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LTC 208-2023 CITY OF HALLANDALE RESOLUTION NO. 2023-040 AND 2023-041M IA M I B E A C H OFFICE OF THE CITY CLERK No. 208-2023 LETTER TO COMMISSION TO: Mayor Dan Gelber and Members of the City Commission FROM: Rafael E. Granado, City Clerk ~ DATE: May 4, 2023 SUBJECT: CITY OF HALLANDALE RESOLUTION NO. 2023-040 AND 2023-041 Attached for your information are Resolutions No. 2023-040 and 2023-041 adopted by the Mayor and City Commission of City of Hallandale on May 3, 2023. Resolution No. 2023-040: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF HALLANDALE BEACH, FLORIDA, ENTREATING THE BROWARD COUNTY COMMISSION TO EXPLORE THE FEASIBILITY OF CREATING A SPECIAL ASSESSMENTS LOW INTEREST LOAN PROGRAM IN COLLABORATION WITH LENDING AND FINANCIAL INSTITUTIONS TO PROVIDE FINANCIAL ASSISTANCE TO CONDOMINIUM ASSOCIATIONS AND CONDOMINIUM OWNERS THAT ARE IN NEED OF SUCH ASSISTANCE AND FOUND TO BE IN NEED OF EMERGENCY STRUCTURAL REPAIRS AT THE TIME OF THEIR 30-YEAR RECERTIFICATION INSPECTION OR AN EQUIVALENT RECERTIFICATION PROCESS AND/OR IN ACCORDANCE WITH FLORIDA SENATE BILL 154 AND HOUSE BILL 1395, AND SUBSEQUENT RECERTIFICATION PROCESSES, AND TO IDENTIFY ADDITIONAL FUNDING SOURCES; AND PROVIDING AN EFFECTIVE DATE. Resolution 2023-041: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF HALLANDALE BEACH, FLORIDA, ENTREATING THE FLORIDA LEGISLATURE TO EXPLORE THE FEASIBILITY OF CREATING A SPECIAL ASSESSMENT LOW INTEREST LOAN PROGRAM IN COLLABORATION WITH LENDING AND FINANCIAL INSTITUTIONS TO PROVIDE FINANCIAL ASSISTANCE TO CONDOMINIUM ASSOCIATIONS AND CONDOMINIUM OWNERS LIVING IN THEIR CONDOS FULL-TIME THAT ARE IN NEED OF SUCH ASSISTANCE AND FOUND TO BE IN NEED OF EMERGENCY STRUCTURAL REPAIRS AT THE TIME OF THEIR 30-YEAR RECERTIFICATION INSPECTION OR AN EQUIVALENT RECERTIFICATION PROCESS AND/OR IN ACCORDANCE WITH FLORIDA SENATE BILL 154 AND HOUSE BILL 1395, AND SUBSEQUENT RECERTIFICATION PROCESSES, AND TO IDENTIFY ADDITIONAL FUNDING SOURCES; AND PROVIDING AN EFFECTIVE DATE. The City of Hallandale Clerk has requested that a copy of these Resolutions be provided to the Miami Beach Mayor, Commissioners, and the City Manager. If you have any questions, please contact the Office of the City Clerk at 305.673. 7 411. REG/le Attachment F:\CLER\$ALL\LILIA\LTC's - Transmittal's\Hallandale Beach\Hallandale Beach Resolutions 2023-040 and 2023-041.docx 1 2 RESOLUTION NO. 2023- 040 3 4 A RESOLUTION OF THE MAYOR AND CITY COMMISSION 5 OF THE CITY OF HALLANDALE BEACH, FLORIDA, 6 ENTREATING THE BROWARD COUNTY COMMISSION TO 7 EXPLORE THE FEASIBILITY OF CREATING A SPECIAL 8 ASSESSMENTS LOW INTEREST LOAN PROGRAM IN 9 COLLABORATION WITH LENDING AND FINANCIAL 10 INSTITUTIONS TO PROVIDE FINANCIAL ASSISTANCE TO 11 CONDOMINIUM ASSOCIATIONS AND CONDOMINIUM 12 OWNERS THAT ARE IN NEED OF SUCH ASSISTANCE AND 13 FOUND TO BE IN NEED OF EMERGENCY STRUCTURAL 14 REPAIRS AT THE TIME OF THEIR 30-YEAR 15 RECERTIFICATION INSPECTION OR AN EQUIVALENT 16 RECERTIFICATION PROCESS ANDIOR IN ACCORDANCE 17 WITH FLORIDA SENATE BILL 154 AND HOUSE BILL 1395, 18 AND SUBSEQUENT RECERTIFICATION PROCESSES, AND 19 TO IDENTIFY ADDITIONAL FUNDING SOURCES; AND 20 PROVIDING AN EFFECTIVE DATE. 21 22 WHEREAS, the City of Hallandale Beach, Florida is densely populated with several 23 hundred condominium and homeowner associations; and 24 25 WHEREAS, the City of Hallandale Beach Commission believes that it has an 26 obligation to protect the health, safety, and welfare of its residents; and 27 28 WHEREAS, working in unison, Senate Bill 154 and House Bill 1395 seek to clarify 29 and expand the condominium-related legislation the Florida Legislature adopted during the 30 2022 Special Session as Senate Bill 4-D; and 31 32 WHEREAS, the Florida Senate and House bills have each already passed through 33 two committee stops with the unanimous support of Republicans and Democrats alike; 34 35 WHEREAS, the Florida House of Representatives' staff