HomeMy WebLinkAboutCC 1980-04-25 Discussion Item00.1
Joseph R. Grassie
City Manager
Dena Spillman, Director
Department of Community Development
: Z : - "
• April 18, 1980 `"•9
+EFERE NCES. Housing Workshop
On April 25, 1980, at 1:00 p.m., a Housing Workshop will be convened for
the purpose of updating the City Commission on our current activities
in low and moderate income housing rehabilitation and development, as well
as to discuss several other matters related to the production of low and
moderate income and market rate rental housing in the City.
Enclosed, for your review, are some materials pertinent to the Workshop
including a Housing Update prepared by the Department of Community Development
which describes the City's current efforts in the area of low and moderate
income housing, legal opinions concerning the Commission's proposed moratorium
on condominium conversion, the establishment of rental housing zones, and
powers of the City in housing, community redevelopment, and voluntary housing
rehabilitation. Also enclosed is the Workshop agenda.
One of the major topics to be addressed at the Workshop will be the $25,000,000
Housing Bond program. The Commission will be requested to take action on three
items related to the Housing Bond Program which are discussed below.
To date, S1,500,000 in bond proceeds have been pledged to secure Dade County
Special Revenue Bonds which are being utilized to develop 424 units of Section
8 rental housing at seven locations. One of the Section 8 projects, a 100
unit housing development for the handicapped located in the Civic Center area
is now under construction and will be ready for occupancy within the next
twelve months.
Construction will begin in June of this year on two of the six housing projects
remaining to be developed, a 75 unit elderly project located adjacent to the
Little Havana Community Center and a 24 unit family project in Coconut Grove
with completion scheduled for June 1981.
However', escalating construction and interest costs have precluded the possi-
bility of development of the remaining four Section 8 projects in accordance
with the originally proposed financing plans. These projects include 40 units
of "scattered site,, family housing in Wynwood, 65 units of elderly housing in
Coconut Grove, 75 units of elderly housing in Little Havana, and 45 units of
family housing in Overtown.
Joseph R. Grassie
Page 2.
April 18, 1980
Dade County HUD has proposed the use of approximately $1,400,000 in housing
bond funds to cover the financing "shortfall" which exists between the total
amount of Dade County Special Revenue Bond funds available to develop these
projects and the estimated completion costs. Repayment of the proposed
capital contribution plus interest for these projects which have a combined
value of $6,722,000 would occur over a long term period from operating revenues.
IT IS RECOMMENDED THAT, ON MAY 8, 1980, THE CITY
COMMISSION APPROVE A RESOLUTION AUTHORIZING THE
SALE OF HOUSING BONDS IN THE AMOUNT OF 1.4 MILLION
DOLLARS WITH THE PROCEEDS TO BE USED FOR THE NECES-
SARY CAPITAL CONTRIBUTION TO ALLOW FOR THE DEVEL-
OPMENT OF THESE PROJECTS.
In December of 1978, the City Commission approved a proposal to utilize
Housing Bond proceeds to acquire and prepare sites for the development of
low and moderate income housing contingent upon a special allocation of
housing units to the City by the U.S. Department of HUD. In the fall of
1979, the City was awarded a "Bonus" public housing allocation sufficient
to provide for the development of 360 units of public housing in response to
its proposal.
Several neighborhoods in the City have been surveyed and have been determined
to be suitable for the development of these housing units. The residents of
each of the C.D. target areas proposed for public housing development will
be asked to comment on the proposed public housing development program to
their target area.
The City Commission will be asked to approve specific development areas and
sites thereafter.
IT IS RECOMMENDED THAT THE CITY COMMISSION, AT ITS
MAY 8, 1980 MEETING, APPROVE BY RESOLUTION THE SALE
OF HOUSING BONDS IN THE XIOUNT OF 4 MILLION DOLLARS
TO PROVIDE FUNDING FOR THE ACOUISITION OF SITES FOR
THE DEVELOP�IENT OF THESE HOUSING UNITS.
The Housing Bond Program is a valuable asset to the City in meeting the housing
needs of its low and moderate income residents. The program can be applied in
several ways tc stimulate the development of additional housing resources,
including construction, financing and equity participation in privately spon-
sored low and moderate income housing developments. These and other methods
of encouraging the production of low and moderate income housing through the
innovative use of the Housing Bond program will be discussed at the workshop.
Joseph R. Grassie
Page 3.
/so
April 18, 1980
THE CITY COMMISSION WILL BE REQUESTED, AT ITS MAY 10, 1980
MEETING, TO APPROVE A RESOLUTION AUTHORIZING THE ADMINIS-
ND PR
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UPDAALT.E
DEPARTMENT OF COMMUNITY DEVELOPMENT
APRIL 1990
home' owne"r'ship i assistance
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OVER
HOUSING
ITTLE HAVANIA-
nmus PARK NSA
n
HOUSING UPDATE
INTRODUCTION
In an effort to provide for the City's housing needs, particularly those of
low and moderate income families, the City of Miami has implemented a Community -
Wide Housing Improvement Strategy which recognizes the importance of the pre-
servation of existing housing resources, as well as the need to develop addi-
tional housing. The task of coordinating the implementation of the City's
Housing Improvement Strategy is the responsibility of the Department of
Community Development.
In the implementation of the City's Housing Improvement Strategy, several pro-
grams are being employed, including the Community Development Block Grant
program, the Urban Development Action Grant program, the Section 312 Rehabili-
tation program, the Section 8 Rental Assistance program, the Conventional
Public Housing Development program, and the City of Miami Housing Bond program.
A brief description of these programs is provided below, as well as a program -
by -program status report.
GREAT NEIGHBORHOODS
The Great Neighborhoods Program is one of a number of housing programs
being implemented by the City to address the improvement needs of many
of its residential neighborhoods. The primary objective of the Great
Neighborhoods program is to upgrade neighborhoods by providing low -
interest home improvement funds to qualified low -and -moderate income
families. The Great Neighborhoods rehabilitation loan program is funded
by the City's Comrunity Development Block Grant program (CDBG). A
separate funding source, the Section 312 Rehabilitation Program, is used
to assist both owner occupants and investor owners. A variety of reha-
bilitation programs offer flexibility in dealing with neighborhood
situations. In addition to the upgrading of homes, the Great Neighborhoods
program also provides related neighborhood improvements, such as water
and sewer improvements, street improvements, sidewalks, and parks.
Approximately $6,000,000 in CDBG funds has been allocated for housing
rehabilitation over the next four years. Based on the current Section
312 allocation loan from the HUD Area Office, we anticipate utilizing
approximately $2,000,000 in Section 312 funds during the same period.
Approximately $16,5000,000 has been allocated for supporting public
improvements, funded by CDBG and other sources.
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MIAMI'S
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N ei hborhoo�Cs
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LITTLE HAVANA LUMMUS PARK NSA
The objective of the Little-Havana/Lummus Park Neighborhood Strategy
Area program is to facilitate rehabilitation of multi -family rental
housing with private funds for occupancy by families of low and moderate
income. Section 8 rental assistance contracts will be awarded to sponsors
of rehabilitation projects enabling approximately 500 low and moderate
income families to occupy standard apartment units with rents not
exceeding 257 of their incomes.
To date nineteen (19) buildings totalling 390 dwelling units, have been
approved by the U.S. Department of Housing and Urban Development. Reha-
bilitation is aire,ad.v underway in seven (7) of these buildings. Completion
of all the projects is scheduled for the fall of 1980.
Proposals for the rehabilitation of
eight (8) additional buildings are
currently being reviewed by City
staff in crder to allocate the re-
maining contract authority of 108
units. Construction could start
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COASEY - WMEATLEY NSA
The City of Miami has submitted an application to the U.S. Department
of Housing and Urban Development for the designation of Dorsey -Wheatley
as a Neighborhood Strategy Area.
Should the application be approved, an allocation of 319 units of Section
8 contract authority would be awarded to the neighborhood under the NSA
Section 8 Substantial Rehabilitation Program. The program would facilitate
rehabilitation of multi -family rental housing with private funds for
occupancy by families of low and moderate income.
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HOMEOWNERSHIP LOAN PROGRAM
Utilizing a $1,000,000 Urban Development Action Grant, (UDAG), the
City of Miami's Homeownership Assistance Loan program is designed to
provide homeownership opportunities for low and moderate income
families through construction of single family homes financed through
a tandem mortgage plan.
During the next 12 months, approximately seventy-five single family
homes will be constructed in six neighborhoods throughout the City
to provide second mortgage financing. Dade Federal Savings has
committed $1,000,000 in first mortgage funds to the program, and
Dade County has allocated $500,000 for second mortgage funds.
Thirty-two of the seventy-five single family homes will be constructed
on an "infill" basis in the City's Great Neighborhoods areas of
Allapattah, Buena Vista, Coconut Grove, and King Heights. An addi-
tional forty-three single family homes will be constructed in the
Neighborhood Strategy Areas of Wynwood and Dorsey -Wheatley.
HOUSING E30NO PROGRAM
In 1976, Miami's voters passed a $25,000,000 housing bond to be used
for the financing of housing for low and moderate income families.
To date, $1.5 million in housing bond proceeds have been pledged as
security for Dade County bonds to develop 424 units of Section 8
housing on seven sites in the City of Miami.
PROJECT
Dade
8-1
Wynwood
Dade
8-3
Coconut Grove
Dade
8-6
Riverside
Dade
8-7
Coconut Grove
Dade
8-10
Jackson Memorial
Dade
8-11
Little Havana
Dade
8-12
Town Park
NO. OF UNITS OCCUPANCY
40
Family
65
Elderly
75
Elderly
24
Family
100
Handicapped
75
Elderly
45
Family
Total 424 units
Dade 8-10 (Jackson Memorial) which will provide housing for 100
handicapped individuals is currently under construction with completion
stated for January, 1981.
The remaining six (6) Housing Bond assisted Section 8 projects are
scheduled to begin construction by fall of 1980.
In December 1978, the City of Miami, in cooperation with Dade County,
proposed to utilize funds from the housing bond issue to acquire sites
for construction of additional low and moderate income housing.
In September of 1979, in response to the City's housing site acquisition
proposal, the U.S. Department of Housing and Urban Development awarded
a special "Bonus" allocation of 360 units of public housing to the City
of Miami. Currently, City staff is in the process of identifying
potential development sites throughout the City.
In addition, the Housing Division is currently exploring additional
programs for utilizing housing bond funds in the development of low
and moderate income housing.
PUBLIC HOUSING
Dade County's Department of Housing and Urban Development, which serves
as the City's Public Housing Authority, plays a key role in assisting
the City of Miami to meet the objectives of its housing improvement
strategy, most notably in the production of conventional public
housing.
A total of seven public housing projects have been completed since
1975, as shown on the following table:
PROJECT ADDRESS NO. R TYPE OF UNITS
Orr Plaza
Musa Isle
Culmer Place
Lemon City Apts.
