Introduction
The Live Local Act — passed in March 2023 — took effect at the end of July 2023. Sponsors and supporters of this bill touted that it would house “the backbone of our communities. The ones who build it up, the ones who protect it, the ones who serve it. The ones who deserve to have access to housing that is affordable.” This was done so that they can “save time and money for themselves, their families, and their futures.”[1], [2], [3], [4]
As the terms above are often used to describe public educators, law enforcement officers, firefighters, and EMTs/paramedics, one would expect Live Local’s established target, “workforce” housing, to be affordable for those groups. However, Florida Policy Institute’s (FPI’s) analysis of the 25 Metropolitan Statistical Areas (MSAs) across Florida shows a trend of housing unaffordability for many sole-earner public servants and their families.
Area Median Income and “Workforce” Housing, Explained
Workforce housing is most commonly intended for households at 80 percent to 120 percent[5] of the Area Median Income (AMI).[6] Because AMI is based on geography, the 80 percent floor for Florida’s 67 counties ranges between the following amounts:
- $36,560 - $68,800 for a 1-person household
- $41,760 - $76,320 for a 2-person household
- $46,960 - $85,920 for a 3-person household
- $52,160 - $95,440 for a 4-person household
This means that educators, police officers, firefighters, and paramedics must have a household income at or above the applicable income floor in order to afford the average unit created under Live Local.
Over a Third of Florida Households are Housing Cost-Burdened
Housing is considered “affordable” when a household is paying 30 percent or less of their income on housing costs (rent, mortgage, etc.). A household is defined as “cost-burdened” when it spends more than 30 percent of household income on housing costs and “severely cost-burdened” when housing costs surpass 50 percent of the household’s income. In Florida, nearly 2.9 million households are considered cost-burdened, and nearly 2.4 million of those households also fall into the severely cost-burdened category.[7] While only a little over a third of the state’s total households are cost-burdened, the less money a household brings in, the higher the chance it will fall into this category.[8] Additionally, Floridian renters are substantially more burdened when it comes to housing. Almost 1.5 million renters are cost-burdened, and nearly 760,000 of these are severely cost-burdened.[9] Renters who are cost-burdened account for over half of Florida’s total renters.
Although those households under 80 percent AMI are not targeted by Live Local, their need for affordable housing is substantial. Figure 1 shows the overall breakdown of cost-burdened households in Florida.
Breaking Findings Down By Profession[10]
Live Local and the Public Workforce
In order to assess the impacts of Live Local on the workforce population in Florida, FPI assessed the average salary for key professions — educators, law enforcement officers, firefighters, and paramedics/EMTs — and whether these public workers would be able to afford housing developed under this program. Salary data was obtained for MSAs and compared to the affordability guidelines for their corresponding counties. (See Methodology for more details). These professions were chosen specifically because they correspond to the types of workers referenced in discussions around Live Local: those workers who are “the backbone of our communities” and who “build [them] up, . . . who protect [them], . . . who serve [them].”[11]
Law Enforcement Officers
“Protect and Serve” is the oft-used slogan by many law enforcement agencies. These public employees make up part of the “workforce” targeted by Live Local workforce housing. However, housing affordability has often eluded Floridians in these positions, forcing them to relocate after time and resources were spent to train them.[12] While Florida has been increasing pay and bonuses to boost applicant rates,[13] the average police officer’s salary in most Florida counties still falls below 80 percent AMI if the worker is the sole breadwinner in a three- or four-person family. (See Table 1 and Figure 2.)
Only one MSA has a county where a law enforcement officer cannot afford the county’s 80 percent AMI floor on the average pay, meaning that law enforcement officers in one-person households can afford rent in the remaining 66 counties.
When considering law enforcement officers working as sole breadwinners in households with more than one person, however, workforce housing is far less affordable on the MSAs’ average salary (See Table 1).
While promotions and bonuses can increase compensation for law enforcement officers over the course of their careers, affordability can still be a challenge for those in larger households, such as single parents or people taking care of an infirm family member as a dependent. Housing affordability is also an important factor for law enforcement agencies in being able to attract or retain qualified candidates when they cannot afford to live where they work.