analysis for HB 1395 also 36 addresses the origins of SB 4-D: "On June 24, 2021, Champlain Towers South, a 12-story 37 beachfront condominium building in the town of Surfside, partially collapsed resulting in the 38 tragic death of 98 people. In response, during Special Session, 2022, SB 4-0 was enacted 39 to provide building safety inspection requirements (milestone inspections) and reserve 40 requirements (structural integrity reserve study) for condominium and cooperative 41 association buildings; and 42 Page 1 of5 File No. 23-159 43 WHEREAS, as of April 24, 2023, SB 154 and HB 1395 proposed mandatory 44 inspection timelines for condo buildings that are at least three stories tall and 30 years old 45 or older, with additional inspections required every 10 years after that. According to the 46 Florida House staff analysis of HB 1395, there are currently more than 2 million Floridians 47 occupying condo buildings that are 30 years old or older; and 48 49 WHEREAS, according to SB 154, "If a building reaches 30 years of age before 50 December 31, 2024, the building's initial milestone inspection must be performed before 51 December 31, 2024;" and 52 53 WHEREAS, the new legislation would delete from the 2022 legislation the 25-year 54 milestone inspection requirement for buildings located within three miles of the coastline. 55 Regardless of coastline proximity, all qualifying condo buildings would be subjected to the 56 30-year inspection requirements; and 57 58 WHEREAS, the term "milestone inspection" refers to a structural inspection of a 59 condo building and its load-bearing elements, walls and primary structural systems. To be 60 conducted by a licensed architect or engineer, the milestone inspection is to determine the 61 general structural condition of the building as it pertains to safety and to identify any 62 maintenance, repair or replacement needed for those structural components; and 63 64 WHEREAS, as of April 24, 2023, SB 154 and HB 1395 would also require impacted 65 condo associations and condo owners to create and set aside reserve funds for structural 66 inspection studies and for any needed structural repairs or maintenance activities which 67 would include roof replacements and exterior painting. Condominium owners are currently 68 allowed to waive state-imposed reserve requirements; and 69 70 WHEREAS, after Dec. 31, 2024, condominium owners can no longer vote to waive 71 the reserves on structural integrity items; and 72 73 WHEREAS, relief for condominium owners, especially those living on fixed incomes, 74 is needed to ensure economically vulnerable seniors and those earning less than the 75 median income level, do not experience housing insecurity; 76 77 WHEREAS, as of 2022 and in accordance with Miami-Dade County Code and 78 certain municipal codes, with certain exceptions, buildings in unincorporated and 79 incorporated areas in Miami-Dade County that are at least 40 years old must be recertified 80 to ensure their structural and electrical safety, and after the initial 40-year recertification, 81 such buildings must be recertified every ten years thereafter; and 82 Page 2 of 5 File No. 23-159 83 WHEREAS, Miami-Dade County launched a program that will issue loans of up to 84 $50,000 to residents who live in their condos full-time. The loans are specifically for 85 assessments levied to pay for building repairs and rehabilitation; and 86 87 WHEREAS, the Miami-Dade County Special Assessments program targets condo 88 owners who earn no more than 140 percent of the area median income. This means a 89 maximum annual income of $95,610 for a one-person household, $109,200 for a two- 90 person household, and $122,920 for a three-person household. These loans will have 40- 91 year terms, during which economically vulnerable families will be responsible to make $50 92 monthly payments and the remaining balance at the loan's maturity; and 93 94 WHEREAS, Miami-Dade County recertification inspections must be