BACKGROUND
On January 25, 2017, the City Commission held a workforce and affordable housing workshop. As part of this workshop, the Commission recommended that the following matters be referred to the Land Use and Development Committee for discussion and recommendation:
-
The requirements of Miami-Dade County for municipalities to establish workforce housing action plans; and
-
Applicable Comprehensive Plan Amendments and potential incentives, as it pertains to workforce housing in the City.
On February 15, 2017, the Land Use Committee discussed these items and recommended that the following amendments to the Comprehensive Plan and Land Development Regulations be referred to the Planning Board:
-
Amend the Comprehensive Plan to reduce the goal of workforce and affordable units from the current 16,000 to 6,300, as well as amend applicable objectives, policies and goals related to maximum densities.
-
Amend the Land Development Regulations to provide minimum and average unit size reductions for workforce and affordable housing projects.
-
Amend the Land Development Regulations to provide required off-street parking reductions for workforce and affordable housing projects.
On March 1, 2017, at the request of Commissioner John Aleman, the Mayor and City Commission referred the subject items to Planning Board.
There are two companion items related to this item, which includes a comprehensive plan amendment, as well as similar requirements and incentives in the Land Development Regulations for affordable housing.
PLANNING ANALYSIS
Purpose:
The proposed Ordinance would establish Division VI, “Workforce Housing”, within Chapter 58, “Housing,” of the City Code with the stated purpose: The purpose of this chapter is to enhance the public welfare by ensuring that the housing needs of the city are addressed. The city finds that there is a critical shortage of affordable and workforce housing, making residency on Miami Beach by the majority of city resident workers extremely difficult, and creating a shortage of affordable rental units. The resident workforce is leaving the city in search of affordable housing, and new employees are being deterred by the high cost of living. To maintain a sufficient resident workforce in all fields of employment, and to ensure the public safety and general welfare of the residents of the City, resident workforce housing needs must be addressed. It is the intent of this division to encourage the provision and maintenance of residential workforce housing units, for rental, to meet the needs of income-qualified households for city employees, the general workforce in the city, and students.
Definitions:
The following definitions will be established as part of the program’s implementation:
Area median income means the median income level for the Miami-Dade County Metropolitan Statistical Area, as established and defined in the annual schedule published by the Secretary of the U.S. Department of Housing and Urban Development, and adjusted for household size.
Certificate of qualification means a certificate issued by the city administration establishing a qualified household's eligibility to purchase or rent a workforce housing unit. Certificates of qualification shall be valid for 12 months. The certification criteria shall be set forth below.
Control period means each 20-year period during which the affordability restrictions imposed by this division shall apply. The control period begins at the time of any sale or resale of the affected unit.
Covered development means all developments providing workforce housing units pursuant to this division.
Department means the city’s department of housing, or any successor department.
Developer means any person, firm, corporation, partnership, limited liability company, association, joint venture, or any entity or combination of entities that apply for development orders or permits for residential dwelling units for workforce housing purposes as defined in this division.
Eligible household means, subject to the provisions of this division, a household whose total income is between 65 and 140 percent of area median income.
Eligible household income means any income derived from any proposed occupants of a workforce housing unit who are 18 years of age or older and who will use the workforce housing unit as their primary residence.
Household means any natural person who occupies a workforce housing unit as his or her primary residence.
Market rate dwelling units means all dwelling units in a covered development that are not workforce housing units as defined herein.
Qualified household means an eligible household that has received a certificate of qualification from the department.
Workforce housing unit rent or workforce housing unit rent means rents that do not exceed the maximum monthly rent limits as determined for Miami-Dade County by the U.S. Department of Housing and Urban Development in its annual income limits and rent limits and as used by Florida Housing Finance Corporation for its multifamily rental programs (published annually at http://www.floridahousing.org), and established at 65% up to 140% of the median family income.
While many city’s provide an FAR bonus for projects that include affordable or workforce housing units, because the City Charter requires voter approval for the increase of FAR on a site by any means, such incentive cannot be provided without a public referendum.
A developer, who chooses to take advantage of reduced unit size and parking requirements, would be required to enter into a residential workforce housing agreement with the City. Although the City would set the rental price for workforce housing units, it would be the responsibility of the developer to offer and manage the rental process and provide to the City, on an annual basis, documentation that establishes compliance with the Ordinance.
The ordinance requires that workforce housing units that are created remain as such for a period of 20 years, and establishes eligibility controls, affordability controls, and enforcement provisions as outlined in the attached Ordinance.
Parking and Unit Size:
In order to further facilitate the construction of workforce housing, and encourage it even when not required, this ordinance also amends the minimum and average unit size to 400 square feet across all zoning districts within the City where multifamily residential units are allowed. It also reduces the parking requirements in Chapter 130 of the City Code to 0.5 for workforce housing units. Further, it allows workforce housing units to be established on a site with an existing building without providing parking for the existing or additional units. Currently the number of units in a building in general cannot be increased without providing on-site parking. The ordinance would also allow the new construction of workforce housing units on a site with an existing building, without providing any parking. This may encourage smaller in-fill construction of workforce housing units on existing building sites that cannot otherwise provide required off-street parking.
City Charter Issues
The request for modifications to the minimum unit size requirements is consistent with City Charter Section 1.03 (c), related to FAR, which partially states the following:
The floor area ratio of any property or street end within the City of Miami Beach shall not be increased by zoning, transfer, or any other means from its current zone floor area ratio as it exists on the date of adoption of this Charter Amendment (November 7, 2001), including any limitations on floor area ratios which are in effect by virtue of development agreements through the full term of such agreements, unless such increase in zone floor area ratio for any such property shall first be approved by a vote of the electors of the City of Miami Beach.
While the proposed ordinance increase the allowable density for affordable housing, increased density does not equate to increased FAR. While FAR results in the amount of square footage that can be constructed, density relates to the number of units per acre that can be constructed. Density, therefore relates to the number and size of units permitted within the allowable square footage.
PLANNING BOARD REVIEW
On May 23, 2017, the Planning Board discussed the item and continued it to June 27, 2017. The Planning Board is scheduled to review and transmit the proposed Ordinance to the City Commission on June 27, 2017. The Administration will update the City Commission on the vote of the Planning Board on the floor of the Commission meeting.