Edison Park
:i'^hland Park
Stirrup Plaza
550 N.W. 5th St.
2501 N.W. 16th St. Rd.
610 N.W. loth St.
150 N.E. 69th St.
200 N.W. 55th St.
1150 N.W. 11th St. Rd.
3150 Mundy St.
Total
200
Elderly
230
Elderly
151
Family
100
Elderly
80
Elderly
32
Family
104
Congregate
24
Family
1,021
units
Currently a total of 324 units of public housing are in the devel-
opmental stage.
PROJECT
NEIGHBORHOOD
NO.
& TYPE OF UNITS
Fla
5-75
Culmer
Overtown
75
Family
Fla
5-76
Allapattah
Allapattah
52
Family
Buena Vista
22
Family
Fla
5-89
EDCOM
Downtown -New World
135
Elderly
Center
Fla
5-91
Phillis
Overtown
40
Elderly
Wheatley
Total
324
units
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61312" MULTI -FAMILY HOUSING REHAB PROGRAM
The City of Miami Housing Division has recently been given the responsi-
bility for developing and coordinating the implementation of a Section
312 Multi -family Housing Rehabilitation program which will provide 3°0
direct federal low -interest property improvement loans to owners of
multi -family apartments.
To date, two applications have been submitted to U.S. HUD requesting
almost $400,000 in Section 312 loan monies for the rehabilitation of
two apartment buildings totalling 154 dwelling units.
SECTION S MODERATE REHAB PROGRAM
The City of Miami has received an allocation of 220 units of Section 8
Moderate Rehabilitation funding from the U.S. Department of Housing
and Urban Development. This program will be implemented during FY'80.
The Moderate Rehabilitation Section 8 program provides rent subsidies
to tenants of rehabilitated multi -family apartment buildings.
OVERTOWN HOUSING PROGRAM
The section of Overtown bounded
on the north by NW 11th Street,
the east by the FEC Railroad right-
of-way, the south by NW 8th Street,
and the west by I-95 is proposed for
the implementation of a comprehensive
revitalization program. The pro-
posed program will seek to amelio-
rate the physical, economic, and
social problems which the area is
experiencing through a staged
program of structural and envi-
ronmental code enforcement, inten-
sified municipal service delivery,
residential and commercial reha-
bilitation, new housing development
and economic assistance.
The objective of the program is to combine the technical skills and
resources of both the public and private sectors in an effort to
create a new economic and social environment in the demonstration
area which will serve as a model for the total revitalization of the
Overtown area.
RECEIVED
MAR 26 1980
COMMUNITY
DEVELOPMENT
MEMORANDUM OPINION
GEORGE KNOX, CITY ATTORNEY, CITY OF MIAMI
FROM: FINE JACOBSON BLOCK KLEIN COLAN & SIMON, P.A.
SUBJECT.': LEGALITY OF ESTABLISHING A NEW ZONING CLASSIFICATION
FOR MULTI -FAMILY DWELLINGS OR APARTMENTS FOR RENTAL
ONLY.
DATE: MARCH 6, 1980
You have asked our opinion as to whether the City can
establish a new zoning classification in defined geographical
areas in which the construction of multi -family dwellings
or apartments would be permitted only on the basis that each
individual dwelling unit within the erected structure be
available to occupants on a rental basis rather than on
a condom„inium or other form of individual ownership basis.
Our response to your question must be in the negative
because of Section 718.507, F.S., which forms part of the
Florida Condominium Act. This statute recites:
718.507 Zoning and building.- All laws, ordi-
nances, and regulations concerning buildings or
zoning shall be construed and applied with re-
ference to the nature and use of such property,
without regard to the form of ownership. No
law, ordinance, or r`gulation shall establish
any requirement concerningT the use, location,
placemc!n�, or construction of bui.ldincis or other
improvcn,,_:nts which are, or mia,, thereafter be,
subjected to the conc?ortinium form of ownership,
unless :;uch requirc-mcmt shall he equally appli-
eablu to all buildings and improvements of the
same kind not then, or thereafter to be, sub-
jected to the condominium form of ownership.
This statutory provision in essence prohibits condominium
)"NE' Ut.uar ICi.eta Cut..% S. tit-uo-N. R A.
property from being considered or classified as a separate
use category in any zoning or building enactment adopted by
a local governmental entity. It essentially forbids the
use of condominium ownership as a basis for establishing any
building or zoning category.
No cases directly construing the language of the above
quoted statute have been decided in the appellate courts
of Florida, although there is one extremely relevant case
that will be discussed at a later point in this opinion.
However, there are cases that have been decided in New
Jersey and Pennsylvania that involve an interpretation of
statutory language quite similar to the Florida statute
quoted above. The first of these cases is Bridge Park
Co. v. Highland Park, 113 N.J.Super. 219, 273 A.2d 397
(App. Div. 1971). There the owner of a garden apartment
complex containing 11 apartments proposed to convert his
units from rental to condominium form. When his applica-
tion for conversion was denied by the municipality, he
instituted suit. In reversing the trial court's ruling
in favor of the municipality, the appellate court stated:
"The zoning power has been granted to muni-
cipalities by the Legislature in Chapter 55 of
Title 40 of the Revised Statutes. In establish-
ing the parameters of the zoning power, the
Legislature has provided in N.J.S.A. 40:55-30:
Any municipality may by ordinance, limit
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FINE. JACOISSO\ BLOCK RIXIN COLA\ & SIMON, It %.
and restrict to specified districts and may
regulate therein, buildings and structures
according to their construction, and the
nature and extent of their use, and the
nature and extent of the uses of land,
and the exercise of such authority, sub-
ject to the provisions of this article,
shall be deemed to be within the police
power of the State.
The authority conferred by this article
shall include the right to regulate and
restrict the height, number of stories,
and sizes of buildings, and other struc-
tures, the percentage of lots that may
be occupied, the sizes of yards, courts,
and other open spaces, the density of
population, and the location and use and
extent of use of buildings and structures
and lard for trade, industry, residence,
or other purposes.
A quick reacting of this section discloses no
power granted to a municipality to regulate
the ownership of buildings or the types of
tenancies permitted. It is obvious that
each phrase in the statute refers either to
the type of construction or the use permit-
ted on real property within the confines
of a municipality.
[1) Defendant attempts to characterize
condominium ownership as a "use" of land--
i.e., since the property in question is to
be "used" as a condominium, the municipality
may regulate or prohibit such "use". It is
apparent, however, that after change of owner-
ship as planned, the same buildings will be
on the pre:ii.,.es in question and the use to
which they are putwill also remain the same.
Ile conclude that the word "usc" as contained
in the statute above, does not refer to owner-
ship but to physical use of lands and buildings.
A building is not "used" as a condominium for
purposes of zoning."
In Maplewood Village Tenants Association v. Maplewood
Village, 116 N.J.SupQr. 372, 282 A.2d 428 (1971), the Appellate
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FINI:.1.\('oilsox 111.uci: hu'l-V Cot.av & SINI(D\. 11. A.
r••
r-
Division of the New Jersey Superior Court held in a case
involving a similar issue as follows:
"As to a requirement that defendant seek sub-
division approval by Maplewood Township, the
township zoning ordinance makes no reference
to subdivision approval for the conversion of
existing apartments into condominiums. It has
been correctly asserted by the township that
such an ordinance would be invalid in view of
N.J.S.A. 46:8B-29 which has preempted this
area. The statute states, in part, that:
All laws, ordinance,, and regulations con-
cerning planning, subdivision or zoning shall
be construed and applied with reference to the
nature and use of the condominium without re-
gard to the form of ownership.
[2-4] The presently existing apartments con-
form to the to:.rnship zoning ordinance, and the
proposed conversion represents nothing more than
a change in the form of ownership. The use of
the land will not be affected. Planning controls,
including subdivision approval, cannot be employ-
ed by a municipality to exclude condominiums or
discriminate acgain:;t the condominium form of
ownership, for it is use rather than form of
ownership that is the proper concern and focus
of zoning and planning regulation. The township
does not contend otherwise. A municipality may
impose subdivision controls upon a condominium
apartment under the Municipal Planning Act (1953)
only.if it imposes the same controls on conven-
tional landlord -owned apartment buildings."
In Kaufman and Broad, Inc. v. Board of Supervisors,
20 Pa. Commw. Ct. 116, 340 A.2d 909 (1975), an appellate court
in Pittsburgh was faced with a similar issue and opined:
[3,41 There was no stipulation concerning
the issue of the exclusion of fourplex and
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1 INI: 11ACMISON' 131.utH KLEIN COLAN & SI?lU.N, P. A.
. MEMORANDW-I OP t2. I0N
TO., HON. GEORGE YNIOX, CITY ATTOW:EY, CITY OF MIMI
DENA SPILLMAN, DI1ZBCT07, , DEPAR-1-ME.IT OF CW24UNITY
DEVELOPMENT, CITY OF '• IAMI
FROM: FINE JACOBSON BLOCI: KLEIZZ: COLAN & SI'IO:d, P.A.
SUBJECT: POWERS OF 'i'HE CITY OF MI70II IN THE AREAS OF HOUSING,
COMU. LAITY REDEVELOPZMEN'r, AND VOLUNTARY HOUSING
REHABILITATION
DATE: APRIL 10, 1980
In your two letters of February 4, 1980, you indicate
that the City is considering both the reestablishment of a
City housing authority independent of the Count:;'s Department
of Housing and Urban Development and the municipal creation
and administration of voluntary housing rehabilitation programs
in certain reighbor.roo3a in the City. You requested an opinion
from our firm that would make a comprehensive study of the
City's legal authority and right to engage in the types of
housing, co^munit;• r -evelopment, and voluntary rehabilitation
programs cc•ntemplatzu. This opinion, written in response to
your requests, will end-z-avor to beat three areas in some
depth. The three inter -related areas involve the po,.ser and
authorit, cf the Ci_v in (a) the area of housing, (b) the
area of co:%munit•y re ievolopment and (c) the area involving the
creation and administration of volunt-.ary rehabilitation pro-
grams in individual City neighborhoods.
