The meeting opened with Director Gregory Gay of the Planning and Community Development department addressing the commission and the public about the importance of Senate Bill 102 (SB 102) and its implications for affordable housing. Mr. Solomon Boli, the Economic Development Manager, followed with a detailed overview of the legislation. SB 102, signed into law by Governor Ron DeSantis on July 1, 2023, introduces sweeping changes to how local governments manage affordable housing developments.

One of the most critical aspects of the legislation is the preemption of local rent control measures. Previously, local governments could enact rent control via a referendum for up to one year during housing emergencies. However, this authority has been revoked, partly due to a recent court decision that invalidated a rent control measure approved by Orange County voters. This change has sparked debate about the balance of power between state authority and local governance in managing housing crises.

SB 102 also encourages local governments to enhance economic development and community engagement. It provides municipalities with resources to attract new businesses and support existing enterprises. The legislation establishes new avenues for community participation, emphasizing grassroots engagement to ensure that decision-making processes are inclusive and responsive to public needs.

Sustainable growth is another focal point of SB 102. The bill mandates that multifamily and mixed-use residential developments become allowable in areas zoned for commercial or industrial use, provided that at least 40% of the proposed units are defined as affordable housing for at least 30 years. This provision aims to promote eco-friendly infrastructure and support long-term affordable housing solutions.

The legislation also outlines specific administrative procedures for approving affordable housing projects. This streamlines the approval process, reducing bureaucratic hurdles. Moreover, local governments are called upon to consider parking reductions for developments located within half a mile of major transit stops. However, only the city commission holds the authority to reduce these requirements.

SB 102 includes provisions for tax incentives aimed at developers of affordable housing, such as ad valorem tax exemptions for qualifying multifamily housing developments. These exemptions are contingent upon specific criteria, including the number of affordable units within the development and the income levels of tenants. Developers must also demonstrate compliance with local codes and maintain a clean record free of significant violations.

Additionally, SB 102 introduces tax exemptions for construction materials used in affordable housing developments. The Department of Revenue requires detailed documentation, such as invoices for materials and proof of paid sales tax, to grant these exemptions. Local governments and non-profits utilizing Community Development Block Grant funds can also apply, but applications must be submitted within six months of a residential unit’s substantial completion by a local building inspector. Refunds on taxes are limited to amounts between $500 and $5,000 or 97.5% of the Florida sales tax paid.

The legislation also addresses local corporate income and franchise tax credits, allowing for a 100% credit for eligible contributions to local programs, capped at $100 million per fiscal year. Taxpayers must apply after considering other credits and are required to make contributions before filing returns. The bill outlines a process for transferring tax credits among affiliated corporations, requiring prior notification to the Department of Revenue.

The State Housing Trust Fund, earmarked by SB 102, diverts a portion of collected taxes to fund affordable housing initiatives. Seventy percent of these funds must target projects that either redevelop existing affordable housing or construct new units close to these developments. The remaining 30% is allocated for projects addressing the housing needs of young adults aging out of foster care, the elderly, or rural areas.

The Hometown HERO Program was introduced, allowing borrowers to apply for loans to reduce their down payment and closing costs. These loans, capped at 5% of the first mortgage amount, are to be offered at 0% interest. Eligibility extends to first-time homebuyers, military members, or full-time employees of Florida-based companies.

Local governments are encouraged to adopt ordinances promoting innovative housing solutions and flexible zoning, with an emphasis on high-density and mixed-income developments. SB 102 advocates for best practices regarding surplus land programs, requiring local governments to establish criteria for developers and mandating reversion of properties not used for affordable housing within a specified timeframe.

The commission’s discussion also touched on the impact of the city’s comprehensive plan update. Opa-Locka, spanning 4.2 square miles, has limited commercial zoning, with only about 10% of its land designated for such use. This limitation has prompted the need for modifications to the existing zoning code, particularly concerning setback requirements and parking regulations. An ordinance is being prepared to address these issues, including potential changes to height limitations for buildings, recognizing that the maximum height currently allowed is approximately eight stories or 90 to 95 feet. Discussions are underway to modify this to permit heights of up to 120 to 125 feet, enabling buildings of 10 to 11 stories.

The commission emphasized the importance of community engagement in these processes, stressing the need to solicit feedback from residents and property owners affected by the proposed changes. The intent is to sustain growth while ensuring the economic viability of the city.

In response to questions about the duration and scope of SB 102, it was clarified that the legislation would be in effect for ten years, allowing for relaxed development rules until 2033. However, SB 102 does not provide avenues for retrofitting existing buildings; the focus is primarily on new developments.