A little-noticed provision tucked into Florida House Bill 1389 closes what developers viewed as a legal loophole that allowed local governments to invoke sovereign immunity in disputes over the Live Local Act.
The legislation, recently signed by Gov. Ron DeSantis, expands the definition of a “person” under the state’s fair housing law to include government agencies, municipalities and other public entities. The change exposes cities and counties to the same fair housing claims as private parties and is intended to discourage local governments from blocking or delaying Live Local projects.
Under the revised law, if a court determines that a person—including a city or county—has engaged in a discriminatory housing practice, it must order the practice to stop and provide appropriate relief to the plaintiff.
The provision stems from a legal battle between Coral Rock Development Group principal Michael Wohl and the city of Pompano Beach over an affordable housing project. After losing on appeal and failing to persuade the Florida Supreme Court to take up the case, Wohl turned his attention to the Legislature, pushing for a change that would prevent local governments from using sovereign immunity as a defense against Live Local-related lawsuits. Sovereign immunity generally shields government entities from certain lawsuits unless they consent to be sued.
“We’re proud we spent a lot of time and money getting this done,” Wohl said, noting that he hired lobbyists and met with lawmakers to advance the legislation. “It was very important to me that no one ever experienced this again.”
Beyond the sovereign immunity change, House Bill 1389 broadens the types of properties eligible for Live Local projects. The law now allows qualifying developments on land owned by counties, municipalities, school districts and certain religious institutions, regardless of underlying zoning. Public entities that own eligible land must participate in project applications, while religious institutions seeking to develop under the law must remain active houses of worship. The measure also prohibits counties from using setbacks or stepbacks to effectively limit building heights, among other revisions.
Passed in 2023, the Live Local Act encourages developers to reserve at least 40 percent of a project’s units for households earning up to 120 percent of the area median income. Projects that meet the law’s requirements are entitled to administrative approval from local governments and qualify for incentives including density and height bonuses, reduced parking requirements and tax benefits.
Since its passage, lawmakers have repeatedly expanded the law’s reach, further limiting local governments’ ability to regulate qualifying workforce and affordable housing developments. The latest changes arrive as several South Florida municipalities continue to challenge the law or oppose individual projects. Last month, the Miami City Commission unanimously directed city attorneys to explore potential legal challenges to the Live Local Act.
Wohl also pointed to the bill’s inclusion of school district-owned land as one of its most significant changes.
“As public school districts announce closures due to the expansion of the state’s voucher system, these sites could become mixed-use developments with workforce or affordable housing targeting teachers,” Wohl said.
Source: The Real Deal
