SUBJECT/RECOMMENDATION:
Title
Opt out of providing the 80%-120% AMI Missing Middle Property Tax Exemption to developments that would otherwise qualify pursuant to the Live Local Act and adopt Resolution 24-19.
Body
SUMMARY:
Staff recommends adopting Resolution 24-19 to opt out of providing the 80%-120% AMI Missing Middle Property Tax Exemption under the Live Local Act Property (The Act) to applicable developments within the city.
• 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 ad valorem property taxes.
• Beginning with the 2025 tax roll, local taxing authorities will have 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 most recent Shimberg Report indicates that there is a surplus of affordable and available units within the Tampa-St. Petersburg-Clearwater MSA, which includes Pinellas County, for households that meet the income requirements for the 80%-120% AMI tax exemption.
• 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 approved, 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.
• This resolution will apply to all ad valorem property taxes levied by Pinellas County for property located within the City of Clearwater municipal boundary. If adopted, the resolution will take effect on January 1, 2025 and will expire on January 1, 2026. It may be renewed prior to that expiration date in accordance with the provisions of Section 196.1978(3)(o), Florida Statutes
APPROPRIATION CODE AND AMOUNT:
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USE OF RESERVE FUNDS:
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STRATEGIC PRIORITY:
1.3 Adopt responsive levels of service for public facilities and amenities and identify resources required to sustain that level of service.
