Florida's HB 399 Creates New Tools To Move Real Estate Projects Forward

Highlights

• Beginning January 1, 2027, Florida's House Bill (HB) 399 limits the power of local government to set development permit and development order application fees. Fees must reflect the direct and reasonable indirect costs of review, appear in the local government's fee schedule and may not be based on construction costs or project valuation.
• The new legislation also requires local governments to identify specific incompatibilities before recommending denial, not rely solely on "community character," and make written findings that proposed mitigation is inadequate and that no feasible mitigation exists.
• HB 399 also provides approval protections for qualifying destination resorts, compost facilities, manufactured buildings and off-site constructed homes.

Florida House Bill (HB) 399 (the Bill) provides that application fees for development permits or development orders must reasonably relate to the costs of reviewing the application starting January 1, 2027. The fees must also be published on the local government's fee schedule. Local governments may not base these fees on a percentage of construction costs, site costs or project valuation.

This is a significant change for larger projects. If a local government charges a fee that increases simply because the project is larger or more expensive, developers may have a statutory basis to challenge that fee. Developers should review local fee schedules early, especially for applications expected to be filed after January 1, 2027. HB 399 also addresses another common pressure point in the approval process: compatibility-based objections to residential development.

New Standards for Residential Compatibility Denials

HB 399 requires an objective assessment of residential compatibility issues. Local comprehensive plans and land development regulations must include factors for evaluating the compatibility of allowable residential uses within a residential zoning district and future land use category. Local land development regulations must also include measures to reduce or mitigate potential incompatibility.

Before staff can recommend denial of a rezoning, subdivision or site plan application on compatibility grounds, they must identify the specific areas of incompatibility. If the applicant proposes mitigation, the local government may not deny the application on compatibility grounds unless it makes written findings that the mitigation is inadequate and that no feasible mitigation exists. General references to "community character" or "neighborhood feel" are not enough by themselves to support a denial.

For developers, the point is simple: Subjective statements are no longer sufficient for a staff report. Applicants should work with experienced counsel to identify likely concerns and propose specific mitigation measures before staff make a recommendation. A well-developed mitigation record may make it harder for staff to support a denial based on vague or unsupported objections.

At the same time, these new protections are not unlimited. They do not apply to compatibility disputes involving different future land use categories, planned unit developments, master-planned communities or historic districts designated before January 1, 2026. Additionally, they do not override the baseline requirement that a project be consistent with the applicable comprehensive plan and land development regulations.

Other Targeted Developer Benefits

HB 399 includes narrow provisions that may help specific types of properties and projects. For qualifying large destination resorts,¹ the Bill mandates administrative approval of certain minor special exceptions or variances for maintenance, modification, or refurbishment of existing structures or sites. For compost-processing facilities, the Bill limits certain local approval conditions and restricts revocation of existing permits when the facility is regulated under and complies with applicable statewide or regional programs.

HB 399 also extends that targeted relief to manufactured and off-site constructed housing. Certified residential manufactured buildings may not be denied building permits for placement in specified parks and communities, subject to applicable requirements. The Bill also requires off-site constructed residential dwellings to be allowed as of right wherever single-family detached homes are permitted and prohibits local governments from regulating them more restrictively than comparable site-built homes.

What Developers Can Do Now

Developers should review active and planned projects to see where HB 399 may help. For projects moving forward after January 1, 2027, that review should include local fee schedules, possible compatibility issues and opportunities to strengthen the application record. Developers using off-site construction or pursuing specialized project types should also evaluate whether the Bill creates a faster or clearer approval path. Taken together, these changes give developers new statutory tools to manage fee exposure, respond to compatibility objections and pursue clearer approval pathways for qualifying projects.

Footnote

1. "Large destination resort means a public lodging establishment as defined in s. 509.013 that is comprised of at least 5 contiguous acres owned and controlled by the same business entity, containing at least 500 guest rooms, and that has had an average occupancy rate of at least 70 percent in the past 3 years." HB 399.