Miami Beach Property Rights

Judge Grandfathers Key West Transient Rentals

2011-08-03T10:04:00.003-04:00

Citing an earlier court precedent, the Judge grandfathered-in 17 property owners who could prove they had rented their homes for less than 30 days prior to a 1998 ban, and had a non-transient occupational license that allowed them to do business in Key West.

To read the entire article click here.

Florida Municipal Governments Banned from Restricting Short-term Rentals

2011-07-13T09:31:00.003-04:00

In June 2011, Governor Rick Scott signed a new law that prohibits local governments from restricting short-term rentals.

Ironically, while Miami Beach failed to grandfather short-term rentals in single-family neighborhoods when it passed a ban on rentals 6 months or less in 2009, Miami Beach lobbied the State to "grandfather" their rental ban.

As a result, Miami Beach's rental ban was "grandfathered in" by Governor Scott.

Thus, Miami Beach's ban on short-term rentals in single-family neighborhoods, as well as bans in Sarasota County, and the Florida Keys, remain in full force and effect until and unless overturned by the Courts.

To read the full story, click here.

Venice, FL Suspends Short-Term Rental Ban in Wake of New Lawsuit

2011-07-13T09:21:00.003-04:00

In March, 2011, Venice, FL officials suspended their short-term ban in the wake of a new lawsuit against the City by property owners who never received their "grandfather rights".

The City is currently awaiting a ruling by the Second Court of Appeals as whether their short-term rental ban is constitutional.

To read the full story, click here.

Meanwhile, a new group of property owners claim they, like Martha Gwynn who recently won a suit against the City, were denied an opportunity to be grandfathered by the City's rental ban .

To read the full story, click here. To read or download the legal complaint, click here.

Court Rules Against Jupiter, FL's Short-Term Rental Ban

2011-07-13T09:11:00.003-04:00

In 2008, Jupiter, FL's code compliance department began issuing zoning violations to property owners caught renting "short-term". Much like Miami Beach, prior to 2009, there was an absence of rental restrictions in the zoning code determining the length of rentals for single-family homes.

In 2009, Jupiter, FL took property owners Alex and Holly Bondar to court, seeking a "declaratory judgment action" against the Bondars' "short-term rentals.

The Bondars responded that the City had taken their property rights without due process, as the City had never adopted any restrictions into the City Code.

In December 2010, the court ruled against Jupiter, FL, and in favor of the Bondars, who had retained the non-profit Pacific Legal Foundation as representation.

To read more the full story, and download the ruling, click here.

Venice, FL Short-term Rental Ban Unconstitutional says Judge

2011-07-13T09:02:00.006-04:00

When Venice, FL passed a law banning short-term rentals less than 30 days in single-family neighborhoods, the City failed to grandfather Martha Gwynn because she didn't meet criteria the City required for grandfathering by the City's deadline.

In November 2010, an appellate Judge ruled that the City's ordinance was unconstitutional because it had improperly taken Ms. Gwynn's right to rent her property short-term. The Court ruling reinstated Ms. Gwynn right to rent short-term even though she failed to comply with the City's grandfathering rules.

To read the full article, Click Here.

Click the following link to read and download the Ruling in the Venice short-term rental case

Miami Beach Bans Vacation Condo Rentals Just in Time to Stop Summer Travelers

2010-06-11T00:03:00.007-04:00

The City Commission voted Wednesday June 9th, 2010 to codify rental restrictions adopted by the Flamingo Park Neighborhood Association:

* No rentals allowed for less than six months.

* Rental restriction supersedes condominium association rules.

* Several properties in the Flamingo Park area may be eligible for grandfathering.

The City will apply the ban city-wide, and grandfathering will not apply in other zones unless approved by neighborhood groups.

In 2009, planning officials had recommended allowing weekly rentals in Flamingo Park and other multi-family areas, following a vote by the Land Use Committee in 2008 recommending that weekly rentals be allowed.

This new law sets a precedent that neighborhood associations should be given deference by the City Commission when passing zoning laws, rather than planning officials.

Complaints about short-term rentals by leaders of the Palm-Hibiscus-Star Islands Homeowners Association also led to the adoption of a 6 month rental ban in single-family neighborhoods in 2009.

Short-term rentals have continued there despite the ban, leading some to claim preferential treatment is given to celebrity property owners.

