court’s rulings, so we felt good in that area. The [oral argument] questions for Texas and the [U.S. solicitor general] were much harder to deal with and coming from all angles,” said Daniel Charest, a partner at Burns Charest LLP and counsel for the plaintiffs. “We hope the court follows its own precedent and rule that the Fifth Amendment, by its own terms, provides a cause of action to takings victims.”

More than a dozen states joined Texas in support of the argument that Texas should be immune in the Devillier case from being sued in federal court, and the case has cast a nationwide spotlight on the jurisdictional question at play.

But some states, including California, also have laws on the books that set forth a process for pursuing such claims.

“In California, our constitution actually says taking or damaging property is unconstitutional,” said Rick Friess, a partner at Allen Matkins Leck Gamble Mallory & Natsis LLP, who expects the high court to overturn the Fifth Circuit decision in Devillier. “We [in California] have the advantage … that our constitution specifically addresses it. We don’t get caught in that same catch-22 that they’ve found themselves in in Devillier.”

Poliakoff said there could be a unanimous decision among justices, with the liberal justices on the court siding with the property owners. Liberal justices historically have tended to side with governments in takings disputes.

King and Friess also said liberal justices on the high court may support the property owners in this case.

“This isn’t government versus owners. This is fundamentally, ‘Do you get your day in court?’ A catch-22 like they’ve got in Texas is you don’t get your day in court,” Friess said. “I don’t think anybody on either side of the spectrum thinks that not getting your day in court is a good idea.”

The plaintiffs are represented by Robert McNamara, Christie Hebert, Andrew Ward and Suranjan Sen of the Institute for Justice, Daniel Charest and Larry Vincent of Burns Charest LLP and Charles Irvine of Irvine & Conner PLLC.

The defendant is represented by Lanora Christine Pettit of the Office of the Texas Attorney General.

The case is Richard Devillier et al. v. Texas, case number 22-913, in the Supreme Court of the United States.

–Additional reporting by David Holtzman. Editing by Janice Carter Brown.

Article Link: A Texas Win In Takings Dispute ‘Could Have A Chilling Effect’
Author: Andrew McIntyre

Developers Clamor to Build Along South Florida’s Passenger Rail Lines

‘We’re still seeing a lot of demand to be close to a Brightline station.’

South Florida’s intercity passenger train service was barely two years old when the COVID-19 pandemic suspended operations for 20 months. That pause in Brightline service hasn’t derailed developers determined to build projects near train stations.

“We’ve sold several sites that are within a block or two of the Brightline station in Fort Lauderdale that are going to become multifamily developments,” said Jaime Sturgis, founder and CEO of Fort Lauderdale-based real estate brokerage Native Realty. “We’re still seeing a lot of demand to be close to a Brightline station. Fort Lauderdale is a great example of that.”

The Brightline passenger train service started in 2018 with three downtown stations in Miami, Fort Lauderdale and West Palm Beach. After suspending its service from March 2020 to November 2021 due to the pandemic, Brightline opened two more South Florida stations in Aventura and Boca Raton in 2022 and extended its service to Orlando in September.

At the same time, ridership levels have increased coming out of the pandemic. For instance, 1.6 million tickets between West Palm Beach and Miami were sold during 2023’s first 11 months, up from 1 million during the same period the year before.

Coral Gables-based FECI has developed apartments and offices in and around MiamiCentral, the Brightline station in Downtown Miami. It also developed ParkLine Miami, a two-tower, 816-unit rental apartment complex built as a residential component of MiamiCentral. Also part of the same development, FECI built Two MiamiCentral, a 10-story office building located on top of the train station, and Three MiamiCentral, a 12-story office building one block west of the station.

In West Palm Beach, FECI developed ParkLine Palm Beaches, a 24-story, 290-unit apartment building that opened five years ago next to the downtown Brightline station.

Of course, FECI is not the only developer building along the rail line. Near ParkLine Palm Beaches, West Palm Beach-based Navarro Lowrey Properties is developing an 88-unit apartment building a short distance from the train station. In 2023, the city government contributed a strip of land to the development site, and Navarro Lowrey agreed to set aside 13 of the 88 apartments at below-market rents for eligible tenants.

“In Fort Lauderdale, we don’t have any major office towers right next to the station, in comparison to Miami, where when you step out, you’re there,” Sturgis said. “That will accentuate the importance of Brightline because they will have an office component. They’ll get talent [commuting] from Miami and Palm Beach, so I think the proximity of that station will be huge.”

Several other projects near the Fort Lauderdale train station are in the planning phase. For example, Fort Lauderdale property development firm Ocean Land Investments Inc. plans to build a mixed-use project with 392 residential units on a site directly adjacent to the station. In early 2023, Ocean Land paid FECI $13.2 million for the vacant, nearly 1-acre site.

“We are begging them for anything they want to sell,” said Jean Francois Roy, founder and chief executive officer of Ocean Land. “We are committed big time to anything around the Brightline station in Miami or Orlando.”

