Episode 152: Florida's Live Local Act Stalls Without GSE Buy-In

Florida's Live Local Act promised to unlock affordable and workforce housing development through tax exemptions and density bonuses — but three years in, nearly 50,000 of the 55,000 proposed units remain stalled. At the Leading Live Local 2026 event in Miami's Brickell neighborhood, developers and capital markets professionals identified the core bottleneck: Fannie Mae, Freddie Mac, and HUD are not yet underwriting Live Local deals at scale, and the path to GSE participation hinges on resolving a compliance and accountability debate with direct echoes of Texas's Public Facility Corporation debacle. Key Takeaways: Of 55,000 proposed Live Local Act units across 182 projects, only ~6,000 are under construction, per Florida Housing Coalition data. The Live Local Act (enacted 2023) offers a 75% tax abatement for units at 120% AMI and a 100% abatement for units at 80% AMI or below. GSE hesitation stems from Texas's 2015 Public Facility Corporation program, which granted 100% property and sales tax exemptions that were widely exploited due to weak accountability measures. A glitch bill has already locked in abatement upon receipt of a building permit, resolving the original vesting concern for construction lenders — but the GSEs remain cautious. The proposed fix: standardized Land Use Restriction Agreements (LURAs) that commit owners to rent levels and use terms, allowing GSEs to treat tax savings as cash flow rather than a liability. LURA terms as short as 5–10 years are under discussion, offering a middle ground between investor optionality and lender certainty. Despite a mandate requiring at least 50% of Fannie and Freddie's multifamily business to be mission-driven affordable housing, the enterprises are not yet routinely underwriting Live Local projects. The conversation at Leading Live Local 2026 has shifted from "will the GSEs participate" to "what does compliance look like" — a signal that the logjam may be breaking. Developers and lenders positioning for Live Local debt should begin structuring LURA terms proactively and engaging GSE counterparties early on abatement treatment in underwriting. The nearly 50,000 stalled units represent a significant opportunity if the compliance framework gets resolved, and the window to shape that framework is open right now. Subscribe to The Spring Street Brief for daily updates on affordable housing in America.