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C4B-Ref- Planning Board - Modify Requirements Short Term Rentals In RM-1 Areasg MIAMIBEACH City of Miomi Beoch, I200 Convention Cenler Drive, Miomi Beoch, Florido 33,l39, www.miomibeochfl.gov COMMISSION MEMORANDUM Mayor Philip Levine and Members o/the CitV #mission Jimmy L. Morales, City Manager J- W July 23,2014 REFERRAL TO THE PLANNING BOARD. PROPOSED AMENDMENT TO THE LAND DEVELOPMENT REGULATIONS TO MODIFY THE REQUIREMENTS FOR SHORT TERM RENTALS IN RM.l AREAS OF THE COLLINS WATERFRONT HISTORIC DISTRICT ADMINISTRATION RECOMMENDATION Refer the attached Ordinance Amendment to the Planning Board for consideration and recommendation. BACKGROUND On April 23,2014, at the request of Commissioner Michael Grieco, the City Commission referred this request to the Land Use and Development Committee. On June 12, 2014, the Land Use Committee discussed the proposal, and recommended that the City Commission refer the proposed Ordinance Amendment to the Planning Board. ANALYSIS The RM-1 residential multifamily, low density district is designed for low intensity, low rise, single- family and multiple-family residences. The main permitted uses in the RM-1 district are single- family detached dwellings, townhomes and residential apartments. With the exception of those properties fronting Harding Avenue or Collins Avenue, from the City Line on the north to 73rd Street on the south, hotels are not permitted within the RM-1 zoning district. Section 142-1111 of the City Code regulates the short-term rental of apartment units or townhomes. Under the City Code, 'short term rentals' are defined as the rental of apartment or townhome residential properties in districts zoned RM-1, RM-PRD, RM-PRD-2, RPS-1 and RPS-2, CD-1, RO, RO-3 or TH for periods of less than six months and one day. Properties zoned RM-2, RM-3, CD-2 and CD-3 permit hotels, so rental periods less than 6 months are permitted, subject to all applicable building and fire regulations. The RM-1 zoning district, within the Collins Waterfront Historic District, does not permit hotels, and therefore does not permit short-term rentals of apartments. Ordinance 2010-3685, adopted by the City on June 9, 2010, clarified this, while grandfathering-in a small number of existing short term rentals in very limited circumstances within the Flamingo Park neighborhood. Section 142-1111 of that ordinance contained the forward looking statement that other neighborhoods may be added to this provision permitting short term rentals in the future by action of the City Commission. The attached Ordinance, initially drafted by a property owner in the Collins Park Neighborhood, TO: FROM: DATE: SUBJECT: Agenda ttem C{B Date 7-23-/4238 Commission Memorandum Collins Waterfront District - Update STR Procedures Ordinance July 23, 2014 Page 2 of 2 and since updated by planning staff, would allow short term rentals in the RM-1 districts in the Collins Waterfront Historic District, under similar limited circumstances. Apparently there are already several buildings in this area (roughly bounded by Collins Canal on the south, Pinetree Drive on the west, 25th Street on the north, and Lake Pancoast on the east) already engaged in short-term rentals. This ordinance would legalize those properties currently operating such transient operations. Attached, is a map showing the subject RM-1 zone, as well as the adjacent zoning districts. The subject area is bounded by more intense commercial and high density multi-family districts to the immediate south (Cd-3 zone across Collins Canal) and east (RM-3 District across Lake Pancoast). To the west of the subject area arc Government (Fire Station 2) and lnstitutional (Hebrew Academy) uses. The area to the immediate north of West 25th Street is zoned single-family. The proposed Ordinance would provide more flexibility in terms of allowable uses for recently restored historic buildings within the RM-1 zoned area of the Collins Waterfront Local historic district. ln order to provide an appropriate buffer from the more low scale single family district, it is suggested that any property within this district that has a property line on West 25th Street not be permitted to have short term rentals. Also, the eligibility for short term rentals should be limited to fully restored, 'Contributing' buildings within the district. ln addition to the modifications contained in the attached draft Ordinance, the Administration recommends that applicable definitions pertaining to terms such as 'Rooming House' be further clarified, as part of this Ordinance Amendment. ln summary, with appropriate safeguards, and given the intensity of the districts and uses on the west, south and east sides of the subject RM-1 district, the proposal for a limited short-term rental eligibility window is not expected to have any detrimental impacts on the surrounding area. The draft Ordinance attached includes the safeguards and eligibility limitations delineated herein. GONCLUSION ln accordance with the June 12, 2014 recommendation of the Land Use and Development Committee, the Administration recommends that the Mayor and the City Commission: 1. Refer the attached Ordinance Amendment to the Planning Board; 2. lnclude additional modifications to