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2011-27625 Reso r RESOLUTION NO. 2011 -27625 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, EXPRESSING OPPOSITION TO SENATE BILL 476 AND HOUSE BILL 883, WHICH NEGATIVELY IMPACT THE CITY'S ABILITY TO ADDRESS THE IMPACTS OF THE SHORT -TERM RENTAL OF RESIDENTIAL PROPERTIES BY DEFINING THE TERM "VACATION RENTAL" AND FURTHER PREEMPT LOCAL AUTHORITY TO PROHIBIT OR REGULATE VACATION RENTALS IN A MANNER DIFFERENT THAN RESIDENTIAL PROPERTIES. WHEREAS, Senate Bill 476 and House Bill 883 (the "Bills ") define "Vacation Rental" as any unit or group of units in a condominium, cooperative, or timeshare plan or any individually or collectively owned single family, two - family, three - family, or four - family dwelling house or dwelling unit that is also a transient public lodging establishment; and WHEREAS, the Bills attempt to preempt local authority by mandating that Vacation Rentals shall be deemed residential property and may not be prohibited or treated differently than other residential properties based solely on their classification, use, or occupancy; and WHEREAS, if passed, the Bills would severely restrict the City's ability to address the negative impacts associated with short -term rentals; and WHEREAS, the Land Development Regulations ( "LDRs ") are designed to protect and preserve the identity, image, environmental quality, privacy, attractive pedestrian streetscapes, and human scale and character of the City's residential neighborhoods and buildings and to encourage and promote construction that is compatible with the established neighborhood context; and WHEREAS, the RM -1, RM -PRD, RM- PRD -2, RPS -1 and RPS -2, CD -1, RO, RO- 3, and TH zoning districts do not permit hotel uses, except for the West Avenue Bay Front Overlay District, a specified section of the RM -1 district in North Beach, Bed and Breakfast Inns in the RM -1 district in historic districts, and apartment hotels in the RPS -1 and RPS -2 districts; and WHEREAS, the LDRs define "hotel unit" as "a room, or group of rooms, ..., intended for rental to transients on a day -to -day, week -to -week, or month -to -month basis, not intended for use or used as a permanent dwelling and without cooking facilities," though this definition includes a suite hotel unit, which the code defines as including cooking facilities; and WHEREAS, therefore the City Code treats residences leased in the City on a day -to -day, week -to -week, or month -to -month basis as a hotel unit and transient occupancy; and WHEREAS, the City has determined that there is a potential for harm if transient rentals are permitted without regulations protecting against adverse external effects of such use or prohibited in certain instances; and WHEREAS, single family, multifamily, and townhome unit owners' sense of community and privacy would be compromised by unregulated and unrestricted commercial and transient use of single family homes, and units in multifamily buildings, 9 Y � Y 9 , and neighborhoods of both kinds, respectively; and WHEREAS, single family, multifamily and townhome unit owners have reasonable expectations of a community of permanent neighbors and owners and the privacy such a community entails; and WHEREAS, the privacy and ambience of such single family, multifamily and townhome residential buildings and areas are materially undermined by unregulated and unrestricted transient rentals; and WHEREAS, the values associated with single family, multifamily and townhome residential areas can only be preserved by very limited and controlled commercial and transient use of residences, if at all; and WHEREAS, based upon the factors listed above, any relaxation of the current LDRs with respect to short term rentals in single family and multifamily zoning districts are local decisions that must be limited in size and scope to specifically defined neighborhood areas, only one of which has undertaken a process of examining the short term rental issue and come to a neighborhood consensus with regards to the advisability and desirability of the introduction of these uses into those neighborhoods. 