ST. PETERSBURG, Fla. — Florida Gov. Ron DeSantis touted a new law aimed at increasing access to affordable housing but critics say it leaves out renters and even hurts tenants by banning rent control.
DeSantis signed into law Senate Bill 102 known as the Live Local Act.
"Being able to have folks who are teachers, police officers, firefighters, all these important things, you can't do it if you have to drive an hour, hour-and-a-half just to get to work every day," DeSantis said Wednesday in Naples.
The new law is intended to increase access to affordable housing through a $711 million plan that expands housing programs and provides incentives for developers including:
- $100 million for the Hometown Heroes Program, which provides down payment and closing cost assistance to people like law enforcement officers, firefighters, educators, healthcare professionals, childcare employees, and active military or veterans
- $259 million for the State Apartment Incentive Loan, which provides low-interest loans to affordable housing developers
- $252 million for the State Housing Initiatives Partnership, which provides funding for local governments to produce and preserve multi-family housing
The new law also bans rent control, a practice that was already forbidden under Florida law unless an official housing emergency was declared. Now, it's a total ban.
"Rents are still increasing in St. Petersburg because they can raise the rents. If you are a landlord and you have the ability to raise the rent, why would you not," said Karla Correa with the St. Petersburg Tenants Union.
Advocates across the Tampa Bay area have been calling for rental caps for more than a year. They say this latest legislation doesn't help the current crisis people are facing now.
"There is no short-term relief in this legislation," said Correa who advocates for regulation of private landlords and an expansion of public housing.
Rent control has always been a controversial topic with some seeing an upside for tenants in localized areas but the potential for widespread unintended consequences.
"Rent prices are increasing astronomically, many families can't afford it and they may need help but at the same time, it might also create unintended challenges," explained Krishna Regmi, an assistant professor of economics at FGCU.
Critics say it can cause poor rental unit conditions, less rental inventory, and higher rents outside of the regulated zones.
The Live Local Act takes effect July 1.