Ordinance 2022-4513 Workforce Housing Fee Waivers
ORDINANCE NO. 2022-4513
AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, AMENDING THE LAND DEVELOPMENT
REGULATIONS OF THE CODE OF THE CITY OF MIAMI BEACH, BY
AMENDING CHAPTER 118, "ADMINISTRATION AND REVIEW
PROCEDURES," ARTICLE I, "IN GENERAL," AT SECTION 118-7, "FEES
FOR THE ADMINISTRATION OF LAND DEVELOPMENT REGULATIONS,"
TO WAIVE LAND DEVELOPMENT BOARD APPLICATION FEES
ASSOCIATED WITH WORKFORCE HOUSING DEVELOPMENTS;
AMENDING CHAPTER 122, "CONCURRENCY MANAGEMENT AND
MOBILITY FEES," ARTICLE I, "PURPOSE AND GENERAL PROVISIONS,"
AT SECTION 122-5, ENTITLED "EXEMPTIONS FROM CONCURRENCY
MITIGATION AND MOBILITY FEES," TO WAIVE CONCURRENCY AND
MOBILITY FEES ASSOCIATED WITH WORKFORCE HOUSING
DEVELOPMENTS; AND AMENDING CHAPTER 133, "SUSTAINABILITY
AND RESILIENCY," ARTICLE I, "GREEN BUILDINGS," DIVISION 2,
"GREEN BUILDING REGULATIONS," AT SECTION 133-3,
"SUSTAINABILITY REQUIREMENTS," TO EXEMPT NON-ELDERLY AND
ELDERLY LOW AND MODERATE INCOME AND WORKFORCE HOUSING
DEVELOPMENTS FROM THE CITY'S GREEN BUILDING REGULATIONS;
AMENDING CHAPTER 82, "PUBLIC PROPERTY," ARTICLE VII, "ART IN
PUBLIC PLACES," DIVISION 4, "PROCEDURES," AT SECTION 82-537,
"DEFINITIONS," TO EXEMPT, FROM THE ART IN PUBLIC PLACES
REQUIREMENTS, LOW OR MODERATE INCOME HOUSING OR
WORKFORCE HOUSING DEVELOPMENTS CONSTRUCTED ON CITY-
OWNED LAND; AMENDING CHAPTER 58, "HOUSING," ARTICLE I, "IN
GENERAL," BY CREATING SECTION 58-1, "FINANCIAL INCENTIVES
FOR AFFORDABLE AND WORKFORCE HOUSING DEVELOPMENTS,"TO
ESTABLISH FINANCIAL INCENTIVES FOR AFFORDABLE AND
WORKFORCE HOUSING DEVELOPMENTS; AMENDING ARTICLE VI,
"WORKFORCE HOUSING,"SECTION 58-501, "DEFINITIONS,"AND SECTION
58-503, "WORKFORCE HOUSING REQUIREMENTS," TO AMEND THE
MINIMUM REQUIREMENTS FOR THE DECLARATION OF RESTRICTIVE
COVENANTS, INCLUDING THE CONTROL PERIOD; AND AMENDING
APPENDIX A, "FEE SCHEDULE," TO EXEMPT WORKFORCE HOUSING
UNITS OR DEVELOPMENTS FROM MOBILITY FEES; AND PROVIDING FOR
REPEALER, CODIFICATION, SEVERABILITY,AND AN EFFECTIVE DATE.
WHEREAS, the Miami Beach 2040 Comprehensive Plan ("Comprehensive Plan"), at.
Guiding Principle 6: Prioritize Workforce Housing, states that "[t]he City shall encourage
redevelopment that provides workforce and affordable housing"; and
WHEREAS,the Comprehensive Plan, at Goal HE 1:Equitable Community, states that the
City will "[s]upport vulnerable populations with attainable housing options that are proximate to
transportation services and basic needs to improve economic mobility within the community";and
WHEREAS, the Comprehensive Plan, at Objective HE 1.1: Creation and/or preservation
of workforce and affordable housing, states that the City will "[Nave available a minimum of 6,800
housing units of workforce, affordable low and moderate income households and special needs
populations during the period through 2030"; and
WHEREAS, the Comprehensive Plan, at Policy HE 1.1.3, requires that the City
"[c]ooperate with affordable and workforce housing developers' efforts to leverage Miami-Dade
Surtax funds and other financial incentives for the provision of housing affordable to workforce,
very low to moderate-income households, including those with special needs, in Miami Beach";
and
WHEREAS, the Comprehensive Plan, at Policy HE 1.1.11, requires that "the City shall
explore strategies to increase the resiliency within neighborhoods, while limiting involuntary
displacement and increasing housing stability"; and
WHEREAS, the availability of affordable and workforce housing is a vital quality of life
component for the health, welfare, and prosperity of Miami Beach residents and workers; and
WHEREAS, land acquisition and development costs and income restrictions create
financial challenges for affordable and workforce housing projects; and
WHEREAS, the City of Miami Beach ("City") recognizes that financial incentives are
necessary to foster the development of affordable and workforce housing; and
WHEREAS, the City has the authority to enact laws which promote the public health,
safety, general welfare, and morals of its citizens; and
WHEREAS, the amendments set forth below are necessary to accomplish all of the
above objectives.
NOW THEREFORE, BE IT ORDAINED BY THE MAYOR AND CITY COMMISSION
OF THE CITY OF MIAMI BEACH, FLORIDA, AS FOLLOWS:
SECTION 1. Chapter 118, "Administration and Review Procedures," Article I, "In General,"
is hereby amended as follows:
CHAPTER 118
ADMINISTRATION AND REVIEW PROCEDURES
ARTICLE 1. IN GENERAL
Sec. 118-7. Fees for the administration of land development regulations.
