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Ordinance 2025-4736 ORDINANCE NO. 2025-4736 AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AMENDING CHAPTER 58 OF THE MIAMI BEACH CITY CODE, ENTITLED "HOUSING," BY CREATING ARTICLE VII, ENTITLED "CONSUMER PROTECTION OF OWNERS OF RESIDENTIAL REAL PROPERTY," BY CREATING SECTION 58-600 THEREOF, TO BE ENTITLED "DEFINITIONS," TO ADOPT CERTAIN DEFINED TERMS; CREATING SECTION 58-601 THEREOF, TO BE ENTITLED "PROHIBITED CONTACTS FOR SOLICITATIONS," TO ADOPT REGULATIONS PROHIBITING CERTAIN PREDATORY SOLICITATIONS TO RESIDENTIAL CONDOMINIUM UNIT OWNERS; CREATING SECTION 58-610 THEREOF, TO BE ENTITLED "CIVIL PENALTIES," TO PROVIDE FOR PENALTIES AND ENFORCEMENT; AND PROVIDING FOR REFERENCES TO FLORIDA STATUTES, REPEALER, SEVERABILITY, CODIFICATION, AND AN EFFECTIVE DATE. WHEREAS, the condominium form of ownership is popular throughout the City of Miami Beach, including in its historic districts; and WHEREAS, in response to rising propeRy values and recent changes to the Florida Condominium Act, Chapter 718, Fla. StaL, and other relevant state statutes, attempts to terminate condominiums are on the rise in the City of Miami Beach; and WHEREAS, the City of Miami Beach Office of the Inspector General ("OIG") has identifed alleged tactics by prospective developers and their aRiliates to contact condominium owners to pressure them to sell; WHEREAS, the OIG recommended the adoption of an ordinance to prohibit predatory tactics employed by some developers seeking to buy out and terminate residential condominiums, which include unwanted and repeated or threatening contacts for solicitations; and WHEREAS, predatory tactics to initiate condominium terminations threalen the housing security of City of Miami Beach condominium owners and the City's substantial commitment to and investment in its historic properties. NOW, THEREFORE, BE IT ORDAINED 8Y THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA: SECTION 1. Chapter 58 of the Code of the City of Miami Beach, Florida, entitled "Housing," is amended as follows and as hereinaker set forth below: CHAPTER 58 HOUSING ARTICLE VII. CONSUMER PROTECTION OF OWNERS OF RESIDENTIAL REAL PROPERTY Sec. 58-600. Definitions. (al "ContacP' means to initiate anv written or verbal communication via anv ohvsical or electronic medium. indudina but not limited to teleohone calls electronic mail letters or leaflets and in person visits. �b) "Develooer" means the oerson or entitv and anv affiliates aaents emolovees and attornevs of the oerson or entitv initiatinq or attemotinq to initiate contact with a unit owner (c) "SoliciP' or"Solicitation" means to reouest encouraqe persuade or convince a unit owner j1� to enter into a contract option or aqreement to sell convev or transfer all or anv portion of their ownershio interest to the develooer or f2� to modifv the terms of a contract ootion or aqreement if a unit owner has oreviouslv entered into a contract ootion or aqreement to sell convev or transfer all or anv portion of their ownershio interest to the develooer �d) "ThreaP' or"Threaten" means am statement thaY � explicitiv or implicitiv threatens a forced sale of the oropertv of anv orooertv owner j� caloles, pressures forces harasses or othervvise coerces a oropertv owner to enter into a contract. option or aqreement to seil convev or transfer oropertv to the develooer or � caioles. pressures forces harasses or otherwise coerces a oropertv owner to modifv the terms of an existino contract oation or aqreement to sell convev or transfer orooertv to the develooer. (e) "Unit owner" or "Owner of a unit" shall have the meaninq set forth in s 718 103 Fla Stat Sec. 58-601. Prohibited contacts for solicitations La No develooer shall contact a unit owner to solicit them in furtherance of a oroposed olan of termination of condominium: � if the solicitation contains anv threat or f 2� three (3)or more times within anv 180-dav oeriod if the unit owner has oreviouslv reiected a solicitation or affirmativelv reauested in writino to the develooer not to be contacted (b) This section shall not orohibiT j� a solic'tation not encomoassetl bv oart (a) of this section� f 2� a contact bv or on behalf of the followino oarties� a. A condominium or communitv association b. The board of directors of the condominium association or a member of the board of directors actinq in his or her official caoacity c. The oropertv manaqer or anv desiqnee aqent or attomev of the condominium association otherwise authorized to make a contact d. Anv person or entitv from whom contact is otherwise reauired to be made bv the Florida Condominium Act Chaoter 718 Fla Stat or another aoplicable rule or statute. 