RESIDENTIAL OFFICE REGULATIONS IN CD2 DISTRICT

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 114 OF THE CITY CODE ENTITLED "DEFINITIONS," BY CREATING A DEFINITION FOR "RESIDENTIAL OFFICE UNIT," AND BY AMENDING CHAPTER 142 OF THE CITY CODE ENTITLED "ZONING DISTRICTS AND REGULATIONS," ARTICLE II, ENTITLED "DISTRICT REGULATIONS," DIVISION 5, ENTITLED "CD-2 COMMERCIAL, MEDIUM INTENSITY DISTRICT," BY AMENDING SECTION 142-307, ENTITLED "SETBACK REQUIREMENTS," TO CLARIFY THAT RESIDENTIAL OFFICE UNITS ARE AMONG THE RESIDENTIAL USES THAT QUALIFY FOR THE FLOOR AREA RATIO APPLICABLE TO THE CD-2 DISTRICT, AND PROVIDING FOR CODIFICATION, REPEALER, SEVERABILITY, AND AN EFFECTIVE DATE.

The Land Development Regulations of the City Code (LDRs) defines live-work as follows:

Live-work shall mean residential dwelling unit that contains a commercial or office component which is limited to a maximum of 70 percent of the dwelling unit area.

Although live-work units are a hybrid of an office and residential unit, under the CD-2 regulations, they do not qualify as a residential use for purposes of the .5 FAR bonus. The proposed ordinance creates a new definition for residential office use in Section 114-1 as follows:

Residential office unit shall mean a residential dwelling unit which may be used jointly for residential living space together with office use, provided that such unit includes living space that is contiguous with the office space and contains separate bedrooms, as well as an abutting bathroom, full kitchen with a cook-top, refrigerator, sink and range, as well as a dining area. Additionally, the following shall be applicable:

1. For units that are 4,000 square feet or less in size, at least 1,000 square feet shall be dedicated to residential use and contain a minimum of one bedroom.
2. For units that are greater than 4,000 square feet in size, at least 25% of the unit shall be dedicated to residential use and contain a minimum of two bedrooms.

Additionally, the following revised text amendment has been proposed to allow for residential office to be included in the .5 FAR bonus in the CD-2 district:

Section 142-307 - Development Regulations (CD-2)
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(d) Mixed use buildings: Calculation of floor area ratio:
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(1) Floor area ratio. When more than 25 percent of the total area of a building is used for residential, residential office, or hotel units, the floor area ratio range shall be as set forth in the RM-2 district. New development or redevelopment that includes residential office units may only be eligible for the floor area ratio range as set forth in the RM-2 district in the event that the property owner elects, at the owner’s sole discretion, to voluntarily execute a restrictive covenant running with the land, in a form approved by the city attorney affirming that, in perpetuity, none of the residential office units on the property shall be leased or rented for a period of less than six months and one day.

The attached draft ordinance contains both amendments.

Currently, either live-work units, or the proposed new definition of residential office units, can occupy up to 1.5 FAR in buildings located in the CD-2 district. However, since both types of units are separate and apart from residential and hotel uses, they are not currently eligible for the .5 FAR bonus.

The Administration is supportive of the proposed LDR amendment, as it would further the city’s goals of promoting live-work options for residents. However, it is important to note that by their nature, residential office units are potentially less of a residential use and could be more oriented toward office use, as up to 75% of the unit could be occupied by office space. This is germane to the discussion as the proposed amendment would allow the .5 FAR bonus in the CD-2 district to be shifted away from purely residential or hotel uses and used for a more office-oriented hybrid.

PLANNING BOARD REVIEW
On May 23, 2023, the Planning Board held a public hearing and transmitted the proposed ordinance to the City Commission with a favorable recommendation (6-1). The Planning Board also made a separate motion (7-0) recommending the following modifications to the ordinance:

1. Including a sunset provision that would require an eligible property to obtain approval from the applicable land use board within 2 years of the effective date of the ordinance.

2. The regulations proposed would only be applicable to new construction projects or projects that do not have a certificate of occupancy (C.O.) as of the effective date of the ordinance.

The Administration does not recommend that either of these recommendations be included in the proposed ordinance. In this regard, there is no need for a sunset provision as the substance of the ordinance represents good policy. Also, applying the regulations solely to new construction could, potentially, discourage much needed and desirable renovations to existing structures in the CD-2 district.