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HomeMy WebLinkAboutDocumentation_Workshop_Tab 02_5/31/2022Agenda Item #2. Workshop STAFF Meeting: Staff Contact �� MEMO Workshop - May 31 2022 Jeremy Allen, Village Manager Department: Manager Discuss written notification requirement related to rental payment increases for residential tenancies. With the growing concern for rent increases, Council asked staff to present sample language that could be considered to help minimize the impact of rent payment increases without notification. Attached are some sample ordinances to review and consider: -Village of Royal Palm Beach (draft ordinance) -City of Like Worth Beach — April 19, 2022 Agenda and backup (See pdf. pages 13-20) -Miami Dade County — March 1, 2022 Agenda and backup This document and any attachments may be reproduced upon request in an alternative format by completing our Accessibility Feedback Form, sending an e-mail to the Village Clerk or calling 561-768-0443. BUDGET •- • BUDGETED AMOUNT: NA AVAILABLE AMOUNT: NA EXPENDITURE AMOUNT: NA Additional Budgetary Information: Funding Source(s): 0I_1 Ord. No. 1029 - Rental Increase Notice VC-1 5-19-22 Lake Worth Beach Miami Dade County March 1 2022 Page 6 of 51 Agenda Item #2. ORDINANCE NO. 1029 AN ORDINANCE OF THE VILLAGE COUNCIL OF THE VILLAGE OF ROYAL PALM BEACH, FLORIDA, AMENDING CHAPTER 6. BUILDINGS AND BUILDING REGULATIONS. AT ARTICLE XI. STANDARD HOUSING CODE. TO ADD ENTIRELY NEW DIVISION 4. — LANDLORD TENANT NOTICE REQUIREMENTS. AND SECTIONS 6-200. - NOTICE OF TERMINATION OF MONTHLY RESIDENTIAL TENANCY WITHOUT SPECIFIC DURATION. AND 6-201 - WRITTEN NOTIFICATION REQUIREMENTS RELATED TO RENTAL PAYMENT INCREASES FOR ALL RESIDENTIAL TENANCIES., TO REQUIRE 60-DAYS' WRITTEN NOTICE FOR TERMINATION OF TENANCIES AND INCREASES IN RENTAL RATES; PROVIDING THAT EACH AND EVERY OTHER SECTION AND SUBSECTION OF CHAPTER 6. BUILDINGS AND BUILDING REGULATIONS. SHALL REMAIN IN FULL FORCE AND EFFECT AS PREVIOUSLY ADOPTED; PROVIDING A CONFLICTS CLAUSE, A SEVERABILITY CLAUSE AND AUTHORITY TO CODIFY; PROVIDING AN EFFECTIVE DATE; AND FOR OTHER PURPOSES. WHEREAS, the Village of Royal Palm Beach ("Village") is a duly constituted municipality having such power and authority conferred upon it by the Florida Constitution and Chapter 166, Florida Statutes; and WHEREAS, according to the University of Florida's Shimberg Center for Housing Studies' 2019 Rental Market Study, there are 2.6 million rental households in the state; and WHEREAS, according to data from CoStar Group, a real estate information provider, rental rates in Palm Beach County in November 2021 increased 3 1 % from the prior year; and WHEREAS, according to Zillow, the average monthly rent in Miami -Dade, Broward and Palm Beach counties was $2,564.00 as of December 2021; and WHEREAS, the Sun Sentinel recently reported research from three Florida colleges indicating renters in South Florida are paying 18.98% more than they would under normal market increases where a five percent (5%) increase in rent is a normal annual increase; and WHEREAS, since the State has preempted the area of rent control and the statutory process to adopt a rent control ordinance requires a referendum each year, the Village has very limited realistic options to assist renters with unreasonable increases in rent; and WHEREAS, Part II of Chapter 83, Florida Statutes, the "Florida Residential Landlord and Tenant Act" ("Act"), applies to the rental of residential dwelling units and sets forth landlord tenant rights and duties but does not provide specific notice requirements for rent increases; and 1 Page 7 of 51 Agenda Item #2. WHEREAS, while some leases contain rent increase provisions, landlord generally may not raise rent during the term of a lease and instead wait until the end of the lease or tenancy term to raise the rent; and WHEREAS, with a written lease, Section 83.575 of the Act provides that notice to terminate is no more than sixty (60) days; however, when there is no lease, the landlord must provide at least 7-days' notice for week -to -week, 15-days' notice for month -to -month, 30-days' notice for quarter -to -quarter, and 60-day' notice for year-to-year rentals; and WHEREAS, this means month -to -month tenants without a lease could be evicted after receiving only fifteen (15) days' notice of a rate increase and/or termination of their tenancy, which given the current lack of vacant rentals and rising rents, is insufficient time for such tenant to find a new affordable