January 5, 2026
It’s the time of the season to look towards 2026 and wonder what lies on the horizon for the homebuilding industry. One thing that catches the eye: Federal legislation may pave the way for increasing the housing stock by reducing requirements, and Hillsborough County is pushing back on the State of Florida’s Live Local Act that has many similarities to the Federal law in discussion.
On Dec. 17, a Congressional committee approved the Housing for the 21st Century Act. Proponents say it forecasts a more successful 2026 for the industry because it will change land use and zoning guidelines and lead to more workforce housing.
On that same day, the Hillsborough County Commission moved to challenge Florida’s Live Local Act in court. According to the Tampa Bay Business Journal, Hillsborough County will challenge the constitutionality of Live Local, a Florida state law that seeks to remove local restrictions and approval processes for developers seeking to build affordable housing on sites zoned for industrial or commercial use. The board voted unanimously to pursue legal action with both Republicans and Democrats supporting the move.
County Commissioner Harry Cohen called on the commission to show bipartisan support in fighting the 2023 law. The County has been at odds with the Live Local Act from the beginning.
“(We’re) essentially making decisions with a gun against our temple,” Cohen said, adding that at some point, the community will say "enough is enough.”
The Florida Legislature amended the Live Local Act after local communities objected to some provisions. Still, disenchantment remains. As part of its vote, Hillsborough commissioners empowered the county attorney’s office to allow other jurisdictions to co-join and support the lawsuit.
Meanwhile, though, bipartisan support is also backing federal legislation that in many ways parallels Florida’s Live Local Act. Combined with similar legislation passed by the U.S. Senate earlier in 2025, the proposal aims to stimulate construction of needed housing across the nation. Specifically, it will look to revamp land use and zoning, regulatory reforms, and financing tools. It also seeks to spark rural and multifamily housing.
According to the National Association of Home Builders, the Housing for the 21st Century Act would:
- Direct the Department of Housing and Urban Development to develop best practices with key stakeholders, such as home builders and developers, to provide state and local governments with an array of options to increase housing production.
- Remove regulatory burdens for infill and mid-sized construction and eliminate time-consuming duplicative review processes under the National Environmental Policy Act.
- Provide reforms to the HOME Investment Partnerships Program that will help lower construction costs by allowing builders to source materials from any vendor that provides the best product and pricing.
- Raise multifamily loan limits and index them to the Price Deflator Index of Multifamily Construction. This will better reflect the actual cost of construction and help stimulate new apartment construction by making these loans more financially feasible to use.
Of course, it remains to be seen how this new federal legislation, if the House and Senate turn it into law, might impact the Live Local Act. Hillsborough County’s objections to Live Local could turn into one of the biggest stories of the next 12 months. For developers and the building communities, it’s clearly something we will keep a close eye on.