Florida’s Innovative SAIL Program: A Promising Start, But Now at a Crossroads
Early signs show that Florida’s Innovative SAIL program is working as intended - or perhaps even better than intended - to create new affordable rental homes that suit Florida’s housing needs.
The Innovative SAIL program1, created by Florida’s Live Local Act in 2023, is a forward-thinking investment in our state’s affordable housing infrastructure. The Live Local Act not only created this new initiative but also committed $150 million annually to the program for ten years.
But just two years in, the Legislature has already pulled back that long-term funding promise. Instead of guaranteed annual support, funding for Innovative SAIL will now be decided each year through the state’s appropriations process. This change means housing advocates will need to champion this important program session after session to keep the program alive and thriving.
So, what is Innovative SAIL? What have we seen so far? And why is it so important to keep pushing for strong, consistent funding? Let’s break it down – and explore why this program deserves continued attention and advocacy.
What is Innovative SAIL?
Innovative SAIL, also called the “SAIL-like” program, was designed by the Florida Legislature to provide a crucial gap financing resource for affordable multifamily housing projects, with funds being awarded through competitive Requests for Applications (RFAs) overseen by the Florida Housing Finance Corporation (FHFC). This program follows a tried and proven housing financing model in our state – Florida’s traditional State Apartment Incentive Loan (SAIL) program has been a nationwide model for success since its creation nearly 40 years ago.
What sets Innovative SAIL apart is its targeted focus. Under s. 420.50871 of the Florida Statutes, funds are awarded based on specific priorities set by the Legislature to respond directly to Florida’s evolving housing needs. These priorities ensure that public investment is strategically aligned with high-impact, future-oriented solutions. These priorities include:
Redeveloping existing affordable housing.
Urban infill including conversions of vacant, dilapidated, or functionally obsolete buildings or the use of underused commercial property.
Mixed-use developments that incorporate nonresidential uses such as retail, office, or institutional.
Providing housing near military installations in Florida, with preference given to projects that incorporate critical services for servicemembers, their families, and veterans, such as mental health treatment services, employment services, and assistance with transition from active-duty service to civilian life.
Use or lease of public lands
Addressing the needs of young adults who age out of the foster care system.
Meeting the needs of elderly persons.
Providing housing to meet the needs in areas of rural opportunity, designated pursuant to s. 288.0656.
Annual Funding is No Longer Assured
The Innovative SAIL program originally included a legislative pledge to allocate $150 million annually for 10 years, funded through increased revenue to the State Housing Trust Fund. This long-term commitment was designed to ensure predictable support for affordable housing development.
However, House Bill 7031 (2025)2 eliminated the guarantee of recurring funding. Going forward, the program will depend on the annual appropriations process. While the Legislature did approve $150 million from General Revenue for FY 2025–2026, the loss of a recurring funding commitment signals the need for ongoing advocacy to protect and sustain the program.
After two years in operation, the Innovative SAIL program is delivering measurable results. Data now shows how the program is advancing affordability, meeting the key priorities provided by the Legislature, and distributing funds across Florida.
Providing Deeper Affordability
Innovative SAIL funds are required to serve households at or below 120% of the area median income (AMI). This is a notable difference between the Innovative SAIL program and the traditional SAIL program which is required to serve households at or below 60% AMI. However, initial results after two years of operation show that Innovative SAIL funds are overwhelmingly being used to serve households at or below 80% AMI. Here are the numbers3:
5,968 total affordable rental homes assisted
Roughly 79% of assisted units will serve households at or below 80% AMI (4,743 units):
1,159 units at or below 80% AMI
1,915 units at or below 60% AMI
584 units at or below 50% AMI
326 units at or below 40% AMI
565 units at or below 33% AMI
Making an Impact Statewide
Innovative SAIL funds are being used to support affordable housing throughout Florida. Through two years, Innovative SAIL funds have been awarded to developments in 22 different counties. As the program receives funding and is allowed to move forward, it will continue to reach new areas of the state.
Here is an overview of the geographic distribution of units throughout Florida that have been awarded Innovative SAIL funds:
Keeping the Momentum
The Innovative SAIL program is already proving to be an effective tool of the Live Local Act, accelerating the development and redevelopment of affordable housing across Florida. Leveraging increased housing trust fund revenues through a proven SAIL-style financing model, the program delivers results. But with recurring funding no longer guaranteed by the Legislature, we must closely track its early impact to demonstrate continued value. The reality is that affordable housing development does not happen overnight. It takes time for these proposals to move through the financing process before we see shovels in the ground.
The data is clear: Innovative SAIL is working. Let’s secure its future and keep building.
Information on units being produced as part of the Innovative SAIL program is publicly available from FHFC and can be referenced here: https://www.floridahousing.org/programs/developers-multifamily-programs/competitive
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