location or means to pay a rent increase over five percent (5%); and WHEREAS, according to Florida Attorney General Opinion No. 94-41 (May 5, 1994) and the case law cited therein, the Florida Legislature has not preempted local governments from enacting ordinances that enlarge the notice period for month -to -month tenancies without a specific duration pursuant to Section 83.57 of the Act; and WHEREAS, Florida's Attorney General concluded that such enlargement of the notice period by ordinance would be supplemental to the Act and compliance with such ordinance is possible without violating the Act; and WHEREAS, requiring landlords to provide 60-days written notice before the rent can be increased more than five percent (5%) and before a tenant can be forced to leave in a month -to - month tenancy is a reasonable time period given current market conditions; and WHEREAS, the Village, in response to Florida Attorney General's Opinion No. 94-41, desires to enact this ordinance requiring sixty (60) days written notification to be given by all residential landlords to their tenants with a lease or a monthly tenancy without a specific duration prior to increasing the tenants' rent more than five percent (5%) and prior to terminating a tenancy if the tenancy is monthly without a specific duration; and WHEREAS, the Village has determined that this Ordinance promotes the safety, health, convenience, and general welfare of the residents of the Village. NOW, THEREFORE, BE IT ORDAINED BY THE VILLAGE COUNCIL OF THE VILLAGE OF ROYAL PALM BEACH, THAT: Section 1: The facts and recitations contained in the preamble of this Ordinance are 2 Page 8 of 51 Agenda Item #2. adopted and incorporated by reference as if set forth in this section. Section 2: Chapter 6. Buildings and Building Regulations. of the Code of Ordinances of the Village of Royal Palm Beach is hereby amended at Article XI. Standard Housing Code. to add an entirely new Division 4. Landlord Tenant Notice Requirements. and Sections 6-200. - Notice of Termination of Monthly Residential Tenancy Without Specific Duration. and 6-201 - Written Notification Requirements Related to Rental Payment Increases for All Residential Tenancies., to require 60-days' written notice for termination of tenancies and increases in rental rates; providing that the aforesaid definition at Division 4 shall hereafter read as follows: DIVISION 4. — LANDLORD TENANT NOTICE REQUIREMENTS. Sec. 6-200. — Reauired fair written notice of termination of monthly residential tenancy without specific duration. A residential tenancy without a specific duration (as defined in section 83.46(2). Florida Statutes) in which the rent is payable on a month to month basis may be terminated by either the landlord or tenant by giving not less than sixty (60) days written notice prior to the end of any monthly period. Sec. 6-201. — Required fair written notice for rental payment increases for residential tenancies. A residential landlord that proposes to increase the current rental rate by more than five percent (5%) at the end of a lease for a specific duration, or during a tenancy without a specific duration (as defined in section 83.46(2). Florida Statutes) in which the rent is payable on a month to month basis. must provide sixty (60) days' written notice to the tenant before the tenant must either: (1) Accept the proposed amendment: (2) Reach an acceptable compromise; or. (3) Reject the proposed amendment to their tenancy. If the required sixty (60) days' written notice has been provided and the tenant has not agreed to the proposed amendment or an acceptable compromise, the landlord may impose the proposed amended term(s) or require the tenant(s) to vacate the residence. Section 3: Each and every other Section and Sub -section of Chapter 6. Buildings and Building Regulations. shall remain in full force and effect as previously enacted. 3 Page 9 of 51 Agenda Item #2. Section 4: All Ordinances or parts of Ordinances in conflict be and the same are hereby repealed. Section 5: Should any section or provision of this Ordinance or any portion thereof, any paragraph, sentence or word be declared by a court of competent jurisdiction to be invalid, such decision shall not affect the validity of the remainder of this Ordinance. Section 6: Specific authority is hereby granted to codify this Ordinance. FIRST READING this 19th day of May, 2022. SECOND AND FINAL READING this 16th day of June, 2022. ATTEST: DIANE DISANTO, VILLAGE CLERK M VILLAGE OF ROYAL PALM BEACH MAYOR FRED PINTO (Seal) Page 10 of 51 Agenda Item #2. 