At the request of Commissioner Mark Samuelian, the above discussion item has been placed on the October 13, 2021 City Commission meeting agenda as a referral to the Land Use and Sustainability Committee.

Pacaso, a tech startup based in San Francisco, recently announced that it is expanding into the South Florida real estate market. Pacaso’s business model is to facilitate fractional ownership in single-family vacation homes. Investors can purchase as little as a one-eighth (1/8) interest in each home. According to the attached article published in The Real Deal, “[t]hrough a network of local real estate agents, Pacaso helps investors set up limited liability companies for joint ownership, and collects fees from the buyers to manage, maintain, and facilitate access to the home . . . .”

On its website, Pacaso states that properties may be “used only by owners and registered guests,” and “no rentals [are] allowed.” (Source: https://www.pacaso.com/blog/what-is-short-term-rental). City Code Section 142-905 prohibits the lease of single-family homes for periods of time less than six months and one day (i.e. on a “short-term” basis). The City’s short-term rental prohibition applies to single-family homes regardless of ownership (e.g., whether owned by a single owner or multiple owners).

The purpose of this discussion is to examine how the City’s Land Development Regulations (“LDRs”) would apply to this new business model, and whether any new amendments to the LDRs would be necessary to address potential impacts to residents’ quality of life.

Please do not hesitate to contact me if you have any questions.