* * *
(e) Design review. Any applicant requesting a public hearing on any application for design
review board approval, pursuant to sections 118-253 and 118-254, shall pay, upon
submission, the applicable fees below:
2
(12) Notwithstanding the foregoing, the application fee for a public hearing and
application fee for design review approval per square foot of floor area shall be
waived for non-elderly and elderly low and moderate income or workforce
housing developments.
* * *
(g) Variances. Any applicant requesting a public hearing on any application pursuant to
section 118-353 shall pay, upon submission, the applicable fees below:
* * *
(12) Notwithstanding the foregoing, the application fee for a public hearing and fee per
variance requested shall be waived for non-elderly and elderly low and moderate
income or workforce housing developments.
(h) Certificate of appropriateness. Any applicant requesting a public hearing on any
application pursuant to sections 118-562 through 118-564, shall pay, upon submission,
the applicable fees'below:
* * *
(13) Notwithstanding the foregoing, the application fee for a public hearing and
application fee for a certificate of appropriateness per square foot of floor area
shall be waived for non-elderly and elderly low and moderate income or r workforce
housing developments.
SECTION 2. Chapter 122, "Concurrency Management and Mobility Fees,"Article I, "Purpose
and General Provisions," is hereby amended as follows:
CHAPTER 122
CONCURRENCY MANAGEMENT AND MOBILITY FEES
ARTICLE I. PURPOSE AND GENERAL PROVISIONS
* * *
Sec. 122-5. Exemptions from concurrency mitigation and mobility fees.
The following types of development are not required to undergo concurrency review or pay
a mobility fee pursuant to this chapter:
* * *
(f) Non-elderly and elderly low and moderate income or workforce housing
developments.
* * *
3
SECTION 3. Chapter 133, entitled "Sustainability and Resiliency," Article 2, entitled "Green
Building Regulations," Division 1 entitled "In General," at section 133-3, entitled "Sustainability
Requirements," is hereby amended as follows:
CHAPTER 133
SUSTAINABILITY AND RESILIENCY
ARTICLE I. GREEN BUILDINGS
• * *
DIVISION 2. GREEN BUILDING REGULATIONS
* * *
Sec. 133-3. Sustainability requirements.
(a) Mandatory compliance with the requirements of this chapter shall be required for all
applicants with building permit applications that meet the following criteria (hereinafter
"eligible participants"):
(1) All new construction that proposes over 7,000 square feet of construction of a
structure; or
(2) Ground floor additions (whether attached or detached) to existing structures that
encompass over 10,000 square feet of additional floor area.
(b) Notwithstanding the foregoing, non-elderly and elderly low and moderate income and
workforce housing developments shall be exempt from the requirements of this article.
However, such developments are encouraged to incorporate green building elements that
further the intent and purpose of section 133-2.
* * *
SECTION 4. Chapter 82, entitled "Public Property," Article VII, entitled "Art In Public Places,"
Division 4, entitled "Procedures," at Section 82-537, entitled "Definitions" is hereby amended as
follows:
CHAPTER 82
PUBLIC PROPERTY
* * *
ARTICLE VII. ART IN PUBLIC PLACES
* * *
DIVISION 4. PROCEDURES
Sec. 82-537. Definitions and exemptions.
* * *
4
The provisions of this article shall not apply to the new construction of, renovations, or additions
to the following city construction projects:
a. Water and sewer related facilities, such as pump stations, water mains, water lines,
sewer lines, treatment facilities, etc.
b. Storm drainage infrastructure.
c. Road construction or bridges, provided, however, that streetscape beautification
projects, which may include, but are not limited to: resurfacing, new curbs, gutters,
pavers, sidewalks, landscaping, lighting, bus shelters, bus benches, street furniture and
signage, and similar above-ground improvements, shall not be exempted and shall be
subject to the provisions of this article.
d. City construction projects undertaken to replace, reconstruct, or repair an existing public
building or facility damaged'or destroyed by a sudden unexpected turn of events, such
as an act of God, riot, fire, flood, accident, or other urgent circumstance.
e. The construction, remodeling, repair or improvement to a public electric or gas utility
system.
f. Where the city construction project is undertaken as a routine repair or
maintenance of an existing public facility.
g. Low-income or moderate income housing or workforce housing developments
constructed on city-owned land, either by the city or by persons or entities other than
the city, pursuant to a (i) development agreement with the city, (ii) ground lease, (iii) a
purchase and sale agreement relating to the sale of any City property, or (iv)
management agreement with the city, provided the development satisfies all of the
requirements for such low-income, moderate income or workforce housing units, as set
forth in chapter 58 of the city code.
* *
SECTION 5. Chapter 58, entitled "Housing," is hereby amended as follows:
CHAPTER 58
HOUSING
ARTICLE I. IN GENERAL
Sec. 58-1. Financial incentives for affordable and workforce housing developments.
(a) Notwithstanding any other provision of this Code, the fees required under Chapter 82, Article
VII (Art in Public Places); Section 118-7 (land development board application fees); Section
122-3 (concurrency and mobility fee); and Chapter 133, Article I, Divisions 2 and 3 (green
building requirements) shall not apply to residential developments for:
) Low-income or moderate-income households (i.e. affordable housing), where at least a
majority of the floor area of the entire development satisfies the requirements and
mandatory criteria in Article V of Chapter 58 of the City Code; and
j) Workforce housing developments, where at least a majority of the floor area of the entire
development satisfies the requirements and mandatory criteria in Article VI of Chapter 58
of the City Code.
5
For purposes of floor area calculations under this subsection (a), the square footage of any
common areas shall be allocated proportionately according to the ratio of (i) floor area
associated with affordable or workforce housing units, to (ii)floor area associated with other
residential/commercial uses on the property.
In the event that a low-income or moderate-income housing unit is subsequently converted
to a market rate unit in violation of the restrictive covenant required under Section 58-403(4),
the owner shall be required to pay all applicable fees and satisfy all requirements under
Chapter 82, Article VII (Art in Public Places); Section 118-7 (land development board
application fees); Section 122-3 (concurrency and mobility fee); and Chapter 133, Article I,
Divisions 2 and 3 (green building requirements) of this Code, as of the date of issuance of
the building permit, plus interest at the highest amount authorized by law (with such interest
accruing from the date of issuance of the permit until full payment of all amounts due under
this section), collection costs, and attorney's fees.
