Pasco County Commissioners Unanimously Opt Out of State Affordable Housing Program, Citing Lost Tax Revenue and Lack of Impact on Low-Cost Apartments

Pasco County commissioners made a bold move on Tuesday by unanimously voting to opt out of a portion of a state program aimed at providing more affordable housing. The decision was made in response to concerns that the program would cost Pasco tens of millions in lost tax revenue without effectively increasing the availability of low-cost apartments for those in need.

The provision in question, part of the Live Local law passed last year, would have granted property tax breaks to eligible apartments providing affordable housing. However, Pasco officials argued that the definition of “affordable” in the law was too broad, potentially benefiting luxury apartment complexes with high rents rather than truly affordable options.

In response to these concerns, Pasco mobilized a lobbying effort during the last legislative session, ultimately leading to a change in the law. This change allows counties to opt out of providing tax exemptions if a state analysis shows there is no demand for apartments at the specified rates.

Despite the county’s efforts, two apartment complexes still sought tax relief under Live Local. The county sent a letter demanding that they not proceed with their applications, but the complexes filed for exemptions with the Property Appraiser’s Office. The decision on whether to grant these exemptions for the current year is pending.

In the meantime, commissioners voted to encourage the Property Appraiser not to approve the exemptions, citing legal arguments against granting them. Additionally, efforts are being made to involve other taxing bodies, such as the Pasco School District and local cities, in opting out of the tax exemption for apartments.

While the county has successfully avoided significant revenue loss, Chief Assistant County Attorney David Goldstein emphasized the importance of addressing other issues related to the Live Local law. He highlighted concerns about the distribution of tax breaks to apartment owners based on rent levels and the potential impact on job-creating sites designated for commercial and industrial use.

Moving forward, Goldstein suggested that the state should limit tax breaks under Live Local to areas with housing deficits, such as Miami-Dade, Broward, and Monroe counties. He also raised questions about the accuracy of the Shimberg Center for Housing Studies’ analysis, which could affect Pasco’s future housing availability assessments.

Ultimately, Pasco officials remain committed to preserving the county’s focus on job creation and economic development, pushing back against measures that could undermine these efforts. The decision to opt out of the Live Local program reflects a strategic approach to balancing affordable housing needs with long-term economic goals in Pasco County.