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Though multifamily-residential may not share the same spotlight that single family is getting, apartment investing makes up a big economic portion of Florida’s real estate market and there are some big legislative changes coming to multifamily residential property that investors need to be aware of.
We are glad to have Courtney Barnard back on the show. Courtney serves as the Government Affairs Director for the Florida Apartment Association (FAA). Courtney appeared previously, in episode 42, where she discussed then-current legislative updates to multifamily-residential property.
This time, she discusses some key changes coming with the 2016 legislative updates. This episode, Courtney also gives us a Florida multifamily market overview in addition to sharing important legislative updates for multifamily-residential property owners.
Florida Multifamily-Residential Property Overview
- Jacksonville – largest apartment growth (new construction)
- Sarasota/Bradenton – decline in growth
- Over 96% occupancy statewide
- New construction focused on Class A and Class Super A – $145k/unit costs
- Lack of affordable multifamily developments
- HVAC Maintenance
- House Bill 535, July 2016
- Apartment investors with 100 unit or more buildings
- HVAC repairs can now be made by on-site building maintenance and not HVAC contractor
- Bill Info
- Non-Residential Property Tax Exemptions
- 10% cap on non-residential property tax increases set to expire in 2018
- No cap could hurt a lot of investors and small-business owners
- Joint resolution to be put forth to reinstate cap permanently
- Fire Sprinklers in Building
- Florida administration code-change from National Fire Protection Standard
- Takes effect Dec. 31st, 2016
- High-rises over 75 feet required to have sprinklers in residences and common areas
- Previously, buildings built before 1994 were exempt
- Condos + Co-ops can vote to opt out, but apartment investors must comply UNLESS: balconies/secondary entrances are attached to every unit
Florida Apartment Association
The FAA has been in place for 45 years. With 11 regional chapters and over 5,000 apartment communities, the FAA offers members access to great benefits:
- Legislative advocacy
- Click & Lease standard access
To find out more resources offered by the FAA and for other updates from Courtney, visit www.faahq.org.