performed by 95 licensed architects or engineers, who look at many aspects of each building's structure and 96 electrical systems, including foundation, roofing systems, masonry bearing walls, steel 97 frames, flooring, concrete framing systems, windows, wood framing, loading, electrical 98 service, branch circuits, conduit raceways, and emergency lighting; and 99 100 WHEREAS, on November 16, 2021, the Miami-Dade County Office of the 101 Commission Auditor completed a report entitled, "Research on Condominium Emergency 102 Repair Funding" (the "report") that provides an overview of jurisdictions across the United 103 States that have provided funding for condominium associations for emergency structural 104 repairs. The report found that the State of Minnesota has a program specifically designed to 105 provide direct financial assistance to condominium associations for emergency repairs; and 106 107 WH EREA S, the Minnesota program has provided funding to several condominium 108 associations that have undertaken structural repairs including the replacement or repair of 109 windows, doors, balconies, stairways, electrical systems, parking garages, ventilation, water 110 lines, roofs, and emergency generators; and 111 112 WHERE A S, this Commission desires that the Broward County Commission identify 113 an eligible funding source or funding sources, including those that are specifically for 114 housing, that can be utilized to create a low interest loan program for condominium 115 associations and/or economically vulnerable condominium owners living in their condos full- 116 time that are found to be in need of emergency structural repairs at the time of their 30-year 117 recertification inspection and which do not have the funds necessary to make such repairs; 118 and 119 120 WH ERE AS, this Commission recognizes that although the County has limited 121 resources, such resources should be used to assist condominium associations; and 122 123 WH EREAS, this Commission believes that the County should collaborate with 124 lending and financial institutions, such as Wells Fargo, Bank of America, TD Bank, Dade Page 3 of 5 File No. 23-159 125 and/or Broward County Federal Credit Unions, and PNC Bank, for example, to provide 126 financial assistance to condom inium associations that would not otherwise qualify for 127 County assistance; and 128 129 WHEREAS, these and other lending and financial institutions have dem onstrated 130 their com m itm ent to im proving m any com m unities through their com m unity benefits 131 pr o gra m s; and 132 133 WHEREAS, these and other lending and financial institutions have an im port ant role 134 to play in our com m unities, and part nerships w ith the C ounty help ensure they fulfill that role 135 for every one, 136 137 NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COMMISSION OF THE 138 CITY OF HALLANDALE BEACH, FLORIDA: 139 140 Section 1. T he foregoing "W hereas" clauses are incorporated herein. 141 142 Section 2. Th e M ayor and C om m ission of the City of Hallandale B each strongly 143 im plore the Brow ard C ounty C om m ission to create a low interest loan S pecial A ssessm ents 144 Program and/or explore the feasibili ty of providing loans directly to condom inium unit 145 ow ners living in their condos full-tim e fo r the purpose set fo rt h herein: (1) located in Brow ard 146 C ounty; (2) fo und to be in need of em ergency structural repairs at the tim e of their 30-year 147 recert ification inspection or an equivalent recert ification process, and subsequent 148 recert ification processes; and (3) do not have the funds necessary to m ake such repairs. 149 T his C om m ission furt her encourages the County C om m ission to collaborate w ith lending 150 and financial institutions in creating funding relief to condom inium associations and/or at- 151 risk condom inium ow ners. 152 153 Section 3. T he City Clerk is hereby instructed to distribute this resolution to 154 associations know n to the C ity and to other individuals and representatives, as appropriate, 155 including C ity Clerks of other m unicipalities, the Brow ard C ounty C om m ission and 156 A dm inistration, the Florida League of Cities and the Brow ard D elegation. 