The Florida Live Local Act has seen many changes since it was first passed in 2023, and the effect is felt all over the state’s closing market. Following three prior rounds of amendments, its fourth major update became effective on July 1, 2026, under House Bill 1389. With it, we start seeing new opportunities and challenges, both for residents and for those evaluating affordable housing opportunities in the Sunshine State.
Described in industry coverage as “Live Local 4.0,” House Bill 1389 requires counties and municipalities to authorize multifamily and mixed-use residential uses as allowable uses for specified property. In other words, certain locations must qualify for residential use, including:
With this, the 2026 Live Local Act opens a new pool of eligible sites that wouldn’t have been considered for multifamily development in previous years. This new framework serves the purpose of providing more affordable housing opportunities to Florida residents, as well as investors and developers operating in any part of the state.
The act follows significant amendments passed in 2024 and 2025. This latest amendment has declared a series of remedial revisions, retroactive to January 1, 2024. These introduce expanded definitions of “commercial use,” “industrial use” and “mixed use”. To prevent the rezoning of agricultural land, farms and farm operations are excluded from the category of commercial or industrial uses.
When we consider Florida’s steady growth in population and the amount of underused land currently available, this update feels like the most natural outcome.
House Bill 1389 maintains many of the clauses introduced in previous amendments. An example of this is the rule that 40% of qualifying residential units are reserved as affordable rental units for at least 30 years. Regarding mixed-use residential projects, at least 65% of total square footage must be for residential purposes.
A Forbes article released before the passing of the bill frames this as one of many Florida‑specific advantages that have made the state uniquely attractive for developers, effectively opening hundreds of underutilized acres, often in job‑rich corridors or along transit‑adjacent nodes.
There’s a wider expanse of underwriting opportunities while local governments are mandated to authorize these projects in the eligible locations, without discrimination against affordable housing development.
When it comes to specific zoning benefits:
With all these provisions, the approval process from local authorities should also be quicker because there’s no room to obstruct the development through indirect zoning tools, like height-based setback/setbacks that would restrict a development below what’s eligible under the bill.
This is particularly valuable in dense urban areas like Miami-Dade, Broward, Palm Beach and Orange, which also happen to be among the top counties for Live Local Projects, according to Bilzin Sumberg.
The 2026 Live Local Act brings a barrage of new opportunities for housing development and land acquisition. With that said, investors and developers also face unique challenges that are often absent from typical residential purchases.
When a parcel becomes newly eligible for housing development, you can’t expect everything to fall into place at once. Government-owned locations and areas that belong to religious institutions often have a long history attached to them.
Depending on what you choose, you might have to deal with reverter clauses, deed restrictions, easements, or prior public-use encumbrances. That’s also why many developers choose mixed-use locations since they can begin a residential project with fewer roadblocks on the way.
An amicable association with a municipality, a school district, or a religious institution may entail long-term tax benefits, but only if you prepare accordingly. Start by narrowing down your options, checking for locations that match your size and budget criteria.
When it comes to a public property owned by a county, municipality, or school district, you need to submit an application to the local government. Those who made a request before July 1, 2026, would be allowed to submit revised applications, written requests or notices of intent to account for the 2026 amendments.
From there, due diligence extends to researching the location’s history, asking questions directly to the seller or municipality, comparing different deeds, and checking for potential tax relief.
The best approach is to get financial and legal counsel before moving ahead. The rule applies for different types of real estate closings, and these cases are no exception. While this guide serves as a good starting point to plan ahead with your own investment, you should still consult a land-use attorney and financial advisor. Don’t sign any contracts without securing personalized assistance from a trusted professional.
Ensure a Smooth Closing with Key Title & EscrowThe support of a Florida title company can help you make the best of your investment without being bogged down by the complexities of Live Local Act deals.
For over 24 years, we’ve provided excellent escrow closing services to meet the needs of investors and real estate agents in all parts of the state. We understand how the 2026 Live Local Act could be the ultimate opportunity to make it big in Florida’s housing market, and we know where to look so you can make an informed decision that’s in line with your plans.
Local limitations or deed restrictions could make all the difference when it comes to a parcel’s affordability. Some of these restrictions can be misinterpreted during a Live Local Act deal despite all the advantages on the table. We’re here to help you recognize the best opportunity, as well as the elements that could make the closing more complicated.
Want to secure a Live Local Act acquisition without concerns or delays? Our specialists will provide all the assistance and resources to guarantee a smooth process, leading up to a successful closing. Contact us today if you want to get in touch with one of our representatives.
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