2012-28087 Reso I
RESOLUTION NO; 2012-28087
A RESOLUTION OF THE MAYOR AND THE CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, RECEIVING THE INCENTIVES REVIEW AND
RECOMMENDATION REPORT FROM THE AFFORDABLE HOUSING ADVISORY
COMMITTEE.
WHEREAS, the City of Miami Beach has identified in its Consolidated Plan the goal of
pursuing funding for affordable housing for the rehabilitation of its existing housing stock and to
provide home-ownership opportunities to its residents; and
WHEREAS, in 1992,the William E. Sadowski Affordable Housing Act established the State
Housing Initiatives Partnership (SHIP) Program, administered by the Florida Housing Finance
Corporation (FHFC), to provide funding for rehabilitation of housing stock and homeownership
opportunities for low and moderate-income households; and
WHEREAS, SHIP Program funds, derived from set-aside allocations from documentary
stamp levies on real estate transactions, have been allocated to the City of Miami Beach; and
WHEREAS, in 2007, the Florida Legislature passed Housing Bill 1375 requiring cities and
counties receiving SHIP funds to appoint an Affordable Housing Advisory Committee to review the
City's established policies and procedures, ordinances, land development regulations, and adopted
local Comprehensive Plan, in order to recommend actions or initiatives to encourage or facilitate
affordable housing, while protecting the ability of the property to appreciate in value; and
WHEREAS, at its special meeting on February 24, 2012, through agenda item R9A, the
Mayor and City Commission appointed the members of the Affordable Housing Advisory Committee;
and
WHEREAS, the Affordable Housing Advisory Committee held eight (8) monthly public
meetings during the months of April through November, and approved the attached Incentives
Review and Recommendation Report,during a duly advertised public hearing held on November 14,
2012.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH,FLORIDA,that the Mayor and City Commission hereby acknowledge
receipt of the Incentives Review and Recommendation Report from the Affordable Housing Advisory
Committee.
PASSED AND ADOPTED THIS 1.20 DAY OF D-k-e 012.
ATTEST:
CI Y CLERK J A OR
INCORP OR TD: APPROVED AS TO
ORM&LANGUAGE
TAAGENDA\2012\December 12\Consent\AHAC Recomm t� 294 SO.dge_% 1V
FOR UTION
ty ome Date
COMMISSION ITEM SUMMARY
Condensed Title:
!In:centives solution of the Mayor and the City Commission of the City of Miami Beach, Florida, receiving the
Review and Recommendations Report from the Affordable Housing Advisory Committee.
Key Intended Outcome Supported:
Increase access to workforce or affordable housing.
Supporting Data (Surveys, Environmental Scan, etc.): According to the 2012 Community
Satisfaction Survey, 34% of respondents find the availability of affordable housing to be the most
U mp ortant business challenge for Miami Beach; trending up from 18% of respondents in the 2009
e .
Item Summa /Recommendation:
In 2007, the Florida Legislature passed Housing Bill 1375 (F.S. 420.9076), requiring cities and counties
receiving SHIP funds to appoint an eleven member affordable housing advisory committee(AHAC). The
Statute requires that every three (3) years, the AHAC review the City's established policies and
procedures, ordinances, land development regulations, and adopted local Comprehensive Plan to
recommend actions or initiatives to encourage or facilitate affordable housing,while protecting the ability of
the property to appreciate in value.The AHAC recommendations must include,at a minimum,the review
of certain incentives provided in the Statute.
The AHAC held eight (8) monthly public meetings during the months of April through November, and
approved the attached Incentives Review and Recommendation Report during a duly advertised public
hearing held on November 14, 2012.
Rule 67-37.010, Florida Administrative Code, provides further direction on how FS 420.9076 is to be
followed. It requires that within 90 days after the date of its receipt of the AHAC's report, the local
governing body shall adopt amendments to its Local Housing Assistance Plan (LHAP), incorporating the
incentive strategies that it will implement within its jurisdiction, which were identified by the AHAC. The
amended LHAP must be submitted to the FHFC by May 2, 2013. This process must be repeated every
three (3) years. The Code further provides that if the City fails to timely submit its approved amended
LHAP, then the FHFC shall send to the City a notice of termination of its SHIP funding.
The Administration is requesting that the Commission receive the attached Incentives Review and
Recommendation Report to meet the deadlines established by State Statute and Code.