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 express opposition to Senate Bill 476 and House Bill 883, which define the term Vacation Rental and attempt to preempt local authority to prohibit or regulate Vacation Rentals in a manner different than residential properties PASSED AND ADOPTED THIS *II DAY OF Marc , 2011. AT ST: lUitX TAX C • , CITY CLERK AYOR APPROVED AS TO FORM & LANGUAGE •R EXE •N a » 6 rney ate T:\AGENDA\2011 \3 -09 -11 \Senate Bill 476 reso rev.doc P- MIAWI City of Miami Beach, 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: Jorge M. Gonzalez, City Manager 4,4 44 DATE: March 9, 2011 SUBJECT: DISCUSSION REGARDING A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, EXPRESSING OPPOSITION TO SENATE BILL 476 AND HOUSE BILL 883, WHICH NEGATIVELY IMPACT THE CITY'S ABILITY TO ADDRESS THE IMPACTS OF THE SHORT -TERM RENTAL OF RESIDENTIAL PROPERTIES BY DEFINING THE TERM "VACATION RENTAL" AND FURTHER ATTEMPT TO PREEMPT LOCAL AUTHORITY TO PROHIBIT OR REGULATE VACATION RENTALS IN A MANNER DIFFERENT THAN RESIDENTIAL PROPERTIES. ADMINISTRATION RECOMMENDATION Adopt the Resolution. ANALYSIS The City of Miami Beach has been taking steps to regulate short term rental of homes and apartments, in order to address the negative impacts these activities may have upon residential neighborhoods. After much discussion and investigation, Ordinance No. 2009 -3629 was approved on February 25, 2009, which clarified that in single - family zoning districts, short -term rentals of less than six (6) months constituted transient or hotel occupancy, and were prohibited. This codified a previously issued Planning Director's interpretation (Administrative Interpretation 00 -2, February 29, 2000) which was based upon the limitation by the existing zoning and Comprehensive Plan of any main permitted use within these single - family districts other than single - family residential dwellings, other applicable land development regulations, and existing resort tax legislation requiring such taxes to be paid for transient usage of less than six months. On June 9, 2010, the Mayor and City Commission adopted Ordinance No. 2010 -3685, which amended the Land Development Regulations (LDRs) to prohibit short term transient rental of apartment units in those low- intensity residential zoning districts which did not permit hotels. Leases in these limited districts are now limited to a minimum of six months and one day. The ordinance also contained a legalization provision which identified a small number of properties that would be eligible for short term rental of apartment units within the specified area based upon proof of previous short term rentals according to a specific formula. For apartment buildings of four or more units (all of which are required to register for resort tax with the City regardless of short or long term occupancy) the Agenda Item / R Date 3_q_ Commission Memorandum March 9, 2011 Oppose Senate Bill 476 and House Bill 883 Page 2 property must have been A) registered with the City for Resort Tax, and have made a Resort Tax payment as of August 31, 2009; B) have had City of Miami Beach Resort Tax taxable room revenue equal to at least 50% of total room revenue over the last two year period covered by such payments, and C) be licensed by the State of Florida as a Transient Apartment Building as of August 31, 2009. For resort condominiums, which can be a number of units in one building, or several units in different buildings, the same requirements apply as for apartment buildings above. For properties with less than four units, the property must have been licensed by the State of Florida as a resort dwelling as of February 1, 2009. In Senate Bill 476 and House Bill 883 (the "Bills "), which have been filed for the 2011 Florida Legislative Session, make amendments to Chapter 509, Florida Statutes. These bills have apparently been filed in response to complaints from vacation - rental home owners in Southwest Florida, and are designed to preempt any future efforts to regulate vacation homes as if they were hotels or motels. The bills include the following amendments: • Redefine a "Transient Public Lodging Establishment" as any unit, group of units, dwelling, building, or group of buildings which is rented to guest more than three times in a calendar year for a period of less than 181 days (currently 30 days). This definition is consistent with the Planning Director's interpretation which was codified as part of Ordinance 2009 -3629, that rental of a home for Tess than 6 months constituted a transient use. • Includes "Vacation Rentals" in the definition of Public Lodging Establishment and defines a Vacation Rental as any unit or group of units in a condominium, cooperative, or timeshare plan or any individually or collectively owned single family, two- family, three - family, or four - family dwelling house or dwelling unit that is also a transient public lodging establishment (rented for less than 181 days more than 3 times per year). • Attempt to preempt local authority by mandating that Vacation Rentals shall be deemed residential