I
HOUS IA;G
The
City
established
the
Miami
Housing
Authority on
August 18,
1937
through and
by
virtue
of City
Resolution
No. 1.3079. The Authority then operated successfully and
r.fficietiLly from its establishment until February 61 19681
when its functions, responsibilities and powers were arholly
transferred to the County. City Resolution No. 391111, as
adopted by the City Commission on Octobor 30, 1967, recited
the City's intent to transfer its Housing Authority to the
County, requested the County to submit a suggested procedure
for accom?;lishing the transfer and further requested the
County to mcdify the structure of the County's Department
of Housing and Urban Development in order to accommodate
the City's :wishes and needs. The County thereafter suggested
a transfer of functions procedure to the City and indicated
a willingness to modify its HUD structure to meet the City's
requirements. In response, the City Commission adopted Re-
solution No. 39156, providing for the City's transfer of its
housing functions to the County, subject to certain condi-
tions to be performed by the County. These conditions es-
sentially involved those changes in County HUD's organiza-
tional structure previously recited by the City as a condi-
tion precedent to the=ransfer of its Housing Authority to
the Countv and u ere aczzptable to the County. Once the
organizaticnal changes :were made in the County's HUD struc-
ture to th City's satisfaction, the City transferred its
Housing =ut zri.ty to the County on February 6, 19068. On
February 39, 1968, t:le City adopted Resolution No. 39469,
approvin;, and ratifying the already effected transfer of
the municipal housing functions to the County.
It is our vier., that a power or function transferred
to the County by a municipality within it transfers the
function to the County on a per.manont basis and is beyond
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the powor of the City to retract. The transfer of the
housing I)o ai-r tool; place. in accordaiicc with the. provisions
in the Dade Count..? Home Rule Amcndru_•nt to the Florida Cons- �
titution (Article VIII, Section 11, Florida Constitution
1885 and Article VIII, Section 6, Florida Constitution 1968),
which provides that the County Charter:
May provide a method by which any
and all of the functions or powers
of any municipal corporation or other
governmental unit in Dade County may
be transfer.rea to the Board of County
COmmiSSion rS of Dad` Count}.
This organic provision has been implemented by Section 1.01
A.18 of the County Charter, which states in relevant part
that:
The Board [of County Commissioners]
may also t_nke over and operate, or grant
franchises to operate any municipal ser-
vice if
(b) Tt--- , :,%,ornin:4 bode, of the munici-
pality re;;ii sts the count; to take over
the sere b.v a t�,o-thirds vote of its
membe_ _,, c= Inv referendum.
In the instant situation, the City's powers and responsibilities
in the hou:Ing are ::•ire transferred to the County in accord -
ante wit- t o Charter provision quoted. Where in addition
the City.• reuired' t-I-e County to meet certain conditions as
prerequisites to the transfer of the City's housing functions
and the Ccunty met those conditions by changing the organization-
al structure of its Hc•using and Urban Development Department,
it seems clear, on viewing the transfer as one that occurred
pursuant to a negotiated contractual. arrancjonient betc:,een the
City and tho County, that' the contract may not be rescinded
or set aside unilaterally by the City when the.County gave a
defined consideration, i.e., the. modification of its Department-
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al organizational structure, to induce the City to effect the
transfer of the function. tt thus seems to us that, whether
the transfer of the City': houzin:l function to the County was
effected pursuant to a specific Florida organic provision as ■
implemented by a specific County Charter provision or whether
the Count: modified the structure of its own Housing and Urban
Development Department to meet the City's requirements and
wishes as a contractual consideration, it is, in either event,
beyond the power of the City to rescind the 1968 transfer of
its housin_, function to the County.
From the foregoing, it would appear that the powers and
duties of the City in the area of public housing became a
County function in 1968 and so remains. Those powers and
duties in the area of public housing essentially involve
those po..,ers, duties and responsibilities enumerated in Part
I of Chapter 421, Florida Statutes, generally referred to as
the "Housin-g Authorities Law."
Since 1968, ho e-ver, there have been various federal
enactments that have granted substantial powers in the public
housing sphere speci=ically to cities and municipalities
throughout t!:e United ates, including the City of Miami.
Additionally? the Unit_d States Department of. Housing and
Urban Develooment has created housing assistance programs
in many inci-.-idual municipalities and authorized substantial
financial a_ssistanc3 to local housing programs in order to
aid lo-.%7 --^d middle income families in those municipalities.
These p:c;rms have usually served as the nucleus of com-
munity hc::si.ng programs financed in many instances by the
Federal Covernment alone and in many other instances by
contributions from municipal governments as well. These
4
I
grants of powor anal fundin-j in the houain:l field, f.loaing
from the. Federal Gnvc-rnmt�nt i--c-, individual municipalities
or to housinc7 authorit:ics created b, such municipalities,
con,titute a whole nQw area of municipal powor and authority.
in our view, the City of %Iiami may continue to exercise all
thone po::ers in the housing field conferred upon it by fed-
eral enactments, federal regulations and federal grants despite
any prior transfer of housing responsibilities to the County.
That this is so is made clear by Section 421.21(1) and (2),
Florida Statutes, which states with reference to municipal
housing authorities as follo,.cs :
In addition to tt e po•.ticrs conferred
upon an aut'nori-tv by other provisions
of this cis ter, an authority is empower-
ed to borro.,' mone,, or accept grants or
other f.ina7icial. 7_S_=ictanco from the Fed-
eral Gov:'r nt fcr or in aid of any
mousing pr_>-_ct its ar'�a of opera-
tion, to _ o•;..r or lease or manage any
housin ; ;,r%, _ct or unclerta!-,in-; con ;eructed
or o:�ncc: b- r:.� _ Guverl)., t, and
to thy.. _, - t^ cc:7.:)1- i th such con-
ditio.Z a:-.d enter into such trust. in-
dentu� _ __ , i,_ or a,�r'_c' :_':Zt:� as ay '
be r:•2c:: .,..: c'nv•_n_e.t or dcoirable.
It is t.__ ^:)s and int—ent of this
ChaDti "_ +.I c'IU'C.::02".17.-.. evt- r�• auLliority
to do _.. all `_'.inq:, nrDcn-zary or
desires: 12 to secur: thro i lna nci_-il aid
or o` th- .'c.c? 'ral Government
in the construction, main-
tenallce or c.c!ration of any housing pro-
ject b sueh auti:orit•,.
In a-.1d4ition to the po%-.,ers confcrrecl
upon an au c.nor it1 by sub:,cc t: io:1 (1) and
other nro-: ision: of this, ch_ ntor, an
authorit' is e':lpo%.:ere3 to burro:.., monc y
or acc•_-:' grants or other financial as-
sistance from the Gov-.rnro.:nt
under .,. 202 of the- iiousitic; t%ct of 1959
(PUb. 'To. E(i i �) or any la`:; or nrc)(;ram
of th,' ��i11�:'.:'u Stag-'; Do;-,'lrt11'i nt of !iU.lclnq
and U1:i)dit, v.hlch prov1.:1f.S for
d1.rC'C� f!�Clt'Ia1 l.C�;;Il'. 111 tii P.l�:;li1L': c-1mr)unt,
as dcfint:!d th'.'rcia, for of
assisting cortain nonprof i c. cari�:?nations
to provide hou3inq and related f..lciliti.es
for elclerly families and eldierly por ;on:,.
- 5 -
I
2
The City's po:aers in t`:e housicia field fire also ntrenjth-
ened by thy: basic principle that any grant of -±r, authority
or funding to a local government flowing from the rederal Gov-
ernment carries with it the imprimatur of the federal suprema-
cv clause found in the middle paragraph of Article VII of tho
United States Constitution. In a sense, the City acts as an
agent of. the Federal Government when spending federal monies
to carry forward a federal housing program. The Federal Gov-
ernment has effectively said that the Cityis so empowered.
It is, therefore, our view that the City of Miami may
create a housing authority or a community development depart-
ment to administer loi: income housing programs within the
City based on powers saecifically granted to it by federal
legislation, federal -regulations adopted pursuant to federal.
legislation, or federai grants. Such grants of power or
money ale: a limit the -po:•:er to utilize federally created
authorit-; by carefully defining the manner in which and the
purposes for which such federally provided funds may be expended.
The principal fede_ '_ hc-.,sing subsidy programs through which
federal funds to assist housing are granted to local governments
are best described is a pamphlet prepared b-• the Staff of the
Joint Co:-_niit=ee on ia::ation for the use of the Committee on
Ways and :'a=ns of the L::i ted States house of Representatives
in conjunc:::rn ..:it ..earings scheduled by that Committee on FIR
3712 dur-ing ':ay of 1979. Relevant portions of that pamphlet
are atta=`cd hereto as Mpendix A.
Sdith, t"',e City of Miami granted substantial powers in
the housing area essentially through federal legislation,..
regulations and funding, the City undertook to go forward
with its oorn housing program in a fairly substantial manner.
- 6 -
The City created its own Dcpartnont of Co.-xT.unity Development
initiall•,, to admini:.1k..e1- cotamu►►ity develoi:m•211t blo-_-k r;rant
programs. As time went- b,:, th,_' Department iindortoo}: a number
of additional programs; and oxp-inded i.t_. areas ol. resp-)nsibili.ty
considerably. In due course, the hepartment undertoo: the res-
ponsibility for preparing and monitoring the Section 8 Housing
Assistance Program within the City. It did so in conjunction
with the County's Department of Iiousing and Urban Development
(HUD), which remained primarily responsible for implementing
the Section 8 Housing Assistance Program throughout the County.
In due course, the City's Department began the process of system-
atically reviewing all privately sponsored, assisted housing
prograr,a within the City. It also began processing all private-
ly sponsored Section 8 Substantial Rehabilitation Programs
planned within the City, with -the support and encouragement
of the County HUD Department, and it comLmenced a program for
systematically evaluating County HUD's performance in low
cost housing prog_am.r,, undertaken within the City. The City's
Departmant also to research all the various mechanisms
for creating new or red abili.tated lo,; cost housing throughout
the Unite States, utilizing both an economic and a legal
approach.
In due co::rzn, the City's housing programs, functions
and powerZ, all o= :•:hich were initially based on federal legis-
lation, regulations or grants, and subsequently on po•..ers
implied=.e.refro:n, became substantial. In recognition of this,
Count.- an,' City officials involved in the complex: and multi-
faceted ::.;using area met for the purpose of conking out the
details of a mutual agreement that would divide or allocate
the evor-growing number of housing responsibilities and pro-
grams bot,..:c:en th�c County's HUD 'Department and the Cit}r. A
formal agreement desiclnated as a Memorandum of Understanding
- 7 -
Was arrived at by the two tlo urnmontol ent.itios and formally
executed by tMessrs. Sti.erhoim and on O::tober 17, 1978.
A copy of that detail -ad agreerno::nt is attach�_,d hereto as Ap-
pendix B.
Thin opinion %' il.l not endeavor to discu:,s each and
every provision in the detailed Memorandum of Understanding
between the City and the County, but we will point out those
provisions that seem most significant to us. These are enumerated
belo:, .
A. Section II of the Agreement relates
specifically to the Fourth Year Community
Programs and both the immediate and long-
term responsibilities flowing from it that
require a substantial undertaking by the
two govern-mantal entities.
B. Secti-= II also indicates the extent
of the ver:r substantial funding for the hous-
ing pro:-ra:s to be furnished by the City of
Miami.
