Affordable Housing in Florida: What Changes with HB 1389

Florida Governor Ron DeSantis signed a key reform to ease the construction of affordable housing in the state. Law HB 1389 took effect in July 2026 as an update to the Live Local Act. This change seeks to expand housing supply amid a cost crisis affecting thousands of families.

The general principle of the regulation requires local governments to authorize certain residential developments. These projects can be multifamily or mixed-use, located in commercial, industrial, or mixed-use zones. The condition is that at least 40% of the units be accessible to households with specific income levels.

That income range falls between 80% to 120% of the area’s median income, known as AMI. This measure seeks to ensure that working families can access housing near their jobs. For many Hispanic households in Florida, this could mean a real difference in their monthly savings capacity.

Less Power for Local Municipalities

The law also limits municipalities’ ability to impose certain zoning restrictions. They will no longer be able to block projects with housing density using excessive height or setback rules. This reduces the margin cities previously had to block housing developments.

Additionally, the regulation expands eligible land for this type of construction. It now includes public land and religious properties within available options. This opens the door to residential use of underutilized parcels near jobs and public transportation.

The official summary from the Florida Senate is clear about the scope of this requirement. HB 1389 requires counties and municipalities to authorize certain affordable housing developments under specific conditions. It also prohibits discrimination in land use or permits based on the project’s financing type.

Why This Law Matters for Hispanic Families

Florida faces a tension that many Hispanic communities know well. The population grows, rents rise, and home insurance becomes increasingly expensive. Many working families end up priced out of the areas where they live, work, or study.

The reform seeks to address this crisis with greater housing supply available. It also aims to reduce local discretion and offer greater predictability for real estate developers. The state government’s bet is simple: fewer local barriers should translate into more units built.

For the real estate sector, the law offers a clearer and more predictable framework. For local governments, meanwhile, it means less margin to block or delay zoning projects. That is the central tension behind this state reform.

The Dispute Between Tallahassee and the Cities

From Tallahassee, the state government wants to accelerate housing construction throughout the state. However, some cities defend their control over the approval criteria for real estate developments. Height, density, and urban design are sensitive points for many counties.

These elements determine how each community transforms at the urban and social level. That is why some municipalities have expressed resistance to the loss of autonomy in these decisions. The debate reflects a broader tension over who controls urban growth in Florida.

The law also includes specific incentives linked to housing for military families. These families often face particular challenges when relocating between states due to job assignments. The regulation recognizes this need and seeks to facilitate their access to affordable housing.

Additional Tools to Expand Access

The reform also orders evaluation of new financial tools to complement housing supply. Among them is mezzanine financing, an intermediate credit option little known to the general public. The use of tiny homes as a response to urgent housing needs is also being explored.

These alternatives could open new opportunities for Hispanic households seeking more economical options. However, their implementation will depend on how each county decides to apply the new provisions. The real impact will become clearer in the coming months.

In a state where the cost of living became a central political issue, this law marks a clear bet. DeSantis believes that fewer local barriers will translate into more available units. The ultimate goal is to achieve less suffocating prices for Florida’s working families.

For the Hispanic community, which represents a significant part of the state’s workforce, this reform could have a direct effect. More housing supply near employment and transportation zones could ease the financial pressure on thousands of households. Monitoring how this law is applied in each county will be key in the coming months.