Conversion of Hotels into Residential Housing:
HB 685 creates a new state tax incentive program to encourage the conversion of existing hotels into residential housing. The bill defines a “qualified project” as a redevelopment of a structure originally built as a hotel into housing, and it authorizes a corporate income tax credit of up to 9% of the total cost of a designated project each year for five years, limited to the amount necessary to make the project feasible. The credit would be allocated by the Florida Housing Finance Corporation under a new Hotel-to-home Tax Credit Program, with the Department of Revenue responsible for adopting implementing rules.
The bill also establishes an application and approval process. Developers or taxpayers seeking the credit must apply to the Florida Housing Finance Corporation and provide information showing the project qualifies. The corporation must create allocation procedures, prepare an annual plan subject to gubernatorial approval, and consider factors such as housing need, project location, feasibility, timeliness, and how quickly the converted units will be occupied. Approved credits may be transferred once by the recipient. The act would take effect July 1, 2025.
HB 685 would add new sections to Florida Statutes, including a new corporate income tax credit provision in chapter 220 and a new program section in chapter 420. It would give the Florida Housing Finance Corporation authority to administer and allocate credits for hotel-to-residential conversions, while requiring the Department of Revenue to adopt rules for credit administration. The bill would affect developers, hotel owners, housing finance stakeholders, and taxpayers eligible for corporate income tax credits, and it would create a new state incentive aimed at increasing housing supply through adaptive reuse of hotel properties.
The available record suggests the bill was generally framed as a housing-supply and redevelopment measure rather than a controversial regulatory change. Because there are no committee transcripts or recorded votes in the provided materials, there is no direct evidence of debate or bipartisan support in the record here. Its ultimate status—died in the Ways & Means Committee—indicates it did not advance, but the reason for that outcome is not stated in the materials provided.
The main policy tension likely concerns the cost and effectiveness of using tax credits to subsidize private redevelopment projects versus other housing strategies. The bill’s design leaves significant discretion to the Florida Housing Finance Corporation and requires gubernatorial approval of the annual allocation plan, which could raise questions about administrative control, project selection, and fairness. Potential points of contention also include whether hotel conversions are the best use of state incentives, how to measure housing need and feasibility, and whether the credit amount is sufficient or overly generous. No specific objections or supporters are identified in the provided record.