Developer Leverages Florida's Live Local Act to Expand Pompano Beach Project
Rendering Courtesy of Anillo Toledo Lopez
On December 4, 2024, the Pompano Beach Development Review Committee began reviewing plans for a new multi-family development at 3151 North Federal Highway. The proposed complex was reimagined by the property’s new buyers to capitalize on the opportunity of the Live Local Act.
Passed in 2023, the Live Local Act is a state-wide initiative to house workers in the communities they serve. Theoretically, this will improve issues ranging from economic growth to traffic management.
The Act takes a multi-faceted approach to the issue, including incentives for developers, benefits for individuals, and valuable tools for multiple levels of government, including counties and cities. Part of the Act involves funding existing programs, like Florida Hometown Heroes, which assists qualifying first-time homebuyers with down payments and closing costs. While the Act boosts support for individual home ownership, however, the bulk of its provisions incentivize developers to incorporate more affordable housing into new developments.
These incentives range from conveniences to increased opportunities for profit via tax credits and exemptions. One major convenience comes from a push for local authorities to offer online proposal forms and submission routes via a clear link on the authority’s government website. The Act also requires government entities to prioritize proposals with significant affordable housing.
Where possible, the Act pulls back red tape. It provides, for example, shortcuts for qualifying projects to bypass review elements like public hearings. It does this by categorizing Act-friendly major site plans as minor site plans. It’s important to note that all projects that would normally be considered major site plans must still meet major site plan standards and requirements.
Financial incentives for developers to include workforce housing vary but include special funding, tax credits, and refunds. For example, if developers make agreements with the FHFC (Florida Housing Finance Corporation), they can secure refunds for sales tax on building materials used to make income-controlled units. Public entities can secure funding for projects via the Florida Job Growth Grant Fund for developers as well.
The Act also gives developers several ways to secure 99 years of property tax exemption. Local government entities may, at their own discretion, offer property tax exemptions to qualifying developments. Among other things, a qualifying development must have 50 or more residential units, and at least 20% of those must qualify as affordable housing.
New multifamily developments can secure 100% property tax exemption for affordable housing units. To qualify, a new development needs at least 71 units that meet affordable housing standards.
The proposed complex put before the Development Review Board could utilize several elements of the Live Local Act. The site of the proposed complex, called Sentosa by the initial developer, was drawn up before the Act was passed and has changed with new ownership and fresh opportunities.
Sentosa’s story began with the Falcone Group. The group bought the original 6.2-acre site in 2022 and went to work demolishing existing, uninhabited structures.
Original plans called for two seven-story buildings, hosting 285 apartments with a variety of studio, one-bedroom, two-bedroom, and three-bedroom floorplans. The smallest would measure 575 square feet, and the largest floorplan would max at 1,263 square feet. Residents would enjoy a swimming pool, fitness center, yoga studio, and pet salon along with other luxury amenities. The multi-purpose development plan also featured 4,164 square feet of retail space with a four-story parking garage offering 280 parking spaces.
The Falcone Group did not finish their project, however, and sold the undeveloped property to developers AMAC and ROVR in June 2024. The new developers adjusted the Falcone Group’s original vision to make the most of the Live Local Act’s incentives. Their design supports 302 units, roughly 120 of which would be affordable workforce housing. That is approximately 40% of the total units, easily meeting Act guidelines. Sourcing building materials locally and cooperating with local government initiatives could make the proposal even better positioned to benefit from new Act policies.
New designs from architect Anillo Toledo Lopez showcase a bigger vision for the complex. Updated floorplans range from 540 to 1,480 square feet in two eight-story buildings. Two additional buildings in the complex would host 2,700 square feet for retail and commercial venues. The new plan for the community would challenge local height and density limits, but the proposal aligns with shifting legislation, and exceptions might be made.