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Ord 03-12MEMORANDUM TO:Mayor and City Commissioners FROM:David T. Harden, City Manager DATE:February 10, 2012 SUBJECT:AGENDA ITEM 10.A. - REGULAR COMMISSION MEETING OF FEBRUARY 21, 2012 ORDINANCE NO. 03 -12 (SECOND READING/SEC OND PUBLIC HEARING) ITEM BEFORE COMMISSION This ordinance is before Commission for second reading and public hearing to the Land Development Regulations (LDR), amending Section 4.3.3, “Specific Requirements for Specific Uses”, b y amending Subsection 4.3.3(ZZZ), “Transient Residentia l Use”, in order to clarify prohibitions, exemptions/exceptions, waivers, and penalties for same; amending Appendix “A”, “Definitions”, in order to amend the definition of “Transient Residential Use”. BACKGROUND At the first reading on February 7, 2012, the Commission passed Ordinance No. 03-12. RECOMMENDATION Recommend approval of Ordinance No. 03-12 on second and final reading. Page 1of 1 Coversheet 2/23/2012 htt p ://itweba pp /A g endaIntranet/Bluesheet.as p x?ItemID=5361&Meetin g ID=345 ORDINANCE NO. 03-12 AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA, AMENDING SECTION 4.3.3, “SPE CIFIC REQUIREMENTS FOR SPECIFIC USES”, BY AMENDING SUBSECTION 4.3.3(ZZZ), “TRANSIENT RESIDENTIAL USE”, IN ORDER TO CLARIFY PROHIBITIONS, EXEMPTIONS/ EXCEPTIONS, WAIVERS, AND PENALTIES FOR SAME; AMENDI NG APPENDIX “A”, “DEFINITIONS”, IN ORDER TO AMEND THE DEFINITION OF “TRANSIENT RESIDENTIAL USE”; PROVIDIN G A SAVING CLAUSE, A GENERAL REPEALER CLAUSE, AND AN EFFECTIVE DATE. WHEREAS, the City Commission hereby finds and decl ares that the leasing, renting, licensing, subleasing or otherwise allowing in any manner or f orm the use of single-family residential dwelling u nits for periods of less than twelve (12) months with a turn over in occupancy more often than three (3) times p er year to any person, entity or family, is a non-residenti al activity and is not considered an accessory use customarily accessory and incidental and subordinate to the pri mary intended purpose of dwellings, See, Schwarz v. City of Treasure Island , 21 Fla.L.Weekly Fed. C11541 (11th Cir. 2008); and WHEREAS, the Census Data collected by the U.S. Cen sus Bureau in 2010 provides that the average family size is 2.24 people in the City of Delray Beach; and WHEREAS, transient residential uses often maximize occupancy causing increased pressure on infrastructure, including: garbage, sewer, water, r oadways, and utilities; code enforcement, law enfor cement, fire protection and inspection services; and WHEREAS, transient residential uses can result in increased noise and traffic in single-family reside ntial communities; and WHEREAS, unless regulations are placed on the amou nt and location of transient uses, such uses could overwhelm the non-transient related single-family r esidential community making the City of Delray Beac h a less attractive place to reside; and WHEREAS, transient residential uses can be incompa tible with permanent and seasonal residential uses if not properly planned, controlled and regulated; and WHEREAS, the rapid turnover in occupancy associate d with transient residential uses can be a disruptive influence on the peaceful use and enjoyment of si ngle family residential areas; and WHEREAS, reserving land for single family residenc es preserves the character of neighborhoods, securing “zones where family values, youth values, and the blessings of quiet seclusion and clean air make the 2 ORD. NO. 03-12 area a sanctuary for people.” See, City of Edmonds v. Oxford House , 514 U.S. 725, 733 115 S.Ct. 1776, 131 L.Ed. 2d 801 (1995); and WHEREAS, Congress intended the FHA to “prohibit th e use of zoning regulations to limit the ability of the handicapped to live in the residence of thei r choice in the community; however, the FHA does no t pre- empt or abolish a municipality’s power to regulate land use and pass zoning laws.” See, Jeffrey O. v. City of Boca Raton , 511 F. Supp. 2d 1339 (S.D. Fla. 2007); and WHEREAS, transient residential uses can displace p ermanent single family residential dwellings and thus reduce the number of permanent residents in th e City and cause a reduction in state revenue shari ng funds necessary to support the services that influence the qual ity of life for residents, commercial interests, and visito rs to the City of Delray Beach; and WHEREAS, uncontrolled and