In a move that had nothing to do with the Christmas rush, and everything to do with a state deadline with enormous fiscal repercussions, the Deltona City Commission has passed measures dealing with future affordable housing and commercial development.
In a special called meeting, the commission convened Dec. 23 to take final action on regulations pertaining to the development of multifamily dwellings. For example, new apartment buildings will be required to include ground-floor space for businesses.
“The first floor of each multiple family dwelling building shall be nonresidential and all floors must be built out in one phase,” reads a newly enacted regulation. “The nonresidential use shall have a certificate of occupancy before the residential use is given a certificate of occupancy.
“At least two uses are required in each multi-family building, both residential and commercial or class-A office,” the document states further. “Home-based businesses or institutional uses are not appropriate second uses. ‘HIGH END COMMERCIAL’ means specialty retail stores focusing on certain categories of goods. ‘CLASS-A-OFFICE’ means premier office space with high quality finishes, amenities, and technology systems.”
Put simply, the commercial element is a prerequisite for residential uses.
Since the Live Local Act was passed by the Florida Legislature in 2023, critics — including many local officials — have complained that developers could build housing projects deemed affordable on land zoned for commercial or industrial uses and activities and claim exemptions from ad valorem taxes for as long as 30 years. Such a policy, the locals say, would cost their cities or counties tens of millions of dollars over long periods, while the local governments would be required to provide essential public services for the new settlers.
On a related note, the City Commission adopted a resolution limiting the local-tax exemptions for dwellings inhabited by low-income residents who fall below a certain maximum amount allowed by the state. The resolution limits the income of the affected households to 80 percent or less of the median household income for Volusia County, rather than the 120 percent set by the state, and in localities where there is a surplus of dwellings classified as affordable housing. The state uses the Shimberg Center for Housing Studies, a University of Florida think tank and information-gathering agency, to aid in setting policies on safe and affordable housing within the state.
The U.S. Census Bureau put Volusia County’s median household income in 2023 — the most recent year for which such statistics are available — at $67,176. Unless the commission had voted not to opt out of the 120-percent limit on income, Deltona would likely have to classify a higher number of dwellings for income for rental properties deemed affordable for persons or families whose median annual household income is. Thus, the 80-percent threshold for median family income becomes $53,740 per year.
The 120-percent figure would put low-income households at $80,611 per year.
Had the commission not passed the resolution, Deltona would have to exempt from taxation rental units where the higher-income tenants make their homes.
The commission unanimously adopted the measures. The meeting lasted less than 15 minutes.