Item Coversheet

NEW BUSINESS  14.

COMMITTEE MEMORANDUM

TO: Neighborhood and Quality of Life Committee Members


FROM:
Jimmy L. Morales, City Manager


DATE: February 3, 2020


SUBJECT:DISCUSSION REGARDING HOW TO CREATE MORE AFFORDABLE HOUSING IN MIAMI BEACH.

HISTORY:

The Mayor and Commission referred this item to the Neighborhood and Quality of Life Committee at its January 15, 2020 meeting. Commissioner Michael Gongora is the item sponsor.


ANALYSIS

The critical shortage of affordable housing in our community has resulted in more than half of our residents being cost burdened. The resident workforce risks leaving the city in search of affordable housing, and new employees are being deterred by the high cost of living.

 

Increasing affordable housing options is a key element of the 2019 Strategic Plan: Through the Lens of Resilience and its importance is echoed in the Greater Miami and the Beaches Resilient 305 strategy as Objective 5, Action 18. Prioritizing Workforce Housing is listed as a Guiding Principle in the city’s 2040 Comprehensive Plan. Furthermore, the Housing Element in the 2040 Comprehensive Plan sets the objective to “Have available a minimum of 6,800 housing units of workforce, affordable low- and moderate- income households and special need populations during the period through 2030.” There are approximately 2,450 affordable housing units in the city. The Housing Authority of Miami Beach provides 3,400 housing vouchers, however only 30% of those are used within the city.

 

Bellow is a summary of the changes that have been made to encourage the development affordable and workforce housing:

  • Ordinance 2017-4148 (Affordable Housing)
    • Reduced minimum and average unit size to 400 square feet across all zoning districts within the City where multifamily residential units are allowed.
    • Reduced parking requirements from:
      • 0.5 to 0 for elderly housing
      • 1 to 0.5 for low and/or moderate income non-elderly persons
      • No additional parking requirements for development of additional affordable housing units on an existing building and new construction.
  • Ordinance 2017-4149 (Workforce Housing)
    • Reduced minimum and average unit size to 400 square feet across all zoning districts within the City where multifamily residential units are allowed.
    • Reduced parking requirements from 1 to 0.5
    • When an existing building is renovated and the number of units is increased, or when units are added on a lot with an existing building that is retained and renovated, there is no parking requirement for the newly constructed units

 

2040 Comprehensive Plan – Housing Element Policy 1.1.6

The Planning Department, which includes zoning review, will continue to streamline the housing approval and permitting process in coordination with the Building Department through the expedited processing of permits for affordable and workforce housing projects. This incentive gives priority to designated affordable housing projects when scheduling Pre-Design Conferences with all relevant agencies.

 

Town Center-Central Core District

On November 14, 2018, the City Commission adopted ordinance 2018-4224, establishing the Town Center – Central Core (TC-C) zoning district.  Pursuant to the recommendations of the North Beach Master Plan, the ordinance allowed for co-living units, which may also be known as a micro-unit.

 

Accessory Dwelling Units (ADU) (Ordinance 2019-4304 & 2019-4305)

Ordinance allows for the following:

1. ADU’s be allowed in all single-family neighborhoods.

2. The rental of ADU’s be limited to homesteaded or owner-occupied properties.

3. The rental of ADU’s for over six months and one day.

 

Additional Affordable Housing Strategies

The City of Miami’s Master Plan unveils their plan to create a bank to finance affordable housing construction and renovations. The City of Miami is providing an initial contribution of $85 million set aside from voter-approved bonds. Other strategies to explore include:

 

  • Rent regulation: Oregon has capped rent increase to 7% plus inflation

  • Inclusionary zoning: incentivize developers to designate a certain percentage of the units in a given project as affordable, usually with density bonuses

  • Acquiring tax delinquent properties and rehabilitating them for use as affordable and workforce housing

  • “Green Tape Program” speeds up the process of permits for developers who dedicate a percentage of units to affordable housing

  • Renters tax credit: would give taxpayers a credit worth any amount in rent that they pay over 30 percent of their income

  • Eliminate single-family zoning: allows for greater density and loose height restrictions, if developers agree to either build affordable housing or pay into a affordable housing fund.

  • Residential hotels that promote flexibility of use to serve the market

  • Cap property tax increases for affordable housing

  • Affordable housing fund:

    • Vacancy tax: one percent of the annual assessed value of a property deemed “vacant.”

    • Tax increment financing dedicates tax increments within a certain defined district to finance the debt that is used to pay the project.

    • Local hospital investment

CONCLUSION:

Although the city has made efforts towards incentivizing and encouraging development of affordable housing, no additional affordable housing units have been added to the affordable housing inventory since the inception of these changes. There are major limitations to developing affordable housing in Miami Beach due to the high costs of construction and built-out nature of the city. Given land constraints, redevelopment is a more viable option for Miami Beach rather than new construction.

 

The strategies listed above should be analyzed further to determine their feasibility in Miami Beach.



Applicable Area

Citywide
Is this a Resident Right to Know item? Does this item utilize G.O. Bond Funds?
No No 

Strategic Connection

Mobility - Support affordable, compatible workforce housing.