The Newly Constructed Multifamily Project Ad Valorem Tax Exemption (also known as the “missing middle” tax exemption) encourages new or recently constructed market rate multifamily rental developments to offer affordable and workforce units. Interested owners must first apply with Florida Housing to obtain a Multifamily Middle Market certification notice and then with their local property appraiser, by March 1st, to obtain the exemption. Before issuing the Multifamily Middle Market certification notice, Florida Housing will review specific criteria and determine if a certification notice can be issued. While a certificate from Florida Housing is required in order to receive the exemption, it is not a guarantee that an exemption will be issued. The property appraiser will determine eligibility and final issuance of an exemption. In order to be eligible for this property tax exemption, the following requirements, at minimum, must be met.

Eligibility criteria set forth in the statute include the following:

• Are within a newly constructed multifamily project that contains more than 70 units dedicated to housing natural persons or families meeting the income limitations provided in paragraph (d) of the statute or are within a newly constructed multifamily project in an area of critical state concern, as designated by s. 380.0552, F.S. or chapter 28-36, Florida Administrative Code, which contains more than 10 units dedicated to housing natural persons or families meeting the income limitations provided in paragraph (d).
• Are rented for an amount that does not exceed the amount as specified by the most recent multifamily rental programs income and rent limit chart posted by Florida Housing or 90% of the fair market value rent as determined by a rental market study meeting the requirements of paragraph (l) of the statute, whichever is less.
• Units within qualified properties that house the intended populations with an annual income that does not exceed 80% of the area median income are exempt from ad valorem taxes. For units in qualified properties that serve households with incomes between 80 and 120% of the area median income, an exemption of 75% of the assessed value must be provided.

The Area Median Income (AMI) is determined through multifamily rental programs income and rent limit chart derived from the Multifamily Tax Subsidy Projects Income Limits published by the United States Department of Housing and Urban Development, or 90% of the fair market value rent as determined by a qualifying rental market study.

Source: Section 196.1978(3), F.S.

Links:

Multifamily Middle Market 2025 Workshop Agenda

September 5, 2024 Multifamily Middle Market Certification Program Workshop

Certification Portal (opening fall 2024)

Multifamily Tax Subsidy Projects Income & Rent Limits (Florida Housing Rental Programs)

Property Appraiser Search: Florida Dept. of Revenue - Property Tax - Local Officials 

How-to Guide for the Multifamily Middle Market Certification

FHFC Multifamily Middle Market Certification Frequently Asked Questions

MMM Applicant Units Report

Public Comments for LLA 2023-MMC Live Local Act - Middle Market Certification

For questions or comments regarding the Multifamily Middle Market Certification email
Middle.Market.Cert@Floridahousing.org