It is expected this property rights issue will continue to gather attention as litigation continues and ensues in both residential zones, as well as throughout the State of Florida.

Miami Beach to Vote Again on Condo Rental Ban

2010-06-04T16:44:00.010-04:00

Due to a postponed meeting last month, today, Wednesday June 9, 2010, at 5PM, the City Commission will hold a public hearing and debate whether or not to ban rentals less than six months in multi-family areas of South Beach, Middle Beach, and North Beach.

The current legislative strategy seeks to avoid re-hearing the Special Master's ruling that short-term rentals are presently legal in multi-family areas, and instead codifies rental restrictions adopted by the Flamingo Park Neighborhood Association:

* No rentals allowed for less than six months

* Rental restriction supersedes condominium association rules.

* Several properties in the Flamingo Park area may be eligible for grandfathering based on criteria adopted by the Flamingo Park Neighborhood Association.

The City will apply the ban city-wide, and grandfathering will not apply in other zones unless approved by neighborhood groups.

More information can be found in the Commission Agenda at: www.miamibeachfl.gov

A complete history of this issue, beginning with the short-term rental of single-family homes in Miami Beach, can be found on this website.

Florida Community Votes to allow Short-Term Rentals (less than 30 days)

2010-05-17T11:50:00.003-04:00

GAINESVILLE - If you have a dwelling in the Vacation Cottage zoning district on Lake Lanier you may now rent it out to vacationers for less than 30 days, and with a recommendation from the Hall County Planning Commission Monday night, that could extend to single family residential subdivision homes near the lake.

A month ago county commissioners approved permitting short term rentals of less than 30 days in the Vacation Cottage zoning district and asked planning staff for direction on possibly allowing (R-1) homeowners the same arrangement, but there would be conditions, according to Planning Director Randy Knighton.

Home owners under a private covenant that prohibits less than 30 day vacation rentals in their subdivision would not be able to rent their dwellings short term.

The Lake Lanier Convention and Visitors Bureau advocated the short term rental move as a way to open up the lakeside rental market and promote tourism.

For more info CLICK HERE

UPDATE: Commission to Decide Fate of Miami Beach Rental Market and Tourism Economy

2010-05-09T12:21:00.007-04:00

On Wednesday, May 12th, 2010, the Miami Beach commission will vote on an ordinance set to ban weekly and monthly rentals of condos and apartments in most of South Beach, as well as large areas of North Beach.

The ordinance would "grandfather" some short-term apartment rentals, as other Florida cities have done in single-family neighborhoods, but would exempt others who failed to obtain certain licensing or bought outside of South Beach's Flamingo Park area.

When the City's zoning code was passed in 1989, Commissioners failed to ban "the decades-old tourism niche" of short-term and seasonal apartment rentals.

As a result, these short-term rentals continued to operate and gain in popularity, drawing investors and new residents who purchased with the understanding they could rent to Miami Beach's seasonal rental market.

Currently, the City collects resort tax on short-term apartment rentals, and even senior City Officials have sanctioned the rentals in condos.

On January 21, 2007, as the super-bowl headed for Miami, the Miami Herald reported:

"Some cities, such as Miami Beach, forbid owners from renting a single-family home for less than six months. The rule doesn't apply to condos, said Hilda Fernandez, Miami Beach's assistant city manager."

Now it might apply, if this new law passes, but David Kelsey, president of the South Beach Hotel and Restaurant Association, said cracking down on short-term rentals could hurt the city's tourist industry.

"One size doesn't fit all,'' he said. "Hotel rooms are fine for most people but not everyone."

The city could also be headed for more litigation if it enforces the new law.

Christian Jagodzinski, who sued in 2007 challenging the planning department's short-term rental policy, sued again after the city passed a law last year banning the rentals in single-family homes, calling it unconstitutional. The lawsuit is ongoing in federal court.

A ban on apartment and condo rentals is expected to be even more complicated, as such properties are generally purchased and zoned as rental property.

For more information, click here to read Miami Herald Article

Indiana Town Loses Short-term Rental Lawsuit

2010-05-04T16:36:00.002-04:00

March 17, 2010

The town of Ogden Dunes cannot stop homeowners who want to rent out their property for periods of less than a month, the Indiana Court of Appeals ruled Tuesday.

