Item Coversheet

New Business and Commission Requests - R9  L




COMMISSION MEMORANDUM

TO:Honorable Mayor and Members of the City Commission 
FROM:Commissioner Alex Fernandez 
DATE:July  20, 2022
 



SUBJECT:DISCUSS THE HOUSING AFFORDABILITY CRISIS IN MIAMI BEACH WITHIN THE RENTAL MARKET, WELCOMING INPUT FROM THE PUBLIC AND THE PRIVATE MARKET ON HOW TO IMPROVE HOUSING AFFORDABILITY FOR TENANTS IN MIAMI BEACH, AND TAKE POTENTIAL ACTION ON OPTIONS THAT MAY BE AVAILABLE TO THE CITY.

ANALYSIS

During a visit to Miami on June 28, 2022, the US Secretary of Housing and Urban Development declared our area as the epicenter of the housing crisis. Secretary Fudge explained that the onerous of addressing the housing crisis was in the hands of the local government stating that, "This state has hundreds of millions of dollars, hundreds of millions, this city's hundreds of millions of dollars. It is a matter of your determining what your priorities are. There is only so much money the federal government has, and we have given through the rescue package, the emergency rental assistance, incentives to landlords, we have done everything we can to at this time." 

 

Given the struggles our residents are facing, I would like for the City Commission to discuss the housing affordability crisis, specifically within the rental market. I would like to encourage input from the public and from the industry on how to improve the availability of reasonably priced housing that is affordable to our tenants in Miami Beach. It should be noted that rent-control has been considered by other local governments in the State of Florida and, notwithstanding the crisis that is affect the lives of our residents, it has not been recommended as a viable solution, due to in part the limitations on local governments imposed by the State. For example, the Orlando Sentinel reported that Orange County requested a study to determine whether a housing emergency existed, which would be necessary in order to seek voter approval for a one-year rent control measure. The study determined that:

·       “While conditions create a housing crisis, the problem should be distinguished from an emergency, which is sudden and unexpected.”

·       To the degree the crisis is caused by rising costs, these will be virtually impossible to control within the legally allowed timeframe (of one year).”

·       Meeting the burden of proof to defend a legal challenge would be difficult.

 

Government alone cannot solve a market-driven housing crisis as sustainable solutions must involve industry participation. In advance of the June 20, 2022, meeting of the Miami Beach City Commission, I welcome any policy recommendations that should be discussed to prevent the further displacement of tenants and to promote the availability of reasonably priced housing that is affordable to our residents. I encourage the public and the industry to email me any such policy recommendations; my email address is alex@miamibeachfl.gov.

 

Thank you. 

SUPPORTING SURVEY DATA

n/a

FINANCIAL INFORMATION

n/a

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 

Strategic Connection

Non-Applicable
Legislative Tracking
Commissioner Alex Fernandez