C. Section IV on Page 7 of the Agreement
indicates t:^.ose areas of responsibility in
the housincr field to be undertaken by the
C1. I Cy.
D. Ti-,,-:: material on Pages 9, 10 and 11 of
the Agreement indicates the heavy responsibi-
•
lities to be undertaken by the City in the
area of housing rehabilitation.
E. The pcnultim-ate paragraph on Page 4 of
the Agreement contains provisions which per-
rhit the City to terminate the rehabilitation
portion of tho Agrecrrier.t under certain con-
ditions. We have been given to understand
,that tho. first application for housing
rehabilitat-ion assi otance wa.; n,roccssed
in April, 1978, and that there were 104
applications for such assistance proces-
sed by Ducembor 31., 1979. We al:,o under-
stand that only 45 loans had been executed
by December 31., 1979.
F. Section XII of the Agreement (found
on Page 16) contains provisions which permit
either the City Manager or the County Man -
alter to wholly terminate the Agreement under
certain stated conditions, following 30 days
written notice of intention to terminate.
To conclude the initial portion of this opinion, we
would summarize the lengthy discussion contained within it
in the following wa%r. Khen the City turned over its sub-
stantial poaars and duties in the low cost housing field by
agreeing to merge 41--5 Fousing Authority into the County's
Department of Housing: an4_ Urban Development in 1968, it was
left with virtuall,: no or authority in the housing field.
Thereafter, t:e Cit.- asuaired substantial powers in the housing
field by vi `ze of «deral legislation, federal regulations
imnlementi:-: fedo-a'_ 1--islation and federal grants, all of
which conferred ne:•; and considerable powers on the City from
the fcde_sl level. The County recognized the City's substantial
authorit_ in the area when it entered into a contractual arrange-
ment t;it! t-o City in 1968, which allotted the various powers,
duties and responsibilities arising from low cost housing pro-
grams within the geocjranhical boundaries of the City between
the City and th(, Count,;,. The City now considerable
power and authority in Lhe area of low-income housing and, in
our vi.uw, may create its own housing authority or department
- 9 -
to its housing po-aur3, adnini.�t (-!r its ;ousinq pro-
grams or work out a cooperativ,� undcr.t aki.ng with the C')+.inty.
Such a City authority or departmcnt will not possess the
powers contained in Part I of chapter 421, Florida Statutes,
which powers have been tr.ansforred to L-he County's Dnpirtment
o4L Housing and Urban Development, but it will possess all
those po%,.crs specifically conferred upon the City in the
housing field by federal legislation, regulations implementing
federal legislation and federal grants. It will also possess
all powers in the housing field that may reasonably be implied
from those powers specifically granted by federal authority
and enure;rated in the previous sentence.
- 10 --
Cn_i�lU:i'('I": i'T;D[: Ti:L_O;?`•'I:::'I'
Virtually all communit. redevelopment powers created by
or arising from Part III of Chapter 163, F.S., generally refer --
rod to as the "Community Redelrelopment Act of 1969", within
Dade County are vested in the Board of County Commissioners
of Dade County. This is because of Section 163.410, F.S.,
which states:
In counties which have adopted home
rule charters, th:: poc•:ers conferred by
this part shall be exercised e::clusively
by the governing hody.• o'_" such county.
Hoc;ever, tt c�o�:,r;;i. lr hod of any such
county a hem rule
charter i_?1 it:, discr..: (ion, by res-
olution cic 1_ ^atc� t;1c e::c.rc.i e o r the
powc_-rs co-._ _ -- d u, on sai county by
this part : it_lin t hou: u,--Aries of a
munici: .l_`: to "Ih._ cr-) r..ir.<r bo y o�
such a nunici =.1i.t Such a del ,gation
to a mt:nici ity shall confer only such
a mainic.i.:ali t :. a1S shall be
snccii� enur.mer-:_d in tt.t dcl,cating
resolut io) . h,.y: po:•;,.r not spz_2ci `ically
b` reservc2d exclusively
to the co:- r _nc; body of tl i country.
The Cit_: --ay only aC . i.r redevelop. -lent poc•:ers through the
County's delegation jome or all of these poc•:ers.
Our opinion could be inco:aplete however if we did not
speeificz:lly point out Section 163.450, r.S., which reads:
Not`t-in contained herein shall bo construed
to provent a county or municipality which is
enganina in community red cvelo;:;•rent activities
hereunl-,r from participating in the neighbor-
hood dev lopm-2nt program under the Housing
Act of: 1:5° (P.L. 90-448) or in any amendments
subseau=t thereto.
, is provision indicates to us that any municipal powers
in the =."-gun i ty redcvolopmnn t field that flow to the City
from the Federal Housing Act of 1968, or any other federal
legislation, or rcTgulations adopted by federal agoneies re-
quired to implemunt federal legislation, arty in affect and
r
ma , not be dirini; hL--d I)v a n.trro,.J of 5ertion
163.410, 11.S., prE::viaufely clUoted. in our vic-tr, federal grants;
of redevelop.mcnt power to municipalitir.s togother with any
additional powers that may be reasonably and logically derived
therefrom will take prQcedcnce over an; state law provision
that may be in conflict.
III
In City Resolut.ion ;do. 38660 of May 8, 19G7, the Cit;,
transferred its Dopart.ment of 1`1(:ighbr)r.hood Rehabilitation to
the County as of Octob;�T- 1, 1967. Thu Resolution• understand-
ably d.,ferred to federal authority and provided that the tran3-
fer should in no way interfere with Federal HUD's designation
of the Workable Program of the City in any manner. The County
in return agreed to enforce th,, City's Minimum Housing Code
and Fire Code within the City of Miami. In July 1967 the City
enacted Ordinance No. 7576 through which it abolished its
Department of Neighborhood Rehabilitation and discontinued
all functions then carried out by that Department.
The foregoing would seam to indicate on superficial
examination that the Cit, turned over its Neighborhood Housing
Rehabilitation fun(-4-
-L s to the County, and that Rehabilitation
then became a Count_- function in the same way t^-=t dousing
became a County function. pursuant to Section 1.O1A(18) of the
County Charter. . careful e::amination of the situation
indicates t,at this _S not at all what happened.
The essent'_til rez—Z11onsibility and functicn of the City
Department s= Rehabilitation involved the inter-
pretation .. 4 "f-3r.^._'r7jnnt of the City's Housing and Fire Codes.
The Dena= -:en_ disc:arr`d virtually none of the responsibilities
that cse tend to associate with Neighborhood Re habilitation
today, the departmental name. This wa- essentially
%..hy the County agreed tD enforce the City's Housing and Fire
Codes :•nit: in the dity vhen the City simult:anco: sly agreed to
abolis'. its Department of Neighbortiood'Rehabilitation and to
terminate all the functions3 of the Department-.
t-,'e therofore conclude. that, al.thouc3tt the City transfcr-
red what was called its Department of Neighborhood Rohabilita-
- 13 -
b
tion to the County in 1907, it did not, transfur the basic
neighborhood housing rehabilitation po•:!ers described i.n Part
V of Chapter 420, F.S., generally cited as the ":7eighbor.hood
Housing Services Act", to the County. Those functions and
powers involved in what we today describe as I•,ei:.hborhood
Housing Rehabilitation Programs were not transferred to the
County and accordingly remain within the jurisdictional and
operational control of the City of Miami.
SLS/1.ms
Attachments
FINE JACOBSON BLOCK KLEIN
COLAN & S IMON , P.A.
14
STU.-NRT L. SIMON
4
160
D. Federal Government Programs to Assist dousing
2. Progrnnis for single-family housing
Government P,allorial Nor.gnf)e Association tandem plan
G;rNS:i (G,1ci•rrtri!::Lt ;latiort:.I MG."tCfi !t:-tiltCt;lt:0L'J li A 000pOta-
thn \\"ithi;t the V-partt: e, rtnrl Mon DwOopment
HUD tit:,', j,r ,. i11•', ;t e..,cor. I:: _' t;',.ri:,: ror 1•'f TA, i'A ,.:-A core : eritionO
LlortL,i _i. Ui-. !,:: it:, I't.: ,t.:cl i i,ri, G'NNIA pvoviiI'; Litt into,-est -'.Ib-
sidy that c) ,r:it !•.a;i.. to interest
fro.I I_:u!'::" ztt thta the rlic rtnre het•,t'ee❑ 7.5
jamp t hal the mr .,. ` rat ;:hi t ~G-NNIA s:h,nrb; Ow stlbiidy.
attb-*orki to ::rCl - hwh .^ - ft�. r:l:Iy and r1?:ii;t:aTLl Irlortgay-S
L ISS been' ,• : to t::,NIA. .•t 11%•ru we no Irafll::1%% il:'l:t� I',r }JurrO i\,f`r;i
un,ler tIe ;I•_ f.....'t j;:o r..n, .:Itht,,i�L th+ rU(.rt':•.,e
is $42100 jwr uuA
.Sec`.'an 312 loan propr(Jn
Thc-" 10: s ... t ; :1:!�'b!'- for it a rov nwats to r rAbothd hn I com-
rn+erckl " \: u ... tI to j t,,. ,n�::i:1 t:!f v ii•:})rt:_ rl ateas.
Mann for ;): riot esceiI
827,000 p,- unit, o3r .;:;. vwu f_'- imi)rn:t`rt: ?lt' tri n'.nr,si,l.'ntial
j) rentntliri•1c1:!s
and 514 to h�hnr is\& for InllAW and ngyq inronja 1it11l C:,li1^_!i.
S£Qi:..,:,'i,. _.. ..;'GfC.•IE'rS!'2�.t7rC!'rL:in
it L: l_i pals. t:aiii1 "
gage pa'.: .._.. , .:t\ •e F%; i::_,:r;:aa j�r,tri'.:n,} which tare
Q,'CE':i?. l�y - !nt U1 lvljii��{ I �rOv ltt,''-1'?N'. ./ hr ?,:'(.;'rF1111 RI, i>ia
101 t^-_ >Ip w-Me f:'':Lly p:r;..ss _ r, !'. r.c:, � r?ivej o:
s1} 0_.._ :...t• !I:oirt• ,11 ...:,ttj,.i,:• t:u,.!,1 brim; tna
?' cCtr � c• .-` _ .-,."rCS: ntti: j),:l,: h.v ti:. hoineC )v. n-•rs to as !o•:: as
i tIMe
�.. "_..._1: ro f1r('4r•'.i t. `.11 S:1rVi;1F'� G•:!U'.\' J;) pf-c. nt Lf
R! D de n -miPE . 8'1:a1:1llj' for earn
stand—._. Mq=waau Gtr.'t:;.._1I Ann .:n,T .J\:IIa .. CnunV. Th-,`
M`_'-. J :Mri" .,;t rlii•_'r , from $1 0 3 t7 `.: "09, howl
is to hwh cc t a.-e,.,; a:!'i: :! '! r...:nr.^, t:r,' r.ia'ic foi. f`trui!..
ca On Laurel: ;_s,
iz�.' !• n:_.....}: :? f' .ai1� i-. t.},' to . _. it.,
ccsva : ._ j- -- ; _0 p-;c. nt nr }a__, of it; Qu unj pr,�, i:tcoaje.