unregulated transient re sidential uses is found to have a negative impact on the City of Delray Beach’s economy, property val ues, law enforcement, traffic, safety, and the gene ral health, safety, and welfare of the citizens of Delray Beach; and WHEREAS, the State of Florida has recognized that leases, rentals, licenses, subleases, and assignmen ts or otherwise allowing in any manner the use of a res idential dwelling unit for under six (6) months in duration is a transient use and is therefore taxed by the State of Florida at a rate of six (6) percent of the tota l rental amount charged; and WHEREAS, the Delray Beach Planning and Zoning Boar d has reviewed this ordinance and a duly noticed public hearing was held before the Planning and Zoning Board on December 19, 2011, and said Bo ard has recommended adoption of the changes to the City ’s Land Development Regulations regarding the regulation of transient rental units by a vote of 6 to 0 ; and WHEREAS, the City Commission and the Planning and Zoning Board both find that the ordinance is consistent with the City’s Comprehensive Plan. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISS ION OF THE CITY OF DELRAY BEACH, FLORIDA, AS FOLLOWS: Section 1 . That the Land Development Regulations of the City of Delray Beach, Florida, Section 4.3.3, “Specific Requirements for Specific Uses”, S ubsection 4.3.3(ZZZ), “Transient Residential Uses”, shall hereby be amended to read as follows: (ZZZ) TRANSIENT RESIDENTIAL USE shall mean a The entire dwelling unit or any part thereof, which is located in Single Family or Planned Reside ntial Development Zoning Districts that and is operated or used in such a way that it has a any part of the dwelling unit turns over in occupancy of more often than six (6) three (3) times in any one (1) year shall be presumed to be a Transient Residential Use and therefore prohibited. An entire dwelli ng unit or any part thereof, which is located in Medium Density Residential (RM) Zoning Districts an d is operated or used in such a way that any part 3 ORD. NO. 03-12 of the entire dwelling unit turns over occupancy mo re often than six (6) times in any one (1) year sha ll be presumed to be a Transient Residential Use and therefore p rohibited. (1 ) Transient Residential Uses are Prohibited in Single Family a nd Planned Residential Development Zoning Districts: A ll transient residential uses are prohibited in S ingle - F amily and Planned Residential Development zoning districts in order to preserve the residenti al character of single -family neighborhoods and mini mize the impact of transient uses on permanent single -family land uses. Transient Residential Uses are p ermitted uses in Medium Density Residential (RM) Districts. (2 ) (1) Exceptions/Exemptions: (a) Existing transient residential uses with a turnover mo re often than three (3) times per year but not exceeding six (6) times per year in single-family and planned residential development zoning districts may contin ue until the expiration of the current lease agreement between an existing occupant and the r eal property owner or twelve (12) months after the effective date of thi s ordinance, whichever occurs first . (b) The leasing, renting, licensing, subleasing or otherwise allowing in any manner or form the use of a single-family dwelling unit for C ommunity Residential and Group Homes which are licensed by the state are exempt. (c) The real property owners of the dwelling unit a nd their family are exempt regardless of how much time the owners and family spend at the dwelling unit on a yearly basis. (3 ) (2) Waiver for Undue Economic Hardship : In all instances where there is a claim of undue economic hardship, the property owner may be granted a waiver from Section 4.3.3(ZZZ) after submission of waiver request to the City’s Communit y Improvement Director or his/her designee including the following documentation: (a) The amount paid for the property, the date of p urchase, and the party from whom purchased; (b) The assessed value of the land and improvements thereon, according to the two most recent assessments; (c) Real estate taxes for the previous two years; (d) Annual debt service or mortgage payments, if any, for th e previous two years; 4 ORD. NO. 03-12 (e) All appraisals, if any, obtained within the pre vious two years by the owner or applicant in connection with the purchase, financin g, or