HomeMy WebLinkAboutOrdinance 2025-4737ORDINANCE NO.2025-4737
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 58-602 THEREOF,TO BE
ENTITLED "NOTICE TO ASSOCIATIONS,"REQUIRING
PROSPECTIVE BULK OWNERS OF RESIDENTIAL CONDOMINIUM
UNITS TO PROVIDE NOTICE OF THEIR ACQUISITION OF INTERESTS
IN CONDOMINIUM PROPERTY;CREATING SECTION 58-640 58-611
THEREOF,TO BE ENTITLED "CIVIL PENALTIES FOR VIOLATIONS OF
SECTION 58-602,"TO PROVIDE FOR PENAL TIES 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 property values and recent changes to the Florida
Condominium Act,Ch.718,Fla.Stat.,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 identified
alleged tactics by prospective developers and their affiliates to conceal their identities and efforts
to acquire controlling interests in condominiums;and
WHEREAS,it is in the public interest to ensure transparency in the condominium
termination buyout process and to apprise unit owners of negotiations with other unit owners;and
WHEREAS,predatory tactics to initiate condominium terminations threaten 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 BY 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 hereinafter set forth below:
CHAPTER 58
HOUSING
***
ARTICLE VII.CONSUMER PROTECTION OF
OWNERS OF RESIDENTIAL REAL PROPERTY
Sec.58-600.Definitions.
(a)"Acquire"or "Acquisition"means gaining any right,benefit,or consideration through any
contract,option,or agreement with an owner of real property,regardless of whether a sale,
conveyance,or transfer of all or any portion of an ownership interest in real property has been
consummated.
(b)"Association"shall have the meaning set forth ins.718.103,Fla.Stat.
(c)"Bulk owner"shall have the meaning set forth in s.718.117,Fla.Stat.
(d)"Condominium property"shall have the meaning set forth in s.718.103,Fla.Stat.
(e)"Property manager''means the person or entity responsible for the supervision,maintenance,
and/or operation of condominium property.
(f)"Prospective bulk owner"means a person or entity which has acquired thirty 39)twenty (20)
percent or more of the total ownership interests of condominium property,regardless of whether
the person or entity is seeking to acquire the rights and interests of a bulk owner;and any
successor in interest or assignee of such person or entity.
***
Sec.58-602._Requiring notice to condominium associations by prospective bulk owners.
(a)Within thirty (30)calendar days after a prospective bulk owner acquires thirty (30)twenty (20)
percent or more of the ownership interests of condominium property,or succeeds in or receives
an assignment of the interests of a prospective bulk owner,the prospective bulk owner shall
deliver a notice by mail to the following recipients:
ill The secretary or equivalent officer of the condominium association.
(2)The property manager.
(3)Each unit owner in the condominium.
(4)The city manager,
(b)The notice shall contain the following information:
ill The name,principal address,business phone number,and email address of the
prospective bulk owner.If the prospective bulk owner is an entity,the notice shall also
include the name,principal address,business phone number,and email address of the
registered agent.If the prospective bulk owner is an entity formed and existing outside the
state of Florida,the notice shall also include the prospective bulk owner's Florida business
address or,if applicable,local business address.
0 The name and street address(es)of the condominium .
.Q)The total number of units which the prospective bulk owner has acquired as of the date of
the notice.
(4)The following statement;
"The party named in this notice has acquired at least thirty (30)twenty
(20)percent of the ownership interests in this condominium."
2
(5)Additionally,if the prospective bulk owner intends to approve and file a plan of termination
of condominium,the notice shall also include the following statement:
"The party named in this notice has begun acquiring ownership interests
in this condominium with the intent to approve and file a plan of
termination with the Division of Florida Condominiums,Timeshares,and
Mobile Homes."
(c)The prospective bulk owner shall deliver an updated version of the notice to all recipients
required under this section within five (5)business days following a change to any information
contained in the notice.
(d)Any notice required under this section shall be plainly visible and written in a font size of no
less than 14 points,and all information thereupon shall be clear and legible.
(e)Upon receipt of a notice,the association or property manager shall conspicuously publish,
post,or distribute the notice in a common area or otherwise in the manner by which notices are
customarily provided to the members of the association.
(f)Effective date.The provisions of this section shall apply to any prospective bulk owner that
acquires thirty (39)twenty (2O)percent or more of the ownership interests of condominium
property on or after July 1,2025.