Advisory Board Recommendation:
F— Affordable Housing Advisory Committee
Financial Information:
Source of Amount Account
Funds: 1
2
3
OBPI Total
Financial Impact Summary: NA
City Clerk's Office Legislative Tracking:
Anna Parekh
Sign-Offs:
D partment Director As ant ity Manager CiVpanager
AP MS KGB
T V -END 12012 '\December 12\Consent\AHAC Recommenda ns 012- SUMM.doc
AGENDA ITEM e— 74V
/OIAMIBEACH
DATE ��
MIAMI BEACH
City of Miami Beath, 1700 Convention Center Drive,Miami Beach, Florida 33139,www.miamibeachfl.gov
COMMISSION MEMORANDUM
TO: Mayor Matti Herrera Bower and Members of the City Commission
FROM: Kathie G. Brooks, Interim City Manager
DATE: December 12, 2012
SUBJECT: A RESOLUTION OF THE MAYOR AND THE CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, RECEIVING THE INCENTIVES REVIEW AND
RECOMMENDATION REPORT FROM THE AFFORDABLE HOUSING ADVISORY
COMMITTEE.
ADMINISTRATION RECOMMENDATION
Adopt the resolution.
ANALYSIS
In 1992, the William E. Sadowski Affordable Housing Act established the State Housing Initiatives
Partnership (SHIP) Program, administered by the Florida Housing Finance Corporation (FHFC),
which provides funding for rehabilitation of housing stock and homeownership opportunities for low
and moderate-income households. In 1995, the City Commission approved Ordinance 95-2989,
establishing the legal infrastructure in order for the City to be eligible to receive SHIP Program
funds, which are derived from set-aside allocations from documentary stamp levies on real estate
transactions.
In 2007, the Florida Legislature passed Housing Bill 1375 (F.S. 420.9076), requiring cities and
counties receiving SHIP funds to appoint an eleven member Affordable Housing Advisory
Committee(AHAC)to triennially review the City's established policies and procedures, ordinances,
land development regulations, and adopted local Comprehensive Plan to recommend actions or
initiatives to encourage or facilitate affordable housing,while protecting the ability of the property to
appreciate in value. At a minimum, each advisory committee shall submit a report to the local
governing body that includes recommendation on, and triennially thereafter evaluates the
implementation of, affordable housing incentives.
On February 24, 2012, the City Commission appointed the following individuals to serve on the
AHAC in each of the specific categories:
Robert Saland* Citizen actively engaged in affordable residential homebuilding
Juan Rojas** Banker or mortgage banker in connection with affordable housing
David Smith Representative of labor actively engaged in affordable home building
Jeremy Glaze Advocate for low-income persons in connection with affordable housing
Muayad Abbas For-profit provider of affordable housing
Stephanie Berman Not-for-profit provider of affordable housing
Mark Wohl Real estate professional
Charles Urstadt*** Citizen who serves on the local Planning Board
Arian Adorno Resident within jurisdiction
Guy Simani Citizen who represents employers with jurisdiction
Amy Perry Citizen who represents essential services personnel
Page 2 of 2
AHAC Report
*Robert Saland was removed by the City Clerk's Office on 11-1-2012; **Juan Rojas was appointed
separately by the City Commission on 9-14-2011; ***Charles Urstadt was appointed on 4-11-2012
to replace Jonathan Fryd, who resigned.
The AHAC recommendations must include, at a minimum,the review of certain incentives provided
in the Statute. Those statutory incentives are:
(a) The processing of expedited permits or development orders to a greater degree than
other projects for affordable housing;
(b) The modification of impact-fee requirements, including reduction or waiver of fees and
alternative methods of fee payment for affordable housing;
(c) The allowance of flexibility in densities for affordable housing;
(d) The reservation of infrastructure capacity for housing for very-low-income persons, low-
income persons, and moderate-income persons;
(e) The allowance of affordable accessory residential units in residential zoning districts;
(f) The reduction of parking and setback requirements for affordable housing;
(g) The allowance of flexible lot configurations, including zero-lot line configurations for
affordable housing;
(h) The modification of street requirements for affordable housing;
(i) The establishment of a process by which a local government considers, before
adoption, policies, procedures, ordinances, regulations, or plan provisions that increase
the cost of housing;
(j) The preparation of a printed inventory of locally owned public lands suitable for
affordable housing;
(k) The support of development near transportation hubs and major employment centers
and mixed-use developments.
Between April and November 2012,the AHAC held eight(8) monthly public meetings and approved
the attached Incentives Review and Recommendation Report during a duly advertised public
hearing held on November 14, 2012.