157 158 SECTION 4. Effective Date. T his R esolution shall take effect im m ediately upon its 159 passage and adoption. 160 16 1 AP P R O V ED AN D AD O PTE D this 3" day of M ay, 2023. 162 163 164 165 166 167 P a g e 4 of 5 File No. 23-159 168 SPONSORED BY: VICE MAYOR ANABELLE LIMA-TAUB 169 ATTEST: 170 171 172 173 174 175 176 177 APPROVED AS TO LEGAL SUFFICIENCY 178 AND FO M 179 180 181 182 183 184 185 186 187 188 FINAL VOTE ON ADOPTION Mayor Cooper Vice Mayor Lima-Taub Commissioner Adams Commissioner Butler Commissioner Lazarow Yes Yes Yes Yes Yes 189 Page 5 of 5 File No. 23-159 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 WHEREAS, the City of Hallandale Beach, Florida, is densely populated with several 23 hundred condominium and homeowner associations; and RESOLUTION NO. 2023- 041 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF HALLANDALE BEACH, FLORIDA, ENTREATING THE FLORIDA LEGISLATURE TO EXPLORE THE FEASIBILITY OF CREATING A SPECIAL ASSESSMENT LOW INTEREST LOAN PROGRAM IN COLLABORATION WITH LENDING AND FINANCIAL INSTITUTIONS TO PROVIDE FINANCIAL ASSISTANCE TO CONDOMINIUM ASSOCIATIONS AND CONDOMINIUM OWNERS LIVING IN THEIR CONDOS FULL-TIME THAT ARE IN NEED OF SUCH ASSISTANCE AND FOUND TO BE IN NEED OF EMERGENCY STRUCTURAL REPAIRS AT THE TIME OF THEIR 30-YEAR RECERTIFICATION INSPECTION OR AN EQUIVALENT RECERTIFICATION PROCESS AND/OR IN ACCORDANCE WITH FLORIDA SENATE BILL 154 AND HOUSE BILL 1395, AND SUBSEQUENT RECERTIFICATION PROCESSES, AND TO IDENTIFY ADDITIONAL FUNDING SOURCES; AND PROVIDING AN EFFECTIVE DATE. 24 25 WHEREAS, the City of Hallandale Beach Commission believes that it has an 26 obligation to protect the health, safety, and welfare of its residents; and 27 28 WHEREAS, the City of Hallandale Beach Commission supports Counties and State 29 efforts to help find alternative funding sources for condo owners who cannot afford 30 significant assessments; and 31 32 WHEREAS, working in unison, Senate Bill 154 and House Bill 1395 seek to clarify 33 and expand the condominium-related legislation the Florida Legislature adopted during the I 34 2022 Special Session as Senate Bill 4-D; and 35 36 WHEREAS, the Florida Senate and House bills have each already passed through 37 two committee stops with the unanimous support of Republicans and Democrats alike; 38 39 WHEREAS, the Florida House of Representatives' staff analysis for HB 1395 also 40 addresses the origins of SB 4-D: "On June 24, 2021, Champlain Towers South, a 12-story 41 beachfront condominium building in the town of Surfside, partially collapsed resulting in the 42 tragic death of 98 people. In response, during Special Session, 2022, SB 4-D was enacted Page 1 of 5 File No. 23-155 4 3 to pro vid e bu ild in g sa fe ty in sp e ctio n re q u ire m e n ts (m ile sto n e in sp e ctio n s) a n d re se rv e 44 re q u ire m e nts (structu ra l inte g rity rese rv e stud y) fo r co n d o m in iu m a n d co o p e ra tiv e 4 5 asso ci a tio n bu ild in g s; a n d 4 6 4 7 WHEREAS, as of April 24, 2023, SB 154 and HB 1395 proposed mandatory 48 inspection timelines for condo buildings that are at least three stories tall and 30 years old 49 or older, with additional inspections required every 10 years after that. According to the 50 Florida House staff analysis of HB 1395, there are currently more than 2 million Floridians 51 occupying condo buildings that are 30 years old or older; and 52 53 WHEREAS, according to SB 154, "If a building reaches 30 years of age before 54 December 31, 2024, the building's initial milestone inspection must be performed before 55 December 31, 2024;" and 56 57 WHEREAS, the new legislation would delete from the 2022 legislation the 25-year 58 milestone inspection requirement for buildings located within three miles of the coastline. 