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Ordinance 77-2093 ORDINANCE NO. 77-2093 AN ORDINANCE RE-ENACTING FORMER ORDINANCE NO. 74-2018 , (OTHERWISE KNOWN AS CHAPTER 17A OF THE CODE OF THE CITY OF MIAMI BEACH, FLORIDA) , AND COMMONLY REFERRED TO AS THE MIAMI BEACH RENT STABILIZATION LAW, BUT DELETING SECTIONS 7, 11 E 2 , 13 AND 21 OF SAID FORMER ORDINANCE; PROVIDING FOR THE STABILIZATION OF RENTS OF HOUSING ACCOMMODATIONS; DECLARING THE EXISTENCE OF AN EMERGENCY; REQUIRING SUCH REGULATION; PROVIDING DEFINITIONS; IMPOSING A MAXIMUM OF RENT CHARGEABLE FOR HOUSING ACCOMMODATIONS , BASED UPON RENT CHARGED AS OF OCTOBER 16, 1974; AND PRESERVING ALL LAWFUL RENT ADJUSTMENTS MADE UNDER SECTION 5 OF THE FOR- MER ORDINANCE; RE-CREATING THE OFFICE OF RENT DIRECTOR; AND SETTING FORTH HIS RIGHTS AND POWERS, INCLUDING THE ADOPTION OF RULES AND REGULATIONS, AND THE ENTRY OF ORDERS FIXING MAXIMUM RENTS AND ADJUSTING RENTS; PROVIDING FOR THE RECOVERY OF OVERCHARGES; PROVIDING PENALTIES; CREATING THE RENT STABILIZATION ADVISORY COMMITTEE; EXEMPTING CER- TAIN HOUSING ACCOMMODATIONS; PROVIDING FOR THE TERMINATION OF THIS ORDINANCE; AND SAVING ALL REMEDIES WHICH ACCRUED UNDER THIS ORDINANCE; PROVIDING SEVERABILITY CLAUSE, REPEAL CLAUSE AND EFFECTIVE DATE AND DURATION OF THIS ORDINANCE; AND FURTHER REPEALING ORDINANCE NO. 76-2083 , THE RENT MORA- TORIUM LAW; AND PROVIDING' THAT THIS ORDINANCE IS ADOPTED AS A REFERENDUM MEASURE PURSUANT TO THE PROVISIONS OF SECTION 26 OF THE CHARTER OF THE CITY OF MIAMI BEACH. WHEREAS, Miami Beach Ordinance No. 74-2018 , otherwise known as THE MIAMI BEACH RENT STABILIZATION LAW, by its own terms has expired; and, WHEREAS, the Council of the City of Miami Beach, Florida, makes the following findings of fact which, when considered together, constitute a valid showing of a grave and serious housing emergency with respect to rental housing of a substantial number of citizens of the City of Miami Beach and which demonstrate a need for rent stabilization to serve and promote the public interest: a) The vacancy rate of standard quality rental apartments within the City of Miami Beach is ordinarily below 5 percent. Any vacancy rate above 5 percent is temporary in nature and ordinarily remains above 5 percent for less than one year. The precise vacancy rate of standard quality rental apartments in Miami Beach is diffi- cult to measure with precision because business and governmental sources differ in their findings; nor do such vacancy surveys usually take substandard apartment units into account. b) The City of Miami Beach is geographically compact, con- sisting of approximately 8 square miles. There is a serious shortage of vacant land available for new construction within the confines of said City and any new construction is primarily intended for condo- minium units, which will not satisfy the demand for rental apartments. The demand for apartment rental units is expected to increase markedly because of an improvement in the national economy, the approved pro- ject to restore the ocean beach and the impending restoration of the South Beach area. Also, the deterioration and demolition of existing housing and the existing economic inflationary spiral have resulted in a substantial and critical shortage of safe, decent and reasonably- priced housing accommodations in the City of Miami Beach. c) The population of the City of Miami Beach is largely comprised of people in a higher age bracket with relatively low, fixed, investment or retirement incomes. Approximately 80 percent of the citizens of Miami Beach rent apartments. i OFFICE OF THE CITY ATTORNEY - 1130 WASHINGTON AVENUE MIAMI BEACH, FLORIDA 33139 d) Rental property values on Miami Beach are among the highest in the State of Florida, and historically have accelerated at a rate substantially higher than that of the remainder of Dade County, Florida. Accordingly, in the absence of rent stabilization, apartment rents on