Item Coversheet


City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov

 Item 10.
COMMITTEE MEMORANDUM

TO: Land Use and Sustainability Committee

FROM: Alina T. Hudak, City Manager

DATE: October 19, 2021
TITLE:DISCUSSION REGARDING PRESERVATION OPTIONS FOR EXISTING SINGLE FAMILY HOMES IN MIAMI BEACH

HISTORY:

HISTORY
On September 17, 2021, at the request of Commissioner Michael Gongora, the City Commission referred a discussion item regarding preservation options for existing single-family homes in Miami Beach to the Land Use and Sustainability Committee (C4 H), as amended to remove any consideration of involuntary designation. A companion item regarding a discussion of the demolition of the homes at 5800 North Bay Road and 93 Palm Avenue (R9 AD) was included in the referral as background material.

BACKGROUND
On April 10, 2002, the City Commission adopted an Ordinance amending the single-family home development regulations, providing incentives for property owners to retain and rehabilitate, rather that demolish, architecturally significant single-family homes constructed prior to 1942. This ordinance established criteria for the Planning Director or designee to determine whether a single-family home constructed before 1942 is architecturally significant and provided a clearly defined process for replacement homes where full demolition was proposed, and included the creation of a Single-Family Residential Review Panel (SFRRP). The panel’s authority was later replaced by the Design Review Board (DRB).

On June 11, 2003, the City Commission adopted revisions to the Land Development regulations of the City Code, amending Chapter 118, Article X, "Historic Preservation," Division 4, "Designation," to establish requirements and procedures specific to the individual, voluntary designation of single-family homes. Specifically, this Ordinance was intended to reduce the burden and expense on an individual property owner who desired to historically designate a qualifying single-family home. This simplification has enabled the Historic Preservation Board (HPB) to designate single family homes historic in one public hearing with no application fee for the homeowner. This amendment to the City Code has resulted in 31 single family homes being voluntarily designated by their owners since 2003.

To further incentivize the preservation and renovation of historic single-family homes, on December 8, 2004, the City enacted legislation authorizing an exemption for its portion of ad valorem taxes for improvements to historically designated homes. This legislation allows for the City’s portion of property taxes to be “frozen” at the rate they were assessed prior to improvements, including the construction of new additions, for a period of ten years.

On December 8, 2004, the City Commission adopted additional amendments to the single-family development regulations pertaining to demolition procedures for non-historically designated architecturally significant pre-1942 homes. Specifically, the Ordinance was modified to require DRB review for all new construction proposed to replace an architecturally significant pre-1942 proposed for total demolition.

In 2007 and in 2014, the City Commission adopted separate Ordinances providing incentives to property owners choosing to retain and add onto architecturally significant homes constructed prior to 1966, rather than demolish the structures. The incentives include expanded authority of staff to review and approve new additions, increases in allowable lot coverage, increases in allowable unit size and the ability to retain non-conforming setbacks of at least 5’-0” for additions.

ANALYSIS:

PLANNING ANALYSIS
As noted in the background section of this memo, over the past nearly two decades, the City has adopted legislation aimed at ensuring context sensitive and compatible development within single family residential districts. In recognition of the City’s large inventory of architecturally significant single-family homes, incentives have been created to encourage both the retention of architectural significant homes and the voluntary historic designation of such homes.

The Administration believes that the DRB review of new construction where architecturally significant homes are proposed to be replaced has been successful in ensuring the appropriate integration of new construction within the established scale, character, and context of existing single-family residential neighborhoods. As a result, the City has seen a remarkable improvement in the quality, and design of new replacement construction, as well as additions to existing architecturally significant pre-1942 single family homes.

Moving forward, a number of issues are likely going to continue to impact the ability and desire of single-family property owners to renovate existing homes to meet modern living standards; these include:

• Adaptation of existing homes to address future sea level rise.
• High land values combined with lower building values for older homes.
• Building Code requirements triggered when renovation exceeds 50% of the depreciated building value including FEMA mandated minimum finish floor elevation requirements.
• Ability to obtain flood insurance.
• Structural conditions of some older homes.

There are several potential options that could be explored to further encourage the retention of historically and architecturally significant homes, or portions of these homes. These include the following:

Additional Development incentives
While the current development incentives for projects that include the retention of architecturally significant homes are generous, the introduction of additional development incentives could be explored. Possible options include the allowance of additional square footage, lot coverage and an increase in allowable height.

Expanded Financial Incentives
While the existing ad valorem tax exemption for improvements to historically designated homes is the maximum permitted by State law, the City could explore the introduction of non-ad valorem financial incentives. This may include allocation of resources from the City’s resiliency fund for projects that include the retention and adaptation of architecturally significant homes. Another possible option could be the allowance of limited income producing components for properties containing an architecturally significant homes such as the introduction of a rent producing accessory dwelling unit.

Re-introduction of Disincentives
Prior to 2014, the single-family development regulations contained reduced unit and lot coverage maximums for new homes that replaced architecturally significant homes. A limited re-introduction of some disincentives for projects proposing to demolish an architecturally significant home could be explored. Possible options include the creation of a fee for total demolition, as well as a slight reduction in development rights including allowable unit size, square footage and/or height for proposed replacement construction.

SUMMARY
The Administration believes that the current process for DRB review of replacement homes is the best option for ensuring that new single-family construction appropriately responds to the established scale, character and context of individual neighborhoods. Additionally, while additional incentives can be explored, it is not likely that they would result in the retention of a large number of single family homes.

CONCLUSION:

In view of the foregoing, the Administration recommends that the LUSC discuss and conclude the item with no further action.

Applicable Area

Citywide
Is this a "Residents Right to Know" item, pursuant to City Code Section 2-14? Does this item utilize G.O. Bond Funds?
Yes No 

Departments

Planning
ATTACHMENTS:
DescriptionType
Backup - R9ADMemo