In 2007, the Porter County town of 1,300 people decided to stringently enforce its residential zoning code, which the town claimed prohibited short-term home rentals. The goal was to prevent the lakefront community from becoming a resort area.

Later that year, the town accused Steven and Lauren Siwinski of renting out their beachfront home five times that summer, essentially using their residence for a commercial purpose, which is prohibited. The town sought a $2,500 fine for each day the home was rented.

Porter Superior Court Judge Mary Harper ruled in favor of the town in June.

However, the appeals court found that -- because the zoning ordinance does not specifically prohibit short-term rentals and because the rented home is being used in a residential manner -- short-term rentals do not violate the zoning ordinance.

"Nothing in the designated evidence established that any commerce or other activities not associated with a residence were ever conducted on the Siwinskis' property," wrote Judge James S. Kirsch in the court's 3-0 decision.

The decision reversed a fine of $40,000 the town imposed on Steven and Lauren Siwinski for offering their $1 million home in the small beachfront community for short-term rentals.

"We are pleased that the Court of Appeals has clarified what always appeared clear to my family: If the town wants to ban short-term rentals, then the town should pass an ordinance that specifically bans them," Steven Siwinski said.

Siwinski, a mortgage broker, sued the town in federal court in 2008, claiming that the town allowed short-term rentals for years. Siwinski said he and his wife were targeted by the town because they were part-time residents.

Click here to read the full account: CLICK HERE

Commission Continues Debate on Fate of Condo Rentals

2010-02-20T08:59:00.010-05:00

On Thursday, February 25th, at 4 PM, the City of Miami Beach Land Use Committee will continue discussion of a ban on condominium, single-family home, and apartment leases 6 months or less in the following areas:

RM1, CD1, RO, RO3, RPS1, RPS2, TH, RMPRD, and RPMRD2:

Last month's meeting reportedly involved heated debated between Commissioner Wolfson who said such rentals are presently "legal" and should be banned, and City Staff who contend they already outlawed such rentals years ago using their own administrative interpretation.

Avon, CO approves Short-term Rentals

2010-01-25T18:49:00.003-05:00

Avon, Colorado, home to the Vail resorts ski area, has approved an ordinance allowing short-term rentals less than 30 days in most areas of the town center.

Previously, renting out homes for 30 days or fewer was forbidden in town.

Avon, Colorado, resident Judy Neuharth, who rents out her home on weekends to cover her mortgage, said she would lose her home if she could not rent it out on a short-term basis. She applauded the council's decision.

“I'm psyched,” she said. “I can see that I can keep it (my home). Really I bought it as an investment in the first place.”

A recurring debate focused on whether short-term renters cause noise and parking troubles.

One resident said allowing short-term rentals could attract party types such as fraternity brothers, but several other people argued short-term renters tend to be family types who spend money at local shops and restaurants.

Councilwoman Kristi Ferraro argued that short-term renters are no more likely than other residents to cause problems. She said a lot of people are already renting out their homes short term and would continue to do so even if the council didn't approve the change — in the same way people drank during Prohibition.

“I think it's a right people think they should have,” she said.

In a number of neighborhoods, short-term rentals remain forbidden, due to deed restrictions. These include planned unit developments where customized laws do not allow short-term rentals. In those neighborhoods, an amendment to those customized laws would be required to allow short-term rentals.

Miami Beach to Consider Ban on Condo Rentals

2010-01-25T18:08:00.005-05:00

On Thursday, January 28th, at 4 PM, the City of Miami Beach Land Use Committee will consider expanding the recently adopted ban on single family home rentals of 6 months or less in RS1-4 zones to include the following areas:

RM1, CD1, RO, RO3, RPS1, RPS2, TH, RMPRD, and RPMRD2:

This ordinance would "codify" the former Planning Director's opinion that any rental of residential property in multi-family zones subject to the City's resort tax on apartment rentals should be construed as an illegal "hotel use".

This opinion was nullified by Special Master Kaplan's ruling in July, 2008.

This ordinance, if adopted, would effect all single family homes, condominiums, apartments, and town-homes and will supercede any condominium association rules, restrictive covenants, and/or other regulations permitting such rentals.

On a bright note, the Staff Report mentions the possibility of allowing 1 single-family home South of Fifth to operate short-term rentals, and grants approval to several properties in Flamingo Park areas to continue renting short-term.