property that may not be prohibited or treated differently than other residential properties based solely on their classification, use, or occupancy. This amendment would limit regulations or restrictions of short -term rentals to restrictions and regulations that also apply to other (non -short -term rental) residential properties. For example, if the City permits residential use in a district, short-term rentals must be permitted in that district and they cannot be treated any differently than other residential property. • Applies the existing exemptions related to bathroom fixture requirements, providing bathroom soap and clean towels, and linens. • Exempts Vacation Rentals from the mandatory annual or biannual inspections required of other public lodging establishments. Vacation Rentals shall be made available for inspection upon request by the Division of Hotels and Restaurants. • Operators of properties that are classified as Vacation Rentals must apply for and receive a license from the Division of Hotels and Restaurants prior to the commencement of operation. In summary, the legislation confirms that leases of less than 181 days constitute transient use, and requires owners of Vacation Rentals to receive a license as a Transient Public Lodging Establishment from the Division of Hotels and Restaurants Commission Memorandum March 9, 2011 Oppose Senate Bill 476 and House Bill 883 Page 3 (confirming that resort tax is due on rentals of the property). However, the bills authorize the owners of condominium and cooperative units, single - family homes, duplexes and four- piexes to lease their units for periods of Tess than 181 days, and the bill further attempts to prohibit the City from restricting such a use, or from treating short-term rentals differently than other residential properties are treated based on their classification, use, or occupancy. CONCLUSION The Administration recommends that the Mayor and City Commission adopt the attached resolution opposing Senate Bill 476 and House Bill 883. J MG /JGG /H F /kc Attachment T:\AGENDA\2011 \3 -09 -11 \SB 476 Opposition.docx Florida Senate - 2011 SE 476 By Senator Evers 2- 00687 -11 2011476 1 A bill to be entitled 2 An act relating to public lodging establishments; 3 amending s. 509.013, F.S.; revising definitions; 4 amending s. 509.032, F.S.; conforming provisions to 5 changes made by the act; providing that vacation 6 rentals are residential property for purposes of 7 provisions related to the treatment of such 8 properties; amending s. 509.101, F.S.; requiring that 9 the operator of a vacation rental retain any advance 10 payment or deposit made for the vacation rental until 11 the occupancy begins or is cancelled; amending s. 12 509.221, F.S.; clarifying that vacation rentals are 13 exempt from certain sanitary rules; amending s. 14 509.241, F.S.; clarifying an exemption from licensure 15 for condominium associations that do not own vacation 16 rentals; amending s. 509.242, F.S.; providing that 17 public lodging establishments formerly classified as 18 resort condominiums and resort dwellings are 19 classified as vacation rentals and defining the term 20 "vacation rental "; amending s. 509.251, F.S., relating 21 to license fees; conforming provisions to changes made 22 by the act; deleting an obsolete provision; amending 23 s. 509.291, F.S.; increasing the membership of an 24 advisory council to the Division of Hotels and 25 Restaurants of the Department of Business and 26 Professional Regulation; providing for the Florida 27 Vacation Rental Managers Association to appoint a 28 member to the advisory council; providing an effective 29 date. Page 1 of 10 CODING: Words strickcn are deletions; words underlined are additions. ' Florida Senate - 2011 SB 476 2- 00687 -11 2011476 30 31 Be It Enacted by the Legislature of the State of Florida: 32 33 Section 1. Paragraph (a) of subsection (4) of section 34 509.013, Florida Statutes, is amended to read: 35 509.013 Definitions. —As used in this chapter, the term: 36 (4)(a) "Public lodging establishment" includes a transient 37 public lodging establishment as defined in subparagraph 1. and a 38 nontransient public lodging establishment as defined in 39 subparagraph 2. 40 1. "Transient public lodging establishment" means any unit, 41 group of units, dwelling, building, or group of buildings within 42 a single complex of buildings which is rented to guests more 43 than three times in a calendar year for a period of less than 44 181 periods of less than 30 days or 1 calcndar month, whichever 45 is less, or which is advertised or held out to the public as a 46 place regularly rented to guests. 