ownership of the property; (f) Any listing of the property for sale or rent, p rice asked, and offers received, if any; (g) The annual gross income from the property for the previo us two years, if any; (h) The annual cash flow, if any, for the previous two years; (i) An applicant may submit and the Community Impro vement Director of the Neighborhood Services Department or his/her designee may require that an applicant furnish additional information relevant t o the determination of any alleged undue economic hardship; and (j) In the event that any of the required informati on is not reasonably available to the property owner and cannot be obtained by the pr operty owner, the property owner shall file statement of the information which cannot be obtained and the reasons why such information cannot be reasonably o btained. Where such unobtainable information concerns required financia l information, the property owner will submit a statement describing estimates which will be as accurate as are feasible. (4) (3) Reasonable Accommodation : Reasonable Accommodations from this section may be obtained pursuant to LDR Section 2.4.7(G). (5 ) (4) Penalties for Violations : The City adopts all enforcement methods, which i nclude, but are not limited to, the issuance of a citation, sum mons, notice to appear in county court, arrest for violation of municipal ordinances, civil citations, injunction or any other enforcement method authorized by law including penalties as set forth in Section 10.99 of the City’s Code of Ordinances. Any property owner that leases, rents, licenses, su bleases, or otherwise allows in any manner or form t he use of a single -family residential an entire dwelling unit within a single-family zoning or planned residential development zoning district for a period of less than twelve (12) mon ths with a turnover in occupancy of any part of the dwelling unit more often than six (6) three (3) times in any one (1) per year shall be in violation of this section as well as those entire dwelling units that are lo cated within Medium Density Residential (RM) Zoning Districts with a tu rnover in occupancy of any part of the dwelling uni t more often than six (6) times in any one (1) year shall be in vio lation of this section . (6) (5) Severability : (a) Generally . If any part, section, subsection, paragraph, sub paragraph, sentence, phrase, clause, term, or word of Section 4.3.3(ZZZ) is declared unconstitutional 5 ORD. NO. 03-12 by the valid judgment or decree of any court of com petent jurisdiction, the declaration of such unconstitutionality shall not a ffect the remainder of Section 4.3.3(ZZZ), “Transient Residential Uses”. (b) If the entire Section 4.3.3(ZZZ) is declared un constitutional by the valid judgment or decree of any court of competent jurisd iction, the earlier version of this section adopted by the City Commission on July 7, 2009 as Ordinance 29-09 shall be substituted herein and shall be deemed to be in full f orce and effect. Section 2 . That Appendix “A”, “Definitions”, of the Land Dev elopment Regulations of the City of Delray Beach, Florida, shall hereby be amended to read as follows: TRANSIENT RESIDENTIAL USE shall mean a the entire dwelling unit or any part thereof, that i s which is located in Single Family or Planned Reside ntial Development Zoning Districts and is operated or used in such a way that any part of the dwelling u nit turns over turnover in occupancy of more often than six (6) three (3) times in any one (1) year and the entire dwelling unit or any part thereof, which is located in Medium Density Residential (RM) Zoning D istricts and is operated or used in such a way that any part thereof turns over occupancy more often than si x (6) times in any one (1) year . Section 3. That should any section or provision of this ordi nance or any portion thereof, any paragraph, sentence, or word be declared by a court of competent jurisdiction to be invalid, such deci sion shall not affect the validity of the remainder hereof as a whole or part thereof other than the part declare d to be invalid. Section 4. That all ordinances or parts of ordinances in con flict herewith be, and the same are hereby repealed. Section 5 . That this ordinance shall become effective immed iately upon its passage on second and final reading. 