(g}Applicability.This section shall apply to condominium property with a minimum of twelve (12)
condominium units.
***
Sec.58619 58-611._iyil penalties for violations of Section 58-602.
(a)The code compliance department shall enforce this section 58-602;_however,this shall not
preclude other law enforcement agencies from taking any action to assure compliance with this
diyisign section 58-602 and all applicable lays_
ill If a violation is observed,the enforcement officer shall be authorized to issue a notice of
violation to the individual or entity.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
paying the fine,that the violation may be appealed by requesting an administrative
hearing before a special magistrate within ten days after service of the notice of violation,
and that the failure to appeal the violation within ten days of service shall constitute an
admission of the violation and a waiver of the right to a hearing.
(2)A violation of this section 58-602 shall be subject to the following fines;
a.Penalties.
i.If the violation is the first offense,a person or business shall receive a civil
fine of $500.00;
ii.If the violation is the second violation within the preceding six months,a
person or business shall receive a civil fine of $1,000.00;
iii.If the violation is the third violation within the preceding six months,a person
or business shall receive a civil fine of $2,000.00;and
iv.If the violation is the fourth or subsequent violation within the preceding six
months,a person or business shall receive a civil fine of $5,000.00.
v.For a failure by a condominium association or property manager to publish,
post,or distribute a notice as required under this section 58-602,_a first
3
offense shall be subject to a written warning.A second or subsequent offense
by a condominium association or property manager shall be subject to the
penalties set forth in (i)through (iv).
b.Each condominium association,property manager,and unit owner who does not
receive a written notice required under this section 58-602 shall be considered a
separate and distinct offense subject to applicable penalties .
(3)A violator who has been served with a notice of violation must elect to either:
a.Pay the civil fine in the manner indicated on the notice of violation;or
b.Request an administrative hearing before a special magistrate to appeal the notice
of violation,which must be requested within ten days of the service of the notice of
violation.
(4)The procedures for appeal by administrative hearing of the notice of violation shall be
as set forth in sections 30-72 and 30-73 of this Code.A request for the administrative
hearing must be accompanied by a fee as approved by a resolution of the city
commission,which shall be refunded if the named violator prevails in the appeal.
(S)I the named violator,after issuance of the notice of violation,fails to pay the civil fine,
or fails to timely request an administrative hearing before a special magistrate,the
special magistrate may be informed of such failure by the code enforcement officer.The
failure of the named violator to appeal the decision of the code enforcement officer within
the prescribed time period shall constitute a waiver of the violator's right to an
administrative hearing before the special magistrate,and shall be treated as an
admission of the violation,for which fines and penalties shall be assessed accordingly.
(6)A certified copy of an order imposing a fine may be recorded in the public records,and
thereafter shall constitute a lien upon any real or personal property owned by the violator,
which may be enforced in the same manner as a court judgment by the sheriffs of this
state,including levy against the violator's real or personal property,but shall not be
deemed to be a court judgment except for enforcement purposes.On or after the 61 st
day following the recording of any such lien that remains unpaid,the city may foreclose
or otherwise execute upon the lien.
ill Any party aggrieved by a decision of a special magistrate may appeal that decision to a
court of competent jurisdiction,
(8)The special magistrate shall be prohibited from hearing the merits of the notice of
violation or considering the timeliness of a request for an administrative hearing if the
violator has failed to request an administrative hearing within ten days of the service of
the notice of violation .
.(fil The special magistrate shall not have discretion to alter the penalties prescribed 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.
4
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.
SECTION 6.EFFECTIVE DATE.
This Ordinance shall take effect on the _5day ot_ha]y__,2o2.
PASSED and ADOPTED this 25th day of June,2025.
ATTEST:
7#et?
Rafael E.Granado,City Clerk
(Sponsored by Commissioner Alex J.Fernandez)
Underline denotes new additions
Strikethrough denotes deletions
Double underline denotes additions after First Reading
Double strikethrough denotes deletions after First Reading
APPROVED AS TO
FORM AND LANGUAGE
&FOR EXECUTION
O)rs)20
City Attorney [)K Date
5
Ordinances -RS 0
MIAMI BEACH
COMMISSION MEMORANDUM
TO:Honorable Mayor and Members of the City Commission
FROM:City Attorney Ricardo J.Dopico
DATE:
TITLE:
June 25,2025 10:10 a.m.Second Reading Public Hearing
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 58-602 THEREOF,
TO BE ENTITLED "NOTICE TO ASSOCIATIONS,"REQUIRING PROSPECTIVE
BULK OWNERS OF RESIDENTIAL CONDOMINIUM UNITS TO PROVIDE NOTICE
OF THEIR ACQUISITION OF INTERESTS IN CONDOMINIUM PROPERTY;
CREATING SECTION 58-610 THEREOF,TO BE ENTITLED "CIVIL PENALTIES,"
TO PROVIDE FOR PENAL TIES AND ENFORCEMENT;AND PROVIDING FOR
REFERENCES TO FLORIDA STATUTES,REPEALER,SEVERABILITY,
CODIFICATION,AND AN EFFECTIVE DATE.