Educators[14]
Florida is home to the lowest average pay for teachers in the nation.[15] This, combined with skyrocketing housing costs, means that many teachers are struggling to afford housing. Even back in 2020, when rent and mortgage prices were lower than they are currently, 17 percent of teachers and 22 percent of education support professionals were having “moderate or serious problems” paying their rents or mortgages.[16]
Only five counties have 80 percent AMI floors that cannot accommodate the average educator living alone. The remaining MSAs and 62 counties’ average educators’ salaries hit the Live Local floor.
However, when looking at educators working as the sole breadwinner in a two-, three, or four-person household, the affordability drops immediately (See Table 2.):
While all counties provide pay enhancements that can impact educator salaries for the years the enhancements are granted, some of these areas would still remain unaffordable at the workforce AMI floors for over a decade for those teachers earning only the base pay.[17]
There were two bills[18] that were introduced in the 2024 Florida legislative session that are aimed at raising educator base pay. Neither bill passed; however, even if they had passed, there would still be 26 counties[19] that would have failed to meet the 80 percent floor on two-, three-, and/or four-person households where the sole breadwinner is an educator.
Firefighters
While programs like Hometown Heroes can help firefighters in good enough credit standing to purchase homes, for those who are renting, there are far less options for permanent affordability.[20]
The average firefighter salary does not attain the 80 percent AMI floors in 23 counties –- over a third of Florida counties. Unaffordability for the remaining household sizes skyrockets. If a firefighter is the sole breadwinner in a family of two or more, nearly the entire state would be unaffordable. (See Table 3.).
Paramedics[21]
Even before the COVID-19 pandemic, there was a recruitment and retention crisis among paramedics and EMTs.[22] In fact, recruitment and retention has been the leading issue for paramedics and EMTs for years.[23] While paramedics/EMTs in one-person households actually surpass firefighters in the ability to afford rent at the 80 percent AMI floor, affordability for these workers drops off at a much higher rate for larger households.
Even though paramedic salaries have increased in the past year, over a fifth of Florida’s counties are unaffordable at 80 percent floors for paramedics - a total of 14 counties. Like the law enforcement officer and firefighter salaries, a larger household size where the paramedic is the main breadwinner quickly becomes unaffordable (See Table 4.).
The Most Unaffordable Counties and Related MSAs
The regions below are those where workforce housing is the least affordable for law enforcement officers, educators, firefighers, and EMTs/paramedics:
- Monroe County [South Florida nonmetropolitan area]
- Unaffordable for all occupations at all household sizes.
- Brevard County [Palm Bay-Melbourne-Titusville]
- Affordable only for two of the four occupations in a one-person household
- Bay County [Panama City], Alachua County [Gainesville], Gilchrist County [Gainesville], Flagler County [Deltona-Daytona Beach-Ormond Beach], and Lake County [Orlando-Kissimmee-Sanford]
- Unaffordable for every occupation starting at a two-person household
Live Local Policy Considerations
As the above data shows, many in the public workforce cannot afford the “workforce housing” targeted by Live Local, despite serving in critical roles within communities. While Live Local does provide tax credits[24] and property tax exemptions[25] that can support housing development for AMIs under 80 percent, these types of tax breaks mean that local governments would not be collecting the foregone tax revenue that would have been used to support local public schools and emergency services.[26] It is also worth noting that the “Missing Middle” tax exemption piece of Live Local, which grants a 100 percent property tax exemption on units below 80 percent AMI and a 75 percent property tax exemption on units from 80 to 120 percent AMI, has resulted in a concentration of significantly more applications and approvals for new construction units at 120 percent AMI — comprising 96.3 percent — compared to those at lower income thresholds.[27] On the other hand, renovated units at 120 percent AMI make up only slightly over half of successful applications — 53 percent.[28]
Additionally, while the state’s private developer loan program, SAIL,[29] requires that 20 to 40 percent of units built are at AMIs lower than the “workforce” levels, the majority of units — between 60 and 80 percent — may still be unattainable for the public workers touted when the bill was in session. On top of this, the Florida Legislature attempted — unsuccessfully — to pass two bills[30] that would have removed the 40 percent requirement for developers using Low-Income Housing Tax Credits (LIHTC). Had it passed, only 20 percent of the units would have been required to be affordable.
Potential Paths Forward
Live Local is set to end in 2033, meaning the state can either renew the bill at that date or return to funding affordable housing solely through the state’s existing affordable housing fund, The Sadowski Trust. This also means that there are several legislative cycles to implement amendments that would make Live Local more equitable and in-line with the spirit of its purpose. Some examples of potential paths are as follows:
- Codify language, lowering the AMI ranges or at least reserve a portion of the funding — separate from tax credits, property taxes, and FHFC discretion — for lower AMI levels.