59 Regardless of coastline proximity, all qualifying condo buildings would be subjected to the 60 30-year inspection requirements; and 61 62 WHEREAS, the term "milestone inspection" refers to a structural inspection of a 63 condo building and its load-bearing elements, walls and primary structural systems. To be 64 conducted by a licensed architect or engineer, the milestone inspection is to determine the 65 general structural condition of the building as it pertains to safety and to identify any 66 maintenance, repair or replacement needed for those structural components; and 67 68 WHEREAS, as of April 24, 2023, SB 154 and HB 1395 would also require impacted 69 condo associations and condo owners to create and set aside reserve funds for structural 70 inspection studies and for any needed structural repairs or maintenance activities which 71 would include roof replacements and exterior painting. Condominium owners are currently 72 allowed to waive state-imposed reserve requirements; and 73 74 WHEREAS, after Dec. 31, 2024, condominium owners can no longer vote to waive 75 the reserves on structural integrity items; and 76 77 WHEREAS, relief for condominium owners, especially those living on fixed incomes, 78 is needed to ensure economically vulnerable seniors and those earning less than the 79 median income level, do not experience housing insecurity; 80 81 WHEREAS, as of 2022 and in accordance with Miami-Dade County Code and 82 certain municipal codes, with certain exceptions, buildings in unincorporated and 83 incorporated areas in Miami-Dade County that are at least 40 years old must be recertified Page 2 of 5 File No. 23-155 84 to ensure their structural and electrical safety, and after the initial 40-year recertification, 85 such buildings must be recertified every ten years thereafter; and 86 87 WHEREAS, Miami-Dade County launched a program that will issue loans of up to 88 $50,000 to residents who live in their condos full-time. The loans are specifically for 89 assessments levied to pay for building repairs and rehabilitation; and 90 91 WHEREAS, the Miami-Dade County Special Assessments program targets condo 92 owners who earn no more than 140 percent of the area median income. This means a 93 maximum annual income of $95,610 for a one-person household, $109,200 for a two- 94 person household, and $122,920 for a three-person household. These loans will have 40- 95 year term s, during w hich economically vulnerable families will be responsible to make $50 96 monthly payments and the remaining balance at the loan's maturity; and 97 98 WHEREAS, Miami-Dade County recertification inspections must be performed by 99 licensed architects or engineers, who look at many aspects of each building's structure and 100 electrical systems, including foundation, roofing systems, masonry bearing walls, steel 101 frames, flooring, concrete framing systems, windows, wood framing, loading, electrical 102 serv ice, branch circuits, conduit raceways, and emergency lighting; and 103 104 WHEREAS, on November 16, 2021, the Miami-Dade County Office of the 105 Com m ission A uditor com pleted a report entitled, "Research on Condominium Emergency 106 R epair Funding" (th e "re port") th at provides an overv iew of jurisdictions across the United 107 State s that have provided funding for condom inium associations for emergency structural 108 repairs. The report found that the State of Minnesota has a program specifically designed to 109 provide direct financial assistance to condom inium associations fo r em ergency repairs; and 110 111 WH E R EA S, the M innesota program has provided funding to several condominium 112 associations that have undertaken structural repairs including the replacement or repair of 113 windows, doors, balconies, stairways, electrical systems, parking garages, ventilation, water 114 lines, roofs, and emergency generators; and 115 116 WH E RE A S, this C om m