clarify applicable definitions pertaining to short term rentals. d4 JLtVTfr'MJ/TRM T:\AGENDA\2O14Uuly\Referral to Planning Board - Collins Park RM1 STR Procedures MEM.docx 239 Short Term Rentals in Collins Waterfront District ORDINANCE NO. AN ORDINANCE OF THE MAYOR AND CITY GOMMISSION OF THE GITY OF MIAMI BEACH, FLORIDA, AMENDING THE LAND DEVELOPMENT REGULATIONS OF THE GODE OF THE CITY OF MIAMI BEACH, BY AMENDING 142, "ZONING DISTRIGTS AND REGULATIONS", ARTICLE IV, "SUPPLEMENTARY DISTRICT REGULATIONS", DIVISION 3, "SUPPLEMENTARY USE REGULATIONS'" TO MODIFY THE REGULATIONS AND REQUIREMENTS FOR SHORT TERM RENTALS TO INCLUDE PROPERTIES LOGATED WITHIN THE GOLLINS WATERFRONT LOCAL HISTORIC DISTRICT; PROVIDING FOR REPEALER; SEVERABILITY; CODIFICATION; AND AN EFFECTIVE DATE. WHEREAS, the City Code contains provisions for the short term rental of apartments and townhomes in those zoning districts that do not permit hotel uses; and WHEREAS, the City of Miami Beach desires to amend existing regulations pertaining to the short term rental of apartments and townhomes for the Collins Waterfront Historic District; and WHEREAS, the Planning Board recommended approval of this Ordinance at its meeting dated , 2014 by a vote of _; and WHEREAS, the amendment set forth below is necessary to accomplish all of the above objectives. NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND CITY GOMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA: SECTION 1. Chapter 142, "Zoning Districts and Regulations", Article lV, "Supplementary District Regulations", Division 3, "Supplementary Use Regulations", of the Code of the City of Miami Beach, Florida is hereby amended as follows: Sec. 142-1111. Short-term rental of apartment units or townhomes. (a) [Limitations./ The rental of apartment or townhome residential properties in districts zoned RM-1, RM-PRD, RM-PRD-2, RPS-1 and RPS-2, CD-1, RO, RO-3 or TH for periods of less than six months and one day, unless expressly provided for in these land development regulations (such as for a portion of the RM-1 district, and for apartment hotels in the RPS-1 and RPS-2 districts) are not a permitted use in such districts unless conducted in accordance with this section. (b) Previously existing short-term rentals in specified districts. For a period of six months after the effective date of the ordinance enacting this section (June 19,2010), owners of certain properties located in the following districts shall be eligible to apply for approval of a certificate of use permitting short-term rental of apartment and townhome residential units for these properties under the requirements and provisions set forth below. Other neighborhoods may be added to this provision in the future by action of the city commission. 240 Districts: Properties within the RM-1 and TH zoning districts in the Flamingo Park and Espanola Way Historic Districts. Eligibility: Those properties that can demonstrate a current and consistent history of short{erm renting, and that such short-term rentals are the primary source of income derived from that unit or building, as defined by the requirements listed below. (1) For apartment buildings of four or more units, or for four or more apartment units in one or more buildings under the same resort tax account. ln order to demonstrate current, consistent and predominant shortterm renting, the property must comply with all of the following: a. Have been registered with the city for the payment of resort tax and made resort tax payments as of March 10,2010; and b. Have had City of Miami Beach Resort Tax taxable room revenue equal to at least 50 percent of total room revenue over the last two-year period covered by such payments; and c. Have been registered, with the State of Florida as a transient apartment or resort condominium pursuant to Chapter 509, Florida Statutes, as of March 10, 2010. For properties containing more than one apartment building, eligibility may apply to an individual building satisfying a. through c. above. (2) For apartment and townhouse buildings of three or less units, or for three or less apartment units in one or more buildings under the same state license: ln order to demonstrate current, consistent and predominant short-term renting, the property must: a. Have been registered with the State of Florida as a resort dwelling or resort condominium pursuant to Chapter 509, Florida Statutes, as of March 10, 2010. (c) Time periods to apply for short-term rental approvals. (1) Owners demonstrating compliance with subsections (bXl) or (2) above, shall apply for a certificate of use permitting shortterm rental as detailed in subsection 142-1111(f) within a time period of six months from the effective date of this section (June 19,2010), or be deemed ineligible to proceed through the process specified herein for legalization of short-term rentals. (2) Within three months of the effective date of the ordinance enacting this section (June 19, 2010), eligible owners shall apply to obtain all necessary approvals to comply with the Florida Building Code, Florida Fire Prevention Code and with all other applicable life safety standards. (3) Compliance with the applicable requirements of the Florida Building Code and Florida Fire Prevention Code, shall be demonstrated