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HomeMy WebLinkAboutO-14113City of Miami Ordinance 14113 Legislation City Hall 3500 Pan American Drive Miami, FL 33133 www.miamigov.com File Number: 12336 Final Action Date: 10/13/2022 AN ORDINANCE OF THE MIAMI CITY COMMISSION AMENDING CHAPTER 62/ARTICLE XVII/SECTION 62-663 OF THE CODE OF THE CITY OF MIAMI, FLORIDA, AS AMENDED ("CITY CODE"), TITLED "PLANNING AND ZONING/COVENANTS FOR AFFORDABLE OR WORKFORCE HOUSING/REQUIREMENTS, ENFORCEMENT PROVISIONS, AND PENALTIES FOR RESTRICTIVE COVENANTS ASSOCIATED WITH AFFORDABLE OR WORKFORCE HOUSING RELATED TO DEVELOPMENT INCENTIVES, BENEFITS, OR BONUSES", BY ADDING SUBSECTION 62- 663(9) TO CLARIFY AND PROVIDE A PROCESS FOR ADMINISTRATIVELY AUTHORIZING PARTIAL RELEASES AND SUBORDINATIONS OF CERTAIN AFFORDABLE HOUSING COVENANTS RELATED TO AND REQUIRED BY GOVERNMENT -BACKED PROGRAM FINANCING OR REFINANCING; CONTAINING A SEVERABILITY CLAUSE; AND PROVIDING FOR AN EFFECTIVE DATE. SPONSOR(S): Commissioner Ken Russell WHEREAS, Section 62-663 of the Code of the City of Miami, Florida, as amended ("City Code"), titled "Requirements, enforcement provisions, and penalties for restrictive covenants associated with affordable or workforce housing related to development incentives, benefits, or bonuses," addresses covenants associated with affordable or workforce housing related to development incentives, benefits, or bonuses; and WHEREAS, the City of Miami ("City") has had an uptick of requests for City affordable housing covenant subordinations and partial releases required by government -backed financing or refinancing; and WHEREAS, facilitating affordable housing is of utmost importance to the City and its residents; and WHEREAS, it is in the City's best interest to have a process in place to allow for administrative approvals of partial releases and subordinations of certain affordable housing covenants related to and required by government -backed program financing or refinancing, specifically when such partial releases or subordinations do not adversely impact the City's affordability requirements within the City's affordable housing covenant, including but not limited to the Area Median Income of the affordable units and the number of affordable units; NOW, THEREFORE, BE IT ORDAINED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. The recitals and findings contained in the Preamble to this Ordinance are adopted and incorporated as if fully set forth in this Section. City of Miami Page 1 of 4 File ID: 12336 (Revision: A) Printed On: 6/23/2025 File ID: 12336 Enactment Number: 14113 Section 2. Chapter 62 of the City Code is hereby amended in the following particulars:1 "CHAPTER 62 PLANNING AND ZONING * ARTICLE XVII. - COVENANTS FOR AFFORDABLE OR WORKFORCE HOUSING Sec. 62-663. - Requirements, enforcement provisions, and penalties for restrictive covenants associated with affordable or workforce housing related to development incentives, benefits, or bonuses. Enforcement of this article shall be by chapter 2, article X of the City Code or any other remedies as provided by law and as further stated herein. All covenants for affordable or workforce housing that may be associated with development incentives, benefits, or bonuses, shall be subject to the following requirements, enforcement procedures, and penalties. This includes any covenants associated with providing affordable or workforce housing voluntarily proffered with a request for a change of zoning. (1) All such covenants shall only be released after the initial required term, according to the City Code or the Miami 21 Code, as applicable, by the city commission at a publicly noticed hearing, unless otherwise specified in the covenant. All costs, expenses, and fees associated with releasing the covenant at the publicly noticed hearing, shall be the sole responsibility of the party requesting the release unless the covenant being released is an individual covenant as defined herein. (2) All such covenants shall include a provision that requires each affordable or workforce housing unit that is sold to include a deed restriction, that the unit shall only be sold with a purchase cost equal to or less than the standards for those individuals whose income is at or below the area median income ("AMI"), as established in the covenant and shall further indicate that the unit shall only be rented to individuals whose income is at or below the AMI as established in the covenant. The deed restriction must specify the specific applicable AMI. All covenants shall also reference the requirements as stated in this section. (3) Any violation or noncompliance of the covenant for affordable or workforce housing shall be immediately referred to code compliance department for enforcement proceedings, lien placement, and citations pursuant to chapter 2, article X of the City Code. (4) Any violation or noncompliance of the covenant for affordable or workforce housing shall result in a monetary penalty to be deposited into the affordable housing trust fund. Such monetary penalty shall be assessed as a daily fine of $250.00 per day per violation until proof of compliance has been provided to the city. The monetary penalty shall not be subject to mitigation or otherwise modified by any body including, but not limited to the code enforcement board. 