6 ORD. NO. 03-12 PASSED AND ADOPTED in regular session on second and final reading on this the _____ day of ___________________, 2012. ____________________________________ ATTEST M A Y O R _______________________________ City Clerk First Reading__________________ Second Reading________________ MEMORANDUM TO:Mayor and City Commissioners FROM:Paul Dorling, AICP, Director of Planning and Zoning THROUGH:City Manager DATE:February 1, 2012 SUBJECT:AGENDA ITEM 10.A. - REGULAR COMMISSION MEETING OF FEBRUARY 7, 2012 ORDINANCE NO. 03 -12 (FIRST READING/FIRST PUBLIC HEARING) ITEM BEFORE COMMISSION Approval of a city-initiated amendment to the Land Development Regulations (LDRs ) that will amend prohibitions, exemptions/exceptions, waivers and penaltie s for transient residential uses; and will amend the definition of “transie nt residential uses”. BACKGROUND Concerns have been raised that allowing the use of single family residential dwelling units for t ransient residential use elevates the use to one that has ch aracteristics of a non-residential activity and is not considered incidental and subordinate to the primary purpose of a “single family dwelling”. Transient residential uses have caused the following impacts and concerns: * Transient residential uses often maximize occupa ncy causing increased pressure on infrastructure. * Rapid turnover in occupancy associated with transi ent residential uses can be a disruptive influence on the peaceful use and enjoyment of single family residential areas. * Transient residential uses can displace permanent single family residential dwelli ngs and thus reduce the number of permanent residents in the City and cause a reduction in state revenue sharing funds necessary to support the services that influence th e quality of life for residents, commercial interests, and visitors. In July of 2009, an Ordinance was passed (Ordinan ce No. 29-09), which incl uded a new definition for Transient Residential Use, defining it as a dwelling unit that is operated or used i n such a way that it has a turnover in occupancy of more than 6 times in any one year. While a consensus was ultimately reached by the City Commission that a turnover rate of six times a year would be adequate to retain neighborhood stability within the Single Family and PRD districts, two and a half years a fter implementation of the Ordinance No. 29-09, reconsider ation of this threshold is now being considered. Further, additional clarification is being provided as to how the turnover rates apply to multiple leases or multiple tenants within a single dwelling unit. Page 1of 2 Coversheet 2/10/2012 htt p ://itweba pp /A g endaIntranet/Bluesheet.as p x?ItemID=5341&Meetin g ID=343 The existing Transient Residential Use definition includes those dwelling units in both single family and multi-family zoning districts which have a turnover rate of more than six (6) times per year. This definition is being modified to include dwelling units that turn over in occupancy more than three (3) times a year in single family and PRD zoning districts. The definition is being further modified to clarify that the turnover rate refers to the entire dwelling unit or any part thereof, regardless of how it is segmented. Those Transient Residential Uses th at may exist by virtue of the defi nition change in Single Family and PRD zoning districts are allowed to continue for twelve (12) months after the effective date of the Ordinance. Any property owner that leases, rents, licenses, or subleases a single family residential dwe lling unit within a single family zoning district more than thr ee (3) times in any given year or a dwelling unit in the RM zoning district more than six (6) times in any given year will be in violation of this ordinance. The attached ordinance clarifies prohibitions, exemptions/exceptions, and waivers and penalties for transient residential uses along with modifying the ex isting definition of transient residential uses to limit occupancy turnover to no more than three (3) times pe r year for any dwelling or any part thereof. REVIEW BY OTHERS The Planning and Zoning Board reviewed the item at their December 19, 2011 meeting and recommended approval subject to conditions on a 7-0 vote. These conditions included changing references in the whereas clauses to the “2010 Census ” and clarifying that the ordinance applied to a dwelling unit or any part thereof. The Board also recommended lowering the allowed turnover rate