07-2022 ORDINANCE NO. 07 — 2022 — AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF LAKE WORTH BEACH, FLORIDA, AMENDING CHAPTER 20, "CIVIL RIGHTS," BY CREATING ARTICLE III, "LANDLORD TENANT NOTICE REQUIREMENTS," SECTION 20-20 "NOTICE OF TERMINATION OF MONTHLY RESIDENTIAL TENANCY WITHOUT SPECIFIC DURATION" AND SECTION 20-21 "WRITTEN NOTIFICATION REQUIREMENTS RELATED TO RENTAL PAYMENT INCREASES FOR ALL RESIDENTIAL TENANCIES," TO REQUIRE 60- DAYS' WRITTEN NOTICE FOR TERMINATION OF TENANCIES AND INCREASES IN RENTAL RATES; PROVIDING FOR SEVERABILITY, CONFLICTS, CODIFICATION, AND AN EFFECTIVE DATE WHEREAS, the City of Lake Worth Beach, Florida ("City") is a duly constituted municipality having such power and authority conferred upon it by the Florida Constitution and Chapter 166, Florida Statutes; and WHEREAS, like other cities in South Florida, over the past year, the City has witnessed a significant and steady increase in rental rates being paid by tenants; and WHEREAS, the Mayor and Commissioners have personally heard from members of the public regarding unreasonable increases in rental rates within the City and Palm Beach County; and WHEREAS, according to data from CoStar Group, a provider of multi -family home real estate information, rental rates in Palm Beach County in November 2021 increased 31 % from prior year rental rates in 2020; and, WHEREAS, data from Zumper, RedFin, and Apartment List found similar numbers with increases in rental rates from 2020 to 2021; and WHEREAS, as reported by the Sun Sentinel on March 23, 2022, research from three (3) Florida colleges reveals that renters in South Florida are paying 18.98% more than what they should be; and WHEREAS, in the same article by the Sun Sentinel it was reported that a five percent (5%) increase in rent is a normal annual increase in rental rates; and WHEREAS, the most recent housing assessments conducted by Florida International University, from 2018 to 2020, showed that in Palm Beach County, 52.7% of renters' households are severely cost -burdened; and WHEREAS, according to the U.S. Census Bureau, rental vacancy rates during the fourth quarter of 2021 fell to 5.6%, the lowest since 1984; and Page 11 of 51 Agenda Item #2. Pg. 2, Ord. 2022-07 WHEREAS, a decrease in available rentals is exacerbating the increases in rent as landlords have a lack of empty units and empty units usually help to maintain the affordability of the rental rates; and WHEREAS, since the State has preempted the area of rent control and the statutory process to adopt a rent control ordinance requires a referendum each year, the City has very limited realistic options to assist renters with unreasonable increases in rent; and WHEREAS, Part II of Chapter 83, Florida Statutes, which is commonly known as "Florida Residential Landlord and Tenant Act" ("Act"), applies to the rental of residential dwelling units and sets forth the rights and duties of landlords and tenants; and WHEREAS, the Act does not provide specific notification requirements for landlords seeking to increase rental rates; and WHEREAS, although some lease agreements contain provisions regarding increase in rental rates, a landlord generally may not raise rent during the term of a lease; and WHEREAS, normally, a landlord will have to wait until the end of the term of the lease or tenancy to raise the rental rate and, while not required, generally the notice of such increase is provided in accordance with the termination notice set forth in the lease or set forth by law; and WHEREAS, with respect to notices of termination of tenancy, if there is a written lease, section 83.575 of the Act provides that notice to terminate is no more than 60 days; and WHEREAS, when there is no lease, section 83.57 of the Act provides that the landlord must provide at least a seven-day notice to a tenant renting week -to - week, a 15-day notice to a tenant renting month -to -month, a 30-day notice to a tenant renting quarter -to -quarter, and a 60-day notice to a tenant renting year-to- year; and WHEREAS, this means tenants renting on a month -to -month basis without a lease could be evicted after receiving only 15 days written notice of a rental rate increase and/or termination of their tenancy; and WHEREAS, according to the Florida Attorney General opinion No. 94-41 (May 5, 1994) and the case law cited therein, the Florida Legislature has not Page 12 of 51 Agenda Item #2. Pg. 3, Ord. 2022-07 preempted local governments from