Rule 67-37.010, Florida Administrative Code, provides further direction on how FS 420.9076 is to be
followed. It requires that within 90 days after the date of its receipt of the AHAC's report, the local
governing body shall adopt amendments to its Local Housing Assistance Plan(LHAP), incorporating
the incentive strategies that it will implement within its jurisdiction, which were identified by the
AHAC. The amended LHAP must be submitted to the FHFC by May 2, 2013. This process must be
repeated every three (3) years. The Code further provides that if the City fails to timely submit its
approved amended LHAP, then the FHFC shall send to the City a notice of termination of its SHIP
funding.
The Administration is requesting that the Commission receive the attached Incentives Review and
Recommendation Report to meet the deadlines established by State Statute and Florida Code.
CONCLUSION:
The administration recommends that the Mayor and City Commission of the City of Miami Beach,
Florida, receive the attached Incentives Review and Recommendation Report submitted by the
Affordable Housing Advisory Committee.
KGB/MS ARB
T:\AGENDA\2012\December 12\Consent\AHAC Recommendations 2012- MEMO.doc
AAI, AMI. BEACH
City of Miami Beach
Affordable Housing Advisory Committee
Triennial
Incentives Review and Recommendation Report
November 14, 2012
City of Miami Beach
Affordable Housing Advisory Committee (AHAC) Recommendations
Triennial Incentive Review and Recommendation Report
November 2012
I. Background
The members of the Affordable Housing Advisory Committee (AHAC) were
appointed at a Special City Commission Meeting on February 24, 2012.
There were a total of eight (8) AHAC meetings held to discuss incentives and
formulate the recommendations report. The dates of these meetings were April
11, May 2, June 6, July 11, August 29, September 20, October 17, and
November 14, 2012. A public hearing was held on November 14, at which time
the AHAC's recommendations were presented in this report and approved by a
majority of the committee. The recommendations report will be presented to the
City Commission at its meeting on December 12, 2012.
Upon acceptance by the City Commission, the AHAC's final recommendations
will be referred to appropriate City Commission Sub-Committees, as appropriate
for further discussion. Staff from the Office of Real Estate, Housing, and
Community Development, and AHAC Committee Members will attend the
proceedings of the Sub-Committees to assist in answering questions and inform
the committee of its goal of amending the City's Local Housing Assistance Plan
(LHAP) and/or the City Code, as may be applicable.
II. Public Meeting:
To solicit public input on the AHAC's recommendations, the final meeting of the
AHAC on November 14, 2012, was duly noticed as a public hearing at which time
the AHAC's recommendations were presented in this report and approved by a
majority of the committee.
This meeting notice was advertised in the Miami Herald, posted on City Hall's
bulletin boards and advertised in the City's regular weekly post of City meetings.
Page 1 of 8
III. Statutory Recommendations:
The following represents the summary of the discussions and recommendations
related to the incentives provided in Florida Statutes 420.9076(4).
a. Incentive: Expediting the processing of approvals of development orders
or permits for affordable housing development projects to a greater degree than
other projects. [420.9076(4)(x)]
Synopsis of Discussion/Background: In the past, a system was in place
whereby affordable housing development projects, along with City of Miami
Beach's own projects were given priority processing. The 2008 AHAC
recommended that the City of. Miami Beach gave priority in scheduling a pre-
design Conference with all relevant agencies including but not limited to: Fire,
Planning & Zoning, Building, Historic Preservation, Public Works, Americans with
Disabilities, and Housing & Community Development, for designated "Affordable
Housing" development projects; and when the plans are ready for permitting, that
first priority will be given to them with the goal of reducing the process time by
50%; further, that the City prepare a brochure that advises applicants of the
application process; and the Housing and Community Development Director will
act as "liaison" to coordinate and expedite the application with all relevant
agencies. The AHAC further recommended that the City Manager reconfirm with
the Building Department and other department heads, that the Director of Real
Estate, Housing & Community Development is liaison for all affordable housing
project permit issues and that it is the policy of the City to expedite permitting of
affordable housing and to convene a meeting, if necessary, to ensure the
implementation is in effect and working properly.
Recommendation: Reconfirm the City's commitment to this affordable housing
development incentive. The AHAC further recommended that the Building
Department should have staff members that are dedicated to all stages of the
development process, from plans review through certificate of occupancy, to
assure expedited handling and approval of all affordable housing development
projects.
J
b. Incentive: The modification of impact-fee requirements, including
reduction or waiver of fees and alternative methods of fee payment for affordable
housing. [420.9076(4)(b)1
Synopsis of Discussion/Background: This incentive was taken up by the
1996 AHAC and the 2008 AHAC, which recommended that the City waive
building permit fees. The recommendation was never implemented by the City.
