In 1992, the Florida Legislature enacted the William E. Sadowski Affordable Housing Act, creating a dedicated source of revenue for housing from a portion of documentary stamp taxes on the transfer of real estate. The State Housing Initiatives Partnership (SHIP) program, which is administered by the Florida Housing Finance Corporation (FHFC), provides funds to local governments as an incentive to create partnerships that produce and preserve affordable homeownership and multifamily housing. The SHIP program operates under the governance of Chapter 420, part 7 F.S., and Rule Chapter 67-37 of the Florida Administrative Code. In 2007, the Florida Legislature passed House Bill 1375, requiring Cities and Counties that receive SHIP funds to appoint an Affordable Housing Advisory Committee (AHAC).

On May 14, 2008, the Mayor and City Commission adopted Ordinance No. 2008-3605 amending Chapter 2 of the Miami Beach City Code, to create the City’s "Affordable Housing Advisory Committee". On February 12, 2014, the Mayor and City Commission adopted Ordinance No. 2014-3841, expanding the purpose and duties of the Committee.

A population-based formula determines the City's SHIP allocation. The distribution of funds to eligible communities occurs quarterly into the local government Housing Trust Fund when documentary stamp revenues are collected. In FY 19/20, the City received a total of $78,057 in SHIP funding.

Following the 2020 session of the Florida Legislature, the Governor signed House Bill 1339 into law which, in pertinent part amended statutory requirements on SHIP annual reporting, Affordable Housing Advisory Committees (AHAC), the State Apartment Incentive Loan (SAIL) program, accessory dwelling units, and fees/ set-asides. In order to comply with existing requirements in Section 420.9076(2), Florida Statutes, the Administration recommends that the City Commission reduce the number of Committee members from 18 voting to 11 voting members.

AHAC is statutorily required to engage in certain specific activities. AHAC must: 1)  review established policies and procedures, ordinances, and land development regulations; 2) create exceptions applicable to affordable housing; 3) adopt new policies or amendments to the local comprehensive plan and local housing assistance plan of the appointing local government and recommend specific actions or initiatives to encourage or facilitate affordable housing.

Section 420.9076(2), F.S. stipulates that AHAC must have at least eight (8) members representing at least six (6) categories of experience identified in the statute. However, local governments may elect to have up to eleven (11) committee members. Currently, the ordinance authorizing AHAC states that the committee is comprised of 18 voting members. The Administration recommends reducing membership to 11 voting members, the maximum stipulated in the revised statute.One member of the Committee shall be the Mayor or a member of the City Commission, appointed at-large by a majority vote of the Mayor and City Commission.

The remaining ten (10) members shall be appointed at-large by a majority vote of the Mayor and City Commission and must include members from at least six (6) of the following categories:

(a) Citizen who is actively engaged in the residential home building industry in connection with affordable housing;

(b) Citizen who is actively engaged in the banking or mortgage banking industry in connection with affordable housing;

(c) Citizen who is a representative of those areas of labor actively engaged in home building in connection with affordable housing;

(d) Citizen who is actively engaged as an advocate for low-income persons in connection with affordable housing;

(e) Citizen who is actively engaged as a for-profit provider of affordable housing;

(f) Citizen who is actively engaged as a not-for-profit provider of affordable housing;

(g) Citizen who is actively engaged as a real estate professional in connection with affordable housing;

(h) Citizen who is actively serving on the local planning agency pursuant to Florida Statutes, Sec. 163.3174;

(i) Citizen who is residing within the jurisdiction of the local governing body making the appointments;

(j) Citizen who represents employers within the jurisdiction; and

(k) Citizen who represents essential services personnel, as defined in the local housing assistance plan.

House Bill 1339 requires that effective October 1, 2020, each AHAC contain one locally elected official from each County or Municipality. More so, the elected official’s participation is critical to the City’s allocation and program compliance. The local elected official or elected designee must attend biannual regional workshops convened and administered under the Affordable Housing Catalyst Program. If the locally elected official or designee fails to attend three (3) consecutive regional workshops, the corporation may withhold funds pending the person's attendance at the next regularly scheduled biannual meeting.

Additionally, House Bill 1339 amends reporting requirements and   replaces the triennial report with an annual report. At a minimum,  this report,  which is compiled in conjunction with the City’s AHAC and approved by the City Commission, is subsequently submitted to FHFC,   and includes recommendations on the implementation of affordable housing incentives in our community.

The changes incorporated by House Bill 1339 must be implemented by the City by October 1, 2020 in order to remain complaint. The City’s report must reflect that these changes were adopted by the City Commission and accepted by FHFC by December 30, 2020. These changes must also be reflected in the  City's Local Housing Assistance Plan.