2 � advertisements for realtv services� or f� the delivery or distribution of oresentations or leaflets bv a develooer at a dulv noticed meetino of the association uoon the invitation or aoproval of the board of directors Sec. 58-610. Civil oenalties (a) The code comoliance deoartment shall enforce this section� however this shall not oreclude other law enforcement aoencies from takina anv action to assure comoliance with this division and all aoplicable laws � If a violation is observed the enforcement officer shall be authorized to issue a notice of v_iolation to the individual or entitv The notice will inform the violator of the nature of the violation, amount of fine for which the violator is liable instructions and due date for pavinq the fine. that the violation mav be aopealed bv reauestina an administrative hearina before a soecial maqistrete within ten days after service of the notice of violation and that the failure to aooeal the violation within ten days of service shall constitute an admission of the violation and a waiver of the riaht to a hearina j2� A violation of this section shall be subiect to the followina fines a. Penalties. i_ If the violation is the frst offense a person or business shall receive a civil fine of$500.00� ii. If the violation is the second violation within the orecedino six months person or business shall receive a civil fine of 1 000 00� iii. If the violation is the third violation within the orecedinq six months a person or business shall receive a civil fine of�2 000 00� and iv. If the violation is the fourth or subseauent violation within the orecedina six months. a person or business shall receive a civil fine of 5 000 00 b. Each contact made in violation of this section whether to the same or a different unit owner within the same condominium shall be considered a seoarate and distinct offense subiect to aoolicable oenalties j3� A violator who has been served with a notice of violation must elect to either a. Pav the civil fine in the manner indicated on the notice of violation� or b. Reauest an administrative hearinq before a soecial maqistrate to aopeal the notice of violation which must be reauested within ten days of the service of the notice of violation. f4� The orocedures for aopeal bv administrative hearinq of the notice of violation shall be as set forth in sections 30-72 and 30-73 of this Code A reauest for the administrative heanna must be accomoanied bv a fee as aoproved bv a resolution of the citv commission which shall be refunded if the named violator orevails in the aopeal � If the named violator after issuance of the notice of violation fails to oav the civil fine or fails to timelv reouest an administrative hearinq before a soecial maqistrate the special maoistrate mav be informed of such failure bv the code enforcement officer The failure of the named violator to aopeal the decision of the code enforcement officer within the orescribed time oeriod shall constitute a waiver of the violator's riaht to an 3 administrative hearina before the soecial maaistrete and shall be treated as an admission of the violation for which fines and oenalties shall be assessed accordinqlv f� A certified coov of an order imoosino a fine mav be recorded in the oublic records and thereafter shall constitute a lien uoon anv real or oersonal orooertv owned bv the violator which mav be enforced in the same manner as a court iudament bv the sheriffs of this state includina levv aqainst the violator's real or �ersonal orooertv but shall not be deemed to be a court iudqment exceot for enforcement ourooses On or after the 61 st daV followina the recordino of arn such lien that remains unoaid the citv mav foreclose or othervvise execute uoon the lien f7� Anv oartv aqqrieved bv a decision of a soecial maqistrate mav aooeal that decision to a court of comoetent iurisdiction j8� The soecial maaistrate shall be orohibited from hearina the merits of the notice of violation or considerinq the timeliness of a reauest for an administra[ive hearino if the violator has failed to reauest an administrative hearinq within ten days of[he service of the notice of violation. �9j The soecial maqistrate shall not have discretion to alter the oenalties orescribed in this subsection. SECTION 2. REFERENCES TO FLORIDA STATUTES. All references to any section, chapter, or provision of the Florida Statutes in this ordinance are made as that section, chapter, or provision may be amended from time to time. SECTION 3. CODIFICATION. It is the intention of the Mayor and City Commission of the City of Miami Beach, and it is hereby ordained that the provisions of this ordinance shall become and be made part of the Miami Beach City Code. The sections of this ordinance may be renumbered or relettered to accomplish such intention, and the word "ordinance" may be changed to "section," "article," or other appropriate word. SECTION 4. REPEALER. All ordinances or parts of ordinances in conflict herewith be and the same are hereby repealed. SECTION 5. SEVERABILITY. If any section, subsection, clause or provision of this Ordinance is held invalid, the remainder shall not be affected by such invalidity. 