In the event that a workforce housing unit is subsequently converted to a market rate unit in
violation of the restrictive covenant required under Section 58-503, the owner shall be
required to pay all applicable fees and satisfy all requirements under Chapter 82, Article VII
(Art in Public Places); Section 118-7(land development board application fees); Section 122-
3(concurrency and mobility fee); and Chapter 133,Article I, Divisions 2 and 3(green building
requirements) of this Code, as of the date of issuance of the building permit, plus interest at
the highest amount authorized by law (with such interest accruing from the date of issuance
of the permit until full payment of all amounts due under this section), collection costs, and
attorney's fees. The foregoing is in addition to the penalty and enforcement provisions in
Section 58-506.
*
ARTICLE VI. WORKFORCE HOUSING
* * *
Sec. 58-501. Definitions.
The purpose of this article is to create administrative procedures for the implementation of
the city's "workforce housing development program."
* * *
Control period means each 20 30-year period during which the affordability restrictions
imposed by this article shall apply. The control period begins at the time of any sale or resale of
the affected unit.
* * *
Sec. 58-503. Workforce housing requirements.
(a) Workforce housing deolara+inn ofrestriotive covenants and workforce housing agreement
developments or units shall comply with the following housing requirements:
6
(1) A workforce housing unit shall only be offered for rental solely to a qualified household
to be used for his or her own as a primary residence. The city shall establish by
resolution a pricing schedule of rental prices for workforce housing units in accordance
with this article.
(2) Any developer or ether property owner offering a workforce housing unit for rental shall •
record in the public records one or more covenants or a declarations of festrietions
restrictive covenants, in a form approved by the city attorney. Such color
declarations of restrictions declaration shall include incorporate, at a minimum, the
workforce housing unit agreement, and such further arrangements, restrictive
coveDPvenaa Its, the requirements of this article and rental restrictions as arc any other
provisions necessary to carry out the purposes of this article. The developer or other
declaration of restrictive covenants must, at
a minimum, assuring assure that:
a. The restrictions of this article shall run with the land for the entire control period of
29 30 years;
b. The covenants will bind the applicant, any assignee, mortgagee, OF purchaser,
successor and all any other parties that receive title to or hold any interest in the
property. These covenants shall be senior to all instruments securing permanent
financing.
(b) Upon the expiration of the control period,.the city shall record in the public records of Miami-
Dade City County an instrument or-document releasing the
declaration of restrictive covenants required by under this program article.
(c) The declaration of restrictive covenants recorder! by each developer er other property owner
pnavisions shall, at a minimum, include the following terms:
(1) The covenants shall be senior to all instruments securing permanent financing, and
shall bind all assignees, mortgagees, purchasers and other successors in interest.
(2) No sale, transfer or foreclosure shall affect the validity of the covenants except as
expressly set forth in the provisions of this article.
(3) An owner of a residential workforce housing rental unit or development intending to sell
the unit or development shall notify the department in writing prior to the closing of the
sale, and shall provide documentation to the department that the prospective new owner
acknowledges and is aware of the terms, conditions, and restrictions encumbering the
unit or development as set forth in this article.
(4) Any workforce housing unit offered for rent under this article must not be rented for 29
30 years after the date of original rental at a rent greater than the rent allowed for
workforce housing units under this article and applicable regulations. Rent does not
include utilities when they are paid directly by the tenant. Different rents must be set
identified when utility costs are paid by the owner and included in the rent. During the
applicable control period, a workforce housing unit must only be rented to an individual
with a household income that does not exceed the limits set under this article.
SECTION 6. Appendix A, entitled "Fee Schedule" is hereby amended as follows:
APPENDIX A
FEE SCHEDULE
7
*
122-24 Residential
Single-family with a unit size less than 3,500 sq. Per unit 1,903.67 [B]
ft.'
Single-family with a unit size between 3,500 and Per unit 2,536.50 [B]
7,000 sq. ft.'
Single-family with a unit size greater than 7,000 Per unit 3,170.37 [B]
sq. ft.'
Multifamily apartments Per unit 1,561.48 [B]
Affordable housing Per unit 0.00 [B]
Workforce housing Per unit 781.26 0.00 [B]
* * *
SECTION 7. REPEALER.
All ordinances or parts of ordinances and all section and parts of sections in conflict
herewith are hereby repealed.
SECTION 8.CODIFICATION.
It is the intention of the City Commission, and it is hereby ordained, that the provisions of
this Ordinance shall become and be made part of the Code of the City of Miami Beach, as
amended; that the sections of this Ordinance may be re-numbered or re-lettered to accomplish
such intention; and that the word "ordinance" may be changed to "section" or other appropriate
word.
SECTION 9. SEVERABILITY.
If any section, subsection, clause or provision of this Ordinance is held invalid, the
remainder shall not be affected by such invalidity.
SECTION 10. EFFECTIVE DATE.
This Ordinance shall take effect ten days following adoption.
PASSED and ADOPTED this elf day of ��/�"�'� r2 2.
ATTEST: Dan Gelber, Mayor
SEP 2 9 2022 APPROVED AS TO FORM AND
LANGUAGE AND FOR EXECUTION
Rafae E. Granado, City Clerk k\; Ugkit if 1qI int.
