A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA ("CITY"), ADOPTING AND TRANSMITTING TO THE MIAMI-DADE COUNTY BOARD OF COUNTY COMMISSIONERS, PURSUANT TO MIAMI-DADE COUNTY ORDINANCE NO. 16-138, THE CITY'S LEGISLATIVE FINDINGS REGARDING THE PRACTICALITY OF PROVIDING WORKFORCE HOUSING WITHIN THE CITY'S TERRITORIAL JURISDICTION, AND TRANSMITTING TO THE COUNTY THE CITY'S INTENT TO DEVELOP ITS OWN VOLUNTARY WORKFORCE HOUSING DEVELOPMENT PROGRAM RELIANT ON THE CITY'S LEGISLATIVE FINDINGS.

Adopt the Resolution.

Background

In June 2016, the Board of County Commissioners (Board) passed an ordinance on first reading that mandated inclusionary zoning as a means of increasing the availability of affordable housing for the County’s workforce. The ordinance went to the County’s Economic Prosperity Committee for further discussion and amendment where key considerations were addressed including:

•The role of municipalities in mandating inclusionary zoning

•The feasibility of mandating inclusionary zoning in those municipalities with land limitations and/or high development costs

•The practicality of applying an inclusionary zoning mandate

In December 2016, after concern were raised by various municipalities and others, the Board ratified an amended inclusionary zoning ordinance providing municipalities until June 30, 2017 in which to adopt a resolution making its findings as to the need for or practicality of providing workforce housing within its territorial jurisdiction and further requiring that each municipality that adopts a voluntary or mandatory workforce housing program transmit such ordinance or resolution to the Board by December 31, 2017.

The City has been proactively addressing the shortage of workforce housing in several ways. The City has approved the use of the City-owned Barclay Plaza Apartments for rehabilitation and possible development as workforce housing serving educators, public safety personnel and municipal workers. The City is currently working with the public-private partnership (P3) consultant to draft a Request For Proposals (RFP) seeking a private development partner for this municipal asset.

In addition, the City Commission approved a variety of incentives to promote the voluntary development of workforce housing that were first discussed at the Land Use and Development Committee on April 20, 2016 and by the full Commission at its January 25, 2017 Workforce/Affordable Housing Workshop. Among the recommendations offered to promote the voluntary development of workforce housing were:

1. Defining workforce housing beneficiaries as those households earning up to 140% Area Median Income (AMI);

2. Assessing the potential demand from the City’s workforce ensuring that appropriate units are developed;

3. Expedited review and permitting for construction and rehabilitation projects providing workforce housing;

4. Refunding application and review fees and the deferral/restructure of impact fees for projects providing workforce housing and as approved by the Commission on a case-by-case basis;

5. Encouraging micro-housing and mixed-tenant projects on a case-by-case basis;

6. Utilizing City-owned properties to develop workforce housing (i.e. Barclay Apartments and Collins Park artist workforce housing projects)

7. Establish a long-term deed restriction program to preserve affordability on City-assisted developments;

8. Encourage mixed income/mixed use development through positive marketing efforts that accentuate its benefits to the community;

9. Researching the possibility of short-term tax abatements for eligible new projects; and

10. Promoting an education effort to developers so they fully understand the incentives offered herein.

While the majority of these recommendations can be implemented, including those recommendations that request that the Commission weigh in on a case-by-case basis, the possibility of extending short-term tax abatements for workforce housing projects requires further guidance from the Office of the City Attorney as this may include the possibility of needing State legislative action to further this recommendation.

The City is also exploring additional actions to promote the private development of workforce housing. The following is currently under discussion before the Planning Board as a means of incorporating the mandatory inclusion of workforce and/or affordable housing in certain developments:

• For ALL new buildings over 50,000 square feet in size (including commercial buildings) a minimum of 30% of the FAR must be dedicated to workforce or affordable housing. Alternatively, a developer could pay a fee-in-lieu of providing this housing in accordance with the following:

•     $1,000 per square foot of new construction for waterfront properties; and

•     $500 per square foot of new construction for non-waterfront properties.

• For new single family homes over 20,000 square feet in size, a housing fee of two percent of the cost of construction would be required.

• A waiver provision has been included, which will allow for the City Commission to waive the above noted requirements.

The City is also exploring reducing the minimum unit size from 550 square feet to 400 square feet and reducing parking requirements for affordable/workforce housing developments as yet additional incentives to spur private development.

The City Commission referred discussion regarding the requirements of the County’s ordinance to the Land Use and Development Committee for discussion at its February 15, 2017 meeting. The Committee recommended that, due to the impracticality of its application in our City, that the City would pursue the voluntary development of workforce housing in the City.

Furthermore, as a City with very limited land, significant development regulations and increased development costs, it is not practical to mandate inclusionary zoning. As such, the Commission previously addressed the County’s inclusionary zoning feasibility at its January 25, 2017 workshop and again at its February 8, 2017 Commission meeting determining that it would be impractical to mandate such zoning given our City’s unique qualities. Therefore, in order to comply with the Board’s direction, the Administration recommends advising the Board of the impracticality of pursuing inclusionary zoning policies in our City but emphasize our intent to pursue a voluntary effort that will be anchored by the City’s development of workforce housing on its own properties as practical and the promotion of the incentives proposed.