The Gainesville City Commission and Alachua County recently denied a 75% property tax exemption for seven apartment complexes, part of a state effort to increase affordability.
Both government bodies were required to give these tax breaks last year, but an update to the Live Local Act allowed the city and county to opt out of giving the breaks. The Children’s Trust of Alachua County also opted out, and the library district is likely next.
For the city of Gainesville, the difference between a tax break and no tax break equals $540,000 in revenue.
Elected officials for Alachua County and Gainesville often discuss the need for more affordable housing and have programs to help increase the supply.
According to a 2022 estimate from UF’s Shimberg Center, around 27,843 renter households who earn 100% of the area median income or less are either cost-burdened or severely cost-burdened—meaning their housing is considered unaffordable for them.
However, the only reason the city and county could deny the tax breaks is by showing that Alachua County already has more affordable rental units than it needs.
What gives?
Andrew Persons, Gainesville’s chief operating officer, said the seven apartment complexes that applied for the tax exemption are market rate, student housing.
“They’re not what probably any of us would consider affordable housing, certainly not by the city definition,” Persons told the City Commission at its Nov. 21 meeting when the vote took place.
All seven complexes applied for the tax break at the 120% area median income level, Persons explained. The Florida program has two sides: one for apartments affordable for people who make up to 80% of the area median income and the other for apartments aimed at people making 80% to 120% of the area median income.
For apartments below 80% AMI, Florida doesn’t allow cities and counties to opt out, but no complexes applied in Alachua County or Gainesville at that level.
For apartments from 80-120% AMI, cities and counties can opt out if the area already has enough affordable housing—as reported by the Shimberg Center.
Established by the Florida Legislature in 1988, the Shimberg Center regularly releases data about housing in the Sunshine State that is used to form policies at state and city levels.
Every three years, Shimberg Center estimates the number of available rental units up to 120% AMI along with the number of people likely looking for that level of housing. The center takes the total number of affordable, available units and subtracts the number of people looking for that level of housing.
More people than units equals a shortage; more units than people equals a surplus.
For the entire range up to 120% AMI, the center says Alachua County has 3,351 more affordable, available units than renters. But elected officials and community organizations always talk about a shortage.
Looking a layer deeper shows why.
Shimberg separates its data into six categories. The numbers show that Alachua County needs more affordable housing for people making 60% AMI or less. In fact, there’s a shortage of 3,822 units.
However, Alachua County has so many units within the 60% to 120% AMI section that it erases the deficit from the other section, leaving the county as a whole with surplus. This data excludes student households and housing units.
All seven apartment complexes that applied sat at 120% AMI, meaning they’re considered affordable for a single person earning $80,040 or a family of three earning $102,960. But the majority of the units at these complexes are listed above 120% AMI.
The complexes aren’t looking to solve the same housing problems as Alachua County and Gainesville.
Anne Ray, manager of the Shimberg’s Florida Housing Data Clearinghouse, said numbers show rents staying at high 2021 levels. She said the number of cost-burdened households (paying 30% or more of gross income on housing costs) is rising.
“Where that was mostly a problem for the lowest income renters in the past, it’s crept up more to the 60% and the 80% AMI ranges, and that’s where you see a lot of need,” Ray said.
She said one factor that drives the number of affordable, available units—used to opt out of the Live Local Act—is the number of renters who earn above 120% AMI but are also competing for units below that level. Ray said the majority of rental units exist below 120% AMI, but renters could come from higher income levels.
The city of Gainesville finalized an inclusionary zoning policy in September. The policy aims to create more rental units only for people making 80% AMI or less.
Alachua County has incentives for inclusionary zoning, but staff said developers hadn’t touched them. The county has also mentioned moving to a required inclusionary zoning stance like the city.
What an explicit example of the Woke , Money Grubbing Gainesville liberals. Talk the Talk , but will not Walk the Walk. But will continue as Control Freaks to mandate the Communist Manifesto at the expense of Alachua County . Can we opt out of their financial carnage on our property values being destroyed?
You’re fired.
You didn’t bother to list the seven apartment complexes??
good
Why not did this article make mention of each of the 7 student apartment complexes by name?
Props for an informative article. Was driving by one of the large new complexes today wondering how steep the rent must be, and how the owners imagine they’ll attract new tenants let alone longtime ones.
Are the 7 up close to UF, prime property? That’s where UF wanted them. But the City benefits, too. If the City and County want more affordable housing, it should be single-occupant condos or tiny homes in multi story steel frame high rises — owner-occupied for the workforce, not subsidizing more rentals and landlords.
In so many discussions about the costs of housing we get terminology confused and conflated – affordable vs subsidized. Housing that is available for rent at a lower price due to tax reductions, government grants or fee waivers is “subsidized”. The landlord is getting the rent and additional sums from the government source. “Affordable” housing is actually constructed at a lower cost via techniques such as smaller size, materials choices, fewer amenities, location or more efficient construction, allowing a lower rent to still generate a reasonable profit.
Both have a role in addressing the larger problem, but we shouldn’t confuse them.