W
Tit? ,•,
F ^ Horne r.,i,r' un (l' HA)
MAW direct la
inwrest r : :t •i .'"vlr&Ke• tr'.• I)1 and I:1nI.... _ :?lu nne fnml!W
ti; Y49 homes Pi rur 1:! art::.... Tia- W rt•; t rate' is i .7 5 1 • cent t0 htmi!i•
trite T_Nn i; IM 304wint Of a d: !r h1lti.m, hf f..':1111.•3 aL,nte Ind 10nt
wwct:..._ Up awe of the oh-enatinni c.f f.t:nity i:.c_.. _.
Pr
161
with v.(ljtjAv0 auni-al in-otue:; below S15,0111, (91S,500 in 1111WIdi Will
$2:,.000 in Faniili; v.itL bw- i'l
S121,01.10 in nnd SOMbij In Al':S"kzl) are ehgib!P. ff)F an fidditional
Suhshly mldch Cold rethwe the mart.; age h1preA rntn M as little as
pmvmt.
Lonna tire rn71,le for reliiibilitution, c,.n,trt;,:6on or tl!f• purchase of
edYng Knok T he she of We home is restActed but not tires nungi,
or J)Urr"1-l-,' 01" "It! II I:II
=d L ,:zaran!t,tod loam:
NAM! MOK-9 Admb of tile
FHA pro'..:! ±3%ranvP for shmieWily loans, mith maxinuirn
interest roq"inninank Zt'ld lr,!!t.n") . R�;.Int'; miliell
are set -!V- by shna" hnI Tlir- ins,:rmilce i; a
gurtran.tr,? to tl.r. I mlvr tiltP:.) :inc! principal will
ba ma"10.
Velerays and inu'-t.s privately
Wri ttell I uu. - :,
MoQnys marke! SterrPUMm,
Piderc! Monna! or, ;P
ment spori-q, .11 - - " I—` .
—. I . '' --tion ti.,-t jmrd":&D
vatf-1v it ofr" Iln opi-0:'Lunity to
liquiilate-.;J ENNUT - ncoursges the use of private
WN fcm hamw Law
pliI.-
tQ?d
- ' - * Cn tl-_' for FECL1ri!:_ : S�1111 tO the
PubX� I Public. G-% bl!v
is Its 1Cj\V 115
to toeinlwr
snvirjo En.d 1 -,v ±Ahobm; v c:.t.r v. t;ght
Money 1- to savir> nof Awn P�ndntkns t t j).ind their
on homes'..
2. ProZmmm Nr multiW00- rental KcluArq,,
Qv""M CUM hauAng
1.0"-rer! 1 -K-W-0_in 7 ;0,:;m7nv fun! tf- cumtnvzion or the
pure`," tni P004001wl m�� (mburnz HOWAY V'P:;_e4, null
apank" it 5 - , -"rak! mpon-r-, of renN Imp"s tt ale
arid man7-! ij S-veorWal F:n7nnow e2cvns W th,onmLunde
• nvnlvYv,w� tvLv", at rahv,d chAnyK, jnhhc imuln
is c'c7*!;. to hs- Q im-Wro-"cmny km0s and to
e,'!" I
. Z. :_ ...' '., or It'lltal '111(l
Uti KV CL%- WQd W In !Aj of no: nvVe 1hal 25 1-ntnt of
• SVc.'."r)7: ; 7:6x COWnWan
•lwograp;
pruvok 1, S.mcp 01 IQ, OF I mcl!jl) in;;
neWh- Cr Q='WntP_ itl2d LTI't, th_-' 171't Ce.'tnlu Uri-
tem.. fuld Und.,-:- the5c pro-
r; ri�o
,ram; wntc sl;r,.
In WKIR Z: 17:01 (:.� the un:i a!e It .v to LVA- L!ld
inco"n- ...* redn'..ed ro;. . Tho bi-tv.ve.1 the HUD-
162
e.,tabll,hetl alluw•able rant for each unit, and tl?e huu:ehuld contribu-
tion—limitLti to 15-2.5 percent of family income —is InWlc Up by
regular payments from RUD to the project ownerfrnanngm Assistance
coatract5 bet.":pen HUD and project sponsors cover five-year periods
and are renewable tit the owner's discretion. for 20 to 40 years, de(lent}-
in ; onthe type of sponsor ttnd the kind of financing used Income limits,
t1.)r Se Lion S aa�i.trulce recipients are Silt at upproxtrrl;uely SO percent
of the area meJial: family incomes.
Section S exisling housing
Tile exlstin, n housing component of the Section S pro"rp-m provides .
assistance oa heha;f of lower -income households oucupying.physically
adequ nte, moderate -cot rental housing of their own choosing, in tho
private m.:l:et. Public housiu,, agetimcs under contract to HUD
subsidise the buus'ing, costs of 1 wer-income families by paying their
Imndlords the difference hetween the tenants' rental fee and.the tenants'
contribution of 15 to 25 percent of their mouthly income. All housinC,,
L`r11t5 M, t meet standards ofphysical ndequacy, must be located
l�7thin tee.jur!sdict+•.on served by the local anenci, and must rent for
an smour.t egtuel to or less than 1: HUD -established maximum. Beyond
these restriction,, a-,zsisted househulds are free to select the location
and type of housing'
so long as the lendlord is willing to enter into a
lease with t1hu tera??t and : particlpl:.!on agreement ii'lth the adrn*mis-
tering agency.
Section 28 rental assistance and rent supplements
r •�....0 The Se: - ilort TfOgi'altl, flUt}?OCt'(.eC1 In 190, pCUVldeS mOCtct!=;e
interest sllbzidies to•developers of rental projects In which a portion'
of the hour; ,a are made available to lover-incorne persons at
reduced rmr.-.i.. Tl e- interest subsidy alone is sufficient to reduce tenant
rental to an avet,age of about'30 perccut of family Income. •
S'.
AC1Ca:0II�': ac1i5! !2: are provrued oil behalf of the occupants of some of
One units :.ruu=^ rent -upolement payments, Section S•assistance, or
dee�I subsir_1_ p +:n;,nts specificai'lY authorize:! for :use In Conjunction
with Vt��.? j '�.iJ. This plggybuckin- of those subsidies, wM6li are
psid to th per ant oinner, perm; is tenants' rents for some units to be
reduced to De:cent of their 1nCo:rlr without jLoplydizinL' the financial t
iUil!ty OI t: •'- : rotects.• .
The rent st;;:r:.:rnea£ pr0gr;',110 was authorized to pl'ovide payments
to the e`.c r.;5 o; private rental housing on' behalf. of lower -income
tenaatz, 1;t. it h:a been used primarily to reduce rental charges in
Sectio : 235 and cancer mortgage s?lbsidy projects.
See::os: -%03 housing for the elderly and hnn(licapped
Ct!Or '�U'i provides direct federal Ioa11S to 110TII)rUfit 0Cgi1ni-, dtiOl13
develo; "ut rent:;l 'housing for the elderly and, the handicapped. Since
I911 ;io :r.t�rezt rat }lai'fl been S11�ia1•y' }light's t}!fist t}1+:)'le}ll OI.IIII
outst� •:ii:1 • Treastiry obligations—nn •inlen,,t rate. more nearly ttp-
1)roxirn a tin, that of conventional ftlU:neing. Projects developed under
the 4-_ctior; 203 pro;:aut sl.;o carry a ";ectiu:l S•sub;icly, %vhich enables
tee rents r.f lover -income families and individtia1z; to be reduced to a
max'Im"I ^. of 25 percent of their income.
3. }1oi ii —C.related community development programs
Sever:a community choveloptuent prograll?s providc 1•0usiu" benefits
to a w?do. rpm-c^• of lncornrt 'grolifis than l.re C}1 lble for Its-
163
&Wince llrn;;rcros. '!'hest: l:r: rlt pro;;rams to State and local govern-
tnettts ^ener:l!•.v are ndministert`k hy the D-?p:lrtine`nt of llottsin�: an(1
Urban Devr!(.i meat.
C.nrtr :a� Development Mt'•:: Crum.;
I% C EIRG :iro : um }rinvirl:>, ,'rant; to state and 1r Cal goverrrT£�m
to land };r j nj t:.;:.;n',tl to jonmW vi.tbl_ urb ut cr�nlnunitie;. Wit
C MIG far. !> n" ::11•m:ttr'tl W tnr::m; Of ll :2CI3-t .:'.e l fu.rnul_le nrnon,•
cities mithirl rntr.;lu'knu rre:t, v,'ith I,oplatiom A 50Y'.10 or rnme
and urh,ir, c:,::: 'ia Ijoh 1,c+jydat�'us of :' t!i,000 Or rats'`. Blynnu:, in
fiscal .e tr INS, tllu for:n'Ov Ere a -A to (I;.,tribut_• tllio,e untitl.'tnent
grantgrantT li h run;�(!er the T:'!t::l' of }'�..:�,:: in th }ur:��lir hwi 1l'itli
Irlco:: r•; 't,eL,'.. tlt•. pov-'rty 1::; 0:1! : fol-I u!.( 'l..0 tal✓:, it:.) l:rc'1 :nt
t (ll al'}'ojt':•:=t:o:1 a:1d tho rll.lridwr of ( vAorfumled lira}=hiq units within
the ]Ul.-,f,t'51: the Wh.`1' E . n•A t'; '.I 'r-3 1:1,; it, linl'4:! tU�r 'ra•n'til
R'}nn e to '!. ...-inal rtto on! To nnnOwr ref lr:,.4010 1. sin' unlit.;.
Conlnit!ni. ,t rt 1. , • t nttt! 1:. t; :ts inti,t :Ilan suloniit
alL,i->ttir, • t•' no',!,,.it £'-,tiri;lt' the •'tt:;;t r.!rl n;ltn:_ c,. 1io i°,in', nrells
IIIIIOT:: ln. - 1 alc .ir at :'�: :� li... ,,r , Tt ciciin n:'PCjtcctE l to I•2.iile
In tl:' jar'-.t•:..:r^. and ..�'I:r�1 �C` i'��'.•'1'_;1'c'r,ll 1,'J .I ll .. >..!llrt• \%ill lie
usNt t0 noon,, thu r T: ••,1,. LO'.1!.Ili ittk'.i tint 1,i0, t0 l,rrivl•l'` 1rt11er-
incums hu,: L,t::r.c` In;t.� 'fv: •it tl:.ir el!,�'! 11ity for th,s Cnnl-
I:111ni��' t!:•'.ci'I'):ar'nt f1111.1_•.