enacting ordinances that enlarge the notification period for month -to -month tenancies without a specific duration pursuant to section 83.57 of the Act; and WHEREAS, the Florida Attorney General concluded that such enlargement of the notification period by ordinance would be supplemental to the Act and compliance with such ordinance is possible without violating section 83.57 of the Act; and WHEREAS, the City desires to assist tenants faced with unreasonable rental rate increases, including those tenants who may only receive 15 days written notice prior to eviction for the same; and WHEREAS, with the current lack of vacant rentals and increases in rents, 15 days written notice is insufficient time for such a tenant to find a new affordable location to live or means to pay an increase in rent in excess of five percent (5%); TOTS WHEREAS, requiring landlords to provide 60-days written notice before the rent can be increased more than five percent (5%) and before a tenant can be forced to leave in a month -to -month basis without a lease is a reasonable time period given the current market conditions; and WHEREAS, the City, in response to the Florida Attorney General's opinion 94-41, desires to enact this Ordinance requiring 60 days written notification to be given by all City of Lake Worth Beach residential landlords to their tenants with a lease or a monthly tenancy without a specific duration prior to increasing the tenants' rental rates above five percent (5%) and prior to terminating a tenancy if the tenancy is monthly without a specific duration; and WHEREAS, the City Commission has reviewed the recommended amendments to Chapter 20 and has determined that they serve a valid public purpose and are in the best interest of the public health, safety and general welfare of the City and its residents. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF LAKE WORTH BEACH, FLORIDA that: Section 1. Recitals. The foregoing recitals are hereby affirmed and ratified as true and correct and specific findings of the City of Lake Worth Beach City Commission. Page 13 of 51 Agenda Item #2. Pg. 4, Ord. 2022-07 Section 2. Amendment. Chapter 20, entitled "Civil Rights," is amended by creating Article III, "Landlord Tenant Notice Requirements," and adding the following sections: Sec. 20-20. — Required fair written notice of termination of monthly residential tenancy without specific duration. A residential tenancy without a specific duration (as defined in section 83.46(2), Florida Statutes) in which the rent is payable on a month to month basis may be terminated by either the landlord or tenant by giving not less than 60 days written notice prior to the end of any monthly period. Sec. 20-21. — Required fair written notice of rental payment increases for residential tenancies. A residential landlord that proposes to increase the current rental rate by more than five percent (5%) at the end of a lease for a specific duration, or during a tenancy without a specific duration (as defined in section 83.46(2), Florida Statutes) in which the rent is payable on a month to month basis, must provide 60 days written notice to the tenant before the tenant must either: (1) Accept the proposed amendment; (2) Reach an acceptable compromise; or, (3) Reject the proposed amendment to their tenancy. If the required 60 days written notice has been provided and the tenant has not agreed to the proposed amendment or an acceptable compromise, the landlord may impose the proposed amended term(s) or require the tenant(s) to vacate the residence. Section 3. Except for the notice provisions set forth above in sections 20-20 and 20-21, all other provisions set forth in Chapter 83, Part 11, Florida Statues, as may be amended from time to time, shall govern residential tenancies. Section 4. Severability. If any section, subsection, sentence, clause, phrase or portion of this Ordinance is for any reason held invalid or unconstitutional by any court of competent jurisdiction, such portion shall be deemed a separate, distinct, and independent provision, and such holding shall not affect the validity of the remaining portions thereof. Section 5. Repeal of Laws in Conflict. All ordinances or parts of ordinances in conflict herewith are hereby repealed to the extent of such conflict. Section 6. Codification. The sections of this Ordinance may be made a part of the City's Code of Ordinances and may be re -numbered or re -lettered to accomplish such, and the word "ordinance" may be changed to "section", "division", or any other appropriate word. Page 14 of 51 Agenda Item #2. Approved Mayor Veto Override ORDINANCE NO. Agenda Item No. 7(C) 3-15-22 ORDINANCE RELATING TO TERMINATION OF CERTAIN RESIDENTIAL TENANCIES AND FAIR NOTICE FOR RENT INCREASES FOR RESIDENTIAL TENANCIES; AMENDING SECTION 17-03 OF THE CODE OF MIAMI-DADE COUNTY, FLORIDA; REQUIRING WRITTEN NOTIFICATION PERIOD RELATED TO RENT INCREASES IN INCORPORATED AND UNINCORPORATED AREAS OF MIAMI-DADE COUNTY; INCREASING NOTIFICATION PERIOD RELATED TO TERMINATION OF CERTAIN MONTH -TO -MONTH RESIDENTIAL TENANCIES IN INCORPORATED AND UNINCORPORATED AREAS OF MIAMI-DADE COUNTY; PROVIDING SEVERABILITY, INCLUSION IN THE CODE, AND AN EFFECTIVE DATE WHEREAS, it is the intention of this Board to provide all Miami -Dade County residents with a fair notice if their rents are to increase; and WHEREAS, according to the University of Florida's Shimberg Center for Housing Studies' 2019 Rental Market Study, there are 2.6 million renter households in the State of Florida; and and WHEREAS, of the 895,801 households in Miami -Dade County, almost half are renting; WHEREAS, according to a 2019 study by Florida International University, 48.4 percent of households in Miami -Dade County are considered "cost burdened," which, according to the United States Department of Housing and Urban Development, includes households who pay more than 30 percent of their income for housing and may have difficulty affording necessities such as food, clothing, transportation, and medical care; and 5 Page 15 of 51 Agenda Item #2. Agenda Item No. 7(C) Page 2 WHEREAS, during the coronavirus-2019 (COVID-19) pandemic, there has been an influx of people moving to Florida from states with higher wages and cost of living which has caused an upsurge in rental rates in Florida; and WHEREAS, according to a recent Miami Herald editorial report, as of December 2021, the average monthly rent in Miami was $3,020.00, which represents a 34 percent annual increase; and WHEREAS, according to the website Zillow, the average rent in the tri-county area of Miami -Dade, Broward and West Palm Beach, as of December 2021, was $2,564.00; and WHEREAS, recently it was reported through various media outlets that one landlord in the City of Hialeah informed their tenants that the tenants' rent would be increased by 65 percent; and WHEREAS, part II of chapter 83, Florida Statutes, commonly known as the "Florida Residential Landlord and Tenant Act" ("the act"), applies to the rental of residential dwelling units and sets forth the rights and duties of landlords and tenants; and WHEREAS, the act does not provide specific notification requirements for landlords seeking to increase rental rates; and WHEREAS, although some lease agreements contain provisions regarding increases in rental rates, a landlord generally may not raise rent during the term of a lease; and WHEREAS, therefore, a landlord will have to wait until the end of the term of the lease to raise the rent and it is expected that notice of such will be provided in accordance with termination notices set forth by law or in accordance with the lease agreement; and 6 Page 16 of 51 Agenda Item #2. Agenda Item No. 7(C) Page 3 WHEREAS, with respect to notices of termination of tenancy, if there is a written lease, section 83.575 of the act provides that the notice required to terminate a tenancy is no more than 60 days notice; and WHEREAS, where there is no lease, on the other hand, section 83.57 provides that the landlord should provide a seven-day notice to a tenant renting week -to -week, a 15-day notice to a tenant renting month -to -month, a 30-day notice to a tenant renting quarter -to -quarter, and a 60- day notice to a tenant renting year-to-year; and WHEREAS, on January 20, 2021, this Board adopted Ordinance No. 21-1, which extended the written notification requirement for termination of a month -to -month residential tenancy from 15 days to 30 days throughout Miami -Dade County; and WHEREAS, nevertheless, this ordinance does not provide a notice provision for increases in rent and there is no explicit notice provision for increases in rent in the act; and WHEREAS, according to court opinions and Florida Attorney General Opinion No. 94- 91, the Florida Legislature has not preempted local governments from enacting ordinances that enlarge the notification period for month -to -month tenancies without a specific duration pursuant to section 83.57 of the act; and WHEREAS, the Attorney General concluded that such