Miami Beach have risen faster than those in the remainder of Dade County and faster than the increases in the Con- sumer Price Index. e) The demand for rental apartments on Miami Beach cannot be satisfied in adjacent or nearby areas because the City of Miami Beach is unique in Dade County in that the City provides extensive cultural, recreational and emergency medical services that are not duplicated in other areas; a large percentage of the citizens of Miami Beach do not drive automobiles , which would be required else- where; and WHEREAS, the legislature of the State of Florida, at its 1973 Session, duly enacted Chapter 73-129 (Florida Statutes Chapter 166 , Part I, otherwise known as the Municipal Home Rule Powers Act) , implementing Article VIII , §2 (b) of the Florida Constitution, grant- ing legislative and charter authority to the municipalities of the State of Florida, which authority has been held to include the au- thority to enact rent control legislation; and, WHEREAS, Ordinance No. 76-2083, otherwise known as the Rent Moratorium Law, is insufficient to meet the said emergency and fulfill the public necessity; and, WHEREAS, the aforesaid emergency cannot be dealt with effec- tively by the ordinary operations of the private rental housing market, and unless residential rents are regulated, such emergency and the inflationary pressure flowing therefrom will produce a serious and sub- stantial threat to the public health, safety and general welfare of the citizens of Miami Beach, Florida; NOW, THEREFORE, BE IT ORDAINED BY THE CITY OF MIAMI BEACH, FLORIDA, that City of Miami Beach, Florida, Ordinance No. 74-2018 is Re-Enacted as follows: 1. SECTION 1 entitled Short Title is hereby Re-Enacted. 2. SECTION 2 entitled Definitions is hereby Re-Enacted, providing definitions for the following terms : Administration, Director, Advisory Committee, Housing Accommodation, Freeze Date, Freeze Date Maximum Rent, Immediate Family, Rent, Services and Minimum Service Standards. 3. SECTION 3 entitled Maximum Rent Ceiling - Minimum Service Standards is hereby Re-Enacted, making it unlawful for any person to demand or receive rent in excess of the Maximum Rent Ceil- ing, or to refuse to supply any service required by the Minimum Service Standards , or to violate Provisions of the Ordinance or Regulations promulgated thereunder. 4 . SECTION 4 entitled General Powers and Duties of the Director is hereby Re-Enacted, providing authorization to the Rent Director to adjust the Maximum Rent Ceiling or Minimum Service - 2 - • OFFICE OF THE CITY ATTORNEY - 1130 WASHINGTON AVENUE , MIAMI BEACH, FLORIDA 33139 Standard, or both, of accommodations whenever the Rent Director shall determine that a general increase or decrease since October 16 , 1974 , in taxes, or other maintenance, or operating costs or expenses has occurred or is about to occur in such manner and amount as substantially to affect the maintenance and operation of housing accommodations generally; to promulgate regulations; to administer oaths and issue subpoenas; to seek injunctive relief; to issue opinions upon written request; providing further for the filing of registration statements by landlords. 5. SECTION 5 entitled Rent Adjustments is hereby Re- Enacted, providing for adjustments to the Maximum Rent Ceiling or Minimum Service Standards upon proper application by a landlord or tenant, in the case of: (a) A mutual voluntary written agreement of landlord and tenant to a change in the dwelling space or services or fur- nishings to be provided, (b) A major capital improvement or substantial improvement, (c) A substantial rise in operating expenses, (d) Insufficient rental income to maintain approxi- mately the same ratio between operating expenses and gross rent prevailing on October 16 , 1974 , (e) Inability of a landlord, for reasons beyond his control, to receive a fair rate of return, (f) The maximum rent ceiling is substantially higher than that generally prevailing for comparable housing accommodations, (g) The service supplied is less than that established by minimum service standards. Further providing for what constitutes a fair rate of return. 