'L'ri in %-_c�d�1z•r.^^t :tc.tr,r: Gra:.s (Fi1l:1G}
ar: to 1; oul:
UD2.t_r rr-e avall'ihii only to (!mr`.-A ^lilt'. £:nil they are.
to be 1.. , i•` zjomi pnq _ is % _ l,: vAp itwem1t:Cl:t as mAl
tiS li:1tt CiiirL-nt C:' fr•r dotermin1 tirlonn di;tmC
iziulu' .. '•lCtlr':1A ,!' :1• nVA comtnllmW lintU;e 19-ltl,
net i:,.7. fr',al 1n1,19 to 1974, pupu'!atlon
,growth 950 moo 1070
to tin' 7:::t.':1.!1 r:.tO flit' 1'--vCl
of u:.:. :1 the r.' o-r, :l: is C:nt:l'n't, :It, tl: j:crv:r.i of
the }: :'..... Z t! l ', tr _'v..l ❑tl .:t it{: . lucal factors.
Mo: t .ccaliti,s tl far L'I):.C; fut:•ltn; unt!:r those
COOK
Ss:.:a;, .:= r�•F:uj�F::tc:.'•�r. l:�r.;.,
yve ^... p !onn }i-t' 7im i,:nvh!,s am. fin_k:u.ing for the
rehab; .. ..o P1
1.st.'!v nt lV m�'!:•MA ant! co:rtma(.ial.5061-
1.*tff 1: { urh"a �!, to"aJ0',allG'.! tl•'�'' L• :(1:'rlit 9ntl
Rie"IP,7no _ ea;. loan bier n 3�}iem nt ir.t.rest tat• mth n
Sn:;ximi n r: _ w- ! ps.j , nJ fit'.:Cj. drat of t:: yl,li:o.xinia!V1v
5:,,G'. 1 1'' 1„ i,. i!lr.a:_;£ tll•` vid of tt_C :l v`•nr 1077
fiw .. l t:. : th.abditation r: fi�.t ._: -O: C:Ij1if`+! fl(7' -![I,_ jllt• �t;ction
312 ;, -c. ; kes h ' • ".( ro 1- �',,'.:' lt'ith TgherI iut.oui.,s Omik
nil C'>e ,rh . ... _.-•(!:ri`Ct f. !� : e.! 1,i:.UL• Ll i. >:�t•tll4('t•.
A sr::-." _u Won hwm, vm,lin'- derno:l;tration ltru;;: tilt has
beryl CndPr \('l'irtll fell":,tll,. }tell!
are dMA't.! !.'C:!alcti End snit! bC ttv-tll lit potsonti
a'illi::� I'!'.!'•:liiatc kuui n•. rclt_ th, ill. '1'ili; lit ;ram i.; inten-le'l to
e11CUllr :�, !znitial It :{iCt tir!r'11t it: tll.'tCr °.rtl itieit,. ,it it! .Q J::tnI!Iate
- _-•g.rv:: i':.»=1'<°'C-rad.'1[1RiL'#.4'` ___
...1C!^_ and ''I:t,!rQd into tI11G :d• O� / 1973
b.., and betlanen thc-. C-t`J 0f :iia-mlr- (�1C!r111>L��� L^tn�•r:� ~O ]u �•':?u CZ.r:rri r �
and %lietronolitan Dade Count', (hertinafter rc�ca r-3d tO Is T FE COL
both of whcm-Underdtand and agree aS f01'1Vel.9
r
1,11?ZRE�AS, the OaL'tlC?5 lc'rC?�0 _I7�iVF' t}lt? c0^,^an. i,ower '/lit 1n r,ierIr 6riSC:1C`ion3.
to car o out..t:Le activities snelied out in this Agreement:,,: and
.*M:?EAS,'bet na�ties are agreeable to carrjing out the acLivities and/or
Sr_>rViceS as =ratified under the terns and conditions hereinafter Set forta,
.: , ; AG? 1SrLL01tiSNO dr THE =JS:r^ri CITY AND THE COL.iTDOaUT'AL;
. ..
SyCTT_CiI
n�-�:1alT_'
ACMINIST?_ I'; COSTS
T a associated
/+
Costs lncurre4 In. sal. ries / . Count': e:1D10 /''c_S , rd a oOClc..c -overhead.
'TIO: COS-g _
COSS, incurred-. in.: -fall i the- •+r: ng `activi _ s : azura s' s-- court
:.
fees. (li:n«`-a'"' =0 aeZe 1Se s. fees) , Cost.. of land, Capital i,:.prOVc-
ments,and d�-2 c.1ition ccs
L
. CC ^OrnoCA �_�� _ � , .:u:L:,^." L?c;olC:ulL'nt
SECTION 11
The purncZe o_ ....,isr _ _..t is to pro. ids a wr, . �en' undors tan-;i^y bet:aee-
t.:o {2; warti es o° t::a acticitec to' ,be car- i-d out as a oar o= t;^.e
Fo - - _ - .......,..;:? i - Dn` 0..1 nt Procram and C. a1.^.`_^cCa: te? e•1::C2; Or'
!on -tcr-1 :ec—on : i h? 1 t4 _i,-3cSOCl.ted 'Alta those'act1V11-_Os.
.o:i ---
FOli::TH 7 A1! CD .CTIVIT-IES A?_ B .T!!TS :,C n—_-'."
C3L' :CC 1`' a�cti7l:t•
tiousi?, D-a .210r r.;ra.- (:,S •.i
a. Lane. ;ccuisiticn .
b. ;c::abil_tati n Lcin:-Procram
,fir^a
Act _•Jir _
s,4c Cit j
i'i:�; Ffeiyh~: �'=de•Jn_lar.:l2:f:
•;�.i•,l Ci~:
Tenant Z'ducation
!)ark
ff7uai::, C••v�:1- -�,-tt ?r ;ra.•n
(tluuna •!iota
a. Land
b. Rehabilitaticti :.can ?ragrart
Allacattah
Hausini Cevelor-nent Pro4ram (:f:, .)
a. Land lc. .ii: i.ion
b. Reh,abilitaticn :.can Progr,=i
Wynwood
Housing, Dev,_•lcn:aent Prcgran
v:yn.rood
Garment District Redevelocmen:
multi -Targe`
Save Our Ala-0
Multi -Tar e t
Co.;tnunications
Culmer
Overto.m Redevelo_:aent
Cul: _r
Dorsey ..heat? ey Redevelotment t
t
Coconut Grote
Land Ac=uisition
Do:., to:In
ED CCa Land Ac-r i3ition
Little Havana
Housinc re•:elo_ -^_nc .-_ ,ra.':t
Little Havana
Acticn Trans_ cr _ation Pr-ogram
Little Hatar..-
Mi.'. ii P.iver.__.._
Center
;Sulti-Target
am rr.-••i ��v.-0 r=..
L i
�. OD "' EL C' (::S:y)(Land Ac: is,",on Phase)
The City _11 0-0•. __._ ,_Z' 400 to tha Cotu^t:; for this activity. Of this
amount :: _ __t1• ..� a:_=c=tad S92, 1C10 for acquisition an! S'10,0100 nor
reiecac__... The -se s_..__ Will be u_I to pu=c^ase s:tas that. have been
� selectee the __-. and a-:-reedl ..o b, the Count*.:. Reuse cr this pro -
pert*,* Z.._be detcrmined ..y the C ..;•, and agreed to by the County.
The Ci:_ will Oro•,i:ie 1225,000 to the County for accuIsi"_ion and relo-
caticn. T::^_we funr.33 :ill he u_e,i to pur_ha:3e sites .:;..t have been selec-
ted by the City and a ,ren(i to by t'hr: Ci.nmt; . The Comity will provi::a
v300,000 For ac^uioition., ac'.; ini3t'ratlon and r::IJcation. Reuse O: this
ron,Q-rty shall bd d•_ .:?rmiaod join A.. Ly the City ln;:
;ii. J:J �..7: �• .� �.I '.�:::•i �.. is •i \'+.�^"J i�C Yllln_ti Oil
Viu City will _7 ti1L r_'1:1`.y for activity. Of
thin anjunt t :'. C.t•. ::1=i .1116u:at-d ^72,4r,0 f it .lC: ..:1t:Un Jn(t J30,01:J
for relocation. Thu fund.: will blr ucu:i to acquir': nite!. that have
been scl•.cted by the City and agreed to by thy: County.
Reuse of this pro,^.'2rt! shall bi deterr..inc t by the: City, and agreed •to by ,
the Count.;.
D. ALt,A AT'A: (=A) HOUSI:J., DM'.IL•'LOP.x.F:JT PF,Oc;?Ad (Land Acquisition Phase)
The Cit1 ::ill provide $122,400 to the County for this activity. Of
this amc'.:nt the City has allocated a92,400 for acquizition and $30,000
for r_location. Then'= funds will be used to aciire sites that have
been selected uy the Citj and agreed to by the County. Reuse of property
shall :;e determined by the City and agreed to by the County.
""`:T Pr:13:1A t
The City will provic:: 3-80,000 to the Cour.'cy for this activity. Of
this amount the City as allocated $120,000 for acquisition and $50,000
for relccalien. .se funds will be used to purchase sites that ha,e
been selected by C_ and agreed to by the County for Section 8
aid/Or .^�3C:,^.� :^r � ^.•? ...-.lLiing in the i•J':n•+:oo-i c•.rea. Feuse of this
pro: ert:' ^hall D^ by the City.
The City will Yrc. .225#000 to Jo County for this activity. Of
this a-t_.= t C:_ Ulccated $165,000 for acquisition and $60,000
for rel_--ation. _.._sz fez s will,be used to purchase sites that have
�. s,r- lc-:d •.
n:, n _ _ _ b; the C'_t, in the PJyn::oc:i G,zr^ent District. •The imple- o
menLat- _.n of L!:ic _ :t will bercme oagrab r le when the Cityand County
C�a^issicr.s arrc_ for -,illy upon the manner in which the re dovelopment
wil'_ be carried out.
-3-
P P.
condominium units in the Township. However,
condominiums are not uses but are merely a
method of expressing realty ownership. Condo-
minium -type ownership is statutorily provided
for under the Unit Propertv Act, Act of July 3,
1963, P.L. 196, as amended, 68 P.S. § 700.101
et seq.. This Act is inclusive enough to in-
clude townhouse uses as possibilities for condo-
minium ownership, but a condominium cannot be
a use itself.2 Therefore, the subject of condo-
miniums is not a proper subject to raise in
these proceedings. If a use is permitted, the
municipality cannot regulate the manner of
ownership of the legal estate.
2. It is quite possible to have town-
houses that are not condominiums and condo-
miniums that are not townhouses. A condo-
minium can be a multifamily, attached, semi-
detached, vertical, or horizontal building
used for residential purposes, or for com-
mercial or industrial purposes.
