SUBJECT/RECOMMENDATION:
Title
Recommend adoption of Resolution 26-21 of the City of Clearwater, opting out of providing the 80%-120% AMI Missing Middle Property Tax Exemption to developments that would otherwise qualify pursuant to the Live Local Act for calendar year 2027.
Body
SUMMARY:
Staff recommends approval of a resolution to not exempt developments from the 80%-120% AMI Missing Middle Property Tax Exemption under the Live Local Act Property (the “Act”) for calendar year 2027.
• Section 196.1978(3)(d), Florida Statutes, allows for rental properties with 71 units or more that provide housing to people earning between 80% and 120% of the Area Median Income (AMI) within a Metropolitan Statistical Area (MSA) to be exempt from 75% of ad valorem property taxes.
• Beginning with the 2025 tax roll, local taxing authorities have had the option to "opt out" of this exemption. This opt-out provision is available if the most current Shimberg Center for Housing Studies Annual Report (Shimberg Report) identifies a surplus of affordable and available rental units in the area and requirements are met.
• The Shimberg Center for Housing Studies Annual Reports for 2023, 2024, and 2025 identify a surplus of affordable and available rental housing units within the Tampa-St. Petersburg-Clearwater MSA, which includes Pinellas County. The reported surpluses for the 0-120% AMI category were 3,994 units, 4,873 units, and 6,538 units, respectively.
• Based on this finding, the City of Clearwater, being located in Pinellas County, is eligible to and wishes to exercise the opt-out option under Section 196.1978(3)(o), Florida Statutes. If this resolution is adopted, the City will choose not to grant the exemption for eligible properties and will request that the Pinellas County Property Appraiser does not provide the exemption.
• The City's election applies only to ad valorem property taxes levied by the City of Clearwater on qualifying properties within its municipal boundaries. The Pinellas County Property Appraiser will administer the exemption in accordance with the City's adopted resolution and applicable statutory requirements.
• The City's election does not affect the separate property tax exemption provided under Section 196.1978(3)(d)1.b., Florida Statutes, for qualifying housing units serving households earning at or below 80% AMI.
• This proposed resolution has been advertised in accordance with Section 50.011(1), Florida Statutes and requires two-thirds council vote in order to pass.
• If adopted, the resolution will take effect on January 1, 2027, and expire on January 1, 2028, unless renewed in accordance with Section 196.1978(3)(o), Florida Statutes. The adopted resolution will be provided to the Pinellas County Property Appraiser as required by law.
APPROPRIATION CODE AND AMOUNT:
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USE OF RESERVE FUNDS:
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STRATEGIC PRIORITY:
Objective 1.3 Adopt responsive levels of service for public facilities and amenities and identify resources required to sustain that level of service.