6. SECTION 6 entitled Modification of Determination is hereby Re-Enacted, providing for the revocation, modification or supersedence of prior determinations by the Director. 7. SECTION 7 entitled Evictions is not Re-Enacted, but is deleted. 3 _ • OFFICE OF THE CITY ATTORNEY - 1130 WASHINGTON AVENUE - MIAMI BEACH, FLORIDA 33139 8. SECTION 8 entitled Administrative Procedure is hereby Re-Enacted, providing for administrative review of orders issued by the Director, including the right to a hearing, examination of witnesses, the right to counsel and to submit written and oral evidence. 9. SECTION 9 entitled Payment of Rent During Petition And Appeal is hereby Re-Enacted, providing guidelines for payment of rent during administrative review or judicial action. 10. SECTION 10 entitled Overcharges is hereby Re-Enacted, providing for recovery of overcharges paid by a tenant and in the case of willful and intentional overcharges, recovery of double the amount of overcharge, plus reasonable attorneys' fees; further pro- viding a two-year period during which action may be brought to recover overcharges. 11. SECTION 11 (with the exception of Section 11 E 2 , which is excluded from this ordinance) entitled Prohibitions is hereby Re-Enacted, providing prohibitions against overcharging, violating the Ordinance, disclosing information for personal bene- fit of administrative personnel, making false statements or willful omissions. 12 . SECTION 12 entitled Harassment is hereby Re-Enacted, providing for prohibitions against harassment of tenants, and legal remedies for such harassment. 13. SECTION 13 entitled Survivorship is not Re-Enacted, but is deleted. 14 . SECTION 14 entitled Waiver is hereby Re-Enacted, pro- viding that a tenant cannot waive Provisions of this Ordinance. 15. SECTION 15 entitled Decontrol is hereby Re-Enacted, providing for decontrol of housing accommodations if the housing emergency ceases to exist. 16. SECTION 16 entitled Penalty is hereby Re-Enacted, providing for fines and/or imprisonment for willful violations of this Ordinance. _ 4 _ f OFFICE OF THE CITY ATTORNEY 1130 WASHINGTON AVENUt - MIAMI BEACH, FLORIDA 33139 17. SECTION 17 entitled Remedies Saved is hereby Re- Enacted, providing for survival of remedies after termination of this Ordinance. 18. SECTION 18 entitled Conflicting Ordinances Repealed is hereby Re-Enacted. 19. SECTION 19 entitled Severability is hereby Re-Enacted. 20. SECTION 20 entitled Effective Date and Duration is not Re-Enacted, but is modified to provide that this Ordinance shall go into effect immediately after the certification of the vote in the referendum election, if said vote is favorable to re-enactment of this Rent Stabilitzation Law, and shall terminate on December 31, 1978, unless extended or terminated by the Miami Beach City Council prior to the said expiration dgte. 21. SECTION 21 entitled Emergency Measure is not Re-Enacted, but is deleted. 22 . The Rent Moratorium Law, Ordinance No. 76-2083 , pro- viding for a temporary moratorium on rent increases and prohibiting rent-gouging is hereby repealed as being inconsistent with this Ordinance and unnecessary; said repeal shall be effective on the date this Ordinance (the Rent Stabilization Law) is re-enacted. PASSED and ADOPTED this 20th day of April , 1977. ayoAtMayor- Attest: test: City Clerk 1st Reading - March 24, 1977 2nd Reading - April 20, 1977 - 5 - • OFFICE OF THE CITY ATTORNEY - 1130 WASHINGTON AVENUE - MIAMI BEACH, FLORIDA 33139 io„vb co c1 O I L Q . • L M O C) Ol Zt O +-1 N N O 1 U J I's- C C < I— (6•— Z C (p C7 O -O L — Z L Q) .-. C O U V1 O W C C) L-C 0 C) 4-1 •— E•- z L3 (1) — O C] 4- . a) O 0)O C L 5- •— •— a-, 0 +� C U O VI cl'' U C C 0 (1) 4-+ •- 1 C VI C) C) •— >