BACKGROUND/HISTORY
The attached Ordinance is presented by the sponsor,Commissioner Alex J.Fernandez,for the
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 City's most cherished historic buildings within both local and
National Register districts.
Rising property values and 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 the City of Miami Beach.
Section 718.117,F.S.,provides the methods by which condominiums may be terminated.Section
718.117(3)(c),F.S.,sets forth the procedures,rights,and obligations of parties with respect to an
optional termination of condominium initiated by an owner,together with its affiliates,who holds
at least 80 percent of the voting interests in the condominium (a "bulk owner").
The City of Miami Beach Office of the Inspector General ("OIG")has identified that condominium
residents may not be aware of efforts by developers to acquire controlling interests in
condominium property and gain bulk owner status (defined in the attached Ordinance as
"prospective bulk owners")until it is too late to meaningfully express their opinions,raise
objections,or explore alternative living arrangements.The OIG further found that this lack of
transparency can be especially harmful to elderly and middle-and fixed-income condominium
owners.
1523
ANALYSIS
The Ordinance requires notice be provided to condominium owners whose condominium is
undergoing a buy-out by a prospective bulk owner.ill The sponsor's intent is to protect
condominium unit owners'interests,promote owners'early inclusion and participation in
negotiations,and protect historic properties.
If enacted by the Mayor and City Commission,the proposed Ordinance would require developers
that acquire thirty (30)percent or more of the ownership interests in condominium property to mail
a notice to each condominium unit owner,the property manager,and the condominium
association secretary or equivalent officer.The notice will contain the name,principal address,
business phone number,and email of the prospective bulk owner.The notice will also contain the
name and physical address(es)of the condominium;the number of units the prospective bulk
owner acquired;and all applicable required statements.The Ordinance requires the prospective
bulk owner to update and redistribute the notice within five (5)business days of any changes to
information contained in the notice.The Ordinance also requires the condominium association
and/or property manager to conspicuously publish the notice.
The proposed Ordinance would be enforced by the City's code compliance department with fines
per violation of $500.00 for a first offense;$1,000.00 for a second offense;$2,000.00 for a third
offense;and $5,000.00 for a fourth or subsequent offense.Condominium associations and
property managers would receive a written warning for the first offense,and thereafter be subject
to fines for subsequent violations.
ill A requirement that prospective bulk buyers provide notice of their intent to effectuate a
condominium buy-out is not in conflict with or expressly preempted by the Florida Condominium
Act or the Florida Deceptive and Unfair Trade Practices Act.
FISCAL IMPACT STATEMENT
The City will use existing resources to enforce this Ordinance.
Does this Ordinance require a Business Impact Estimate?Yes
(FOR ORDINANCES ONLY)
If applicable,the Business Impact Estimate (BIE)was published on:6/11/2025
See BIE at:https://www .miamibeachfl.gov/city-hall/city-clerk/meeting-notices/
FINANCIAL INFORMATION
CONCLUSION
Applicable Area
Citywide
1524
s this a "Residents Riaht to Know"item,
pursuant to Citv Code Section 2-17?
Yes
ls_this item_related_to_aG.Q_ond
1 Project?
No
I___J
Was this Agenda Item initially requested by a lobbyist which,as defined in Code Sec.2-481,
includes a principal engaged in lobbying?No
If so,specify the name of lobbyist(s)and principal(s):
Department
City Attorney
Sponsor(s)
Commissioner Alex Fernandez
Co-sponsor(s)
Condensed Title
10:10 a.m.2nd Rdg,Notice of Prospective Bulk Condo Purchase.(Fernandez)CA
Previous Action (For City Clerk Use Only)
First Reading Public Hearing on 5/21/2025 -R5 AC
1525