Florida Clarifies Affordable Housing Exemption for Land Leased from Housing Authorities and Nonprofits: PTO 25-11

Florida’s PTO Bulletin 25-11 provides guidance on how the affordable housing property exemption applies to land leased from housing finance authorities and nonprofit organizations.

Introduction

In August 2025, the Florida Department of Revenue’s Property Tax Oversight (PTO) program released Informational Bulletin 25-11, addressing how the affordable housing property exemption applies when land is leased from a housing finance authority or a nonprofit organization. This guidance builds on Florida’s expanding framework of tax exemptions designed to support affordable housing development.

Background

The Legislature has enacted property tax exemptions to incentivize affordable housing. PTO 25-11 clarifies that when affordable housing projects are constructed on land leased from a housing finance authority or nonprofit, the exemption may extend to the improvements located on that land.

Eligible Leases

• The land must be leased from a housing finance authority established under Florida law, or from a nonprofit organization recognized under federal and state law.
• The lease must support an affordable housing project, ensuring compliance with income restrictions and affordability covenants.
• The improvements (multifamily housing or related facilities) must serve the affordable housing purpose identified in the lease.

Application of the Exemption

The exemption generally applies to the improvements built on the leased land rather than to the underlying land itself, which may already be exempt due to ownership by a government or nonprofit entity. Property appraisers must review lease terms and regulatory documentation to determine eligibility.

Benefits for Developers and Communities

This structure allows affordable housing developers to access tax relief without needing to purchase the land outright. By reducing operating costs, the exemption encourages more projects in partnership with housing finance authorities and nonprofits, ultimately increasing the availability of affordable rental units.

Conclusion

PTO 25-11 provides important clarity on how Florida’s affordable housing exemption applies to leased land arrangements. Developers and appraisers must carefully evaluate lease terms and eligibility requirements to ensure compliance and maximize the benefit of the exemption.