Miami Beach’s Bachow Ventures LLC and New York-based Infinity Real Estate are partners in a 37-story multifamily development on land just east of a Brightline station in Fort Lauderdale, which they’ve held for about two and a half years while watching interest rates and construction costs escalate.

The developers are entitled to develop a mixed-use building with 316 residential units on the site, but they plan to seek city approval of denser development with about 400 residential units, said Noah Bachow, who runs Bachow Ventures. “We’re moving forward on everything, despite the climate,” he said.

During Brightline’s COVID-induced suspension, a company controlled by Bachow paid $8 million for the more than half-acre site occupied by a Goodyear Auto Service shop at 11 North Andrews Avenue, a block and a half east of the Brightline station, according to Broward County records of the June 2021 transaction.

Construction of the 37-story multifamily tower is expected to start by 2026. “The tenant will occupy the space in the short term, so it’s going to be roughly 18 to 24 months before we can actually get started,” Bachow said.

Developers are interested in sites not only near existing train stations but also near possible station locations.

Brightline trains run on the Florida East Coast railroad, which lies east of (and roughly parallel to) Interstate 95 in South Florida. In Central Florida, a new extension of the railroad bends west of I-95 toward Orlando. The service eventually may expand to Tampa on Florida’s west coast.

Potential locations of new Brightline stations in Central Florida are a subject of speculation in real estate circles. FECI has acquired land near the tracks in Cocoa Beach, about 60 miles east of Orlando, but hasn’t yet committed to putting a train station there.

“Those locations between Cocoa Beach and Orlando and Tampa aren’t set in stone yet,” said Louie Granteed, a senior vice president at Hollywood-based Tobin Real Estate, a family-owned property developer and manager. “So, it’s been hard to pin down properties around where the stations are going to be.”

It’s also possible that more train stations will pop up in South Florida. Brightline eventually may add stations along the Florida East Coast railroad in Miami-Dade, Broward or Palm Beach counties. “I’ve heard different stuff over the years,” Sturgis said. “I’ve heard Hollywood. I’ve heard Wilton Manors. I’ve heard Oakland Park.”

Separately, the Broward County government is working with the Florida Department of Transportation to bring commuter train service to south Broward on the Florida East Coast railroad between Aventura in northeast Miami-Dade County to Fort Lauderdale. Conceivably, Brightline or another passenger rail service, called Tri-Rail, would serve these stations. The Broward County commuter rail project doesn’t specify the operator.

In particular, the county has decided to support development of commuter train stations in three recommended locations: in Hollywood, at Fort Lauderdale-Hollywood International Airport, and on Fort Lauderdale’s south side near Port Everglades. Broward would spend an estimated $317 million to support what it dubs the Commuter Rail South project, which the county expects to complete by 2027.

Unlike privately owned Brightline, publicly owned Tri-Rail is managed by the South Florida Regional Transportation Authority (SFRTA). Started in 1989, Tri-Rail handles passenger traffic at 18 stations from Mangonia Park, just north of West Palm Beach, down to Miami International Airport and runs its trains on a railroad that lies west of Interstate 95.

But Tri-Rail also has been working with FECI on possible ways to share the same tracks and train stations on the Florida East Coast railroad east of I-95. Indeed, SFRTA said in a Dec. 4 press release that Tri-Rail was modifying its schedule to start operating at MiamiCentral along with Brightline. The agency said without elaboration that Tri-Rail service to the Downtown Miami train station was “coming soon.”

“There has been a lot of lobbying and jockeying among municipalities to get the proper transit authority to agree to place a [train] stop in their municipality,” said Keith Poliakoff, a Fort Lauderdale attorney who has worked on such lobbying efforts.

FECI and SFRTA are hearing pleas from real estate developers, too. “Developers are incentivizing them to stop at their location,” Poliakoff said. “I have been to FECI several times with clients, lobbying for locations.”

For example, University Place is a mixed-use development in Hollywood designed to accommodate construction of a train station across the street along the Florida East Coast railroad.

Expected to open in 2025, the eight-story project will have 216 apartments designated as affordable and workforce housing units, with below-market monthly rents ranging from $374 to $1,634. University Station also will have more than 2,000 square feet of commercial and retail space and 12,210 square feet to serve as the new home of Barry University’s College of Nursing and Health Services. The Miami-based developer, Housing Trust Group, held down the project’s cost by leasing the 2.5-acre development site from the city government for 75 years.

Tobin Real Estate’s Granteed said passenger train service in South Florida may create a new class of cross-county commuters who use the trains to hold down their own housing costs.

“The Tri-Rail and the Brightline would allow people who currently live down in Miami to come a little farther north and have more housing options, at more reasonable pricing,” he said. “If your rent is $3,500 or $4,000 on Brickell, and you can come to Hollywood and rent the same thing for $2,500 or $2,800 and then buy yourself passes on the train, you can save yourself a lot of money.”

Article Link: Developers Clamor to Build Along South Florida’s Passenger Rail Lines
Author: MIKE SEEMUTH