First Reading: September 14, 2022 rag,City Attorney Date
Second Reading: September 28, 2 22
Verified By: f '
f :IPICORPiORATED
Thomas R. Mooney, AICP
Planning Director ''��,;�, 26 '
F:WTTO\KALN\ORDINANCES\Workforce Housing Fee Waivers-Second Reading ORD.docx
8
Ordinances - R5 A
MIAMI BEACH
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Alina T. Hudak, City Manager
DATE: September 28, 2022
5:10 p.m. Second Reading Public Hearing
SUBJECT:WORKFORCE HOUSING FEE WAIVERS
AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, AMENDING THE LAND DEVELOPMENT
REGULATIONS OF THE CODE OF THE CITY OF MIAMI BEACH, BY
AMENDING CHAPTER 118, "ADMINISTRATION AND REVIEW
PROCEDURES," ARTICLE I, "IN GENERAL," AT SECTION 118-7, "FEES
FOR THE ADMINISTRATION OF LAND DEVELOPMENT REGULATIONS,"
TO WAIVE LAND DEVELOPMENT BOARD APPLICATION FEES
ASSOCIATED WITH WORKFORCE HOUSING DEVELOPMENTS;
AMENDING CHAPTER 122, "CONCURRENCY MANAGEMENT AND
MOBILITY FEES," ARTICLE I, "PURPOSE AND GENERAL PROVISIONS,"
AT SECTION 122-5, ENTITLED "EXEMPTIONS FROM CONCURRENCY
MITIGATION AND MOBILITY FEES," TO WAIVE CONCURRENCY AND
MOBILITY FEES ASSOCIATED WITH WORKFORCE HOUSING
DEVELOPMENTS; AND AMENDING CHAPTER 133, "SUSTAINABILITY
AND RESILIENCY," ARTICLE I, "GREEN BUILDINGS," DIVISION 2,
"GREEN BUILDING REGULATIONS," AT SECTION 133-3,
"SUSTAINABILITY REQUIREMENTS," TO EXEMPT NON-ELDERLY AND
ELDERLY LOW AND MODE RATE INCOME AND WORKFORCE HOUSING
DEVELOPMENTS FROM THE CITY'S GREEN BUILDING REGULATIONS;
AMENDING CHAPTER 82, "PUBLIC PROPERTY," ARTICLE VII, "ART IN
PUBLIC PLACES," DIVISION 4, "PROCEDURES," AT SECTION 82-537,
"DEFINITIONS," TO EXEMPT, FROM THE ART IN PUBLIC PLACES
REQUIREMENTS, LOW OR MODERATE INCOME HOUSING OR
WORKFORCE HOUSING DEVELOPMENTS CONSTRUCTED ON CITY-
OWNED LAND; AMENDING CHAPTER 58, "HOUSING," ARTICLE I, "IN
GENERAL," BY CREATING SECTION 58-1, "FINANCIAL INCENTIVES FOR
AFFORDABLE AND WORKFORCE HOUSING DEVELOPMENTS," TO
ESTABLISH FINANCIAL INCENTIVES FOR AFFORDABLE AND
WORKFORCE HOUSING DEVELOPMENTS; AMENDING ARTICLE VI,
"WORKFORCE HOUSING," SECTION 58-501, "DEFINITIONS," AND
SECTION 58-503, "WORKFORCE HOUSING REQUIREMENTS," TO
AMEND THE MINIMUM REQUIREMENTS FOR THE DECLARATION OF
RESTRICTIVE COVENANTS, INCLUDING THE CONTROL PERIOD; AND
AMENDING APPENDIX A, "FEE SCHEDULE," TO EXEMPT WORKFORCE
HOUSING UNITS OR DEVELOPMENTS FROM MOBILITY FEES; AND
Page 20 of 508
PROVIDING FOR REPEALER, CODIFICATION, SEVERABILITY, AND AN
EFFECTIVE DATE.
RECOMMENDATION
The Administration recommends that the City Commission approve the subject Ordinance at Second
Reading Public Hearing on September 28, 2022.
BACKGROUND/HISTORY
With rent and home prices reaching historic highs locally and nationally, addressing barriers to
financing and building attainable and inclusionary housing is critical to our economy and the ability of
our employees to live near their workplace. The availability of affordable and workforce housing
inventory is a vital component of personal survival and economic resiliency.
Essential employees, including teachers, emergency service workers, nurses, bus drivers, restaurant
workers, janitorial staff, and retail clerks, are finding it increasingly difficult to secure existing and
recently constructed affordable housing in Miami Beach. This results in an increase in cost-burdened
households —those spending more than 30% of household income on housing costs. Unfortunately,
in urban centers and coastal areas, land and development costs are increasing, with the end result of
more employees living further away from their jobs and significantly increasing their commute time,
total workday, and cost of living.
When more of the Miami Beach workforce can afford to live close to their places of employment, the
community reaps the benefits because employers are able to attract and retain diverse employees at
all levels. Shorter commute times enable employees to increase productivity, engage with and build
community, support the local economy, become environmental stewards, and reduce traffic
congestion.
High rental and housing costs are a reflection of inadequate affordable housing stock and rising
demand, compounded by foreign investment and wealth migration. As housing costs are outpacing
wage growth in Miami-Dade County, it is increasingly challenging for lower- and middle-class
households to maintain their quality of life. The confluence of rising housing costs, limited housing
supply, inflation, and wage stagnation are impacting individuals and families in the fundamental areas
of life including food security, health and wellness, and access to childcare and education.
Affordable (described as low- and moderate-income housing in the City Code of Ordinances) and
Workforce Housing refers to income-restricted housing serving low to moderate income individuals
and families employed in the local workforce. Whereas affordable housing is typically designated for
households with income up to 80%AMI (area median income), both City of Miami Beach and Miami-
Dade County have defined workforce housing beneficiaries as those households earning up to 140%
AMI.
Area median income, and household income and rent limits for Miami-Dade County are determined
by the U.S. Department of Housing and Urban Development and are published by the Florida
Housing Finance Corporation on an annual basis.