- Designate a recurring portion of the future Live Local allocations to go to local governments through the Statewide Housing Initiatives Partnership (SHIP) program to specifically target lower AMIs or to construct housing affordable to house public workers.
- Apportion money to local governments to be used as housing vouchers and property insurance-related gap financing to compensate for the shortfalls.
The significant investment that Live Local makes in affordable housing is certainly needed and a step in the right direction. However, to truly address Florida’s housing crisis, there also needs to be an investment in housing solutions that include workers with incomes under the 80 percent threshold. These Floridians are hired by municipalities to build up, protect, and serve our communities, and they should be able to live in the communities they serve.
Notes
[1] Florida Senate Committee on Community Affairs, “Committee on Community Affairs Meeting” Feb. 8, 2023, 9:30 AM (1 hr., 8 secs.), https://www.flsenate.gov/media/VideoPlayer?EventID=1_zc8d1g0v-
202302080930&Redirect=true, “Dignity of work and value of family life.”
[2] Florida House of Representatives Ways and Means Committee, “Ways and Means Committee Meeting” Mar. 20, 2023, 2:30 PM (48 mins., 47 secs.), https://www.myfloridahouse.gov/VideoPlayer.aspx?eventID=8652, “Dignity of work and value of family life.”
[3] Florida House of Representatives, “House Session” Mar. 23, 2023, 12:00PM (1 hr., 21 mins., 2 secs.), https://www.flsenate.gov/media/VideoPlayer?EventID=1_zp1pj23y-202303231200&Redirect=true, “No matter their state in life and income . . . [t]he ones who deserve to live where they work.”
[4] Florida House of Representatives, “House Session” Mar. 24, 2023, 11:00AM (1 hr., 40 mins., 22 secs.), https://www.flsenate.gov/media/VideoPlayer?EventID=1_zp1pj23y-202303241100&Redirect=true, “The people who are the backbone of our communities. The ones who build it up, the ones who protect it, the ones who serve it. The ones who deserve to have access to housing that is affordable . . . [So that they can] save time & money for themselves, their families, and their futures.”
[5] There were two unsuccessful companion bills (HB 1307/SB 1552) introduced in the 2024 legislative session that would have raised the AMI for moderate-income persons to 140 percent AMI in some municipalities.
[6] Tiffany N. Ford and Jenny Schuetz, "Workforce Housing and Middle-Income Housing Subsidies: A Primer," The Brookings Institution, Oct. 29, 2019, https://www.brookings.edu/articles/workforce-housing-and-middle-income-
housing-subsidies-a-primer/.
[7] Florida Housing Data Clearinghouse, "All Households, Cost Burden by Income, 2022 Estimate (Summary)," University of Florida’s Shimberg Center for Housing Studies, http://flhousingdata.shimberg.ufl.edu/affordability/results?nid=1.
[8] Florida Housing Data Clearinghouse, "All Households, Cost Burden by Income, 2022 Estimate (Summary)," University of Florida’s Shimberg Center for Housing Studies, http://flhousingdata.shimberg.ufl.edu/affordability/results?nid=1.
[9] Florida Housing Data Clearinghouse, "Renter Households, Cost Burden by Income, 2022 Estimate (Summary)," University of Florida’s Shimberg Center for Housing Studies, http://flhousingdata.shimberg.ufl.edu/affordability/results?nid=1.
[10] Methodology: To make the data more streamlined and consistent, MSAs were used for average salaries. The counties themselves may have incentive pay or a baseline that is higher or lower than the MSA mean. It must be noted that three MSAs do not have average salaries available for paramedics/EMTs.
[11] Florida House of Representatives, “House Session” Mar. 24, 2023, 11:00AM (1 hr., 40 mins., 22 secs.), https://www.flsenate.gov/media/VideoPlayer?EventID=1_zp1pj23y-202303241100&Redirect=true, “The people who are the backbone of our communities. The ones who build it up, the ones who protect it, the ones who serve it. The ones who deserve to have access to housing that is affordable . . . [So that they can] save time & money for themselves, their families, and their futures.”
