C4C - Short to Long-term Rental

Committee Referrals - C4 C

C4 C REFERRAL TO THE LAND USE AND SUSTAINABILITY COMMITTEE TO DISCUSS THE CREATION OF A FINANCIAL INCENTIVE PROGRAM FOR LANDLORDS FOR CONVERSION OF SHORT-TERM RENTAL PROPERTY TO LONG-TERM LEASES. Applicable Area:

COMMISSION MEMORANDUM

RECOMMENDATION

BACKGROUND/HISTORY

Please place this item on the City Commission meeting agenda as a referral to the Land Use and Sustainability Committee (“LUSC”).

Vacation rentals, also known as short-term rentals (“STRs”), are a popular form of temporary lodging in the City of Miami Beach. The City has previously recognized that the proliferation of STRs in City neighborhoods exacerbates the shortage of workforce and affordable housing by reducing the availability of long-term rental units and driving up rental prices. However, pursuant to Section 509.032(7), Florida Statutes, the City is preempted from prohibiting or regulating the frequency or duration of vacation rentals. As a result, to limit the approval of future STRs, the City’s options are limited to implementing financial or zoning incentives. This shortage for full- time residential for the missing middle exacerbates problems like insufficient support for our local businesses, and traffic congestion as people who work in Miami Beach cannot easily find accessible housing on the Beach, thereby needing to drive in and out for work.

To address the impacts of vacation rentals on housing availability, communities such as Provincetown, Massachusetts have implemented financial incentives to encourage landlords to lease on a long-term basis those residential units previously offered as STRs. The “Lease to Locals” program is one example of such an incentive program, structured as a public/private partnership between Placemate, a private real estate company, and a local government. Pursuant to an agreement with the city, Placemate designs an incentives structure for STR unit landlords to convert their properties to long-term rental housing at an income level that the participating local government identifies as a priority. Placemate also retains responsibility for compliance and reporting on program impacts.

Lease to Locals has been implemented in nine jurisdictions throughout Massachusetts, California, and Nevada. The Lease to Locals program active in Provincetown, Massachusetts, was first started in 2024 and subsequently renewed in 2025 (see Attachment A). The Town of Provincetown Select Board, in a letter in its May 12, 2025 meeting agenda, identified its Lease to Locals program as having produced “meaningful results” for the community in addressing housing challenges by adding 36 year-round long-term rental conversions (see Attachment B).

ANALYSIS

Based on the Lease to Locals model, I request that the Administration be prepared to come to LUSC to discuss creating a program of financial incentives for landlords in Miami Beach currently renting their residential units as STRs to convert those units to long-term rentals for tenants earning within specified income levels. Some ideas for consideration include but are not limited to requiring participation in the program being predicated on property owners recording a covenant prohibiting future STRs on the property. The LUSC may also consider enhanced incentives applicable to certain neighborhoods of the City. The discussion should include input from the Housing Authority of the City of Miami Beach to inform discussion regarding the income level(s) targeted for these housing incentives, most likely neighborhoods (both in terms of need and opportunity), and the possible funding sources. I would like the Administration to contact Placemate and other companies implementing this type of program around the country to better understand the mechanics, challenges, and opportunities of creating a program like this in Miami Beach.

FISCAL IMPACT STATEMENT

N/A

Does this Ordinance require a Business Impact Estimate? (FOR ORDINANCES ONLY)

If applicable, the Business Impact Estimate (BIE) was published on: See BIE at: https://www.miamibeachfl.gov/city-hall/city-clerk/meeting-notices/

FINANCIAL INFORMATION

CONCLUSION

Applicable Area

Citywide

Yes

Was this Agenda Item initially requested by a lobbyist which, as defined in Code Sec. 2-481, includes a principal engaged in lobbying? No

If so, specify the name of lobbyist(s) and principal(s):

Department

Office of Commissioner Tanya K. Bhatt

Sponsor(s)

Commissioner Tanya K. Bhatt

Co-sponsor(s)

Condensed Title

Ref: LUSC - STR Conversion to Full-Time Residential Financial Incentives. (Bhatt)

Previous Action (For City Clerk Use Only)