Pacific Grove, CA Legalizes Short-term Rentals to Reap Tax Benefits

2010-01-25T17:59:00.004-05:00

The Pacific Grove City Council voted unanimously this week to modify a 12-year old restriction on rentals for less than 30 days. The modification would permit rentals of residential property with registration, licenses, and payment of transient occupancy tax. This move will not only legitimize activity that has been going on in the City, but will bring in some much-needed cash flow to this town.

After twelve years of short-term rentals occurring throughout the city, despite an ordinance against such rentals, the City of Pacific Grove decided to take a different approach. The City’s current ordinance, enacted by the City Council in 1997, disallows rentals of single-family residences for less than 30 days. The City has now taken the position that these rentals should be licensed, inspected and taxed. The City missed out on over a million dollars in revenue that could have been generated since the original ordinance was passed.

The advent of legalization of rentals less than 30 days is reportedly joyous news to visitors, property managers, owners of second homes in PG, and PG business persons, all of whom will benefit from having visitors to the area.

See Link HERE

Miami Beach sends short-term rental law back to drawing board

2009-09-15T20:10:00.001-04:00

Miami Beach commissioners balked at a measure to regulate short-term rental communities on Wednesday, saying the proposed rule still needs work.

The commission sent the proposal back to the city's land use and development committee for tweaking and further discussion. You are encouraged to contact City Commissioners with your views.

Click here to read the Miami Herald Article

City Commission to Decide Fate of Rental Properties

2009-09-08T17:13:00.006-04:00

On Wednesday, September 9, 2009, the City Commission will hear the first reading of the Planning Board's proposed ordinance prohibiting all rentals less than six months and one day in certain areas South of Fifth, West Avenue/Bayfront, and Flamingo Park (Bed and Breakfast hotels excepted).

The ordinance would allow short-term rentals in areas of North Beach and Collins Park, and suggests "grandfathering" short-term rental properties in prohibited areas, subject to strict rules for qualification.

The ordinance would apply to single family homes in these areas, as well as apartments buildings and condominiums. It will not apply to apartments in single family zones (RS 1-4).

See newly released Staff Report: click here

The City Commission Agenda is extremely long and discussion of the short-term rental issue is unlikely until the late-afternoon or early evening. If you plan to attend arrival time is at your discretion.

We suggest anyone who owns rental property, or wishes to rent property in the future, should attend this meeting and write the City Commission @

Mayorbower@miamibeachfl.gov; victor@miamibeachfl.gov; jonah@miamibeachfl.gov; ed@miamibeachfl.gov; saul@miamibeachfl.gov; deede@miamibeachfl.gov; jerry@miamibeachfl.gov

Neighborhood by Neighborhood

2009-07-27T15:21:00.011-04:00

The City of Miami Beach Planning Board will vote Tuesday, July 28th at 2:00 pm on an ordinance regulating weekly rentals in multi-family neighborhoods.

The Board will have a public hearing to receive input from the community to determine which multi-family neighborhoods will allow weekly rentals and which neighborhoods will prohibit these rentals.

The multi-family weekly rental ordinance provides for regulation of the rentals through licensing and inspections.

Additionally, it safeguards against condo unit owners going outside the rules of their condo docs by requiring approval from condo boards before City licenses will be issued for units in condo buildings.

We encourage you to attend the meeting and advocate to allow weekly rentals in your neighborhood. It is important that each neighborhood be represented, otherwise, you could lose your right to rent short term.

Please send us an email and let us know if you plan to attend. miamibeachpropertyrights@gmail.com

Venice - Council to revisit brief rentals

2009-06-23T08:24:00.004-04:00

The City Council of Venice Florida is meeting today to, once again, debate short-term rentals of single family homes.

Read the article "Council to revisit brief rentals" at the Herald Tribune web site.

Multi-Family Property Rights at Risk

2009-06-22T10:28:00.003-04:00

For a little over a year, the City of Miami Beach Commission and Planning Board have been deliberating the terms of rental agreements. It seems the Planning Director, for a reason unknown to the public, issued an Interpretation of the zoning code stating that because the tax code levies resort taxes on rentals of less than six months these rentals are considered "hotel use" and since hotels are not permitted in low-density residential districts landlords and tenants are prohibited from entering into contracts for less than six months.