ission desires that the Florida State Legislature identify an 117 eligi ble funding source or funding sources, including those that are specifically fo r housing, 118 that can be utilized to create a low interest loan program for condominium associations 119 and/or econom ically vulnerable condom inium ow ners living in their condos full-tim e that are 120 found to be in need of em ergency structural repairs at the tim e of th ei r 30-year 121 recert ification inspection and w hich do not have the funds necessary to m ake such repairs; 122 and 123 124 WH ER E A S, Florida T axW atch reported the largest projected General Revenue (GR) 125 budget surplus ever w ith a fo recast of $13.5 billion for the budget of FY 2023-24. The Page 3 of 5 File No. 23-155 126 surp lus grows to $14.6 billion FY 2024-25 and $15.5 billion in FY 2025-26. This 127 Commission supports a portion of this surplus as a possible funding resource to be used to 128 assist condominium associations and/or economically vulnerable condominium owners 129 living in their condos full-time; and 130 131 WHEREAS, this Commission believes that the State should collaborate with lending 132 and financial institutions to provide financial assistance to condominium associations that 133 would not otherwise qualify for County assistance; and 134 135 WHEREAS, these and other lending and financial institutions have demonstrated 136 their commitment to improving many communities through their community benefits 137 programs; and 138 139 WHEREAS, these and other lending and financial institutions have an important role 140 to play in our communities, and partnerships with Counties throughout Florida and the State 141 to help ensure they fulfill that role for everyone. 142 143 NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COMMISSION OF THE 144 CITY OF HALLANDALE BEACH, FLORIDA: 145 146 Section 1. The foregoing "Whereas" clauses are incorporated herein. 147 148 Section 2. The Mayor and Commission of the City of Hallandale Beach strongly implore the 149 State of Florida Legislature to create a low interest loan Special Assessments Program 150 and/or explore the feasibility of providing loans directly to condominium unit owners living in 151 their condos full-time for the purpose set forth herein: (1) located in coastal cities; (2) found 152 to be in need of emergency structural repairs at the time of their 30-year recertification 153 inspection or an equivalent recertification process, and subsequent recertification 154 processes; and (3) do not have the funds necessary to make such repairs. This 155 Commission further encourages the Florida State Legislature to collaborate with lending 156 and financial institutions in creating funding relief to condominium associations and/or at- 157 risk condominium owners. 158 159 Section 3. The City Clerk is hereby instructed to distribute this resolution to associations 160 known to the City and to other individuals and representatives, as appropriate, including 161 City Clerks of other municipalities, Florida Office of Senate President Renner, Florida House 162 of Representatives Speaker-designate Daniel Perez, Florida House Representative Vicki 163 Lopez, Florida Senator Jennifer Bradley, the Florida Office of Senate President, the Florida 164 Legislature, the Florida League of Cities and the Broward League of Cities. 165 166 SECTION 4. Effective Date. This Resolution shall take effect immediately upon its passage 167 and adoption. Page 4 of 5 File No. 23-155 168 AP P RO VE D AND ADO PTE D this 3" day of May, 2023. 169 170 171 172 173 174 175 SPO NS OR E D BY : V ICE MA YO R ANA BELLE LIM A-TAUB 176 ATTE ST: 177 178 179 180 JENO RG E N 181 CI T Y CLE R K 182 183 184 AP P RO V E D AS TO LE G AL SUFFIC IE NCY 185 AND FO R M 186 187 188 189 190 J 191 NE Y 192 193 194 195 FINAL VOTE ON ADOPTION Mayor Cooper Vice Mayor Lima-Taub Commissioner Adams Commissioner Butler Commissioner Lazarow Yes Yes Yes Yes Yes 196 Page5of5 File No. 23-155