Page 2 of 8
The City Attorney's office opined that waiver of building permit fees are not
allowable under law. This Committee still felt strongly about the need to reduce
fees to incentivize developers to do affordable housing.
Recommendation: The City should continue to investigate ways to mitigate or
delay payment of building permit fees to the greatest extent legally possible. This
should include reviewing the legal basis that other communities have utilized to
provide relief from permit fee expenses. Further, it was suggested that if fees
could not be waived, then a separate reduced-rate fee schedule should be
developed for affordable housing; or, that consideration should be given to
ensuring that affordable housing be subject to the minimum fees available.
C. Incentive: The allowance of increased density levels /flexibility for
affordable housing. [420.9076(4)(c)]
Synopsis of Discussion/Background: The 2008 AHAC recommended that
the City consider amending its code to allow for an exception related to minimum
and average size units for affordable housing, so that it mirrors the code's
existing provisions for elderly affordable housing found in Section 142-1183;
Secondly, allow "economic hardship" to be included as one of the variance
criteria for affordable housing development projects which come before the
Board of Adjustment. The modification relating to unit size was made via
Ordinance No. 2011-3744, which was adopted October 19, 2011.
Recommendation: Reconfirm the City's commitment to this affordable housing
development incentive.
d. Incentive: The reservation of infrastructure capacity for housing for very-
low-income persons and low-income persons. [420.9076(4)(d)]
Synopsis of Discussion/Background: This incentive was deemed inapplicable
to Miami Beach.
Recommendation: None
e. Incentive: The allowance of affordable accessory residential units in
residential zoning districts. [420.9076(4)(e)]
Page 3 of 8
Synopsis of Discussion/Background: The City already allows accessory type
units to be used as residences in the case of multi-family residential zones--for
example, the conversion of stand-alone garages, in-law quarters, etc. These
units can have their own utilities, addresses, etc. The allowance however does
not extend into the single family zones and doing so would not produce any
significant benefit to allow for such. Because of the already developed
environment of the City, expansion of accessory units is not practical or feasible
and the committee does not make any recommendation.
Recommendation: Reconfirm the City's commitment to this affordable housing
development incentive.
f. Incentive: The reduction of parking and setback requirements for
affordable housing. [420.9076(4)(f)]
Synopsis of Discussion/Background: The 2008 AHAC recommended that
the City. Commission consider amending the Code to allow new construction of
affordable housing to have 1.0 parking space for units 550 square feet or smaller
instead of the current 1.5 spaces. The reduction of setback requirements was
deemed inapplicable to Miami Beach and no recommendation was proffered.
This modification to the code (which applies to units of 800 square feet or less)
was made via Ordinance No. 2011-3744, which was adopted October 19, 2011.
Recommendation: Reconfirm the City's commitment to this affordable housing
development incentive.
g. Incentive: Flexible Lot Configurations- The allowance of zero-lot-line
configurations for affordable housing. [420.9076(4)(8)]
Synopsis of Discussion/Background: This incentive was deemed
inapplicable to Miami Beach. No recommendation was proffered.
Recommendation: None
h. Incentive: Modification of street requirements for affordable housing.
[420.9076(4)(h)1
i
Page 4 of 8
Synopsis of Discussion/Background: This incentive was deemed inapplicable
to Miami Beach with its compact buildings with relatively small scale sidewalks
and streets. No recommendation was proffered.
Recommendation: None
L Incentive: The establishment of a process by which a local government
considers, before adoption, policies, procedures, ordinances, regulations, or plan
provisions that increase the cost of housing. [420.9076(4)(i)l
Synopsis of Discussion/Background: The 2012 AHAC continued the
discussions of the 2008 AHAC regarding this issue, and agrees with the
recommendation that there should be a staff analysis of items coming before the
Planning Board that should include an inquiry asking: "Will this item have a
negative impact on the availability of affordable housing in Miami Beach?" If staff
analysis determines that the item may have a negative impact on an affordable
housing project, this fact should be communicated to the Housing Director prior
to the Planning Board meeting. The Director will then have a period of time to
provide an opinion to the board as to the depth of the negative impact and
whether he or she believes the costs outweigh the benefit. This recommendation
was not implemented following the submission of the previous AHAC Report.
Recommendation: This process should be implemented by the City.
j. Incentive: The preparation of a printed inventory of locally owned public
lands suitable for affordable housing. j420.9076(4)(i)l
Synopsis of Discussion/Background: Since 1996, when this incentive was
first taken up by an AHAC, the City has deeded all of its developable land. For
the 2008 AHAC, the Housing Division compiled a list of its City-owned properties
and found there are no City-owned properties available upon which to build
affordable housing or for housing of any kind. A recent version of that list,
presented to the 2012 AHAC, did not indicate any change in the status.