The interpretation was deemed "arbitrary and... not enforceable" by the City's Special Master in a July 2008 decision. Additionally, the Special Master ruled "to impose a greater than 6 month requirement for rentals of apartments... is clearly not within the authority of the Director."

Therefore, the City has put forward ordinances to "clarify" the code.

No rentals less than six months - this ordinance would "codify" the Director's Interpretation which would prohibit tenants from renting apartments/condos for less than six months.
No rentals less than one week - this ordinance would prohibit rentals of less than one week. If rentals are for less than six months the property and property owner are subject to many restrictions and regulations.

The Planning Board will have its third public hearing on this issue Tuesday June 23rd at 1:30 in the Commission Chambers (3rd Floor, City Hall, 1700 Convention Center Drive, Miami Beach, FL).

This hearing and deliberation will focus on the neighborhoods where weekly rentals would be permitted.

To read the staff report which outlines the City's position and recommendations to the Board and to read the ordinance click File 1925 Short term rental of apartment units or townhomes.

The staff report segments neighborhoods by percentage of properties homesteaded and proximity to commercial districts and suggests that these factors be considered in determining whether a neighborhood should be zoned to allow weekly rentals.

If you own and/or rent multi-family property, we suggest you:

View the staff report for the City's recommendation regarding your neighborhood,
Attend the hearing or
Contact the Planning Board

gappel@taxadjusters.net; jon@frydproperties.com; dveitia@urbanresource.com; henrystolar@bellsouth.net; rweisburd@apmanagement.net; fksobe@bellsouth.net; information@jskarchitecturalgroup.com;

A petition is also available on the Flamingo Park Homeowners Association web site.

At previous hearings, long-term residents spoke-out against allowing weekly rentals for fear that "transients" would "destroy the neighborhood".

If you do not speak out for your rights the City will forfeit them for you.

City May Abandon Rule Preventing Alcohol Sales in certain Commercial Areas

2009-06-22T09:48:00.003-04:00

An old City Code doesn't allow the sale of alcohol within 300 feet of an educational facility.

This Code has made it necessary for restaurants and other establishments on Espanola Way and sections of Washington Avenue to obtain variances from the City of Miami Beach Board of Adjustment every time a new business is opened, an often costly and time-consuming process.

Over the years, these variances have been granted and Espanola Way has become a vibrant historic district serving residents and tourists alike.

City of Miami Beach Board of Adjustment member Alex Annunziato thinks the old Code should be retired:

“I think there’s an argument to be made that this rule is one of the rules that needs to be identified for revision,” Annunziato said. “There’s really no way that we can accurately and logically enforce it anymore.”

City Attorney Gary Held sees the logic in revising the rule, stating “clearly there has been a pattern established that this use has been permitted.”

“I don’t understand why we have the ordinance,” said Sherry Roberts, a candidate for Miami Beach Commissioner and Board of Adjustment member. “If staff is recommending to us that we always approve these, it’s like, why are we wasting our time? Either we are going to obey the ordinance or we’re not.”

The President of nearby Fisher-Feinberg Elementary, and the school board, are not opposed to alcohol sales in nearby restaurants and cafes.

As a result, the Board of Adjustment drafted a resolution asking the City Commission to examine the old Code and consider abandoning it all together.

For more information, read "City Board Challenges Espanola Way Area Alcohol Restrictions"

Tuesday: Planning Board to Vote on Short-term Rentals in Multi-family Districts

2009-05-22T19:05:00.006-04:00

The City of Miami Beach Planning Board will hold a public hearing on Tuesday May 26th at 3:00 PM at City Hall Commission Chamber (3rd Floor, 1700 Convention Center Drive, Miami Beach) regarding the Short-term Rental of Apartments or Townhomes in Multi-family Zoning Districts. See the Agenda posted here.

This will be the second public hearing on this item. At the conclusion of the first public hearing the Planning Board requested the City staff provide more detail regarding the zones and neighborhoods affected.

The staff has prepared a report outlining some information such as homesteads by neighborhood, zones by neighborhood, and recognizing the use of bed and breakfast inns, suites hotels, and apartment hotels already allowed in multi-family historic districts.

Staff indicates that short-term rental of apartments is occurring in multi-family historic districts, and the ordinance is designed to offer some protection to mitigate any issues that might arise in the future.