2022 Income and Rent Limits—Miami-Dade County (Median: $68,300)
AMI Income Limit by Number of Rent Limit by Number of
Category Persons in Household Bedrooms in Unit
Page 21 of 508
1 Person 2 Persons 3 Persons Studio 1 BR 2 BR
80% $ 54,640 $ 62,400 $ 70,240 $ 1,366 $ 1,463 $ 1,756
120% $ 81,960 $ 93,600 $ 105,360 $2,049 $2,194 $ 2,634
140% $ 95,620 $ 109,200 $ 122,920 $2,390 $ 2,560 $3,073
The Miami Beach City Commission and the Miami-Dade County Board of County Commissioners
have prioritized the promotion and enhancement of workforce housing, with the goal of improving
housing solutions for residents. The City Commission has discussed and authorized a variety of
incentives, with varying fiscal impact, to encourage private sector development of affordable and
workforce housing units including but not limited to:
• expedited plan review and permitting;
• micro-unit housing restricted from short-term rentals;
• eliminating application and review fees and restructuring impact fees; and
• utilization of City-owned properties to develop workforce housing.
Following a Special City Commission Workshop on affordable and workforce housing on January 25,
2017, the City has pursued multiple initiatives including: (1) prioritization of workforce and affordable
housing in the Comprehensive Plan; (2) relaxation of development standards for
workforce/affordable housing units (e.g., required off-street parking and minimum unit size); (3)
waiving of certain City-imposed development-related fees, such as mobility fees and training and
technology surcharges; and (4) repurposing City parking assets for better utilization and the
promotion of inclusionary housing.
On March 9, 2022, at the request of co-sponsors Commissioner Alex Fernandez and Vice-Mayor
Kristen Rosen Gonzalez, City Commission item C4H was referred to the Finance and Economic
Resiliency Committee ("FERC") to discuss waiving and/or reducing the City Sustainability Fees and
any other fees, to support affordable and workforce housing. The sponsors noted the following in the
City Commission Memorandum:
At the February 23, 2022, City Commission meeting, as part of the City's approval of the
lease amendments for the Collins Park Artist Workforce Housing Project — the first City
public-private partnership for workforce housing in the City— it became readily apparent that
the City needs to do more to incentivize affordable and workforce housing [development],
including waiving the appropriate City fees to the extent possible to bring down project costs,
as the rent limits associated with affordable/workforce housing make it very challenging to
obtain financing for these projects, particularly in an environment of rising interest rates and
inflationary pressures on construction costs.
On April 8, 2022, Miami-Dade County Mayor Daniella Levine Cava declared an affordability crisis in
Miami-Dade County, and deployed the County's resources to expedite the production of affordable
and workforce housing.
On July 7, 2022, the Miami-Dade County Board of County Commissioners adopted Ordinance No.
22-80, relating to impact fee exemptions for affordable and workforce housing development in both
incorporated and unincorporated areas. County Ordinance No. 22-80 expands the current impact fee
exemption for affordable housing of up to 80%AMI, to now include workforce housing developments
targeted for tenants up to 120%AMI. Specifically, County Ordinance 22-80 amends Chapter 33E of
the County Code, known as the Road Impact Fee Ordinance, by adding an exemption for any portion
of a residential development that provides workforce housing units with target income range not
Page 22 of 508
exceeding 120% AMI. To be eligible, Ordinance 22-80 requires workforce housing units (i) to be
subject to an interlocal agreement, or (ii) to comply with an applicable municipal workforce housing
ordinance (such as Chapter 58 of the City Code, for example), or (iii) be subject to a minimum 15-
year restrictive covenant.
To benefit from the exemption, projects must submit an application for approval by the County Zoning
Director.An applicant may either submit the application prior to issuance of a building permit with the
execution of a restrictive covenant, or submit the application within one year after the issuance of a
Certificate of Completion, Certificate of Occupancy, or Certificate of Use for the building, whichever
is later.
ANALYSIS
In recent years, the City Commission has enacted ordinances to reduce development-related fees for
affordable and workforce housing with the express purpose of increasing the city's housing stock for
working-class residents. In addition to these existing incentives, there are other fees that the City
Commission could consider waiving or reducing via an amendment of the City Code.
Sustainability Fee (Green Building Ordinance)
As one of the cities impacted by the results of climate change, Miami Beach has strong
sustainability goals. On February 10, 2016, via Ordinance No. 2016-3993, the City Commission
established regulations intended to strengthen the environmental sustainability of Miami Beach
by requiring green building by the private and public sector. Leadership in Energy and
Environmental Design (LEED) is a rating system developed by the United States Green
Building Council (USGBC) to evaluate the environmental performance of a building and
encourage market transformation towards sustainable design. Attaining LEED certification
demonstrates environmentally responsible building practices and is an important component of
achieving the City's greenhouse gas reduction goals, approved by the City Commission.
Buildings over 7,000 square feet or ground floor additions to existing structures that encompass
over 10,000 square feet of additional floor area are required to achieve LEED Gold
Certification, codified through Chapter 133 of the City Code, "Sustainability and Resiliency." If
the building does not achieve the certification, a Sustainability Fee is required, valued at five
percent (5%) of project construction value, prior to obtaining a Temporary Certificate of
Occupancy (TCO), Certificate of Occupancy (CO), or Certificate of Completion (CC) if the
project does not achieve LEED Gold Certification. The Sustainability Fee Program also
provides for the reimbursement of the fees commensurate with the level of green building
certification achieved by the project within two (2) years from TCO, CO or CC. The 5% fee
amount was originally based on research to encourage green building as opposed to simply
collecting a fee. The fees collected are used to maintain the Sustainability and Resiliency Fund
for projects, such as environmental restoration projects, environmental remediation projects,
environmental monitoring, green infrastructure, enhanced storm water quality and quantity
improvements, sustainability planning efforts, and other sustainability initiatives.
The Green Building Ordinance has successfully resulted in fifty-one (51) projects that require
certification, none of which include affordable or workforce housing units. Of that number, only
four (4) projects have been required to pay the fee, meaning these projects did not achieve
certification. While this may imply that achieving certification is perfunctory, the fifty-one (51)
projects are not likely to have the same financing and revenue challenges and limitations as do
affordable and workforce housing projects.
