Largo staff to draft opt-out resolution for Live Local Act's 80 to—0120% middle-market tax exemption

City planning staff told the commission Aug. 12 that Florida's Live Local Act includes a middle-market property tax exemption for newly built or redeveloped multifamily housing serving households up to 120% of area median income, and that the City may choose to opt out of the 80 to—0120% portion of that exemption for Largo's property-tax line.

The planner said the exemption applies only to multifamily rental units built within five years of the application and that a development must have at least 71 qualifying units to be eligible. Units serving up to 80% of area median income (AMI) are eligible for a 100% exemption that the City cannot opt out of; units in the 80 to—0120% AMI band would be eligible for a 75% exemption that the City can opt out of. Applications are submitted annually to the Florida Housing Finance Corporation and the local property appraiser monitors compliance via rent rolls; staff said each year of exemption requires three years of affordability for the approved units.

Staff provided local context: Largo's market rents (July 2025 averages: overall about $2,000; one-bedroom about $1,500; two-bedroom about $1,800) are generally below the income- and rent-limits used for the 80 to—0120% band, which raised commissioner questions that market-rate apartment complexes could qualify for the exemption without additional affordability restrictions. The presenter noted the Schimberg Center's countywide housing report will be used to determine eligibility for an opt-out; if that annual report shows a deficit in units that serve the 0 to—0120% range, it would supersede any local opt-out resolution.

Commissioners pressed staff on fiscal and policy trade-offs: an opt-out affects only Largo's tax line (other taxing authorities must opt out separately); an opt-out would prevent eligible units from receiving the city's portion of the exemption but would not affect approvals already granted or exemptions other taxing authorities leave in place. After questions about oversight, grandfathering and the five-year new-construction window, the commission asked staff to prepare a draft resolution to opt out of the 80 to—0120% middle-market exemption for the commission to consider at a future meeting.

Next steps: staff will prepare the draft opt-out resolution for commission consideration and will monitor the Schimberg Center report later this year to confirm continued eligibility for an annual opt-out resolution.