from three times a year to two times a year. The first two conditions have been incorporated into the Ordinance before the Commission. RECOMMENDATION By motion, approve Ordinance No. 3-12 of the amendment to Land Development Regulations, modifying Subsection 4.3.3(ZZZ), “Transient Reside ntial Uses”, in order to clarify prohibitions, exemptions/exceptions, waivers, and penalties for sa me; and amending Appendix “A”, “Definitions”, in order to amend the definition of “Transient Reside ntial Uses, by adopting the findings of fact and law contained in the staff report, and finding that the text amendment and approval thereof is consist ent with the Comprehensive Plan and meets the crite ria set forth in LDR Section 2.4.5(M). Page 2of 2 Coversheet 2/10/2012 htt p ://itweba pp /A g endaIntranet/Bluesheet.as p x?ItemID=5341&Meetin g ID=343 Memo Date: February 21, 2012 To: Paul Dorling, Planning Director, City of Delray Beach From: Marie L. York, Planner, Fellow of the American Institute of Certified Planners Subject: Planning Issues Regarding Regulation of Transient Uses in Single-Family Neighborhoods In reviewing the City of Delray ’sAplanningAandArelatedA documents, it is evident t hatAtheACity’sAcurrentA policies call for practices that ensure a high quality of life, strongly emphasizes the stability of residential neighborhoods and encourages the development of permanent residential areas. Those commitments match the intent of managing and limiting transient uses to reasonable levels in those neighborhoods. I. Introduction For decades the City of Delray Beach has had a strong commitment to creating a vision and plan for its future, having reinvented itself into a vibrant and viable community by building upon its assets and inspiring residents to be stakeholders in the planning process. The result is an enviable and successful record of growing into a City recognized nationally for its high quality of life, unique character, sense of community and sound planning. Much of the groundwork was laid by holding several American Assemblies, in which a broad cross- sectionAofAcitizensAandAstakeholdersAaddressedAtheACity’sAfutureAandAinAturnAcreatedAguidingAdocumentsA forAredevelopment,AdevelopmentAandAreinvigoration.AATheACity’sAComprehensiveAPlanApresentsAtheAgoals,A objectives, and pol iciesAforAfulfillingAonAthatAvision.A dditionally,AtheACity’sAotherAplanningAdocumentsA such as the 2002 Downtown Delray Beach Master Plan, speak to the citizens vision for the growth and unification of Delray Beach, while stillAretainingAtheA“villageAby -th e-sea”Acharacter and even calling for design guidelines to retain that image. The point is that the City has a strong process in place that expresses a commitment to sound planning overall, stability of residential neighborhoods, and as it relates to those residential neighborhoods, a solid record of supporting and engaging their permanent residents. Residents living in theACity’sAsingleAfamilyAresidentialA neighborhoods have a reasonable expectation of a single family lifestyle. A high turnover rate of transient uses within such neighborhoods is generally inconsistent with that reasonable expectation and with the designated land use. II. Comprehensive Plan TheACity’sAComprehensiveAPlanAhasAtwoAelementsAthatAspecificallyAaddressA residential neighborhoods and housing issues —the Future Land Use Element and the Housing Element . TheAFutureALandAUseAElementAreflectsAtheACity’sAfocusAonAsustainingAandAenhancingAtheAexist ing quality of life, as stated in several objectives and policies. A few excerpts of those are listed below: Additional Information for Item 10.A. “ sAtheACityAhasAanAampleAsupplyAofAhousingAdesignedAtoAaccommodateAitsAseasonalAandA retirement population, new residential developments shall be designed for a balanced demographic mix of permanent year-round residents .” (Policy A-1.5) “ToAreduce,A and eventually eliminate, uses that are inconsistent with predominant adjacent land uses,AandAtoAinsureAcompatibilityAofAfutureAdevelopment:.” (Objective A-2 ) “TheAremainingAgrowthAofAtheAcommunityA shall occur in a manner where new development and redevelopmentAwillAbeAserviceableAandAitAwillAnotAimpedeAtheAcommunity’sAabilityAtoA accommodate future growth or detract from its current quality of life.” (GoalA reaA“B”) The Downtown Delray Beach Master Plan represents the citizens ’ vision for the