The ordinance will help to guarantee the right of property owners to rent their apartments, or condominiums with association approval, with the flexibility provided under State housing laws.

Please let the board know how you feel. Attend the meeting. If you cannot attend, please send an email to the Planning Board letting them know you support the ordinance for your neighborhood.

gappel@taxadjusters.net; jon@frydproperties.com; dveitia@urbanresource.com; henrystolar@bellsouth.net; rweisburd@apmanagement.net; fksobe@bellsouth.net; information@jskarchitecturalgroup.com;

Communities Debate Short-term Rentals

2009-04-22T09:27:00.000-04:00

Many communities around the country are debating restrictions or prohibitions for short-term rentals.

It appears that despite the poor economy and tight municipal budgets, short-term rentals are targeted as the cause of all nuisances with little to no economic benefit to the community.

Below are links to short-term rentals in the news.

Along the shores of Lake Michigan, resort communities are considering grand-fathering current rentals but prohibiting new rentals.

Marco Island, FL - ordinance proposes defining short-term rentals as one week to six months; and "Ken Honecker, a neighbor to a nuisance rental, said strict enforcement of current state laws against nuisance properties, whether renter or owner-occupied, could solve the problem."

In Newport, WI a resident living next to a short-term rental want the town to "do something" about the rentals, the town stated that if it did something it would likely get sued, the resident thought better the town than me.

Short-term rentals on the rise in Kissimee, FL and surrounding communities are a welcome bright spot in an economy dependent on tourism.

Massachusetts considers expanding the room occupancy tax to include rentals of second homes, condominiums, and time shares.

Special Master Jurisdiction Change - What's Happening?

2009-04-19T09:53:00.005-04:00

At the April 6, 2009 Land Use and Development Committee Meeting, the ordinance to "clarify" the jurisdiction of the special master was debated. Below are the minutes of the meeting as posted on the City's web site:

AFTER-ACTION: Gary Held, First Assistant City Attorney, introduced the item. He explained that the proposed ordinance was a clarification of existing law that already applied to limit special master review of appeals from notices of violation, and that the City Commission referred the item to the Committee during its consideration at first reading. Motion: (Diaz / Wolfson - vote 2-0) The Committee instructed the Administration to bring back the proposed ordinance to the LUDC and incorporate the following changes:
Remove the applicability clause regarding pending proceedings before the City's Special Master.
Outside of this particular ordinance, recommend on how to address the due process issue of when and how persons receive notice of administrative determinations by the Planning Director, for example by either posting interpretations to the City's web site, reporting them to the City Commission, codifying them, and/or amending language on notices of violation by Code Compliance that explains that appeals of the Planning Director's or other officials' decisions are to the Board of Adjustment, and other applicable boards.

It appears that despite the Committee's desire to bring the item back to committee for further revision and review, the proposed ordinance has been placed on the Commission's Agenda for April 22, 2009 for 2nd Reading and Public Hearing at 11:15AM. See Agenda item posted here on the City's web site.

Broward's Wilton Manors and Dade's Miami Beach to Face Lawsuits for Short-term Rental Bans

2009-04-17T09:24:00.005-04:00

Posted on Daily Business Review

Wilton Manors
Recent ban on short-term rentals invites lawsuit by 14 homeowners
April 02, 2009 By: Terry Sheridan

The house on Northwest Second Avenue in Wilton Manors looks like any other lushly landscaped single-family home with a pool in a pleasant community.

But owners Louis Heidel and James Lang don’t use their house like most of their neighbors do. In ads on http://www.altraverse.com/, Heidel and Lang invite vacationers to “enter, exhale, escape” and rent the house.

Now they and 12 other owners of vacation-rental homes face city citations of $500 per day for code enforcement violations after Wilton Manors voted recently to ban short-term rentals in residential areas.

The 14 owners are suing the city, saying officials misinterpreted their own zoning law. Their lawsuit in Broward Circuit Court is one of several similar actions across the state as property owners take on municipalities eager to eliminate “businesses” operating in residential areas.

The property owners named in the lawsuit individually or as companies — including Heidel, Lang, Jeffery Hill, William Williams, Money Tree 1 and 2 LLC, 2016 Mid Century House LLC and Pleas’D in Lauderdale LLC — filed a seven-count suit last week. They claim the city’s decision to change its short-term rental law denied them due process and is an inverse condemnation of their properties. An inverse condemnation claim alleges a government action has taken or diminished property value, and owners typically seek to be paid for that loss.

