Florida Governor Ron DeSantis recently signed HB1417, which affects local residential rental regulations, to curb rising rents.
In a note analyzing the effects of the new law, a Florida realtor described how local governments reacted to the increase in rental prices by enacting regulations that went beyond what the state law required.
Despite their apparent good intentions, many of these local regulations exacerbate rental cost issues over time.
“Such policies have a chilling effect on builders, given that metropolitan areas with different rental regulations provide an alternative. Frequently, builders choose the least regulated environments. In turn, this delays the construction of affordable housing in cities with the greatest need. After developers leave an area, competition increases, rents rise, and the housing problem becomes more difficult for those who can still afford to live there.
Based on this analysis, HB 1417 would subject the regulation of residential leases to state law.
“Eventually, the patchwork of local regulations that discourage builders and causes confusion among landlords and tenants will be eliminated.”
The new law establishes that all aspects of the landlord-tenant relationship, including the regulation of housing leases, are subject to state regulation. In addition, it clarifies that as of July 1, this law supersedes any local government regulation on the terms and conditions of rental contracts, the rights, and responsibilities of landlords and tenants, housing, the rental contract, the rights and responsibilities of landlords and tenants, and the fees charged by the owners, among others.
It stipulates that month-to-month leases must be terminated with at least 30 days’ notice. In the case of contracts with a specific duration, however, the parties must issue a notice of cancellation that cannot be less than 30 days or more than 60 days.
According to the report’s interpretation, HB 1417 is implemented through the Live Local Act, which aims to “create a wave of affordable rental housing in Florida over the next 10 years.”
The “Live Local Act,” passed in March 2023 and funded at over $700.0 million, provides tax exemptions for buildings with at least 70 affordable homes and expedites development permits and orders for these projects.
