Miami-Dade Legislative Item
File Number: 220636
    

File Number: 220636 File Type: Resolution Status: Before the Board
Version: 0 Reference: Control: Board of County Commissioners
File Name: ESTABLISH RENT STABILIZATION IN MIAMI-DADE COUNTY Introduced: 3/18/2022
Requester: NONE Cost: Final Action:
Agenda Date: Agenda Item Number: 11A
Notes: Title: RESOLUTION DIRECTING THE COUNTY MAYOR OR COUNTY MAYOR’S DESIGNEE TO CONDUCT A STUDY TO DETERMINE IF A HOUSING EMERGENCY CURRENTLY EXISTS IN MIAMI-DADE COUNTY THAT IS SO GRAVE AS TO CONSTITUTE A SERIOUS MENACE TO THE GENERAL PUBLIC AND THAT STABILIZING RENTS TO REMAIN AFFORDABLE IS NECESSARY AND PROPER TO ELIMINATE SUCH GRAVE HOUSING EMERGENCY; AND REQUIRING A REPORT [SEE ORIGINAL ITEM UNDER FILE NO. 220005]
Indexes: HOUSING
  REPORT
Sponsors: Kionne L. McGhee, Prime Sponsor
Sunset Provision: No Effective Date: Expiration Date:
Registered Lobbyist: None Listed


Legislative History

Acting Body Date Agenda Item Action Sent To Due Date Returned Pass/Fail

County Attorney 3/18/2022 Assigned Melissa Gallo 3/21/2022

Public Housing and Community Services Committee 3/10/2022 2A Amended Forwarded to BCC with a favorable recommendation with committee amendment(s) P
REPORT: Commissioner McGhee introduced the foregoing item. He reviewed the intent of the foregoing resolution and noted his intent to amend the item. Assistant County Attorney Terrence Smith advised that the foregoing item would be amended as follows: ~ To include the following sentence at the end of the paragraph on Typewritten page six (6), Section two (2) to read: “This Board further directs the County Mayor or the County Mayor’s designee to collaborate with the League of Cities and other stakeholders in the preparation of the study required herein.” ~ To include the following language on Typewritten page seven (7), Section three (3): “The County Mayor or County Mayor’s designee shall provide initial findings to this Board within 60 days of the effective date of this resolution. This Board further directs the County Mayor or the County Mayor’s designee to provide a comprehensive final report to the Board within 180 days from the date the preliminary report was provided to this Board. The County Mayor or the County Mayor’s designee shall place the completed report on an agenda of the full Board without Committee review pursuant to Ordinance 14-65. The comprehensive final report should include a copy of the study required by Section 2 of this resolution. Commissioner Garcia indicated he could not support the item as presented and voiced concerns that the foregoing item did not contain any “enacting” language. He also commented on the possible negative impact of the item on the housing rental industry. Commissioner Higgins suggested amending the item to require the final comprehensive report include data identifying triggers and recommendations related to housing emergencies. She also recommended the County implement a housing tracking system to prevent future housing crises. Assistant County Attorney Smith clarified the purpose of the study was to determine whether there was a housing emergency, as required by Florida law. He explained that the next steps, upon completion of the study, an ordinance setting forth the report’s findings would be presented to the Board of County Commissioners (Board) for consideration. Assistant County Attorney Smith also explained that the ordinance would declare a housing emergency with possible rent control and/or stabilization options. He noted following the consideration of the ordinance by the Board, a referendum would be presented to the County’s voters. Discussion ensued between Commissioner Garcia and Assistant County Attorney Smith regarding the use of the terms “rent control and/or stabilization.” Discussion ensued between Commissioner Martinez and Assistant County Attorney Smith as to whether the foregoing item addressed luxury apartments. Assistant County Attorney Smith read into the record a portion of the Florida Statute related to luxury apartment buildings, and opined the Statute only applied to luxury buildings built prior to January 1, 1977. He further explained in the event the matter was litigated, the County would have to prove that the legislation was valid. Assistant County Attorney Smith briefly reviewed the next steps and challenges the County would have to overcome before declaring a housing emergency. Commissioners Garcia and Martinez voiced their concerns regarding the proposed rent control component of the item and the impact on the private sector. Both commissioners commented the term “stabilization” could infer a negative connotation and pointed out that the item did not include any preventative component, which would prohibit landlords from increasing rental rates while the study and process was being completed. Responding to Commissioner Martinez’s question, Assistant County Attorney Smith reviewed and explained the proffered amendments. Commissioner Garcia commented on the Urban Development Boundary (UDB) and questioned whether the study would consider and/or explore moving the UDB. Assistant County Attorney Smith reiterated the intent of the item was to conduct a study to determine whether a housing emergency did exist. He further explained the item would not limit the landlord’s ability to raise rent, or mandate Countywide rent stabilization. Assistant County Attorney Smith stated the foregoing resolution would facilitate further action by the Board and explained the term “housing emergency” would be defined by the report’s findings since it was not defined in the Florida Statute. Commissioner Hardemon stated that while he believed the County was in a housing crisis, he believed the County should be strategic about creating affordable housing. He noted that Commission District 3 was a hub for low-income project housing, and expressed his interest in seeing more affordable/workforce and market rate units being constructed in the area. Commissioner Hardemon reasoned that building more workforce/affordable and market rate units throughout the County would help increase property values and grow wealth in otherwise neglected areas. Chairman Monestime stated that while he recognized the concerns voiced by his colleagues, he was in support of the foregoing item because he believed the study and ensuing discussion was much needed. Hearing no further questions or comments, the Committee members proceeded to vote on the foregoing proposed resolution, as amended.