47 2. " Nontransient public lodging establishment" means any 48 unit, group of units, dwelling, building, or group of buildings 49 within a single complex of buildings which is rented to guests 50 for periods of at least 181 30 days or 1 calcndar month, 51 whichever is less, or which is advertised or held out to the 52 public as a place regularly rented to guests for periods of at 53 least 181 30 days or 1 calcndar month. 54 55 License classifications of public lodging establishments, and 56 the definitions therefor, are set out in s. 509.242. For the 57 purpose of licensure, the term does not include condominium 58 common elements as defined in s. 718.103. Page 2 of 10 CODING: Words stricken are deletions; words underlined are additions. ° Florida Senate - 2011 SB 476 2- 00687 -11 2011476 0114 6 59 Section 2. Paragraph (a) of subsection (2) and subsection 60 (7) of section 509.032, Florida Statutes, are amended to read: 61 509.032 Duties. - 62 (2) INSPECTION OF PREMISES. - 63 (a) The division has responsibility and jurisdiction for 64 all inspections required by this chapter. The division has 65 responsibility for quality assurance. Each licensed 66 establishment shall be inspected at least biannually, except for 67 transient and nontransient apartments, which shall be inspected 68 at least annually, and shall be inspected at such other times as 69 the division determines is necessary to ensure the public's 70 health, safety, and welfare. The division shall establish a 71 system to determine inspection frequency. Public lodging units 72 classified as vacation rentals rcsort condominiums or rcsort 73 dwellings are not subject to this requirement, but shall be made 74 available to the division upon request. If, during the 75 inspection of a public lodging establishment classified for 76 renting to transient or nontransient tenants, an inspector 77 identifies vulnerable adults who appear to be victims of 78 neglect, as defined in s. 415.102, or, in the case of a building 79 that is not equipped with automatic sprinkler systems, tenants 80 or clients who may be unable to self - preserve in an emergency, 81 the division shall convene meetings with the following agencies 82 as appropriate to the individual situation: the Department of 83 Health, the Department of Elderly Affairs, the area agency on 84 aging, the local fire marshal, the landlord and affected tenants 85 and clients, and other relevant organizations, to develop a plan 86 which improves the prospects for safety of affected residents 87 and, if necessary, identifies alternative living arrangements Page 3 of 10 CODING: Words stricken are deletions; words underlined are additions. ' Florida Senate - 2011 SB 476 2- 00687 -11 2011476 88 such as facilities licensed under part II of chapter 400 or 89 under chapter 429. 90 (7) PREEMPTION AUTHORITY. - 91 (a) The regulation of public lodging establishments and 92 public food service establishments, including, but not limited 93 to, the inspection of public lodging establishments and public 94 food service establishments for compliance with the sanitation 95 standards adopted under this section, and the regulation of food 96 safety protection standards for required training and testing of 97 food service establishment personnel are preempted to the state. 98 This subsection does not preempt the authority of a local 99 government or local enforcement district to conduct inspections 100 of public lodging and public food service establishments for 101 compliance with the Florida Building Code and the Florida Fire 102 Prevention Code, pursuant to ss. 553.80 and 633.022. 103 (b) Notwithstanding any other provision of law to the 104 contrary, vacation rentals, as defined in s. 509.242(1) (c) , are 105 deemed residential property and may not be prohibited or treated 106 differently than other residential properties based solely on 107 their classification, use, or occupancy. 108 Section 3. Present subsection (3) of section 509.101, 109 Florida Statutes, is renumbered as subsection (4), and a new 110 subsection (3) is added to that section, to read: 111 509.101 Establishment rules; posting of notice; food 112 service inspection report; maintenance of guest register; mobile 113 food dispensing vehicle registry. - 114 (3) It is the duty of each operator of a vacation rental, 115 as defined in s. 509.242(1)(c), to retain any advance payment or 116 deposit paid by a guest until the occupancy begins or is Page 4 of 10 CODING: Words 3trickcn are deletions; words underlined are additions. Florida Senate - 2011 SB 476 2- 00687 -11 2011476 117 cancelled pursuant to any rental agreement or the operator's 118 cancellation rules. 