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2017-29758 Reso RESOLUTION NO. 2017-29758 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATIONS OF THE LAND USE AND DEVELOPMENT COMMITTEE TO INCENTIVIZE THE PRIVATE DEVELOPMENT OF WORKFORCE HOUSING, WHICH RECOMMENDATIONS WERE ENDORSED BY THE MAYOR AND CITY COMMISSION AT THE WORKFORCE/AFFORDABLE HOUSING WORKSHOP ON JANUARY 25, 2017. WHEREAS, a community relies upon its workforce to ensure its economic vitality and stability; and WHEREAS, housing costs are considered affordable when no more than 30 percent of a household's income is devoted to housing costs; and WHEREAS, more than 51 percent of the City's households are cost-burdened on the basis that they expend more than 30 percent of their household income on housing costs; and WHEREAS, the Mayor and City Commission have prioritized the availability of workforce housing for key industry workers as a Key Intended Outcome (KIO); and WHEREAS, the City is undertaking certain projects to increase the availability of workforce housing through the development of City-owned properties including, for example, the Barclay Apartments; and WHEREAS, these City-led workforce housing projects are insufficient to meet the community demand; and WHEREAS, on April 20, 2016, the Land Use and Development Committee approved a variety of recommendations to incentivize the private development of workforce housing in the City, including the following: 1. Define workforce housing beneficiaries as those households earning up to 140% of Area Median Income (AMI); 2. Assess the potential housing demand from the City's workforce, and ensure that appropriate units are developed; 3. Expedite review and permitting for construction and rehabilitation projects providing workforce housing; 4. Develop a policy to refund application and review fees, and to defer or restructure impact fees for projects providing workforce housing, subject to the approval of the City Commission on a case-by-case basis; 5. Encourage micro-housing and mixed-tenant projects on a case-by-case basis; 6. Utilize City-owned properties to develop workforce housing (e.g., Barclay Apartments and Collins Park artist workforce housing projects); 7. Establish a long-term deed restriction program to preserve affordability on City- assisted developments; 8. Encourage mixed income/mixed use development through positive marketing efforts that accentuate its benefits to the community; 9. Research the possibility of short-term tax abatements for eligible new projects; and 10. Promote these incentives to developers; and WHEREAS, the Mayor and City Commission endorsed these recommendations at its Workforce/Affordable Housing Workshop held on January 25, 2017. 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 hereby accept the recommendations of the Land Use and Development Committee to incentivize the private development of workforce housing, which recommendations were endorsed by the Mayor and City Commission at the Workforce/Affordable Housing Workshop on January 25, 2017. PASSED AND ADOPTED this / day of /1'r'ck- , 2017. ATTEST: Philip '= \ $ May', Raf el�'31110 ad - � . APPROVED AS TO Ci Clerk FORM&LANGUAGE &FOR ION 1-L1 r � l�' -Adam" T:WGENDA\2017\3-March\Housing&Community Services\Workforce Housing RESO w edits.docx Resolutions -C7 C MIAMI BEACH COMMISSION MEMORANDUM TO: Honorable Mayor and Members of the City Commission FROM: Jimmy L. Morales, City Manager DATE: March 1, 2017 SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATIONS OF THE LAND USE AND DEVELOPMENT COMMITTEE TO INCENTIVIZE THE PRIVATE DEVELOPMENT OF WORKFORCE HOUSING, WHICH RECOMMENDATIONS WERE ENDORSED BY THE MAYOR AND CITY COMMISSION AT THE WORKFORCE/AFFORDABLE HOUSING WORKSHOP ON JANUARY 25, 2017. RECOMMENDATION Adopt the Resolution. ANALYSIS Ensuring the availability in suitable locations of workforce housing for key industry workers has been identified as a Key Intended Outcome (KIO) by the Mayor and Commission. While the City is moving forward on City-led projects that will create new workforce housing units, the City's efforts are insufficient to meet the demand. As such, the City has been exploring ways to stimulate the private development of workforce housing within our community. At its April 20, 2016 meeting, the Land Use Committee recommended a variety of incentives to encourage further private development of workforce housing in our City. These recommendations included: 1. Defining workforce housing beneficiaries as those households earning up to 140%Area Median Income (AMI); 2. Assessing the potential demand from the City's workforce ensuring that appropriate units are developed; 3. Expedited review and permitting for construction and rehabilitation projects providing workforce housing; 4. The refund of application and review fees and the deferral/restructure of impact fees for projects providing workforce housing and as approved by the Commission on a case-by-case basis; 5. Encouraging micro-housing and mixed-tenant projects on a case-by-case basis; 6. Utilizing City-owned properties to develop workforce housing (i.e. Barclay Apartments and Collins Park artist workforce housing projects) 7. Establish a long-term deed restriction program to preserve affordability on City-assisted Page 172 of 1025 developments; 8. Encourage mixed income/mixed use development through positive marketing efforts that accentuate its benefits to the community; 9. Research the possibility of short-term tax abatement for eligible new projects; and 10. Promoting an education effort to developers so they fully understand the incentives offered herein. The City Commission held a Workforce/Affordable Housing Workshop on January 25, 2017 in which the direction given was to endorse the Land Use Committee recommendations and forward the item for approval by the full Commission. In addition, at the workshop, the Commission broached the idea of increasing Floor Area Ratio (FAR) as an incentive for developers to create more affordable/workforce housing. This item was referred to the Finance/Citywide Projects Committee for further discussion. CONCLUSION The Administration recommends accepting the recommendations delineated herein and directing the City Attorney to evaluate the feasibility of allowing short-term tax abatement for eligible, new workforce housing projects as recommended. KEY INTENDED OUTCOMES SUPPORTED Ensure Workforce Housing For Key Industry Workers Is Available In Suitable Locations FINANCIAL INFORMATION The financial impact for the majority of the recommendations is negligible as these are they can be handled internally. However, the impact of the short-term tax abatement recommendation requires additional study. Iislative Tracking Housing and Community Services ATTACHMENTS: Description D Resolution Page 173 of 1025