Legislative Text


TITLE
RESOLUTION DIRECTING THE COUNTY MAYOR OR COUNTY MAYOR’S DESIGNEE TO CONDUCT A STUDY TO DETERMINE IF A HOUSING EMERGENCY CURRENTLY EXISTS IN MIAMI-DADE COUNTY THAT IS SO GRAVE AS TO CONSTITUTE A SERIOUS MENACE TO THE GENERAL PUBLIC AND THAT STABILIZING RENTS TO REMAIN AFFORDABLE IS NECESSARY AND PROPER TO ELIMINATE SUCH GRAVE HOUSING EMERGENCY; AND REQUIRING A REPORT

BODY
WHEREAS, Miami-Dade County has a current shortage of affordable and workforce rental housing and anticipates this shortage will worsen in the coming years; and
WHEREAS, housing is affordable when it costs no more than 30 percent of a household’s income; and
WHEREAS, households which pay more than this amount are considered housing cost-burdened; and
WHEREAS, according to a 2020 study by the Florida Housing Coalition (the “study”), of Florida’s 3.15 million low-income households, close to 2 million (1,997,040) are cost-burdened, which represents 63 percent of low-income households and 26 percent of all Florida households; and
WHEREAS, the study also found that of these low-income, cost-burdened households in Florida, over 1.16 million are severely cost-burdened; and
WHEREAS, the study also found that of all low-income, cost-burdened households in Florida, 669,811 are headed by seniors (age 65 or older), and for low-income households that have members with one or more disabilities, 596,088 are cost-burdened; and
WHEREAS, while many low-income households in Florida are cost-burdened, the problem is especially acute in Miami-Dade County; and
WHEREAS, according to the study, Florida’s cost-burdened cities are concentrated in South Florida, with the Miami-Dade, Fort Lauderdale, and West Palm Beach metropolitan statistical areas topping the list of most cost-burdened urban areas; and
WHEREAS, according to United States census data, household median income from 2015 to 2019 in Miami-Dade County was $51,347.00, which was $4,313.00 less than the Florida median of $55,660.00; and
WHEREAS, the homeownership rate in Miami-Dade County is also lower than the state average, meaning more renters and greater demand for rental housing; and
WHEREAS, from 2015 to 2019, the homeownership rate in Miami-Dade County was only 51.2 percent, over 14 percent lower than the Florida average of 65.4 percent, according to United States census data; and
WHEREAS, in Miami-Dade County, 65 percent of renter households are cost-burdened, with alarming percentages of cost-burdened households in lower income levels, according to the Miami-Dade County Housing Data Appendix dated June 2020, prepared by the University of Florida Shimberg Center for Housing Studies (the “UF analysis”); and
WHEREAS, according to the UF analysis, in Miami-Dade County, 87 percent of renter households with incomes less than $20,000.00, 81 percent of renter households with incomes between $20,000.00 and $34,999.00, and 66 percent of renter households with incomes between $35,000.00 and $49,999.00 are cost-burdened; and
WHEREAS, some municipalities within Miami-Dade County, such as the City of Miami, are ranked as some of the most severely housing cost-burdened in the country; and
WHEREAS, according to the study, the average City of Miami household is cost-burdened, paying 39 percent of their income for housing costs; and
WHEREAS, according to the University of Miami, Miami-Dade County’s geographical location between two national parks also results in a shortage of developable land that can be used to construct new housing and increase the housing supply; and
WHEREAS, these alarming statistics demonstrate that there is a critical shortage of housing in the County that is evidence of a housing emergency; and
WHEREAS, as a result of the cost burden and the critical housing shortage, tenants in Miami-Dade County are unable to find decent and safe housing at affordable rent levels, resulting in some renters paying rent increases by foregoing expenses on other basic necessities of life, including food, transit, and healthcare; and
WHEREAS, the foregoing housing and economic conditions create a detrimental effect on tenants in Miami-Dade County and are a threat to the public health, safety, and welfare; and