119 Section 4. Subsection (9) of section 509.221, Florida 120 Statutes, is amended to read: 121 509.221 Sanitary regulations. - 122 (9) Subsections (2) , (5) , and (6) do not apply to any 123 facility or unit classified as a vacation rental or rcoort 124 eondo nontransient apartment, or rcoort dwclling as 125 described in s. 509.242(1) (c) , (d) , and (g) . 126 Section 5. Subsection (2) of section 509.241, Florida 127 Statutes, is amended to read: 128 509.241 Licenses required; exceptions. - 129 (2) APPLICATION FOR LICENSE. —Each person who plans to open 130 a public lodging establishment or a public food service 131 establishment shall apply for and receive a license from the 132 division prior to the commencement of operation. A condominium 133 association, as defined in s. 718.103, which does not own any 134 units classified as vacation rentals rcoort condominiums under 135 s. 509.242 (1) (c) is shall not be required to apply for or 136 receive a public lodging establishment license. 137 Section 6. Subsection (1) of section 509.242, Florida 138 Statutes, is amended to read: 139 509.242 Public lodging establishments; classifications. - 140 (1) A public lodging establishment shall be classified as a 141 hotel, motel, resort condominium, nontransient apartment, 142 transient apartment, roominghouse, bed and breakfast inn, or 143 vacation rental rcoort dwclling if the establishment satisfies 144 the following criteria: 145 (a) Hotel. —A hotel is any public lodging establishment Page 5 of 10 CODING: Words stric]ccn are deletions; words underlined are additions. ' Florida Senate - 2011 SB 476 2- 00687 -11 2011476 146 containing sleeping room accommodations for 25 or more guests 147 and providing the services generally provided by a hotel and 148 recognized as a hotel in the community in which it is situated 149 or by the industry. 150 (b) Motel. —A motel is any public lodging establishment 151 which offers rental units with an exit to the outside of each 152 rental unit, daily or weekly rates, offstreet parking for each 153 unit, a central office on the property with specified hours of 154 operation, a bathroom or connecting bathroom for each rental 155 unit, and at least six rental units, and which is recognized as 156 a motel in the community in which it is situated or by the 157 industry. 158 (c) Vacation rental Rcsort condominium. — A vacation rental 159 is any unit or group of units in a condominium, cooperative, or 160 timeshare plan or any individually or collectively owned single - 161 family, two - family, three - family, or four - family dwelling house 162 or dwelling unit that is also a transient public lodging 163 establishment. A resort condominium is any unit or group of 164 - -_-__ - -- - _ - _ -- - 165 rcntcd morc than thrcc times in a calcndar year for periods of 166 - - -- _- _ - _- - - -.- - = 167 which is advertised or held out to the public as a place 168 regularly rcntcd for periods of less than 30 days or 1 calcndar 169 • o -, -' - - -.- - 170 (d) Nontransient apartment or roominghouse. — A nontransient 171 apartment or roominghouse is a building or complex of buildings 172 in which 75 percent or more of the units are available for rent 173 to nontransient tenants. 174 (e) Transient apartment or roominghouse. — A transient Page 6 of 10 CODING: Words stricken are deletions; words underlined are additions. ' Florida Senate - 2011 SB 476 2- 00687 -11 2011476 175 apartment or roominghouse is a building or complex of buildings 176 in which more than 25 percent of the units are advertised or 177 held out to the public as available for transient occupancy. 178 (f) Roominghouse. — roominghouse is any public lodging 179 establishment that may not be classified as a hotel, motel, 180 resort condominium, nontransient apartment, bed and breakfast 181 inn, or transient apartment under this section. A roominghouse 182 includes, but is not limited to, a boardinghouse. 183 (g) Resort dwelling. A resort dwelling is any individually 184 or collectively owncd one family, two family, thrcc family, or 185 four - family dwelling house or dwelling unit which is rented more 186 than three times in a calendar year for periods of less than 30 187 days or 1 calendar month, whichever is less, or which is 188 -o•- -o o -- c o. 189 for periods of less than 30 days or 1 calendar month, whichever 190 is less. 191 (g) (h) Bed and breakfast inn . — bed and breakfast inn is a 192 family home structure, with no more than 15 sleeping rooms, 193 which has been modified to serve as a transient public lodging 194 establishment, which provides the accommodation and meal 195 services generally offered by a bed and breakfast inn, and which 196 is recognized as a bed and breakfast inn in the community in 197 which it is situated or by the hospitality industry. 