The AHAC discussion was centered on a different approach to looking at the
properties. Instead of looking at the City-owned properties as undevelopable, the
City should analyze properties and locations to determine if there are sites that
could be modified to make them developable affordable housing sites.
Page 5 of 8
Recommendation: Review and analyze the list of City-owned properties to
determine if, through re-zoning or change of use, certain properties could
become developable sites for affordable housing.
k. Incentive: The support of development near transportation hubs and
major employment centers. f420.9076(4)(k)l
Synopsis of Discussion/Background: Due to its narrow geography, and
numerous bus lines, there are no transportation hubs per se in Miami Beach and
no need to strategically place affordable housing.related to these considerations.
Recommendation: None
IV. New Incentives /Recommendations identified by the AHAC:
a. Incentive: Finding properties such as those with significant Code
Enforcement violations/liens or in foreclosure to be targeted as potential
affordable housing conversions.
Synopsis of Discussion/Background: The AHAC suggested that the City's
lists of properties with code enforcement liens or in foreclosure/vacant status
might be a good source for identifying properties that might be suitable for
affordable housing development.
Recommendation: Staff should review and analyze its list of properties with
code enforcement liens or in foreclosure/vacant status to determine if they might
be suitable for affordable housing development. Then consideration should be
given to acquisition of those qualifying properties through the use of funds and
fee waivers to encourage affordable housing development on those sites.
b. Incentive: Assessment of additional impact fees for development of
property unrelated to affordable housing.
Synopsis of Discussion/Background: The AHAC suggested that the
imposition of additional impact fees on developers of both residential and
Page 6 of 8
commercial market-rate properties could be used to create a pool of funds
dedicated to affordable housing development.
Recommendation: Staff should review the financial impact and consider
imposing additional impact fees on developers of market-rate properties as a
source of funds dedicated to affordable housing development.
C. Incentive: Hotel developer incentives for inclusion of affordable units.
Synopsis of Discussion/Background: The AHAC discussed the possibility of
the City providing financial incentives to encourage hotel developers to set-aside
some of their space as affordable rental units to be utilized by permanent
low/moderate income tenants. This was considered not feasible. But providing
space off-site might be feasible.
Recommendation: Staff should review the possibility of developing incentives to
encourage hotel developers to participate in the development of affordable
housing by providing units off-site, or by contributing to an affordable housing
fund.
d. Incentive: New City of Miami Beach development projects to include an
affordable housing component.
Synopsis of Discussion/Background: The AHAC suggested that given
the City's current mode of development, there is a potential for incorporating
affordable housing units into some of the new developments. This would provide
an ideal opportunity to utilize the mixed-use concept of development.
Recommendation: As a starting point, the current Convention Center Project
should include an affordable housing component. In the future, all development
projects should be evaluated to determine if affordable housing can be
incorporated. If so, then a minimum requirement for affordable housing should be
set for the development of the project. Additionally, those RFPs that exceed the
minimum requirement should be allocated extra evaluation points for including
affordable housing as a component of the proposal.
Page 7 of 8
e. Incentive: Development of Land Trusts.
Synopsis of Discussion/Background: Land Trusts have been utilized in
other cities as a means of developing affordable housing. This concept is also
utilized as a means of better ensuring the affordable housing that is developed
can be retained for an extended time into the future.
Recommendation: City staff should explore the ways Land Trusts can be
utilized for developing affordable housing. Other cities that have successfully
utilized them should serve as a source for investigating the pros and cons.
f. Incentive: Provide financial incentives for employers that contribute to
the development of workforce housing.
Synopsis of Discussion/Background: If new or existing employers are
willing to contribute to the development of workforce housing, either through
monetary contributions or actual development; then they could be provided with
some type of fee waivers or other fee reductions or credits.
Recommendation: The City should provide additional affordable housing
funding to supplement its entitlement funding that is received from the U.S.
Department of Housing and Urban Development (HUD) and from the State of
Florida. This additional funding could be utilized to fund development projects or
to offset fee waivers or credits provided to the employers for their investment in
affordable housing.
The foregoing recommendations were adopted by the City of Miami Beach
Affordable Housing Advisory Committee and are being submitted herewith
for approval to the City Commission of the City of Miami Beach, Florida on
this 14th day of November, 2012.
Jere* GI er, Vice-Chairman
Page 8 of 8