HomeMy WebLinkAboutResolution 2026-34236RESOLUTION NO. 2026-34236
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH DIRECTING THE CITY ADMINISTRATION TO
WORK WITH THE SPONSOR OF THIS RESOLUTION AND THE OFFICE
OF THE CITY ATTORNEY TO DEVELOP A CONDOMINIUM BUYOUT
MEMORANDUM OF UNDERSTANDING (MOU) TEMPLATE TO BE
PRESENTED TO DEVELOPERS THAT ARE ACTIVE IN MIAMI BEACH
FOR CONSIDERATION WHICH SHALL INCLUDE COVENANTS
REQUIRING THAT CONDOMINIUM BUYOUT ACTIVITIES BE
CONDUCTED WITH TRANSPARENCY, FAIRNESS AND ETHICAL
NEGOTIATION PRACTICES, INCLUDING AN AGREEMENT BY
DEVELOPERS NOT TO INITIATE, PURSUE, OR ACQUIRE (INCLUDING
THROUGH CONTRACT ASSIGNMENT) ANY CONDOMINIUM BUYOUT
ACTIVITIES WITHOUT FIRST ENGAGING WITH THE CITY AND
ENTERING INTO A MUTUALLY AGREED -UPON TERM SHEET.
WHEREAS, the condominium form of ownership is popular throughout the City of
Miami Beach ("City"); and
WHEREAS, in response to rising property values and changes in state law,
condominium buyout activity has increased in the City in recent years, giving rise to
concerns regarding the fairness, transparency, and integrity of negotiations between
developers and unit owners; and
WHEREAS, certain transaction practices —such as requiring sellers to execute
non -disclosure agreements regarding the terms of purchase and sale agreements or
making unwanted, repeated or threatening solicitations to unit owners —may impede
transparency and create a sense of pressure or coercion for unit owners; and
WHEREAS, tenants residing in rental condominium units undergoing buyout
efforts may also face uncertainty and displacement pressures, underscoring the need for
clear commitments by developers to provide adequate relocation assistance; and
WHEREAS, the Mayor and City Commission seek to promote a framework that
establishes fair -dealing expectations and best practices for condominium buyout
negotiations; and
WHEREAS, the development of a Memorandum of Understanding (MOU)
template will assist in ensuring that developers that engage in business in the City and
are amenable to entering into such an MOU commit that they will not engage in buyout
activities —whether directly or through the assignment of purchase and sale agreements
entered into by others —that involve (or that have involved) aggressive or coercive
solicitations and will abide by transparent business practices and ethical negotiation
standards in connection with any buyout activities; and
WHEREAS, the MOU will include an agreement by developers not to initiate,
pursue, or acquire (including through the assignment of purchase and sale agreements
entered into by others) any condominium buyout activities without first engaging with the
City and entering into a mutually agreed -upon term sheet; and
WHEREAS, the MOU template would also include covenants by the developers
regarding required disclosure to prospective sellers, including disclosures concerning
development intent and anticipated or pending zoning legislation requests; and
WHEREAS, the MOU template would also include additional procedural
safeguards that protect both unit owners and tenants.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City
Commission hereby direct the City Administration to work with the sponsor of this
resolution and the Office of the City Attorney to develop a voluntary Condominium Buyout
Best Practices Memorandum of Understanding ("MOU") template to be presented to
developers that are active in Miami Beach for consideration, which shall include
covenants requiring that condominium buyout activities be conducted with transparency,
fairness and ethical negotiation practices, including an agreement by developers not to
initiate, pursue, or acquire (including through contract assignment) any condominium
buyout activities without first engaging with the city and entering into a mutually agreed -
upon term sheet.
PASSED AND ADOPTED this o�2 day of i' 2026.
ATTEST:
APR 2 8 2026
Rafael E. Granado, City Clerk
Steven Meiner, Mayor
(Sponsored by Commissioner Alex J. Fernandez)
Co -Sponsored by Commissioner Laura Dominguez
K
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
City Attorney
L_)LtL_200,V
Date
Resolutions - C7 AG
MIAMI BEACH
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: City Attorney Ricardo J. Dopico
DATE: April 22, 2026
TITLE: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH DIRECTING THE CITY ADMINISTRATION TO WORK WITH THE
SPONSOR OF THIS RESOLUTION AND THE OFFICE OF THE CITY ATTORNEY
TO DEVELOP A CONDOMINIUM BUYOUT MEMORANDUM OF
UNDERSTANDING TEMPLATE TO BE PRESENTED TO DEVELOPERS THAT
ARE ACTIVE IN MIAMI BEACH FOR CONSIDERATION.
RECOMMENDATION
BACKGROUND/HISTORY
ANALYSIS
The attached Resolution was prepared at the request of Commissioner Alex J. Fernandez.
FISCAL IMPACT STATEMENT
N/A
Does this Ordinance require a Business Impact Estimate?
(FOR ORDINANCES ONLY)
If applicable, the Business Impact Estimate (BIE) was published on:
See BIE at: https://www miamibeachfl.gov/city-hall/city-clerk/meeting-notices/
FINANCIAL INFORMATION
CONCLUSION
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Applicable Area
Citywide
Is this a "Residents Right to Know" item,
pursuant to City Code Section 2-17?
No
Is this item related to a G.O. Bond
Project?
No
Was this Agenda Item initially requested by a lobbyist which as defined in Code Sec. 2-481,
includes a principal engaged in lobbying? No
If so, specify the name of lobbyist(s) and principal(s):
Department
City Attorney
Sponsor(s)
Commissioner Alex J. Fernandez
Co-sponsor(s)
Condensed Title
Develop Condominium Buyout Best Practices MOU (Fernandez) (CA)
Previous Action (For City Clerk Use Only)
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