Page 23 of 508
Miami Beach's and Resilient305 resilience strategies build "resilience," which means the
capacity for individuals, communities, institutions, businesses, and systems within a city to
survive, adapt, and grow despite chronic stresses, such as rising sea levels and coastal erosion,
an underdeveloped transportation system, aging infrastructure, and lack of affordable and
workforce housing. The City's goals of climate resilience and housing affordability are mutually
beneficial and important for a resilient community. The City should be proud of the many
buildings achieving the certification, including city-owned assets such as the Miami Beach
Convention Center and the Facilities and Fleet Department building.
The Collins Park Artist Workforce Housing Project (the "Project") provides an example,
however, of how any additional expenses can impact financial viability. Despite the Project
developer and the City exercising flexibility to ensure the Project's financial viability, increasing
construction costs and a fluctuating bond market continue to jeopardize Project progress.
However, there may be an opportunity to reduce these obstacles to construction and increasing
development costs associated with non-market rate housing, by triggering the Project's
development agreement and ground lease which provides that "the developer shall not be
obligated to pay any City fees for the Project that can currently be waived under the City Code
and the City may, in its sole and absolute discretion, adopt amendments to the City Code that
permit the waiver or refund of all or part of City fees for the Project." The Project already
benefits from incentives for workforce housing currently in the City Code, e.g., related to parking
requirements, mobility fees, and technology/training surcharges.
To promote future workforce housing financing and development, and with the practical intention
of ensuring the feasibility of the Project, the Administration is recommending an amendment of
Chapter 133 of the City Code to exempt all current and future workforce and affordable housing
projects from complying with the requirements of the Sustainability Fee Program. Enactment of
such a waiver would require an amendment to the Land Development Regulations (LDR), with
review by the Planning Board and a 5/7ths vote of the City Commission at second reading. The
estimated Sustainability Fee for the Project is approximately $843,007. The Administration
does not recommend that this exemption apply to other development projects other than
affordable and workforce housing projects.
It is worth noting that the Project will meet Florida Building Code requirements for promoting
efficiency, sustainability, and resiliency. The Project is an urban infill development site that will
contain several sustainable elements including water, heating, and cooling efficiency; flood
mitigation; impact-resistant windows with energy efficient glazing; access to public and
alternative transportation and enhanced pedestrian access (including free public transit and Citi
Bike membership for new tenants); low volatile organic compounds (VOC) materials; and
materials with high levels of recycled content.
Mobility Fee
On May 12, 2021, the City Commission adopted an amendment (Ordinance No. 2021-4416)to
Chapter 122 of the Land Development Regulations ("LDRs") to waive or exempt affordable
housing units from the City's Mobility Fee (which replaced the City's previous Transportation
Concurrency Fee via Ordinance No. 2019-4306). The estimated Mobility Fee for the Project is
approximately $50,009. For reference, the City assesses Mobility Fees in order to be able to
fund transportation and mobility improvements that are necessary to support the development of
the City.
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The proposed amendment will exempt both workforce and affordable housing developments
from having to pay Mobility Fees. Currently only affordable housing units are exempt from
Mobility Fees, while all other components of a mixed-use development are subject to the
Mobility Fee.
Parks Concurrency Fee
The City's 2040 Comprehensive Plan prescribes adopted levels of services and indicates the
types of park facilities needed throughout the City. The Comprehensive Plan provides that,
where the levels are deficient, a concurrency fee will be assessed for new development. The
estimated Parks Concurrency Fee for the Project is approximately $35,010. In addition to this
City impact fee, Miami-Dade County impact fees for the Project (water& sewer, roads, school,
etc.) total approximately $425,357. Therefore, Miami-Dade County's recently enacted
exemption to County impact fees for workforce housing would remove a significant obstacle to
development. On May 12, 2021, the City Commission adopted Ordinance No. 2021-4416,
exempting affordable housing projects (not workforce housing projects) from undergoing parks
concurrency review or paying a mobility fee. The proposed ordinance would exempt workforce
housing developments from parks concurrency review.
Design Review Board. Historic Preservation Board and Board of Adjustment Fees
Ordinance No. 2021-4416 modified section 118-7 of the LDRs to waive the application fee, per
square foot fee, and per variance fee for the Design Review Board, Historic Preservation
Board, and the Board of Adjustment for elderly and non-elderly low- and moderate-income
affordable housing applications. The proposed ordinance would also exempt workforce housing
developments from such fees. An applicant is still responsible for fees associated with public
mail notice, public posting, advertisement, and couriers.
Art in Public Places (Al PP)
Though not captured within the City's Land Development Regulations (LDRs), the City's Art in
Public Places ("Al PP") Program has a financial impact on affordable and workforce housing
developments on City-owned land. AI PP was established pursuant to Sections 82-536 to 82-
612 of the City Code, and is used for the commission or acquisition of works of public art within
the City, as part of the City's efforts to develop cultural and artistic resources that enhance
quality of life. As required by City Code Section 82-537, the City must allocate to the City's
Al PP fund an amount consisting of two percent(2%) of the hard construction costs in excess of
$250,000, for applicable City construction projects, namely, new construction, additions, or
renovations of City-owned buildings, facilities, or other property, that are not otherwise exempt
by the ordinance (exemptions include certain infrastructure projects, emergency repairs, and
routine maintenance). The estimated Al PP fee for the Project is $330,980.
Further, Section 82-587(c) provides that the City Commission may reduce or waive the required
appropriation to the Al PP fund for any specific projects, by resolution approved by 5/7th vote, if
it finds that such action is in the City's best interest. For example, at the recommendation of the
General Obligation ("G.O.") Bond Oversight Committee, via Resolution 2019-30983, the Mayor
and City Commission waived the required appropriation to the Al PP fund for eleven (11) G.O.
Bond projects, citing that the associated expense would threaten the viability of the projects.