enlargement of the notification period would be supplemental to the state statute, and compliance with such ordinance is possible without violating section 83.57; and WHEREAS, in response to the Attorney General's opinion and to assist renters, the City of Miami Beach recently enacted an ordinance that requires 60 days written notification be given by Miami Beach residential landlords to their tenants prior to increasing the tenants' rent beyond a specified percent; and 7 Page 17 of 51 Agenda Item #2. Agenda Item No. 7(C) Page 4 WHEREAS, additionally, states, including Alabama, Alaska, Arizona, California, Indiana, Iowa, Kansas, Massachusetts, Missouri, New Hampshire, New Jersey, New Mexico, North Dakota, Ohio, Pennsylvania, Rhode Island, South Dakota, and Texas, have laws that require landlords to provide notice to their tenants prior to increasing their rents; and WHEREAS, accordingly, this Board desires to require that residential landlords in unincorporated and incorporated Miami -Dade County who proposes to increase the rents of their tenants by five percent or more shall provide such tenants with advance written notice of such increase; and WHEREAS, further, this Board desires to amend Ordinance No. 21-1 to supplement the notification period requirements for month -to -month tenancies under section 83.57 of the act by enlarging such notification period from 30 days to 60 days, BE IT ORDAINED BY THE BOARD OF COUNTY COMMISSIONERS OF MIAMI-DADE COUNTY, FLORIDA: Section 1. Section 17-03 of the Code of Miami -Dade County, Florida, is hereby amended to read as follows:I Sec. 17-03. Required written >>fair<< notice of termination of monthly residential tenancy without specific duration >>and written notification requirements related to rental payment increases for all residential tenancies«, (a) A residential tenancy without a specific duration in which the rent is payable on a monthly basis may be terminated by either the landlord or tenant by giving not less than [[-30]] >>60<< days written notice prior to the end of any monthly ' Words stricken through and/or [[double bracketed]] shall be deleted. Words underscored and/or >>double arrowed<< constitute the amendment proposed. Remaining provisions are now in effect and remain unchanged. 8 Page 18 of 51 Agenda Item #2. Agenda Item No. 7(C) Page 5 period. [[The fequir-ements of this efdinanee shall app4y within iaeeFPoFMed and unineer-pefated areas of Miami Dade ]] »& A residential landlord that proposes to increase the rental rate by more than five percent at the end of a lease for a specific term, or during a tenancy without a specific duration in which the rent is payable on a monthly basis, must provide 60 days written fair notice to the tenant before the tenant must either: accept the proposed amendment, reach an acceptable compromise, or (33) reject the proposed amendment to their tenancy. If the required 60 days written fair notice has been provided and the tenant has not agreed to the proposed amendment or an acceptable compromise, the landlord may impose the proposed amended term(s) or require the tenants to vacate the residence. (c) The requirements of this ordinance shall apply within incorporated and unincorporated areas of Miami -Dade Coup .<< [[%]]>>(d)« Except for the notice provisions set forth in subsection (a) >>and (b)<<, all other provisions set forth in part II of chapter 83, Florida Statues, as such may be amended, shall govern residential tenancies. Section 2. If any section, subsection, sentence, clause or provision of this ordinance is held invalid, the remainder of this ordinance shall not be affected by such invalidity. Section 3. It is the intention of the Board of County Commissioners, and it is hereby ordained that the provisions of this ordinance, including any sunset provision, shall become and be made a part of the Code of Miami -Dade County, Florida. The sections of this ordinance may be renumbered or relettered to accomplish such intention, and the word 'ordinance" may be changed to "section," "article," or other appropriate word. 9 Page 19 of 51 Agenda Item #2. Agenda Item No. 7(C) Page 6 Section 4. This ordinance shall become effective ten (10) days after the date of enactment unless vetoed by the Mayor, and if vetoed, shall become effective only upon an override by this Board. PASSED AND ADOPTED: Approved by County Attorney as to form and legal sufficiency: Prepared by: Terrence A. Smith Leigh C. Kobrinski Prime Sponsor: Commissioner Eileen Higgins 10 Page 20 of 51