by October 1,2011, or rights to engage in shortterm rental under this section shall be subject to restrictions and/or limitations as directed by the building official and/or fire marshal. This subsection shall not prevent these officials from undertaking enforcement action prior to such date. (4) Applications under this ordinance may be accepted until 60 days after adoption of this subsection (adopted on April 11,2012;60 days expire June 11, 2012), upon determination to the planning director that a government licensing error prevented timely filing of the application. (d) Collins Waterfront Local Historic District. (1) Owners of propertv located in the Collins Waterfront Local Historic District. shall be elioible to applv for approval of a certificate of use permittinq shortterm rental of apartment and townhome residential units under the requirements and provisions set forth below:a. Onlv those properties not havinq a lot line on West 25th Street shall be eliqible for short term rentals: 241 b. Onlv buildinos classified as 'Contributinq' in the Citv's Historic Properties Database shall be eliqible for short term rentals. The buildins and propertv shall be fullv renovated and restored in accordance with the Secretarv of the lnterior Guidelines and Standards. as well as the Certificate of Appropriateness Criteria in Chapter 1 18. Article X of these Land Development Requlations:c. The propertv must have reqistered with the State of Florida as a transient or condominium pursuant to Chapter 509. Florida Statutes. as of d. The propertv must have reoistered with the Citv for the pavment of resort tax and made resort tax pavments as of :e. For properties containino more than one apartment buildino, eliqibilitv mav applv to an individual buildinq satisfvino a. throuoh d. above. (2) Time period to applv for short-term rental approvals for those properties located in the Collins Waterfront Architectural District. a. Owners demonstratino compliance with subsections (dX1)a-e above. shall applv for a certificate of use permittino short-term rental as detailed in subsection 142-1111(e) within a time period of six months from the effective date of this section ( ). or be deemed ineliqible to proceed throuqh the process specified herein for legalization of short-term rentals. b. Within three months of the effective date of the ordinance enactino this section( ). elioible owners shall applv to obtain all necessarv approvals to complv with the Florida Buildinq Code, Florida Fire Prevention Code and with all other applicable life safetv standards. c. Compliance with the applicable requirements of the Florida Buildinq Code and Florida Fire Prevention Code. shall be demonstrated bv or rishts to enqaoe in shortterm rental under this section shall be subiect to restrictions and/or limitations as directed bv the buildino official and/or fire marshal. This subsection shall not prevent these officials from undertakino enforcement action prior to such date.(3). ln the event a buildinq approved for short-term rentals in accordance with subsections (d)(1) and (d)(2) above is demolished or destroved, for anv reason, the future use of anv new or future buildino on that propertv shall not be permitted to enoaoe in short-term rentals. nor applv for short-term rental approval. (C) (O Regulations. For those properties eligible as per (b) or (d) above, unless otherwise expressly provided for in these land development regulations, short-term rental of apartment and townhome residential units shall be permitted, provided that the following mandatory requirements are followed : (1) Approvals required: applications. Owners, lessees, or any person with interest in the property seeking to engage in short-term rental, must obtain a certificate of use permitting short-term rental under this section. The application for approval to engage in short-term rentals shall be on a form provided for that purpose, and contain the contact information for the person identified in subsection (3) below, identify the minimum lease term for which short-term rental approval is being requested, and such other items of required information as the planning director may determine. The application shall be accompanied by the letter or documents described in subsection (9) below, if applicable. The application for a certificate of use permitting short-term rentals shall be accompanied by an application fee of $600.00. (2) Time period. All shortterm rentals under this section must be pursuant to a binding written agreement, license or lease. Each such document shall contain, 242 at a minimum: the beginning and ending dates of the lease term; and each lessee's contact information, as applicable. No unit may be rented more frequently than once every seven days. (3) Contact person. All rentals must be supervised by the owner, manager, or a local and licensed real estate broker or agent or other authorized agent licensed by the city, who must be available for contact on a 24-hour basis, seven days a week, and who must live on site or have a principal office or principal residence located within the Flaminge Park er Espanela Way histerie foreqoins districts. Each agreement, license, or lease, of scanned copy thereof, must be kept available throughout its lease term and for