Affordable housing
bill requires developers to receive full offset of linkage
fee costs
FORT LAUDERDALE, FL,
Aug. 18, 2020 – Florida commercial real estate developers who faced costly
linkage fees imposed by local governments to help fund affordable
housing initiatives will receive legislative relief with the enactment of
Florida House Bill 1339 (HB 1339).
The Florida chapter of NAIOP, the Commercial
Real Estate Development Association, worked in partnership with other industry
organizations to deliver the new legislation, which now requires local
governments that levy linkage fees on new development projects to fund
affordable housing within their jurisdictions to fully offset those costs.
 |
| Darcie Lunsford |
The new law went into effect on July 1 and
provides clear guidance and standards for using development incentives to
render linkage fees as net neutral cost factor on development. Incentives may
include:
- allowing the developer density or intensity
bonus incentives or more floor space than allowed under the current or
proposed future land use designations; and
- reducing or waiving fees, such as impact fees
or water and sewer charges.
HB 1339 is an adjunct bill to Florida House Bill
7103 (HB 7103), which passed last year and also requires full offsets for
inclusionary zoning mandates, which generally require a developer to
provide a specific number of affordable housing units or to contribute to a
housing fund.
HB 1339 goes a step further by specifying that
linkage fees for affordable housing are also subject to the same cost offsets.
 |
| Stephanie Rodriguez |
“This new law clarifies any potential ambiguity
the earlier legislation’s silence on linkage fees may have
created. The latest bill unequivocally declares cost burdens borne
by developers through linkage fees be mitigated,” said NAIOP Florida President Darcie
Lunsford, executive vice president at Butters Realty & Management.
“With more local governments looking to shift
costs for affordable housing initiatives onto commercial projects, this became
a priority for NAIOP chapters across the state, and a bonafide deal-killing
threat for development.”
Such linkage fees in the state can range from
$0.37 per square foot up to $2.42 per square foot for new developments, according
to a Florida House staff analysis of the legislation.
“Considering that commercial real estate is
nearly a $26 billion industry in Florida, supporting 227,512 jobs, it was
imperative that we protect its viability, particularly in this fragile economic
climate,” Lunsford said. “Despite the challenges of COVID-19, the commercial
real estate industry has continued to push forward with new projects and
impactful legislative wins.”
The 1,000-member NAIOP Florida is a coalition
between the state’s five regional chapters in South Florida, Central
Florida, Tampa Bay, Northeast Florida and Northwest Florida, and works to
advance responsible commercial real estate development in the state and
advocates for effective public policy.
“One of the distinct advantages of membership in
NAIOP South Florida is that it provides our members with an opportunity to have
a seat at the table when it comes to policy making and policy changes at the
state level,” added NAIOP South Florida Chapter President Stephanie Rodriguez.
“This is critical to our work as developers in
the market. This legislation is an example of how the power of our organization
can impact how we do business across the state.”
Contact:
Senior Account Director
O:
954.776.1999 ext. 115 |C: 954.648.9132
6451 North Federal Highway, Suite 1200 |Fort
Lauderdale, Florida 33308
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