Finally we would bring to your attention the only
relevant Florida case which we think is wholly diapositive
of the question posed to us, even though not directly on
point. The case is designated City of Miami Beach v. Arlen
King Cole Con. Ass'n., Inc. (Fla. App. 3, 1974) and appears
at 302 So.2d 777. In that case, the City of Miami Beach
brought suit against the owners of the King Cole Apartments
"which would, in effect (among other things],
prevent the hotel -apartment from being converted
to a condominium because it could not provide
sufficient off-street parking spaces for an
apartment as defined and required in the 1971
ordinance. The appellees, as defendants;
answeredl in effect contending that they were
entitled, as a matter of right under the law,
to convert the hotel -apartment into a condo-
minium and, as a nonconforming, use under the
1971 ordinanc(� as amended, they were not
required to have any more off -:street parking
spaces than those originally required [which
- 5 -
1'I.Nr .L\cons ; Ikoc•h K1.1'u Cui..�� .1 tit�iux, R A.
Owl
GOA
Met the code at the time the improvement was
Constructed3. There is no question of the
right to develop a condominium in the use
district wherein the subject property is lo-
cated. Following final tearing, the trial
judge entered a final judgment finding that
the "use" of the building had not been changed
by the owners desiring to convert it into a
condominium and that they were not required
to meet the off-street parking requirements
of the ordinances of the City of Miami Beach
as they existed on the date of the filing
of the declaration of condominium. This
appeal ensued."
The Court's opinion which recited the relevant facts
`quoted above then concluded:
"the major contention by the City presents
a more difficult problem, i.e., whether an
owner (when he desires to convert a valid
nonconforming use apartment building into a
condominium] may continue to provide the
number of parking spacls that were permitted
as a nonconforming use or must he meet the
parking requirements in effect at the time
he filed his declaration of condominium, it
being conceded that if a new structure was
being erected on the site as of the date of
the filing of declaration of condominium it
would be necessary to meet the requirements
of the 1971 ordinances.
Q , 33 A nonconforming use relates to the
property and not to the typo of ownership of
the property. Beers v. Board of Adjustment
of Township of Wayne, 75 N.J.Super. 305, 183
A.2d 130; Bridge Park Co. v. Borough of high-
land Park, 113 N.J.Super. 219, 273 A.2d 397;
Maplewood Village Tenants Assn. v. Maplewood
Village, 116 N.J.Super.. 372, 282 A.2d 428.
Changing the type of ownership of real estate
upon which a nonconforming use is located will
not destroy a valid existing nonconforming use.
r t vr:.4consf ix bt.ocK Kia: is Cot.. v sc tit .%tuX, Is. A.
This is the only significant change in the
real property and improvements involved in
the instant litigation. Such structural
changes as the owners determine to make in
the hotel -apartment to convert to condominiums
were minor in nature and not of a structural
quality. Therefore, there was no abandonment
of the nonconforming use under the zoning ordi-
nances of the City of Miami Beach.
The trial judge having found that the use
of the property had not changed and the record
supporting this finding, under the applicable
law we are required to sustain the finding and,
therefore, the final judgment here under review
will not be disturbed and is thereby affirmed."
The Third District's opinion thus adopts the rationale
Of the New Jersey and Pennsylvania cases cited above and
is wholly consistent with the clear intent of the Florida
Legislature as expressed in Section 718.507, F.S.. We
can therefore only conclude that the statute lay: of Florida
prohibits the use of condominium ownership as a separate
category or use classification in the enactment of either
zoning or building ordinances by Florida municipalities.
In rendering this opinion we also considered Section
718.402, F.S., the first sentence of which reads:
"(1) A developer may create a condo-
minium by converting existing, previously
occupied improvements to such ownership by
complying with part I of this chapter."
Since this 197G state statute creates a clear right in a
developer to turn existing and previously occupied rental
- 7 -
FIND .1.1CUllti1)X 111.0cK HLEIN CQLAN & SIMON, R A.
rc.
apartments into apartments owned on an individual condominium
basis, we do not believe the will of the legislature can
be thwarted by a municipality's creation of a new zoning
category which would effectively prevent a builder from
building an apartment house for rental purposes and, once
such units were rented, then exercising the right granted
by the State under the quoted statute to convert the
units into condominiums. The reading of Section 718.402,
F.S. in conjunction with Section 718.507, F.S. strengthens
our initial conclusion.
Nothing contained in this opinion should be inter-
preted as a limitation or restriction on the City's right
to seek a repeal or modification of either or both of the
controlling state statutes discussed in this opinion during
the forthcoming regular session of the Florida Legislature.
We would be pleased to suggest ways in which the statutes
might be modified to accomplish the goals and objectives
of the City.
SLS/ims
FINE JACOBSON BLOCK KLEIN
COLAN & SIMON, P.A.
STUART L . s i-MON
Fixe J.%consox BLOCK IW:1\ COLA, & SIMON. 1! j%.
FRECEIVED
26 1980MUNITY MEMORANDUM OPINION
OPM ENT
TO: HON. GEORGE KNOX, CITY ATTORNEY, CITY OF MIAMI
FROM: FINE JACOBSON BLOCK KLEIN COLAN & SIMON, P.A.
SUBJECT: LEGALITY OF IMPOSING A MORATORIUM ON THE CONVERSION
OF RENTAL UNITS IN MULTI -FAMILY DWELLINGS OR APART-
MENT BUILDINGS TO CONDOMINIUM UNITS.
DATEt MARCH S, 1980
You have requested our opinion as to the legality of
imposing a moratorium upon the conversion of rental units
in multi -family dwellings or apartment buildings into
condominium units. In our opinion such a proposal would
be in violation of Florida statute law.
Our conclusion is based on the specific language
contained in a recently enacted state statute which
appears both to pre-empt this area to exclusive state
regulation and control and also to establish the precise
terms and conditions pursuant to which rental units may
be converted into condominium units under state law. The
Florida statute upon which our conclusion is based is
Section 718.402, F.S., a copy of which is attached hereto
as Exhibit A. The first sentence of the statute which
states:
"(1) A developer may create a condo-
minium by converting existing, previously
occupied improvements to such ownership
by complying with part I of this chapter."
clearly allows a developer to create a condominium through
111.41ct: col..%x & Slam-', R A.
the conversion of existing, previously occupied rental
apartments by following a prescribed procedure. Other
requirements of Section 718.402, F.S., require an owner
to give tenant occupants first priority to purchase,
a period of time in which to decide whether to purchase,
and a period of time in which to vacate if the option
to purchase is not exercised.
We do not believe that any local governmental body
can remove or limit the right specifically granted to a
developer of condominium units (out of existing and
occupied rental units) by a state enactment. The word
"may" as used in the statute means that the developer
may create the condominium units if he so chooses. See
in this regard Board of County Comanissioners of. Dade
County v. Boswell, (Fla. 1964) 167 So.2d 866.
The undersigned attorney served until recently as
County Attorney of Dade County, Florida. During his
tenure in office he was asked for an opinion on the
identical legal issue discussed in this opinion by County
Commissioner Barry D. Schreiber. A memorandum opinion
responding to Commissioner Schreiber was prepared by an
extremely able Assistant County Attorney with the knowledge
and approval of the undersigned, and a copy of that
opinion is attached hereto as Exhibit B. Although that
memorandum opinion was written prior to the 1979 amend-
ments to Section 718.402, F.S., it reached the same con-
- 2 -
ISLut:I: I(ixI.N Cui...'s & sl%lox, R.S.
clusion stated herein.
We will add that nothing contained in this opinion
should be interpreted as a limitation or restriction on
the City's right to seek repeal or modification of the
controlling state statute discussed in this opinion during
the forthcoming regular session of the Florida Legislature.
SLS/lms
FINE JACOBSON BLOCK KLEIN
COLAN & SIMON, P.A.
By.
• STUART L. SIMON
- 3 -
F1v11 JACOLSON BLOCK 10./:1N COLAN & -IMON, 1! A.
718.402 Conversion of existing; imlF ve-
^,tnts to condominim-n --
,I) A developer may create a condominitl,,, I,,;
cotiverting existing, prt'yiously occupied improvt.-
tur•nts to su:h o% nt•rghip by complying with 1•:irt I of
this ch:,ptvr.
(2)(a► If uxi;tiwt irnill u.t oleos.; tire count rhd to
owner_;hi;• as a rf-iid••nti;ll condtuninium, each
dential tenant of the cs:-tin'; i[npt'nv�lnt'nt; shall
have t}le rl ht tO extend an expiring leote. or tenancy
upon the sarne ternt-i for a period that will expire no
later than 180 days afler writtetl notice to tilt- tenant
of the intended conversion. A tenant must r;i%v writ-
ten notice to the develop••r of• his int••nt inn to extend
his lease or tenancy v: ithin :t') days after he receives
notice of the intended conversion.
(b) Any di=count to an exi,;tino tenant on the pur-
chase price of a condominium parcel in a conversion
ofexistin- improvements shall be ofti•red for a peri-
od of not less than 60 days from the date of first
offering to such tenant.
(3)(a) It is the policy of this state that provisions
of contracts, leases, or other undortakin-s which al-
low landlords or developers, at their option, to cancel
and terminate the terms of such leases upon the
conversion ofthe property and improvements to con-
dominium ownership upon less than 120 days' notice
to the tenant are against public policy. Any provi-
sions in any contract, lease, or undertakin., which
provides for cancellation or termination of the term
of any lease for an apartment or other residence at
the eption of the landlord or develo,r:•r for reason of
its intended conversion to a condominium form of
ownership without at least 120 days' notice !,hall be
unr-nturct•:tble exct,pt in the fullo% int; ca_es:
1. If the tt•rm of th!, lra=t has le:; than 1:t0 days-
rernaini:!:; : ter such notification i.; ijvcn.
2. If the lc:tse 1;rants the tenant all option to pur-
chase tart, apartment or other re:sirll•nce in v:hich he
resides at .1 prier• equal to or le,; than that o9ered
to nontenants, v.hich option is exercisable by the
tenant during a period of not. 1r` s thin 90 days after
the rimilln , of a notice of" thf, intended conversion to
the tenant.
3. If thc� lease provides that the Ic »or or develop-
er shall hilt convert to condominium ov.nc!rship ex-
cept with tihe- cons=ent of the tenants of not lc_a than
60 pert-ent of the ap:irtrn^nts or other dwellings in
improverents intended to be converted. For the pur-
pose of this vote, unoccupied apartment or dwell-
ings shall 1:•e counted and th•, developer or h•ssor may
vote thn;e ap:utrr,ents.
