Florida is about to make YIGBY mandatory on the last day of the 2026 Legislative Session.
The House and Senate have agreed on their Live Local 4.0 bills. House Bill 1389 has officially passed both chambers and now heads to the Governor for signature.
Notably, if signed by the Governor, this bill expands the Live Local Act’s land use mandate to include qualifying land owned by religious institutions starting July 1, 2026. This means local governments will be required—not just allowed, but required—to approve affordable housing on eligible faith-owned properties.
For faith groups interested in building affordable housing on their land, this is a significant development.
Over the past year, the Florida Housing Coalition has hosted workshops, webinars, and published guidance encouraging local governments to activate Florida’s optional YIGBY policy, enacted in 2025 through SB 1730. Since July 1, 2025, local governments have had the option to allow affordable housing on land owned by religious institutions with a house of worship (or contiguous parcel), regardless of underlying zoning.
The optional tool still exists. However, by expanding the Live Local land use mandate to include certain religious properties, HB 1389 may reduce the need for local governments to adopt the optional policy in many cases.
YIGBY Now Part of the LLA Land Use Mandate
The Live Local Act’s land use mandate, one of the core parts of the LLA, requires local governments to allow multifamily and mixed-use development in commercial, industrial, and mixed-use areas, provided at least 40% of homes are affordable rentals to households up to 120% AMI for at least 30 years. Qualifying projects receive increased density, height, and floor area ratios, reduced parking requirements, and administrative approval.
HB 1389 expands this tool to include qualifying religious institution land, regardless of the underlying zoning. If a property meets the criteria, a faith-based organization can now use the Live Local framework to build affordable housing and receive the same development entitlements. Local governments would be required to approve a Live Local project on eligible land.
To qualify, the land must:
Be owned by a religious institution, as defined in s. 170.201(2)
Be larger than 3 acres
Have contained a house of public worship for at least 10 years prior to application
The bill also requires that the house of worship continue operating after construction of the housing project. The statute is silent on what happens if the religious use later ceases, leaving enforcement questions for local governments.
What This Means for the Existing Optional YIGBY Law (s. 125.01055(6)/s. 166.04151(6))
Because the Live Local mandate now applies to certain religious properties, local governments may be less inclined to adopt the optional YIGBY policy currently located in subsections (6) of Florida’s county and municipal affordable housing statutes (ss. 125.01055 and 166.04151).
However, the optional tool can still fill some important gaps not met by the new YIGBY policy.
This chart shows the differences between the existing YIGBY law at subsection (6) and the new YIGBY provision included in the land use mandate at subsection (7).
As you can see, there are some gaps that the mandatory tool doesn’t address that can still be met by the optional YIGBY provision. The optional tool can still be effective for:
Parcels 3 acres or smaller
Houses of worship operating for fewer than 10 years
Contiguous land to the house of worship (mandatory tool does not apply to contiguous parcels)
Single-family housing
Situations where the religious institution wants to convey the affordable housing property
Policies requiring deeper affordability in exchange for fewer affordable units
What’s Next on YIGBY?
Now that YIGBY will be mandatory for local governments in certain cases, there’s still significant value in local convenings that bring together faith groups, builders, and community partners—even if the focus isn’t on getting local governments to activate the optional tool.
And where gaps remain, local governments can still adopt the optional YIGBY tool to expand flexibility.
Other Key Housing Provisions in HB 1389
Additional Updates to the LLA Land Use Mandate
HB 1389 also:
Expanded eligibility to land owned by counties, cities, and school districts - which is great for public land advocacy
Prohibits localities from restricting eligible height via setbacks/stepbacks, or requiring setback/setbacks that are more restrictive than the minimum permitted in the proposed development
Clarifies that farm operations are not considered commercial or industrial uses for eligibility
Exempts open space districts, areas of critical state concern, and conservation easements
Changes to the Multifamily Middle Market (MMM) Tax Exemption Opt-Out
The bill tightens the criteria for when a taxing authority can opt out of the Live Local 80–120% AMI property tax exemption.
Currently, jurisdictions can opt out if the most recently published annual report from the Shimberg Center for Housing Studies shows a surplus of affordable units for households earning up to 120% AMI.
HB 1389 raises the bar: a jurisdiction must now show a surplus for three consecutive years before being able to opt out.
It also allows property owners to claim the exemption earlier in the development process if a taxing authority opts out in the future. Properties with a building permit on or after July 1, 2026, within 4 years before the effective date of an opt-out ordinance or resolution may apply for and receive the exemption regardless of the opt-out. This will likely solve some underwriting concerns lenders have had on the opt-out.
Updates to the Florida Fair Housing Act
HB 1389 makes two key clarifications:
1. Sovereign Immunity Waiver
The bill clarifies that sovereign immunity is waived when a governmental entity violates the Florida Fair Housing Act, responding to a recent court ruling that questioned whether the statute clearly waived immunity.
2. Prohibited discrimination against affordable housing
The bill also clarifies that local governments may not discriminate against affordable housing in land use decisions. Since 2000, Florida law has prohibited discrimination based on a project’s source of financing (such as Low Income Housing Tax Credits). HB 1389 reinforces that affordable housing developments must be treated the same as market-rate housing in land use decisions.
Additional Provisions
And finally, the bill also:
Clarifies that local governments may provide density bonuses for military family housing when land is donated for affordable housing
Directs OPPAGA to study the potential of mezzanine financing to stimulate construction of affordable owner-occupied housing
Directs OPPAGA to evaluate the potential of tiny homes to help address housing needs in Florida
Bringing Session to a Close
After Session ends, we’ll host a 60-minute webinar covering the housing policies that passed during the 2026 Legislative Session. I’ll also be writing about several of these bills in more detail over the next few weeks.
If you have questions about how these policies may affect your work, feel free to reach out anytime at glazer@flhousing.org.