Florida Introduces Affordable Housing Exemption for Multifamily Projects on Governmental Property: PTO 25-13

PTO Bulletin 25-13 establishes a new ad valorem tax exemption for affordable housing units in multifamily projects located on government-owned land, effective with the 2026 tax roll.

Introduction

On August 13, 2025, the Florida Department of Revenue released Informational Bulletin 25-13, which explains a new ad valorem property tax exemption for multifamily affordable housing units located on governmental property. Authorized by Chapter 2025-208 (HB 7031), this exemption takes effect July 1, 2025, and applies beginning with the 2026 tax roll.

Eligibility Criteria

• Part of a newly constructed multifamily project with more than 70 units serving low-income households.
• Located on government-owned land subject to a 30-year lease or restrictive use agreement for affordable housing.
• The affordable units are deemed for a charitable purpose and eligible for exemption.

Application & Assessment

The lessee must apply by March 1, beginning 2026, using the prescribed form. The exemption applies proportionally to units, including common areas and land.

Compliance & Penalties

If the property fails to maintain at least 70 affordable units by January 1, it loses eligibility for that year. Improper exemptions prompt a tax lien notice, with back taxes owed plus 50% annual penalty and 15% interest—unless due to a clerical error.

Sunset Provision

The exemption under Section 196.19782, F.S., automatically repeals December 31, 2061.

Conclusion

PTO 25-13 enables developers to secure ad valorem tax relief for affordable housing built on governmental land, subject to strict eligibility, application timing, and compliance requirements.