Pasco County threatens legal action over ‘unconstitutional’ affordable housing tax exemption
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TAMPA, Fla. (WFLA) — Pasco County officials are prepared to take two properties to court if they seek tax exemptions under Florida’s Live Local Act, a 2023 workforce housing bill.
Chief Assistant County Attorney David Goldstein sent letters to the companies on Wednesday, urging them not to apply for the tax break and to withdraw existing applications. The letters cited the potential for missed tax revenue impacting public services and cast doubts on how affordable the housing units actually are.
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Back in December, the county attorney’s office was given permission to file a declaratory judgement against “any entity seeking to invoke the Live Local Property Tax Exemption,” the letter stated. If the companies continue to pursue the tax break, Pasco County threatens to file a complaint seeking the judgement along with injunctive relief.
The county believes the Live Local Act is unconstitutional because the affordable housing tax break is intended for a “limited class of entities” that aren’t nonprofit organizations “engaging in an act of charity,” and does not grant similar exemptions to “entities that are helping to address Pasco County’s deficit for affordable housing.”
Officials estimated the county would lose out on $38 million over a 35-year period if the properties are granted exemptions. Pasco County collected $371,170,859 in property tax revenue in the 2022-2023 fiscal year, according to budget records. The county is projected to spend $195 million more than it takes in this year.
A Pasco County news release stated that officials approved “a significant number of new apartment complexes that could be eligible for the tax exemption” and claimed the potential $38 million loss “is just the beginning” of the consequences that could come from the Live Local Act. The county believes this “significant loss of revenue” will affect its ability to provide essential public services and will impact funding for first responders and schools.
The two properties in question have ties to out-of-state investment groups. Passco, the parent company of Passco Cypress DST, which operates the Tapestry Cypress Creek development in Land O’Lakes, manages $3.9 billion in assets across 15 states, according to its website. One and two bedroom apartments at Tapestry Cypress Creek are listed for around $1,600 and $2,200 per month, respectively.
Trinity Odessa Apartments LLC is part of the Richman Group, which touts the seventh largest retail apartment portfolio on its website. “Luxury” apartments in the Gallery at Trinity property are priced similarly to the Land O’Lakes development, depending on the floor plan.
The county claims the listed rental prices are not affordable and exceed guidance suggested by the Florida Housing Finance Corporation, which uses figures from the U.S. Department of Housing and Urban Development (HUD) to determine how much a renter can afford based on how their income measures up to the area’s median income.
“The Live Local Act, as presently drafted, does not focus on the development of new housing affordable to Pasco County sheriff’s deputies, firefighters and schoolteachers,” a county news release stated.
Gov. Ron DeSantis touted the bill’s impact on housing for Florida’s public workers when he signed it into law last year. The Hometown Heroes Program, which helps fund housing for law enforcement, firefighters, educators, healthcare professionals, childcare employees and active military or veterans, is separate from the property tax breaks laid out in the Live Local Act.
A spokesperson for the Richman Group confirmed that the company received a letter from Pasco County and is reviewing it. California-based Passco did not immediately respond to a request for comment.
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