Item Coversheet

Ordinances - R5  E




COMMISSION MEMORANDUM

TO:Honorable Mayor and Members of the City Commission 
FROM:Alina T. Hudak, City Manager 
DATE:March  27, 2023
 

5:01 p.m. First Reading Public Hearing

SUBJECT:

WASHINGTON AVENUE OVERLAY - CO-LIVING AMENDMENTS

AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AMENDING THE CODE OF THE CITY OF MIAMI BEACH, SUBPART B, ENTITLED "LAND DEVELOPMENT REGULATIONS," BY AMENDING CHAPTER 142 OF THE CITY CODE, ENTITLED "ZONING DISTRICTS AND REGULATIONS," ARTICLE 11, ENTITLED "DISTRICT REGULATIONS," DIVISION 5, ENTITLED "CD-2 COMMERCIAL, MEDIUM INTENSITY DISTRICT," BY AMENDING SECTION 142-309, ENTITLED "WASHINGTON AVENUE DEVELOPMENT REGULATIONS AND AREA REQUIREMENTS," TO EXTEND THE TIME TO OBTAIN A BUILDING PERMIT FOR CO-LIVING OR MICRO RESIDENTIAL UNITS, ADOPT REGULATIONS FOR THE EAST SIDE OF WASHINGTON AVENUE WITHIN THE OVERLAY, AND ADOPT RELATED AMENDMENTS TO EXISTING REGULATIONS; AND PROVIDING FOR CODIFICATION, REPEALER, SEVERABILITY, AND AN EFFECTIVE DATE.


RECOMMENDATION

The Administration recommends that the City Commission approve the subject Ordinance at First Reading and schedule a Second Reading Public Hearing for March 27, 2023.

BACKGROUND/HISTORY

On September 14, 2022, at the request of Commissioner Ricky Arriola, the City Commission referred a discussion item (C4 Z) to the Land Use and Sustainability Committee (the “LUSC”) pertaining to co-living regulations within the Washington Avenue overlay. On September 28, 2022, the LUSC recommended that an ordinance be referred to the Planning Board, with the following modifications:

1. A prohibition of Apartment Hotel, Hotel, Suite Hotel, and Hostels within developments that propose co-living and/or micro residential units.

2. An agreement, via covenant, to mandate that the minimum rental period of all co-living, micro and/or residential apartment unit shall be no less than three (3) months and one (1) day.

3. A minimum of 20 percent of all units shall be set aside for workforce housing, as defined in Chapter 58 of the City Code.

On October 26, 2022, the City Commission referred the proposed ordinance (C4 A), inclusive of the recommendations of the LUSC as noted above, to the Planning Board for review and recommendation.

On October 16, 2019, and July 29, 2020, the City adopted Ordinance No. 2019-4312 and Ordinance No. 2020-4346, respectively, which established and refined the current provisions for co-living and micro residential units on Washington Avenue. The Ordinances incentivized a new co-living project with an office component in the 1200 block of Washington Avenue, which is in the process of obtaining a building permit.

However, these Ordinances limited the co-living component to the west side of Washington Avenue and included a sunset provision for co-living and micro-unit residential projects. For reference, in this area, co-living and micro units are residential units where the minimum size may be 275 square feet, provided that a minimum of 20 percent of the gross floor area of the building consists of amenity space.

ANALYSIS

PLANNING ANALYSIS
The proposed ordinance would amend Section 142-309 of the Land Development Regulations (LDRs) of the City Code (Washington Avenue Overlay), to modify the regulations related to co-living and micro-unit development. Specifically, the ordinance extends the timeframe to obtain a building permit for co-living or micro-unit residential projects to September 1, 2027, from the current date of March 1, 2023.

Due to challenges faced with providing the required amenity space for co-living projects, the amendment provides that restaurants, bars, or cafes on the ground floor may now count toward the amenity space requirements but cannot exceed 50 percent of the total 20 percent of amenity space required. The amendment also provides that exterior windows for co-living, or micro units may now contain laminated windows, in addition to the existing option for double-pane glass.

The proposed Ordinance creates a “South Washington Avenue” area, between 6th Street and 15th Street, and a “North Washington Avenue” area, between 15th Street and 16th Street, for the purposes of creating distinct co-living regulations for each area.

The “South Washington Avenue” area is where the existing co-living regulations apply. Portions of the current Washington Avenue co-living regulations that are only applicable in this area were moved to a new subsection (6), including the requirement that co-living units only be located on the west side of Washington Avenue, and on a site that fronts on a street with an RM-1 or RO zoning designation.

The proposed changes primarily affect the “North Washington Avenue” area. Building co-living units was previously not possible in this area and the proposed regulations provide that co-living units would be permitted on both sides of Washington Avenue. The Ordinance also provides the following restrictions for developments that contain co-living units:

1) Hotels, suite hotel, apartment hotel and/or hostels shall be prohibited.

2) The property owner shall submit a covenant running with the land, in a form acceptable to the City Attorney, agreeing to the following:

a. A minimum of 20 percent of the total number of co-living or micro residential units shall be set aside for workforce housing, as defined in Chapter 58, Article VI of the City Code.

b. The minimum rental of any co-living or micro residential unit shall be for a period of no less than three (3) months and one (1) day.

3) The percentage of maximum floor area for co-living or micro units within a development has been increased from 50 percent to 85 percent.

4) No variances are permitted from this section.

The proposed Ordinance would slightly expand the area where co-living units can be built in the City. Co-living is a housing type that is becoming more common throughout many of the country’s urban areas and is considered more attainable due to the smaller square footages permitted for each unit. Given the local and regional housing affordability issues impacting the City, co-living units are an option that can assist the City in addressing this challenge by increasing and diversifying the housing stock and inventory.

Since the proposed Ordinance contains income limits for 20 percent of the units built in the “North Washington Avenue” area, these units are expected to assist in providing housing that is attainable to the City’s workforce. The Administration is highly supportive of the proposed amendment and recommends that the Ordinance be approved.

PLANNING BOARD REVIEW
The Planning Board held a public hearing on December 20, 2022 and transmitted the Ordinance to the City Commission with a favorable recommendation by a vote of 5-2.

SUPPORTING SURVEY DATA

The Mayor and City Commission identified the need for workforce and affordable housing as a key objective in the City’s 2019 Strategic Plan Through the Lens of Resilience to “support affordable, compatible workforce housing through public and private partners for key industries, including the use of development incentives.” The City’s 2040 Comprehensive Plan prioritizes workforce housing, with the express goal “to encourage redevelopment that provides workforce and affordable housing” within the City.”

FINANCIAL INFORMATION

No fiscal impact is anticipated. 

CONCLUSION

The Administration recommends that the City Commission approve the subject Ordinance at First Reading and schedule a Second Reading Public Hearing for March 15, 2023.

Applicable Area

South Beach
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

Mobility - Support affordable, compatible workforce housing.
Legislative Tracking
Planning
Sponsor
Commissioner Ricky Arriola

ATTACHMENTS:
Description
Form Approved ORD
Ad