Live Local Incentives Reshape South Florida Multifamily Market

A New Tool In A Tough Market

With rising costs and slower lease-ups, South Florida developers are turning to the Live Local Act for relief, reports TheRealDeal.

At Douglas Enclave, developer Henry Torres cut $3K from annual rents without taking a hit to his bottom line. By designating part of the 199-unit building as workforce housing, he received around $450K in tax savings. That amounted to nearly half his $950K tax bill.

“It helped us tremendously to get units rented faster,” said Torres, who leads Astor Companies. “You’d be crazy not to take advantage.”

The Numbers Behind The Strategy

Passed in 2023, the Live Local Act gives tax breaks to buildings with 71+ workforce units built in five years.:

• 75% abatement for units leased to households earning 80–120% of area median income (AMI).
  
• 100% abatement for units leased to households earning under 80% of AMI.
  

This year, 48 properties across Miami-Dade, Broward, and Palm Beach counties qualified. Many were not originally planned as workforce housing but were converted retroactively to access the benefit.

Workforce Rents = Faster Lease-Ups

At Metropolitan Coral Springs, Coral Rock Development Group reclassified 160 of 204 units as workforce housing after completing the project. The company offered rents about $350 below market, but achieved full lease-up and unlocked tax savings in return.

“You need to lease-up faster and stabilize faster to secure permanent financing,” said Coral Rock’s Michael Wohl. “We determined we wouldn’t lose money — the math worked.”

The benefit is particularly viable in suburban submarkets, where the gap between workforce and market rents is narrow. In Miami-Dade, 19 of the 28 tax-abated buildings are outside core luxury zones, including nine in Hialeah.

A Strategic Fit — With Limits

In neighborhoods like Coral Gables, where rents are significantly higher, the model doesn’t always pencil out. But in places like The Upland in Hialeah — where 80 of 340 units qualified — the economics are easier to justify.

At Pura Vida Hialeah, Coral Rock was able to qualify for the program without even reducing rents — workforce income thresholds already matched local market rates.

“You are not losing money on the rents, and correspondingly, you are getting the abatement,” said Wohl. “So you’d be an idiot not to.”

Tax Breaks Amid Rising Costs

The savings couldn’t come at a better time. Developers report doubling insurance costs, rising material prices, and slower demand compared to the pandemic-era boom.

Affiliated Development, which specializes in workforce rentals, received abatements on four properties this year, helping offset overhead spikes without raising rents.

“This was necessary,” said Affiliated’s Nick Rojo. “It really helped.”

Not Without Friction

The program isn’t without challenges. Qualifying tenants involves verifying incomes through tax returns or paystubs. Rent caps are determined by the lower of state benchmarks or 90% of local market rents — a moving target.

Also, lenders like Fannie Mae and Freddie Mac don’t recognize Live Local savings in underwriting. That limits the permanent financing developers can secure, even if their cash flow improves.

“If they were going to give me $10M, and with Live Local I should get $14M — it doesn’t matter. I still get $10M,” said Alex Ruiz of Prestige Companies, which received abatements on four Hialeah projects.

A Win-Win — If It’s Done Right

For many developers, the program strikes a rare balance: alleviate South Florida’s affordability crisis without sacrificing profitability. At No. 17 Residences in Allapattah, Lissette Calderon reserved some units for workforce tenants, keeping rents for one-bedrooms below $2K — a rarity in today’s market.

“This has allowed us to continue that aspirational living for the engines that drive our community,” Calderon said.

Torres agrees: “I have sympathy for people struggling, but I have to make sure our building makes money. We have a business to run, too.”

What’s Next

As more developers crunch the numbers, expect further adoption of Live Local conversions — especially in suburban markets where workforce rents already align with demand. With nearly 39K branded residences already across the US, South Florida’s affordability efforts may find footing in legislation as much as design.

And in the words of Michael Wohl — “You’d be an idiot not to.”