The owners want the city’s action overturned.

None of the owners could be reached for comment.

The city has not responded to the suit.

City Attorney Kerry Ezrol of Goren Cherof Doody & Ezrol in Fort Lauderdale did not return a phone call.

Mayor Gary Resnick, an attorney in the Fort Lauderdale office of GrayRobinson, declined to comment on the lawsuit.

“It’s my understanding that these people bought these houses knowing they weren’t zoned for short-term rentals,” he said.

The City Commission voted Feb. 24 that single-family homes rented out more than three times per year or for less than 30 days at a time should be considered businesses or transient housing. Transient housing isn’t allowed in the residential zoning district where the properties are located, so the city issued code enforcement citations to the owners.

Click play to listen to Rick Rumrell

City officials voted incorrectly, said the owners’ attorney, Richard Rumrell of Rumrell Costabel Warrington & Brock in St. Augustine. Not only does the zoning allow rental housing in the neighborhood where the houses are located, but the code doesn’t specify the duration and frequency of rentals, he said.

“Municipalities are not allowed to enforce zoning codes the way they would like those codes to read; they must enforce the codes based on how they actually read,” Rumrell said.

The owners, who have public lodging and occupational licenses, purchased the properties “with the reasonable investment-backed expectation that they could rent ... without restriction on duration of rental,” according to the lawsuit.

The owners’ complaint could lead to a Bert J. Harris Private Property Rights Protection Act claim against the city “if damages continue against the owners’ private property rights,” Rumrell said.

The 1995 state law allows property owners to seek damages from public agencies if they show new regulations diminish property values.

Wilton Manors took zoning action after a complaint last year about parties and loud music from an unidentified neighbor of one of the properties.

In January, the city’s Planning & Zoning Board offered city officials three options on how to handle short-term rentals. All were rejected in favor of the outright ban, although the owners worked with city planners to craft an alternative policy over the last year.

Rumrell also represents 11 property owners in Venice, near Sarasota, in a pending vacation rental case almost identical to the one in Wilton Manors.

In 2006, the Venice zoning director restricted single-family rentals within a residential district to either one month or three rentals of less than 30 days per year, whichever amounts to the least number of days.

Property owners challenged the restriction, and last year Sarasota Circuit Judge Robert Bennett Jr. ruled against the city restriction.

Bennett concluded that unlimited temporary rentals are permitted in an area zoned for residential use.

“Zoning regulations [should be] construed broadly in favor of property owners absent a clear intent to the contrary,” he wrote.

The owners’ claim for damages, which could include the loss of rental income, still is pending.

Rumrell said he also has been contacted by Miami Beach property owners who are considering a lawsuit in the wake of a new city ordinance banning short-term rentals.

He declined to identify the owners because he has not yet been retained.

Miami Beach city commissioners in late February banned short-term rentals of less than six months in single-family neighborhoods. The ordinance took effect March 7.

The action came after years of debate and stemmed from a 2000 interpretation by Planning Director Jorge Gomez.

The new law is expected to spur action on a pending lawsuit by hospitality services company Villazzo LLC against the city, said Gary Held, the first assistant city attorney.

Villazzo offers short-term rentals of luxury homes worldwide to celebrities, sports figures and others who want to avoid the publicity resulting from a hotel stay.

Villazzo and the owner of a mansion at 10 Palm Ave. sued the city in 2007 after the company was cited for advertising the house as a short-term rental.

The suit was filed after Miami Beach officials approved a sweeping ban on all commercial uses of single-family homes early last year.

But the new short-term rental ban also applies.

The suit “was on hold for over a year due to mediation, but it has not been resolved because of the ordinance adopted, and we’ll be back in litigation shortly,” Held said.

Richard Freeman, Villazzo’s former attorney, referred calls to John Shubin of Shubin & Bass in Miami. He did not return a phone call seeking comment.

Jupiter Inlet Colony, a Palm Beach County community of about 250 single-family homes just south of Jupiter Island, sued the owners of three properties late last year for advertising their houses for short-term rentals.

The town bans businesses but does not prohibit short-term rentals, said Geoff Jones of Jeck Harris Raynor & Jones of Juno Beach, the owners’ attorney.

