Live Local incentives are reshaping South Florida’s multifamily market as developers increasingly convert rental projects into workforce housing. With construction costs rising and lease-ups slowing, many builders are turning to the Live Local Act for financial relief, according to TheRealDeal. The strategy is allowing developers to lower rents while improving absorption without sacrificing profitability.
A New Tool In A Tough Market
At Douglas Enclave, developer Henry Torres cut $3,000 from annual rents while maintaining margins by designating a portion of the 199-unit building as workforce housing. The move generated roughly $450,000 in tax savings—nearly half of his $950,000 tax bill. Torres, head of Astor Companies, said the program accelerated leasing, adding: “You’d be crazy not to take advantage.”
The Numbers Behind The Strategy
Passed in 2023, the Live Local Act offers major tax breaks to buildings with 71 or more workforce units delivered within five years. Benefits include a 75% abatement for units leased to households at 80–120% of AMI and 100% abatement for units rented to households earning below 80% of AMI. In 2025, 48 properties across Miami-Dade, Broward, and Palm Beach qualified—many of them retrofitted specifically to access Live Local incentives.
Workforce Rents = Faster Lease-Ups
Coral Rock Development Group reclassified 160 of 204 units at Metropolitan Coral Springs as workforce housing after completion. Offering rents about $350 under market helped the project achieve rapid lease-up and secure tax savings. “You need to lease-up faster and stabilize faster to secure permanent financing,” said Coral Rock’s Michael Wohl, noting the economics worked especially well in suburban markets where rent gaps are modest.
A Strategic Fit — With Limits
In higher-rent areas like Coral Gables, the model is harder to justify. But in Hialeah, where the gap between workforce and market rates is narrow, developers are finding strong alignment. At Pura Vida Hialeah, Coral Rock qualified without lowering rents because workforce income caps already matched local pricing. “You’re not losing money, and you’re getting the abatement,” Wohl said.
Tax Breaks Amid Rising Costs
The timing is critical as developers face soaring insurance premiums, higher materials costs, and softening demand. Affiliated Development, a firm focused on workforce housing, secured abatements on four properties this year, using Live Local incentives to offset overhead without raising rents. “This was necessary,” said the firm’s Nick Rojo. “It really helped.”
Not Without Friction
Despite its appeal, the program has challenges. Qualifying tenants requires income verification through tax returns or pay stubs. Rent caps rely on the lower of state benchmarks or 90% of local market rents, a shifting metric. Additionally, lenders—including Fannie Mae and Freddie Mac—do not recognize Live Local savings in underwriting, limiting permanent financing. “If they were going to give me $10M… I still get $10M,” said Prestige Companies’ Alex Ruiz.
A Win-Win — If It’s Done Right
For many developers, the program strikes a rare balance: supporting affordability while protecting returns. At No. 17 Residences in Allapattah, developer Lissette Calderon reserved a portion of units for workforce tenants, keeping one-bedroom rents under $2,000—a rarity in today’s market. “This allows aspirational living for the engines that drive our community,” she said.
What’s Next
As more builders assess the numbers, experts expect broader adoption of Live Local conversions, especially in suburban areas where workforce rent thresholds naturally align with demand. With nearly 39,000 branded residences nationwide, South Florida’s affordability future may depend as much on legislation as on design. As Wohl put it, “You’d be an idiot not to.”