198 Section 7. Subsection (1) of section 509.251, Florida 199 Statutes, is amended to read: 200 509.251 License fees. - 201 (1) The division shall adopt, by rule, a schedule of fees 202 to be paid by each public lodging establishment as a 203 prerequisite to issuance or renewal of a license. Such fees Page 7 of 10 CODING: Words stricken are deletions; words underlined are additions. ' Florida Senate - 2011 SB 476 2- 00687 -11 2011476 204 shall be based on the number of rental units in the 205 establishment. The aggregate fee per establishment charged any 206 public lodging establishment shall not exceed $1,000; however, 207 the fees described in paragraphs (a) and (b) may not be included 208 as part of the aggregate fee subject to this cap. Vacation 209 rental Dc3ort condominium units within separate buildings or at 210 separate locations but managed by one licensed agent may be 211 combined in a single license application, and the division shall 212 charge a license fee as if all units in the application are in a 213 single licensed establishment. Rcsort dwclling units may be 214 liccnscd in the samc manncr as condominium units. The fee 215 schedule shall require an establishment which applies for an 216 initial license to pay the full license fee if application is 217 made during the annual renewal period or more than 6 months 218 prior to the next such renewal period and one -half of the fee if 219 application is made 6 months or less prior to such period. The 220 fee schedule shall include fees collected for the purpose of 221 funding the Hospitality Education Program, pursuant to s. 222 509.302, which are payable in full for each application 223 regardless of when the application is submitted. 224 (a) Upon making initial application or an application for 225 change of ownership, the applicant shall pay to the division a 226 fee as prescribed by rule, not to exceed $50, in addition to any 227 other fees required by law, which shall cover all costs 228 associated with initiating regulation of the establishment. 229 (b) A license renewal filed with the division within 30 to 230 days after the expiration date shall be accompanied by a 231 delinquent fee as prescribed by rule, not to exceed $50, in 232 addition to the renewal fee and any other fees required by law. Page 8 of 10 CODING: Words strickcn are deletions; words underlined are additions. Florida Senate - 2011 SB 476 2- 00687 -11 2011476 233 A license renewal filed with the division more than 30 but not 234 more than 60 days after the expiration date shall be accompanied 235 by a delinquent fee as prescribed by rule, not to exceed $100, 236 in addition to the renewal fee and any other fees required by 237 law. 238 Section 8. Subsection (1) of section 509.291, Florida 239 Statutes, is amended to read: 240 509.291 Advisory council. - 241 (1) There is created an 11- member a 10 mcmbcr advisory 242 council. 243 (a) The Secretary of Business and Professional Regulation 244 shall appoint seven voting members to the advisory council. Each 245 member appointed by the secretary must be an operator of an 246 establishment licensed under this chapter and shall represent 247 the industries regulated by the division, except that one member 248 appointed by the secretary must be a layperson representing the 249 general public and one member must be a hospitality education 250 administrator from an institution of higher education of this 251 state. Such members of the council shall serve staggered terms 252 of 4 years. 253 (b) The Florida Restaurant and Lodging Association shall 254 designate one representative to serve as a voting member of the 255 council. The Florida Vacation Rental Managers Association shall 256 designate one representative to serve as a voting member of the 257 council. The Florida Apartment Association and the Florida 258 Association of Realtors shall each designate one representative 259 to serve as a voting member of the council. 260 (c) Any member who fails to attend three consecutive 261 council meetings without good cause may be removed from the Page 9 of 10 CODING: Words strickcn are deletions; words underlined are additions. Florida Senate - 2011 SB 476 2- 00687 -11 2011476 262 council by the secretary. 263 Section 9. This act shall take effect July 1, 2011. Page 10 of 10 CODING: Words strickcn are deletions; words underlined are additions.