Cymbal DLT in the News

Cymbal DLT Cos. has shifted an apartment complex it has nearly completed in Miami Gardens into 100% workforce housing to take advantage of the tax breaks of Florida’s new Live Local Act.

Passed by the Florida Legislature and Governor Ron DeSantis this year, the Live Local Act has drawn much attention for its $700 million boost in affordable housing funds and how it grants developers the ability to bypass municipal zoning rules to increase density for workforce housing. However, there are also tax saving benefits to spur more workforce housing.

In a new building – constructed within five years – the owner can receive a 75% property tax break for units dedicated to renters earning up to 120% of area median income. That property tax break would be 100% for units rented to people making up to 80% of area median income. Of course, the rents must be affordable for people at those income levels. A project needs a minimum of 71 units of affordable or workforce housing, or 40% of the entire project, to qualify.

Apartments with agreement from the Florida Housing Finance Corp. – the main funder of affordable housing in the state – are not eligible.

Cymbal DLT Cos. broke ground on the 341-unit Laguna Gardens in 2022 – well before the law was signed – but Chairman Asi Cymbal realized the project could benefit from the Live Local Act’s tax breaks. He decided to make all of the units workforce housing for people earning up to 120% of AMI. That will reduce rents 10% to 20%, so a one-bedroom unit would start at $2,000 and a three-bedroom unit would start at $3,000.

The building should also qualify for a 70% property tax break, Cymbal said.

“In South Florida we pay big real estate taxes, so having a 70% discount is a lot of savings,” he said. “Live Local gives us a boost and it gives our residents a discount.”

Cymbal said Laguna Gardens will have the same high-quality finishes and amenities as he originally planned. The building at 20775 N.W. 17th Ave. should open in early 2024 and pre-leasing has already started.

“The Live Local Act is the most significant land use policy change to take effect in Florida in decades,” stated Bilzin Sumberg partner Anthony De Yurre. “Laguna Gardens is a textbook example of how developers can unlock the benefits of the Live Local Act by adjusting their rental rates at existing or newly-built properties, as well as upcoming developments.”

Cymbal said he’s considering applying the Live Local Act to the Oasis Pointe apartment complex his company completed in Dania Beach. He may also include some workforce housing in his Nautica high-rise apartment towers in downtown Fort Lauderdale. He needs to determine whether the benefits of a property tax reduction is worth dropping the rent.

“If you are taking a $4,500-a-month unit and making that $2,500, that doesn’t make sense,” Cymbal said. “But if you can discount units 10% to 20% below market then it probably makes sense with the property tax incentives.”