WHEREAS, this Board desires to have the ability to enact local legislation affecting the rents landlords can charge residential tenants as part of this Board’s efforts to curb the housing shortage and emergency affecting Miami-Dade County residents; and
WHEREAS, this Board desires to address increasing rental costs within the County to promote neighborhood and community stability; to protect the County’s tenant population; and to stabilize and make more predictable future rent increases, all while remaining in conformance with Florida law, and ensuring that landlords within the County receive a fair return on investment; and
WHEREAS, among other benefits, studies have found that stabilizing rents to remain affordable helps: (1) protect tenants from experiencing huge rent spikes; (2) reduce displacement in booming economies by allowing vulnerable residents to stay in their neighborhoods; (3) prevent retaliatory rent increases whereby a landlord increases the rent to evict a tenant where a tenant has asked for improvements or reported a code violation; (4) encourage tenants to maintain and improve their own units since they will be residing there for a longer term; and (5) support the affordable housing stock; and
WHEREAS, accordingly, this Board wishes to direct the County Mayor or County Mayor’s designee to conduct a study to determine if a housing emergency currently exists in Miami-Dade County that is so grave as to constitute a serious menace to the general public and that stabilizing rents to remain affordable is necessary and proper to eliminate such grave housing emergency,
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF MIAMI-DADE COUNTY, FLORIDA, that:
Section 1. The foregoing recitals are incorporated in this resolution and are approved.
Section 2. This Board directs the County Mayor or County Mayor’s designee to conduct a study to determine if a housing emergency currently exists in Miami-Dade County that is so grave as to constitute a serious menace to the general public and that stabilizing rents to remain affordable is necessary and proper to eliminate such grave housing emergency. The study should include, but is not limited to, the following information: (1) whether there is a critical housing shortage in Miami-Dade County, including data showing the supply of rental housing as opposed to the demand for rental housing countywide; (2) the County Commission districts with the greatest need for affordable and workforce housing; (3) the average rents countywide and by County Commission districts; (4) an analysis of the average costs of rental housing versus the average wages in Miami-Dade County based on United States Census data and other sources; (5) data demonstrating the increase in rent in the last five years countywide and also specifically in lower-income neighborhoods such as Wynwood, Little Havana, Little Haiti, Allapattah, and Edgewater; [[and]]1 (6) an analysis that shows the impacts of the rising cost of rental housing on lower-income households and communities in Miami-Dade County, including the elderly and the disabled>>; and (7) an identification of measures that would trigger a housing emergency. This Board further directs the County Mayor or the County Mayor’s designee to collaborate with the League of Cities and other stakeholders in the preparation of the study required herein<<.
Section 3. The County Mayor or County Mayor’s designee shall provide [[the]] >>a preliminary<< report >>of their initial findings<< to this Board within [[30]] >>60<< days of the effective date of this resolution. >>This Board further directs the County Mayor or the County Mayor’s designee to provide a comprehensive final report to this Board within 180 days from the date the preliminary report is provided to this Board. The County Mayor or County Mayor’s designee shall<< [[and]] place the completed [[report]] >>reports<< on an agenda of the full Board without committee review pursuant to Ordinance No. 14-65. The >>comprehensive final<< report should include a copy of the study required by section 2 of this resolution.
1 Committee amendments are indicated as follows: Words stricken through and/or [[double bracketed]] are deleted, words underscored and/or >>double arrowed<< are added.



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