The town now is considering an ordinance that would ban vacation rentals. The case is pending.
______________________

The Issue

The attorney for 14 homeowners suing Wilton Manors over a ban on short-term rentals says the case could evolve into a Bert Harris claim if the city pursues alleged damages against the owners’ property rights. According to the suit, the owners had “reasonable investment-based expectations” when they bought their properties that they would be able to rent their houses without restrictions.

Here’s what that means:

The Bert J. Harris Private Property Rights Protection Act of 1995 protects owners when government action like rezoning significantly affects an expected property use or value, decreasing its “investment-backed expectation.”

If successful in their Bert Harris claim, property owners could expect payment for the loss to the site’s fair market value.

Terry Sheridan can be reached at (954) 468-2614.
2109 NW 2nd Ave. photo by Melanie Bell

City to "Fence Off" Miami Beach

2009-04-05T12:20:00.004-04:00

At Monday's Land Use Committee Meeting (4pm in City Manager's Large Conference Room at City Hall), the Committee will discuss "how to minimize the negative impacts of vacant properties".

This topic was added as an Addendum to the Agenda by Committee Chair and Commissioner Jonah Wolfson.

The Staff Report quotes statistics of the current volume of foreclosed and pre-foreclosed properties in zip codes 33139, 33140, and 33141. The data shows over 6,900 units are either bank owned or in pre-foreclosure status. The report points out that this number is anticipated to rise.

The report also states Code Compliance is experiencing three to four times the volume of property maintenance violations over last year. If the property is "abandoned" the City uses City funds to clean up the property and continue to maintain it while filing a lien on the property. When the property is sold, the City often recoups the costs of clean up and maintenance when the lien is paid. The payment of the lien goes into a fund used to clean up other properties which have been "abandoned".

The City is considering other measures to "address the issues resulting from abandoned/un-kept properties". Other measures include, administrative improvements, increased funding, and added legislation.

The additional legislation includes:

Amend Section 142-1132 (h) to require that all new construction projects place an eight (8) foot high fence around the perimeter of their construction sites; and provide minimum standards for the fence; including permitting chain link only if it is installed and maintained according to code with horizontal reinforcing bars and opaque screening. This amendment needs to be reconciled with Sec. 138-132 regarding construction signs and Sec. 58-300 (b) which includes construction sites that become abandoned site.
Amend Section 142-1132 (h) (e) regarding temporary chain link fencing not to exceed a period of one year to be reconciled with other code amendments.
Amend Section 58-299 to require the owners of vacant buildings, vacant structures and vacant or unimproved lots that have been received a property maintenance violation to place of a six (6) foot high fence with removable mesh to secure the vacant structure, vacant or unimproved lot, consistent with zoning restrictions on the placement of fences for that zoning district or use.
Amend Section 58-300 (b) require a black or green removable mesh on the green or black vinyl-coated fence. It should be noted that the Planning Board is considering the possibility of requiring decorative graphics on fences for vacant lots and abandoned construction sites.
Amend Section 58-301 (c) to allow the City to place a lien for city costs immediately following completion of the work performed by the City on behalf of the property owner.
Amend Section 58-300 (b)(1) to reduce the number of days that a property owner is given to install the fence (with mesh), should that be required, from 45 days to 20 days.
Amend Section 58-300 (b)(2) to reduce the number of days following a special master's determination that the property owner must install the fence with mesh from 30 days to 20 days.
Amend Section 52-300 (c) to change the time frame for the City to place the fence should the property owner fail to do so from 45 days to 20 days.
Amend Section 58-300 (d) to allow the City to place a lien for city costs immediately following completion fo the work performed by the City on behalf of the property owner.
Amend the City Code to require that the City-approved "No Trespassing Signs" must be placed on all new construction projects/projects with substantial rehabilitation, and on abandoned properties that have received a violation for property maintenance.
Amend City Cod to include additional aesthetic requirements for board ups, mesh on fences and graphics on vacant store fronts (Zoning to further define Aesthetic Requirements).
Establish a building close-out process when a building is going to be left vacant for a period of more than three weeks.
Amend City code to allow for higher administrative fees to be charged and included in liens when Code Compliance coordinates securing buildings pursuant to 58-301.

We hope you will attend the Land Use Committee Meeting and help the City find more "property owner friendly" ways to address vacant properties.