(b) If t}tr le;t:.e provides for a riot ific,,,tion to the
tenant of Ir ss than 121) d:+vs and if the tt•rm of the
lease ha; rnonC. than 151) days renutiniw,, after notifi-
cation is i6on, notification of tr•r•rnin;ttion to the
tenant .':ill b,' efirtti:e iftlw notice provide; that the
tenant have 1.50 dav, or more br'ti,re cancella-
tion Or tt'!:11imatlo'l t,•-'C(`tni's ef),'dive
(c) eXenutedSuh,equenttnthc•deveIoper's
01' 1:1rv11''IrTS M11CIL111C.12111r_'Ilt e! IllterltlOn to ColIV 'rt
to c ,ndor:lini•Im mvner,hip rn:ty providt, fur cane 1.
Intion or r?rmin:tti-m upan rlrlt tll:tll
notice to t1, tenant, providt'd the Llridlorcl eun�picu-
ou.-Jv (11,cio in tilt lt•:I-,• thO intention to convert
taw prop-! ty cont:tinin-, tl:c Ira;t tl promi-o.; to con-
durnnli,!:n ov n!-rAiip and th.!t tho I•a ;:, may be can-
celod uu,,n t;U d.ly ' nothi•t• to tau! ter .lilt
(el► Elie no.iirt.1 retfuiren!:'r,t of till, sail e:li,rl
Shall rtnt ;Illi,!v to a u:,to'!t•t1 illtu S1I^•'11t,.f l`'V llo-
ly %alit, Or _0) _,•,illetlt t(,, :t C�)f:tl'.u•t tO parC h:lc,t• tali:
tllllt
(4) All entice, to ten.utt< s•Ila!l Ise given Cher.
depo.:ited in thr• Unitt•d ti•.Irh m:hli :..Idrt• t•1I to the
tt'rl:ult at Ill., I,'•-t l.rtn,� n re,i !-m-, %%hirh m-ty be tho
addre:, of the pr rty s,lh t to tht• le:t,l' s"nt by
certtfi,.1 or le ;l,t, .'e:1 to;ul, t',-t:+.,r prep.tid Nutlet-
may not I,!! w.tlyr-d by a tt•nant the tcn;lnt'a
1f.a.,t States til.tt the Ise corl%ert!'d.
I1.cn
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MMMORANDUM
103.01 -1 •
TO Commissioner Barry D. Schreiber eATe April 18, 1979
•uraee,r Conversion of Rental Units
to Condominiums
room Clifford A. Schulman
Assistant County Attorney
Your memorandum of April 9, 1979, asked this office to address the
issue noted above and to advise you if there were any remedial or legal actions
that could be taken at the County level to prevent the problem of rental
conversions to condomini.u:-,s from arising in t`►e future. Our conclusion is that
the solution to this problem, if it arises in the future, rests with the
Legislature of the State of Florida for the reasons noted below:
The subject of problems deali.n,; with mer.,.bens of the community that
rent apartments has recently been addresle(l by num,2r ,is court decisions in
the State of Floric}a in ::rith attc,�.pts by vr:riuuc; ;unicipalities,
and particularly t1w City of 'ii Beach, t0 the rentals charged
in those inflationary ti:-:es. As early as 1969 the Ciry of Miami Beach enacted
Ordinance No. 1791 entitled "Iiousin and Rent Control Regulations" which provided
in Section 16 A.5 D as follows:
It shall be unlat:•ful for any person to remove
a housing unit from the narket if the same
will result in eviction.
This provision, and others not pertinent to your inquiry, was attacked in the
case styled City of Mia':ii Beach v. Fleetc,00d Hotel, Inc., 261 S0.2d 801
(Fla. 1972) and the court founci the Ci.ty's at.te;::pt to control rentals and evictions
was outside the powc r of thy, City, constituted an unlawful de1u-1-1,ation of
Legislative aut};ority anc, c'.i-octly conflicted with State law dealing with the
relationship bet.:t2cn lancilurds and tenants and eviction:;. In so doing, the
Court said, in part: (261 So.'_'d at °Oi)
Local governments have not been given or,nipoteace
by home rule provisions or by Article VIII,
Section 2 of the 1968 Florida Constitution.
Commissioner Barry D. Schreiber
April 18, 1979
Page No. 2
Matters that because of their nature
-are inherently reserved for the State
alone and anion. which have been the
master and Servant and landlord and
tenant relationships, matters of
descent, the adriinic;tration of estates...
and many other matters of -eneral and
statewide si.nificance are not proper
subjects for local treatment....
[citations omi.tted]
The State of Florida through Legislative action has
enacted statutory provisions to regulate the
landlord -tenant relationship. Chapter 83,
Fla. Stat. F.S.A. Ab5ont a Lclislative enactment
authori.:in- the e:•:ercise of such a power by a
municipality, a municipality has no power to
enact a rent control ordinance.
In specifically dealing with Suction 16 A.5 D, noted above, the courts specifically
held that the "non -eviction" prow, -;ion conflicted with numerous provisions of
Florida Statutes, Chapter 83 dealing ::.ith the landlord -tenant relationship and
upheld the trial court's findii:;; of the invalidity of that section.
Subsequently, the Legislature cn—cted Section 166.021(1), Florida
Statutes kno,:n as the Minicip�:1 Hoge Rule pokers Act which was found to grant
to the m;:nicipalities the ability to enact rent control legislation in the
absence of. a prohibition within the Str;te Statutes. City of Beach V.
Forte Too,xr's,_Tnr., 305 So.2d 764 (I'lri. 1975). The newly enacted ordinance
of the City did have a nc;.. pra•:i:;ion do;ilin; with inhibitions on the ability
to evict renters front thci.r ap,,irL!-cuts, and to prohibit the change of ownership
from rental to other for:a;; of corldo;;iniu::: or cooperative apartment use. The
Supreme Court did not c;�^al tsi.th the c•.onst i tutionality of that provision since
it found the City's ordinance, chile properly empo�,er'ed, to be unconstitutionally
vague and in need of rc•draftin;;.
However, suhsecinent litigation was specifically directed toward the
new City ordinance! provi,;i.on:; dialing with a restriction on conversion of the
facilities from rcnt,il to other u^es in the cas:os of. Lifsc•hit^ v. ami
Beach_r 339 So.2d 232 (I'la. 3kl DCA 1970), c<•rt, dcni.e.l, 348 So.2d 949 (Fla. 1917)
and %Iu!; v_._C_it:•_of ;;iar;i Fwach, 339 So.2d 236 (Fla. 3d DCA 1976), cert. denied,
348 So.2cl 950 (Fla. 19i7), _it�t tl_di: .i::; d, 434 U.S. 9h4 (1977). In the
Lifschitz case, <,ui,rr, tit trial court' con,trued th; provisions of Section 17A-7
of the X;xn1. Beach City Code vitich provided, in part, as follow-t;:
Commissioner Barry D. Schreiber
April 18, 1979
Page No. 3
(a) No action or proceeding to recover possession
of housing accommodations shall be maintainable by
any landlord against any tenant, not%Athstanding
that the tenant has no lease or tha: his lease has
expired, so lon- as the tenant continues to pay the
rent to ,,,hich the landlord is entitled, unless:
(1) The tenant is cor..r:iittin a nuisance or using
the housing accommodations for an innoral or illegal
purpose or for other than living or dwelling purposes; or
(2) The tenant is failin^ to comply with any
of the provisions for which eviction is permitted
pursuant to Flori.da Statutes Chapter 83, except
where this chapter provides othere,ise.
(3) The landlord seeks in good faith to
recover posses�,ina of the property for his immediate
and personal use or occupancy as a d:cellin;; or for
the use and occupancy of any member of his immediate
family.
(4) The landlord seeks in good faith to recover
possession for the immediate purnoso of demolishing the
property and replacin- it with net; construction in
accord: nce :aitlr plans filed with and approved by the
buildins department of the city.
(5) The landlord seeks in good faith to permanently
witi:dra:v the housirig accommodations from the housing
market without any intent to rent or sell. all or any part
of the rental unit or structure.
'(b) Except as provided in section 17A-7(a), it shall
be unla.-:fu1 for any person to remove, or attempt to
remove, frcn: any housin,, acco::imo�at°c,n tl-.e tenant or
occup.tnt tl_reof, or to refuse to renew lease or agreement
for the urc. of :;,tch accor.:;;iodations, because such tenant
or occupant hnF; taken or proposes to take action
author i zed. or reyu i red by tli in cli:ipter or anv res;ulation,
order or rec;wirer! t;t adoptod horounder. So lot-, as the
tenant to pay the applicable rent payable by
him: for t110 acro: ^odatinns occupied by him, he may
not h_, rC:::cwed or evf _'ed th,:refrota, not;:ithntanding the
expirat i„rt of any Such tenant shall pay the
lai-.ful. rent fi::csd for his honshi acco;:'-�:odat.i.ons on Lhe
first day of each Month so Ion(, as he re.riains in possession
r
Commissioner Barry D. Schreiber
April 18, 1979
Page Nu. 4
and shall be required to dive the landlord
fifteen days' written notice of his intention
to vacate said prc^ises, otherwise he shall be
liable to the landlord for one month's rent.
No landlord may institute eviction proceedin-s
pursuant to (a)0 ,4 and 5) above until tie has
filed a petition: for an eviction certificate with
the rent director ettin- forth the grounds for
such proposed action, and an eviction certificate
has been issued by the rent director; the
director siilll is,,ue such certificate only if he
finds that the. landlord is entitled to such
certificate under the provisions of this section.
No such eviction certificate shall be required prior
to the ir:_titutica of eviction proceedin-s
pursu:nt to (a)(I t:nd 2) above, or where the
ten;n:it has failed to pay his rent.
The above —noted provision :;as herld to be "void and unenforceable" by the Circuit
Court and that decision :,-as af::ir:-:ad by the District Court of Appeal, Third
District, in the Lif ;cirri t:: c asc:, supra.
Finally, in 1976 n-! 1977 the 1r_, islature. took certain actions which
would specifically allo.✓ the conversion o rental units to condon-iiniums under
certain co:ditions (Section 713.402, Florida Statutes, a copy of vhich is attached
for your reference) and prohil;i.•_�(i co,nr.ties, municipalities or other entities
of local Sovern::ient fro:-i i7-::,osinL; any la-:, ordin:ince, rule, or other measure
which would hav• th_, effect of i-pesin^ controls on rents for any accommodations
used or offered for residential purpo,,e (Section 125.0103, Florida Statutes,
a copy of which is attached for your referencu).
In su:::!aary, sine tt•e 1976 anc 1977 Legislative sessions, and even
before that due to th T.i i i:i tz liti ;:.icn, it seems clear that the matter of
the conversion of rental uc:its to concic -..iniunas is a matter within the Legislative
discretion of t;:e Stagof Flor da and net witlnin the Legislative discretion
of the municipalities or countic, ; of ti:e State.
I trust
you have -iven u;
please feel free
u ficiently ans::•ers the question which
further inforriation regarding this matter
Assistant County