Planning Board Review
The Planning Board held a public hearing on July 26, 2022 and transmitted the Ordinance to the
City Commission with a favorable recommendation (6-0). The Planning Board recommendation
was specific to those fees applicable to the Land Development Regulations (LDRs) including
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Sustainability, Mobility, Parks Concurrency, and Design Review Board, Historic Preservation
Board and Board of Adjustment fees.
Summary of Existing Fees and Exemption Status
Fee Affordable Housing Workforce Housing
Sustainability Not Exempt Not Exempt
Mobility Exempt Not Exempt
Technology and Training Surcharge on Exempt Exempt
Building Permits
Parks Concurrency Exempt Not Exempt
DRB, HPB, BOA Exempt Not Exempt
Art in Public Places Not Exempt Not Exempt
Restrictive Covenant and Mixed-Use Development
Sections 58-500 to 58-506 of the City Code address workforce housing requirements including
a provision for a declaration of restrictive covenant to ensure housing affordability for at least
twenty (20) years: The proposed ordinance would require a thirty (30)-year restrictive covenant,
at a minimum, for private development projects. Projects developed on City-owned land through
a development agreement would be governed by the covenants in the ground lease which serve
as the covenant required under Chapter 58 of the City Code.
The proposed ordinance would waive fees for affordable and workforce housing units and
accessory uses that are part of such developments. Additionally, the fee waivers would apply to
all uses within a mixed-use development if the majority of the development's floor area is
dedicated to providing affordable or workforce housing.
SUPPORTING SURVEY DATA
Based on 2019 U.S. Census data, the most recent available, of the 58,066 jobs in Miami Beach,
48,515 or 83.6% are occupied by employees residing outside of Miami Beach. The City's 2019
Strategic Plan: Through the Lens of Resilience cites increasing mobility and housing options as a
major objective to attract and retain young families as residents, become less automobile-centric, and
establish a more local full-time community. The 2019 Strategic Plan also highlights management
objectives to: (1) enable growth in housing that protects seniors and encourages first-time
homebuyers, and (2) support affordable, compatible workforce housing through public and private
partners for key industries, including the use of development incentives.
FINANCIAL INFORMATION
The proposed ordinance reflects and furthers the City Commission's legislative objective of
incentivizing and facilitating the development of more affordable and workforce housing units to
combat the housing crisis and meet current demand. Presently, there are only a few affordable and
workforce projects are in the development pipeline, meanwhile, market rate projects will continue to
be assessed fees for the anticipated impact of their new development. At a future point in time, if the
supply of affordable and workforce housing stabilizes on par with consumer demand, the City
Commission may amend the City Code to remove the exemption and reinstitute these fees for
affordable and workforce housing.
CONCLUSION
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Housing affordability is an integral component of developing and maintaining a vibrant community.
Incentivizing the development of affordable and workforce housing in the City of Miami Beach will
serve to enhance economic sustainability and quality of life. The City Commission unanimously
approved the subject Ordinance at First Reading on September 14, 2022. The Administration
recommends that the City Commission give final approval of the Ordinance at Second Reading
Public Hearing on September 28, 2022.
Applicable Area
Citywide
Is this a"Residents Right Does this item utilize G.O.
to Know" item, pursuant to Bond Funds?
City Code Section 2-14?
Yes No
Strategic Connection
Mobility- Increase housing options for current and future residents.
Legislative Tracking
Economic Development
Sponsor
Vice-Mayor Alex Fernandez and Commissioner Kristen Rosen Gonzalez
ATTACHMENTS:
Description
o Ordinance-Affordable and Workforce Housing Fee Waiver
o Ad
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ZONE I NEIGHBORS I I SUNDAY SEPTEMBER 112022
CITY OF MIAMI BEACH
NOTICE OF PUBLIC HEARING
ORDINANCE WAIVING LAND DEVELOPMENT BOARD APPLICATION FEES ASSOCIATED WITH WORKFORCE HOUSING DEVELOPMENTS;WAIVING CONCURRENCY
AND MOBILITY FEES ASSOCIATED WITH WORKFORCE HOUSING DEVELOPMENTS;EXEMPTING NON-ELDERLY AND ELDERLY LOW AND MODERATE-INCOME AND
WORKFORCE HOUSING DEVELOPMENTS FROM THE CITY'S GREEN BUILDING REGULATIONS;EXEMPTING FROM THE ART IN PUBLIC PLACES REQUIREMENTS LOW
OR MODERATE INCOME HOUSING OR WORKFORCE HOUSING DEVELOPMENTS CONSTRUCTED ON CITY-OWNED LAND;ESTABLISHING FINANCIAL INCENTIVES FOR
AFFORDABLE AND WORKFORCE HOUSING DEVELOPMENTS; AMENDING THE MINIMUM REQUIREMENTS FOR THE DECLARATION OF RESTRICTIVE COVENANTS,
INCLUDING THE CONTROL PERIOD;AND EXEMPTING WORKFORCE HOUSING UNITS OR DEVELOPMENTS FROM MOBILITY FEES.
SEPTEMBER 28,2022
HYBRID CITY COMMISSION MEETING
On September 28,2022,the City of Miami Beach will host a Hybrid Commission Meeting.During the Hybrid Commission Meeting,the City Commission will be physically present
in the Commission Chamber,Miami Beach City Hall,1700 Convention Center Drive,3rd Floor,Miami Beach,FL 33139.Applicants and the public are encouraged to attend the meeting
virtually(as provided below).However,members of the public who wish to attend the meeting or provide public comment in person may appear at the Commission Chamber.
To participate or provide comment virtually during the Commission Meeting,the public may join the webinar at:https://mlamibeachfl-aov.zoom.us/i/81392857671 or via telephone
at:1.301.715.8592(U.S.)or 8813.475.4499(Toll-Free).Webinar ID:81392857671 s.Members of the public wanting to speak virtually on an Item during the meeting must click the"raise
hand"icon if using the Zoom app or press'9 on the telephone to raise their hand.