[12] Kimberly Kuizon, "Proposed workforce housing for Sarasota County Sheriff's Office employees," Fox 13 Tampa Bay, Apr. 29, 2024, https://www.fox13news.com/news/proposed-workforce-housing-for-sarasota-county-sheriffs-
office-employees.
[13] Executive Office of the Governor of Florida, "Governor Ron DeSantis Awards 4,000th Law Enforcement Recruit Bonus" Jan. 30, 2024, https://www.flgov.com/2024/01/30/governor-ron-desantis-awards-4000th-law-enforcement-recruit-bonus/#:~:text=Each%20of%20the%204%2C000%20law,%2C%E2%80%9D%20said%20Governor%20Ron%20DeSantis.
[14] Methodology Note: The educator salaries utilized here are broken into the grade levels taught by the school educators. Because there were varied salaries, the average salary was calculated by finding the mean of the educators’ average salaries and then choosing the mean that was closest to the averaged amount. This was done over picking a grade level because not every level was listed for every MSA.
[15] Norin Dollard, PhD, "Florida FY 2024-25 Budget Summary: Education," Florida Policy Institute, Aug. 22, 2024, https://www.floridapolicy.org/posts/florida-fy-2024-25-budget-summary-education.
[16] Tim Walker, "Educators Struggle to Find Affordable Housing," NEA Today, Apr. 1, 2024, https://www.nea.org/
nea-today/all-news-articles/teachers-struggle-find-affordable-housing.
[17] The following counties have an unchanging base pay for over a decade’s time: Hamilton, Hillsborough, and Washington (11 years); Okaloosa (13 years); Citrus, Lafayette, Liberty (15 years); Broward and St. Lucie (16 years); Brevard, Lake, Seminole, and Volusia (20 years); and Wakulla (22 years).
[19] Alachua, Brevard, Broward, Duval, Escambia, Hernando, Hillsborough, Lake, Lee, Leon, Manatee, Miami-Dade, Monroe, Nassau, Okaloosa, Orange, Osceola, Palm Bay, Pasco, Pinellas, Santa Rosa, Sarasota, Seminole, St. Johns, St. Lucie, and Walton.
[20] Florida Housing Finance Corporation, "Hometown Heroes Program," https://www.floridahousing.org/
live-local-act/hometown-heroes-program.
[21] Methodology Note: There are three counties that do not list average salaries for paramedic/EMTs.
[22] Greg Friese, "Pay Paramedics a Thriving Wage to End the Retention Crisis," EMS1, Sept. 17, 2024, https://www.ems1.com/recruitment-and-retention/articles/pay-paramedics-a-thriving-wage-to-end-the-
retention-crisis-68xRW8ONK5rmnMvM/.
[23] EMS1, "Digital Edition: What Paramedics Want in 2024," Aug. 8, 2024, https://www.ems1.com/ems-trend-report/
digital-edition-what-paramedics-want-in-2024.
[24] Florida Housing Finance Corporation, "Live Local Program Tax Credit," https://www.floridahousing.org/live-
local-act/live-local-program-tax-credit.
[25] Florida Housing Finance Corporation, "Multifamily Middle Market Certification Newly Constructed Multifamily Project Ad Valorem Tax Exemption," https://www.floridahousing.org/live-local-act/multifamily-middle-market-
certification.
[26] The Law Offices of Stephen K. Hatchey, P.A., "Ad Valorem vs Non Ad Valorem: What to Know," https://floridarealestatelawyer.org/ad-valorem-vs-non-ad-valorem/#:~:text=Ad%20Valorem%20taxes%2C%20a%20Latin,benefit%20the%20community%20at%20large.
[27] Florida Housing Finance Corporation, “MMM Applicant Units Report: Applications Meeting New Construction-Certified,” Ap. 2024, pg. 5, https://www.floridahousing.org/docs/default-source/programs/live-local-act/multifamily-middle-market-certification/mmm-applicant-units-report.pdf?sfvrsn=71a4f17b_1.
[28] Florida Housing Finance Corporation, “MMM Applicant Units Report: Applications Meeting New Construction-Certified,” Ap. 2024, pg. 5, https://www.floridahousing.org/docs/default-source/programs/live-local-act/multifamily-middle-market-certification/mmm-applicant-units-report.pdf?sfvrsn=71a4f17b_1.
[29] Florida Housing Finance Corporation, “The State Apartment Incentive Loan Program,” https://www.floridahousing.org/programs/developers-multifamily-programs/state-apartment-incentive-loan.