USA – FLORIDA Trends and Developments Contributed by: Jeffrey Bercow, Ben J. Fernandez, Michael W. Larkin and Melissa Tapanes Llahues, Bercow Radell Fernandez Larkin & Tapanes
While this clarification strengthens the enforceability of LLA development rights, it is also likely to gener - ate additional disputes as local governments test the boundaries of permissible regulation. Property tax incentives The economic viability of many LLA projects depends in part on property tax incentives available under Flor - ida law. The 2026 Amendments provide critical clarity by con - firming that: • eligibility for property tax reduction vests upon issuance of a building permit; and • the actual property tax reduction benefit is realised upon the project’s completion but can now be reliably projected much earlier at the time of the building permit. This provision addresses a significant source of uncer - tainty, particularly in counties that retain the ability to opt out of the tax-reduction programme. By tying vest - ing to the building permit stage, the amendments pro - vide developers and lenders with greater confidence in underwriting assumptions. The amendments also clarify how these benefits apply to assemblages, defining qualifying projects as those under common ownership or control and developed pursuant to unified approval. Legal ambiguity and arguments Despite ongoing legislative refinements, the LLA con - tinues to present areas of ambiguity. Key issues include: • the exact scope of the Act’s zoning pre-emption; • the extent of the remaining local regulations not pre-empted by the Act; and • eligibility of specific property types. These ambiguities are increasingly giving rise to disa - greements between developers and local govern - ments as to interpretation. While many disputes are resolved through negotiation, the potential for litiga - tion is growing as high-value LLA projects seek to
maximise the available entitlements afforded by the Act. Early court cases are likely to play a significant role in shaping the future interpretation of the LLA, particu - larly with respect to the exact reach of state authority and the remaining local regulatory authority. Deal structuring in the live local era Beyond entitlements, the LLA is reshaping how devel - opment deals are structured. Developers are increasingly incorporating LLA con - siderations into:
• site acquisition strategies; • financial modelling; and • joint venture arrangements.
Projects must account for affordable housing require - ments, including rent restrictions and compliance obligations. At the same time, the ability to achieve greater density and expedited approvals can signifi - cantly enhance project value. In practice, successful projects are those that inte - grate LLA considerations early in the deal process, rather than treating them as a post-acquisition strat - egy. As a result, developers pursuing LLA projects are increasingly engaging land use counsel earlier in the transaction lifecycle, often prior to acquisition, to eval - uate eligibility, assess municipal posture and structure projects in a manner that maximises statutory benefits while mitigating entitlement risk. Implementing the Live Local Act in practice Despite the evolving nature of the LLA, our firm has obtained municipal approvals for several LLA projects which illustrate how developers are utilising its pro - visions to unlock development potential and deliver affordable housing at scale. In one notable project, a developer is advancing a transformative mixed-use development at the south - eastern gateway to Miami’s Wynwood neighbour - hood. The project spans approximately 1.5 acres across multiple contiguous parcels and proposes a
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