1 Words and/or figures stricken through shall be deleted. Underscored words and/or figures shall be added. The remaining provisions are now in effect and remain unchanged. Asterisks indicate omitted and unchanged material. City of Miami Page 2 of 4 File ID: 12336 (Revision: A) Printed on: 6/23/2025 File ID: 12336 Enactment Number: 14113 (5) Any violation or noncompliance of the covenant for affordable or workforce housing shall be referred to the city attorney's office for enforcement, including but not limited to injunctive relief and/or any other remedies in law or equity. (6) The use of one remedy shall not preclude the use of another. (7) All such covenants for affordable or workforce rental housing must include a provision that requires the covenantor to receive written authorization from the city manager prior to converting any rental housing units to homeownership units. In the event that the conversion is authorized, the city shall record covenants on individual units ("individual covenants") in a manner that creates the same amount of affordable or workforce homeownership units specified in the covenant for affordable or workforce housing. Each individual covenant must (i) specify the applicable AMI for any purchaser during the term of the individual covenant and (ii) expire on the same date as the covenant for affordable or workforce housing. (8) Any modification of a covenant shall require approval of the city commission at a publicly noticed hearing, unless otherwise specified in the covenant. All costs, expenses, and fees associated with modifying the covenant at the publicly noticed hearing shall be the sole responsibility of the party requesting the modification unless the covenant being modified is an individual covenant as defined herein. (9) Notwithstanding any language contained in this Article or any language in the covenant, the City may administratively perform the following related to a document required by a United States Housing and Urban Development (HUD), Florida Housing Finance Corporation, Federal Housing Agency, Fannie Mae, Freddie Mac, any Miami -Dade County affordable housing program, or any other government -backed program financing or refinancing for a development where such document does not adversely impact the City's affordability requirements within the City's covenant, including but not limited to the Area Median Income of the affordable units and the number of affordable units: i) authorize a partial release of a covenant as described herein, or ii) approve a subordination of a covenant as described herein Any such partial release or subordination as described in this Section shall require a recommendation of approval and signature from the Director of the Department of Housing and Community Development, the Planning Director, the Zoning Administrator, and the City Manager, or their designees, and be approved by the City Attorney, or designee, as to legal form or correctness. The City Manager shall provide written notice to the members of the City Commission when such covenant is administratively released or subordinated. In the event that the partial release or subordination does not receive approval from all Departments listed herein, such request may be placed on a City Commission agenda." Section 3. If any section, part of a section, paragraph, clause, phrase, or word of this Ordinance is declared invalid, the remaining provisions of this Ordinance shall not be affected. Section 4. This Ordinance shall become effective upon ten (10) days after final reading and adoption.2 2 This Ordinance shall become effective as specified herein unless vetoed by the Mayor within ten (10) calendar days from the date it was passed and adopted. If the Mayor vetoes this Ordinance, it shall City of Miami Page 3 of 4 File ID: 12336 (Revision: A) Printed on: 6/23/2025 File ID: 12336 APPROVED AS TO FORM AND CORRECTNESS: r dez, ity ttor Enactment Number: 14113 I iey ) 10/3/2022 become effective immediately upon override of the veto by the City Commission or upon the effective date stated herein, whichever is later. City of Miami Page 4 of 4 File ID: 12336 (Revision: A) Printed on: 6/23/2025