4 SECTION 6. EFFECTIVE DATE. This Ordinance shall take effect on the S day of J�, 2025. PASSED and ADOPTED this u�� day of_7uNE , 2025. ATTEST: �_� 1UN 3 D �025 e e einer, Mayor _ \P�„B�,c A_-R3�el . ranado, CityClerk :��g, ��� REGIS BARBOU : i (Sponsored by Commissioner Alex J. Femandez) ': ���NfO�P OR�1Ea' ; '�,3�. :c'i Underiined denotes new additions *�.;9q�-. -���: c�:b.,��..,. 6 ���„H�26 ,. o.*...�,.g., denotes deletions �•� APPROVED AS TO FORM AND LANGUAGE & FOR EXECUTION � f��iS��oz.T City Attorn �� Date 5 Ordinances - RS N MIAMIBEACH COMMISSION MEMORANDUM TO: Honorable Mayor and Members of the City Commission FROM: City Attomey RicarUo J. Dopico DATE: June 25,2025 9:55 a.m. Second Reading Public Heanng TITLE: AN ORDINANCE OF THE MAYOR AND CIN COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AMENDING CHAPTER 58 OF THE MIAMI BEACH CITV CODE, ENTITLED "HOUSING," BY CREATING ARTICLE VII, ENTITLED "CONSUMER PROTECTION OF OWNERS OF RESIDENTIAL REAL PROPERTY," BY CREATING SECTION 58E00 THEREOF, TO BE ENTITLED "DEFINITIONS," TO ADOPT CERTAIN DEFINED TERMS; CREATING SECTION 58-601 THEREOF, TO BE ENTITLED "PROHIBITED CONTACTS FOR SOLICITATIONS," TO ADOPT REGULATIONS PROHIBITING CERTAIN PREDATORY SOLICITATIONS TO RESIDENTIAL CONDOMINIUM UNIT OWNERS; CREATING SECTION 58-610 THEREOF,TO BE ENTITLED"CIVIL PENALTIES,"TO PROVIDE FOR PENALTIES AND ENFORCEMENT; AND PROVIDING FOR REFERENCES TO FLORIDA STATUTES, REPEALER, SEVERABILITY, CODIFICATION, AND AN EFFECTIVE DATE. BACKGROUNDIHISTORY The atlached Ordinance is presentetl by Ihe spon5or, Commissioner Alex J. Fernandez, for Ihe consideration of the Mayor and City Commission. Condominiums are a popular form of residential real property ownership in the City of Miami Beach and are featured among the Citys most chenshed histonc buildings within bofh local and National Register disMcts. Recent changes to the Florida Condominium Act, chapter 718, F.S., and other relevant state statutes in the wake of the Champlain Towers South disaster have contributed to increased attempts to terminate older condominiums in Ihe Ciry of Miami Beach. The City of Miami Beach Offce of the Inspeclor General ("OIG') has identifed instances where condominium unit owners experienced unwanted and threatening solicitations to sell their units to buyers for the purpose of terminating the condominium. ANALYSIS The Ordinance prohibits certain contacts by a developer to condominium unit owners that solicit ihem to sell, comey, or transfer [heir ownership interests to the developer, or lo modify existing agreements to sell, convey, or transfer ownership interests m the tleveloper.� The sponsors in�ent is to protect uni[ownere from experiencing unfair pressure to sell their units and lo encourage develOpers�o engage in more transparent negotiations and business practices. 1515 If enacted ty lhe Mayor and Ciry Commission,the proposed Ortlinance would prohibit any person or entity 6om contacting condominium unit owners to solicit the sale of their unils in furtherance of a condominium termination if the unit owner has rejeded a solici�ation, requested not to be conWcted, or if the solicitation contains a threat(as deMed in the attached Ordinance). The proposed Ordinance woultl 6e enforced by the City's code compliance depaRment with fines per violation of$500.00 tor a frst oHense; $1,000.00 (or a second offense; $2,000.00 foi a third ottense; and $5,000.00 for a fourth or subsequent oHense. �A pmhibition on predatory tactics in condominium buy-out solicitations is not in conflict with or expressly preemptetl by ihe Flonda Contlominium Acl or the Flonda Deceptive and Unfair Trede Practices Act. FISCAL IMPACT STATEMENT The Ciry will use existing resources to enforce this Ordinance. Does this Ordinanca reauire a Business ImoaM Estimate? Yes (FOR ORDINANCES ONLY) If applicable,the Business Impact Estimate (BIE)was published on: 611112025 See BIE at: httos://www.miamibeachfl.aovlcitY-hall/citv-clerk/meetinq-notices/ FINANCIAL INFORMATION CONC W SION Aoolicable Area Ci�ywide Is this a"Residents Riaht to Know" item. Is this item related to a G.O. Bond pursuant to CiN Code Section 2-171 Proiect7 Ves No Was this Aaenda Item initiallv reauested bv a lobbvist which, as defined in Code Sec 2-681. includes a orincioal enoaaed in lobbvino7 No If so, specify the name of lobbyist(s)and principal(s): Deoartment City Attorney Soonsorlsl 1576 � Commissioner Alex Fernandez Co-soonsor(al Condensed Title 9:55 a.m. 2nd Rdg, Prohibit Predatory Solicitations to Residential Condo Owners. (AF)CA Previous Action IFor CiN Clark Use Onlvl First Reading Public Heanng on 5/21I2025- R5 AD 1517 