2016-29684 Reso RESOLUTION NO. 2016-29684
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA ACCEPTING THE
RECOMMENDATION OF THE FINANCE AND CITYWIDE PROJECTS
COMMITTEE, WHICH DIRECTS THE ADMINISTRATION TO CREATE
ONE OR MORE FUNDS FOR HOMELESS SERVICES AND
AFFORDABLE/WORKFORCE HOUSING (HOUSING INITIATIVES) TO
BE FUNDED FROM THE COLLECTION OF SHORT-TERM RENTAL
VIOLATION FINES.
WHEREAS, the City of Miami Beach is inundated with significant homeless issues,
which directly impacts the quality of life for its residents and has a substantial adverse impact
upon tourism; and
WHEREAS, the City has experienced dramatic reductions of affordable/workforce
housing, which has a substantial negative impact upon the City's elderly residents and
community workforce; and
WHEREAS, the City's short-term rental violation fines could have a positive impact by
specifically addressing the City's homeless needs, and facilitating the availability of the
affordable/workforce housing throughout the community; and
WHEREAS, these short-term rental violation fines would be directly dedicated to fund
various homeless programs, and serve to address the affordable/workforce housing needs of
the City's community; and
WHEREAS, the Finance and Citywide Projects Committee recommended that one or
more funds must be created to address homelessness and affordable/workforce housing in the
City, and that these public policy initiatives would be supplemented by those monetary funds
collected from the short-term rental fines by the City; and
WHEREAS, the Finance and Citywide Projects Committee, directed staff to establish the
appropriate target thresholds for the allocation of these funds, which would be presented to the
Commission for a determination of the final allocations of funds for these essential initiatives.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND THE CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City
Commission of the City of Miami Beach hereby approve and authorize the City Manager to
accept the recommendation of the Finance and Citywide Projects Committee, which directs the
administration to create one or more funds for homeless services and affordable/workforce
housing (housing initiatives) to be funded from the collection of short-term rental violation fines.
PASSED and ADOPTED this /.,,0 , Iay7_l0,� 2Q,'f•.
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Resolutions - R7 N
MIAMI BEACH
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Jimmy L. Morales, City Manager
DATE: December 14, 2016
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE
FINANCE AND CITYWIDE PROJECTS COMMITTEE DIRECTING THE
ADMINISTRATION TO CREATE A DEDICATED FUND FOR HOMELESS
SERVICES AND A DEDICATED FUND FOR AFFORDABLE/WORKFORCE
HOUSING TO BE FUNDED FROM FINES COLLECTED FROM SHORT-TERM
RENTAL VIOLATIONS.
RECOMMENDATION
Adopt the Resolution.
ANALYSIS
At its October 19, 2016 meeting, the City Commission referred item R9L to the Finance and Citywide
Projects Committee (FCWP) for discussion regarding the use of short-term rental fines to address
homelessness in our community as referred by Mayor Philip Levine. Commissioner John Aleman also
referred discussion regarding to Committee regarding the use of the short-term rental fines to fund
affordable/workforce housing. The Committee heard the item at its November 18, 2016 meeting.
Since the adoption of the enhanced penalties for violations of the City's short-term rental ordinances in
March 2016, the Office of Code Compliance has issued approximately$3.2 million in fines. When issued,
fines can be addressed in two ways: 1) paying the fine associated with the violation; or 2) appealing the
violation to the Special Master. If an adjudication of guilt is made by the Special Master, the violators are
given a period of up to 120 days to pay the fine. Violations that are not appealed and/or not paid at time
of adjudication become recorded liens against the property. While $3.2 million in fines have been issued,
the City has only collected approximately$62,000 thus far.
At its meeting, the FCWP Committee discussed the directed use of collected fines to address the
pressing issues of homelessness and the shortage of affordable/workforce housing in our community.
The Committee directed that funds collected from short-term rental violations be earmarked to a
designated fund. The Committee further directed that the Administration determine the most effective
methodology for distribution of funds for these two issues. As such, the Administration recommends that
the first $200,000 collected be used to fund homeless services and all collected funds thereafter be
distributed with 20 percent set aside for homeless services and 80 percent to address
affordable/workforce housing needs.
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In addition, because the issuance of fines do not translate into immediate funds for the reasons
mentioned above, the distribution methodology affords the necessary time to ensure that funds are
collected and in hand before their commitment to specific projects.
CONCLUSION
The Administration recommends approval of this resolution enabling the creation of a fund to earmark
fines from short-term rental violations for the expressed use of funding homeless services and the
community's shortage of affordable/workforce housing.
KEY INTENDED OUTCOMES SUPPORTED
Ensure Workforce Housing For Key Industry Workers Is Available In Suitable Locations
FINANCIAL INFORMATION
Code Compliance fines are typically deposited in the City's General Fund, Fines and Forfeiture line
item. The recommended action will create a dedicated fund for fines collected for short-term rental
violations for the expressed use of addressing homelessness and the shortage of
affordable/workforce housing in our community.
Legislative Tracking
Housing and Community Services
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