NOTICE IS HEREBY GIVEN that the following Public Hearing will be heard by the Mayor and City Commissioners of the City of Miami Beach,Florida,on September 28,2022,
at 5:10 p.m.or as soon thereafter as the matter can be heard:
5:10 DM.Second Reading Public Hearing
AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA,AMENDING THE LAND DEVELOPMENT REGULATIONS OF THE CODE
OF THE CITY OF MIAMI BEACH,BY AMENDING CHAPTER 118,"ADMINISTRATION AND REVIEW PROCEDURES,"ARTICLE I, "IN GENERAL,"AT SECTION 118-7, "FEES FOR
THE ADMINISTRATION OF LAND DEVELOPMENT REGULATIONS,"TO WAIVE LAND DEVELOPMENT BOARD APPLICATION FEES ASSOCIATED WITH WORKFORCE HOUSING
DEVELOPMENTS;AMENDING CHAPTER 122,"CONCURRENCY MANAGEMENT AND MOBILITY FEES,"ARTICLE I,"PURPOSE AND GENERAL PROVISIONS,"AT SECTION 122-5,
ENTITLED"EXEMPTIONS FROM CONCURRENCY MITIGATION AND MOBILITY FEES,"TO WAIVE CONCURRENCY AND MOBILITY FEES ASSOCIATED WITH WORKFORCE HOUSING
DEVELOPMENTS;AND AMENDING CHAPTER 133,"SUSTAINABILITY AND RESILIENCY,"ARTICLE I,"GREEN BUILDINGS,"DIVISION 2,"GREEN BUILDING REGULATIONS,"AT
SECTION 133-3,"SUSTAINABILITY REQUIREMENTS,"TO EXEMPT NON-ELDERLY AND ELDERLY LOW AND MODERATE INCOME AND WORKFORCE HOUSING DEVELOPMENTS
FROM THE CITY'S GREEN BUILDING REGULATIONS;AMENDING CHAPTER 82,"PUBLIC PROPERTY,"ARTICLE VII,"ART IN PUBLIC PLACES,"DIVISION 4, "PROCEDURES;
AT SECTION 82-537,°DEFINITIONS,"TO EXEMPT,FROM THE ART IN PUBLIC PLACES REQUIREMENTS,LOW OR MODERATE INCOME HOUSING OR WORKFORCE HOUSING
DEVELOPMENTS CONSTRUCTED ON CITY-OWNED LAND;AMENDING CHAPTER 58,"HOUSING,"ARTICLE I,"IN GENERAL,"BY CREATING SECTION 58-1,"FINANCIAL INCENTIVES
FOR AFFORDABLE AND WORKFORCE HOUSING DEVELOPMENTS,"TO ESTABLISH FINANCIAL INCENTIVES FOR AFFORDABLE AND WORKFORCE HOUSING DEVELOPMENTS;
AMENDING ARTICLE VI, "WORKFORCE HOUSING," SECTION 58-501, "DEFINITIONS," AND SECTION 58-503, "WORKFORCE HOUSING REQUIREMENTS," TO AMEND THE
MINIMUM REQUIREMENTS FOR THE DECLARATION OF RESTRICTIVE COVENANTS,INCLUDING THE CONTROL PERIOD;AND AMENDING APPENDIX A,"FEE SCHEDULE,"TO
EXEMPT WORKFORCE HOUSING UNITS OR DEVELOPMENTS FROM MOBILITY FEES;AND PROVIDING FOR REPEALER,CODIFICATION,SEVERABILITY,AND AN EFFECTIVE
DATE.This Ordinance is being heard pursuant to Section 118-164 of the City's Land Development Code,Section 2.05 of the City Charter,and§166.041 F,S.Inquiries may be directed to
the Economic Development Department at 305.673.7572.
Note:The Second Reading Public Hearing of this Ordinance on September 28. 2022. is subiect to City Commission approval of this Ordinance on First Reading at the
September 14.2022 City Commission Meeting
INTERESTED PARTIES are invited to take part in this meeting or be represented by an agent.The public may submitwritten comments by sending an email to:CityClerk@miamibeachfl.gov
by 5:00 p.rn.the day before the City Commission Meeting.Please Identify the Agenda Item Number in the email subject line.Emails received will be forwarded to the Mayor and
Commissioners and will be included as a part of the meeting record.
Copies of Agenda Items are available for public inspection at:jtittps://www.miamibeachfl,gov/city-hall/city-clerk/agenda-archive-main-gage-2/.This meeting,or any Item therein,
may be continued,and under such circumstances,additional legal notice need not be provided.
Pursuant to Section 286.0105,Fla.Stat.,the City hereby advises the public that if a person decides to appeal any decision made by the City Commission concerning any matter
considered at its meeting or its hearing,such person must ensure that a verbatim record of the proceedings Is made,which record Includes the testimony and evidence upon which
the appeal is to be based.This notice does not constitute consent by the City for the Introduction or admission of otherwise inadmissible or irrelevant evidence,nor does It authorize
challenges or appeals not otherwise allowed by law.
To request this material In an alternate format,sign language interpreter(five-day notice required),information on access for persons with disabilities,and/or any accommodation
to review any document or participate in any City-sponsored proceedings,call 305.604,2489 and select 1 for English or 2 for Spanish,then option 6:TTY users may call via 711
(Florida Relay Service).
The City Commission Meeting will be broadcast live on Miami Beach TV(MBTV),viewable on the City's website athttps://www.miamibeachfl.gov/oovernment/mbtvi,as well as on
Breezeline Cable channel 660,AT&T U-verse channel 99,Hotwire Communications channel 395,and ROKU device on PEG.TV channel,and on social media at)ttps://www.facebook
co m/citvof m iam ib each.
MIAMIBEACH Rafael E. yofi Ciiy Clerh
City of Miami Beach
CityClerk@miamibeachtl.gov
305.673.7411
AD:09282022-02
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