growth and unification of Delray Beach, while stillAretainingAtheA“villageAby -the-sea ” character of the Central Business District (CBD), and calls for a codification of design guidelines within the Land Development Regulations . (Policy C-3.2) The Housing Element, more specifically, focuses on residential neighborhoods. In the overarching Goal for reaA“ ”AtheAgoalAis…A“To maintain a safe and adequate supply of housing for all income levels and to preserve existing stable neighborhoods, stabilize and enhance neighborhoods that are in transition, and restore and rehabilitate neighborhoods that have declined.”ATheAfulfillmentAofAtheAgoalsAinAtheAHous ing Element is reflected in numerous statements within the Comprehensive Plan. Excerpts are listed below, divided into the categories of “commitmentsAtoAneighborhoodAstability”AandA“citizenAoutreachAtoA neighborhoods.” Commitments to neighborhood stability ForAthoseAareasAidentifiedAasA“stableAresidential”AonAtheAResidentialANeighborhoodA Categorization Map, the City shall implement policiesAtoAensureAthatAtheyAremainA“stableA residential”AandAdoAnotAdecline . (Objective A-3) F orAthoseA“needingAstabilization”AtheACityAshallAtakeAmeasure s to prevent further decline. (Objective A-4) The Strategic Task Team Neighborhood Action Plan is a comprehensive evaluation of the physical and social characteristics of the neighborhood which have an effect on the quality of life of its residents. (Policy A-5.5) The City shall work to upgrade substandard housing conditio ns . (Objective A-7) Funding is to be provided for rehabilitation of the exteriors of owner-occupied units. (Policy A-7.3) “ToAassistAresidentsAofAtheACityAinAmaintainingAandAenhancingAtheirAneighborhood,AtheACity:shallA take steps to ensure that modifications in and around the neighborhood do not lead to its decline:.” (Objective A-11) InAevaluatingAdevelopmentAproposalsAtheACityAshallAconsiderA“theAeffectAthatAtheAproposalAwillA have on the stability of nearby neighborhoods.”A(PolicyA -11.3) The City will provide planning and technical assistance to implement neighborhood-supported initiatives aimed at preserving the character of existing residential areas. (Policy A-11.4) Additional Information for Item 10.A. Citizen outreach to neighborhoods Courtesy notices are to be sent to representatives of homeowner and neighborhood associations of upcoming meetings regarding land use and development. (Policy A-1.3) Annual town hall meetings are to be held to provide a report to citizens of progress made in achieving the goals and objectives of the Comprehensive Plan and to garner input. (P olicy A-1.4) Residents are to have access to Neighborhood Resource Centers which provide services to enhance neighborhood and enrich quality of life. “TheANRCAshallAprovideAtechnicalAassistanceAtoA residential neighborhood associations and work to promote a sense of community throughout the City .”A (Policy A-1.5) The City is to maintain regular personal contact with the representatives of associations at least quarterly by creating a liaison with the City to resolve matters of concern to a neighborhood. (Policy A-4.2) III. Compatibility Issues People who own their own homes have a stake in the property, its attractiveness and its value. Such homeowner-occupied housing contributes to the stability of a neighborhood. Also, given that real estate by nature is a very illiquid asset, owner-occupied housing contributes to a neighborhood ’s stability . High turnover rates of rental units within owner-occupied residential areas can change the character of a neighborhood. The neighborhood becomes different, for short term renter occupants seldom share that sense of stewardship. Rentals units are an important asset within each community —the correct location is the key. Thus, high turnover transient rentals within single family residential neighborhoods , whose permanent residents have a reasonable expectation of a single family lifestyle and a sense of community, can undermine neighborhood stability and become an inconsistent land use and subvert the underlying zoning scheme. Therefore,AtheACity’sAlogicAinAreducingAtheAnumberAofAacceptableAturnoversAforA transient residents from six to three fits with their intent to retain and support the single family lifestyle and will enhance the stability of single family neighborhoods. Additional Information for Item 10.A.