a period of one year thereafter, so that each such document and the information therein, is available to enforcement personnel. The name and phone number of a 24-hour contact shall be permanently posted on the exterior of the premises or structure or other accessible location, in a manner subject to the review and approval of the city manager or designee. (4) Entire unit. Only entire apartment units and townhomes, as defined in section 114-1, legally created pursuant to applicable law, may be rented under this section, not individual rooms or separate portions of apartment units or townhomes. (5) Rules and procedures. The city manager or designee may adopt administrative rules and procedures, including, but not limited to, application and permit fees, to assist in the uniform enforcement of this section. (6) Signs. No signs advertising the property for short-term rental are permitted on the exterior of the property or in the abutting right-of-way, or visible from the abutting public right-of-way. (7) Ettect of violations on /icensure. Approvals shall be issued for a one-year period, but shall not be issued or renewed if violations on three or more separate days at the unit, or at another unit in the building owned by the same owner or managed by the same person or entity, of this section, issued to the short-term rental licensee were adjudicated either by failure to appeal from a notice of violation or a special master's determination of a violation, within the 12 months preceding the date of filing of the application. (8) Resorf faxes. Owners are subject to resort taxes for rentals under this section, as required by city law. (9) Association rules. Where a condominium or other property owners association has been created that includes the rental property, a letter from the association dated not more than 60 days before the filing of the application, stating the minimum rental period and the maximum number of rentals per year, as set forth under the association's governing documents, and confirming that short{erm rentals as proposed by the owner's application under subsection (1) above are not prohibited by the association's governing documents, shall be submitted to the city as part of the application. lf the applicant, after best efforts, is unable to obtain such a letter from the association, he or she may submit the Iatest version of the association's documents to the city attorney's office for confirmation of the above. (10) Variances. No variances may be granted from the requirements of this section. ($ (fl Enforcement. (1) Violations of section 142-1111(b) shall be subject to the following fines. The special master may not waive or reduce fines set by this section. a. lf the violation is the first violation: $500.00. 243 b. lf the violation is the second violation within the preceding 12 months: $1,500.00. c. lf the violation is the third violation within the preceding 12 months: $5,000.00. d. lf the violation is the fourth violation within the preceding 12 months: $7,500.00. e. lf the violation is the fifth or greater violation within the preceding 12 months: suspension or revocation of the certificate of use allowing short- term rental. Fines for repeat violations by the same offender shall increase regardless of locations. (2) ln addition to or in lieu of the foregoing, the city may seek an injunction by a court of competent jurisdiction to enforce compliance with or to prohibit the violation of this section. (3) Any code compliance officer may issue notices for violations of this section, with enforcement of subsection 142-1111(a) and alternative enforcement of subsection 142-1111(b) as provided in chapter 30 of this Code. Violations shall be issued to the owner, manager, real estate broker or agent, or authorized agent, or any other individual or entity that participates in or facilitates the violation of this section. ln the event the record owner of the property is not present when the violation occurred or notice of violation issued, a copy of the violation shall be served by certified mail on the owner at its mailing address in the property appraiser's records and a courtesy notice to the contact person identified in subsection (dX3) above. SECTION 2. 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 Code of the City of Miami Beach, Florida. The sections of this ordinance may be renumbered or re-lettered to accomplish such intention, and the word "ordinance" may be changed to "section", "article", or other appropriate word. SECTION 3. REPEALER. All ordinances or parts of ordinances in conflict herewith be and the same are hereby repealed. SECTION4. SEVERABILITY. lf any section, subsection, clause or provision of this Ordinance is held invalid, the remainder shall not be affected by such invalidity. SECTION 5. EFFEGTIVE DATE. This Ordinance shall take effect ten days following adoption. 5 244 PASSED and ADOPTED this day of 2014. ATTEST: MAYOR APPROVED AS TO FORM AND LANGUAGE AND FOR EXECUTION CITY CLERK City Attorney First Reading: September 10,2014 Second Reading: October_,2014 Verified By: Thomas R. Mooney, AICP Planning Director Underline = new language S+r**nreush = deleted language T:\AGENDA\20'14Uuly\Referral to Planning Board - Collins Park RM1 STR Procedures ORD.docx o 245