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Home My Public Portal AboutResolution No. 23-099 - Resolution directing ICM to develop a plan for an affordable housing property tax exemptionSponsored by: Mayor Taylor RESOLUTION NO. 23-099 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF OPA-LOCKA, DIRECTING THE INTERIM CITY MANAGER TO DEVELOP, IN CONJUNCTION WITH THE COUNTY PROPERTY APPRAISER, A PLAN FOR AN AFFORDABLE HOUSING PROPERTY TAX EXEMPTION BASED ON FLORIDA SENATE BILL 102; PROVIDING FOR INCORPORATION OF RECITALS; PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City of Opa-Locka ("City") desires to take the initiative to ensure affordable housing is available for its residents; and WHEREAS, during the 2023 Legislative session, the Florida State Legislature passed Senate Bill 102 (SB 102) allowing local municipal governments to grant an affordable housing property tax exemption; and WHEREAS, in an effort to mitigate the current City housing crisis, the City desires to take bold and immediate action upon the enactment of this new law and implement it in order to incentivize rental property owners to rent their properties at affordable rental rates, within the City; and WHEREAS, owners who rent their affordable housing properties will be eligible for a limited property tax exemption for qualified rental properties within the City of Opa-Locka; and WHEREAS, the City is proposing that the percentage of the exemption be determined based on the percentage of reduction in rent below fair market value, over a period of six (6) months for the first year of the exemption, and a period of one year for the subsequent renewals of the exemption; and WHEREAS, to properly develop an effective property tax exemption plan, it will be necessary and required for the City Manager, or designee, to meet with the County Property Appraiser to ensure that the proposed property tax exemption fully meets all requirements established in SB 102 and those of the County Property Appraiser; and WHEREAS, upon establishing a property tax exemption plan in conjunction with the County Property Appraiser, the proposed plan shall be presented to the City Commission for adoption; and WHEREAS, the City Commission has determined that directing the Interim City Manager to develop, in conjunction with the County Property Appraiser, a plan for an Resolution No. 23-099 Affordable Housing property tax exemption pursuant to Florida Senate Bill 102 is in the best interest of the City. NOW THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF OPA LOCKA, FLORIDA: SECTION 1. RECITALS ADOPTED. The recitals to the preamble herein are incorporated by reference. SECTION 2. AUTHORIZATION The City Commission of the City of Opa-Locka hereby directs the Interim City Manager to develop, in conjunction with the County Property Appraiser, a plan for an Affordable Housing property tax exemption pursuant to Florida Senate Bill 102 to be presented to the City Commission for final approval. SECTION 3. SCRIVENER'S ERRORS. Sections of this Resolution may be renumbered or re -lettered and corrections of typographical errors, which do not affect the intent of this Resolution may be authorized by the Interim City Manager, following review by the City Attorney, without need of public hearing, by filing a corrected copy of same with the City Clerk. SECTION 4. EFFECTIVE DATE This Resolution shall take effect upon the adoption and is subject to the approval of the Governor or Governor's Designee. PASSED and ADOPTED this 12th day of July, 2023. John H. T lor, Jr., Mayor ATTEST: nna Flores, City Clerk 2 Resolution No. 23-099 APPROVED AS TO FORM AND LEGAL S ' CIENCY: Bu ' a. - tte No ris-Weeks, P.A. City Attorne Moved by: Commissioner Kelley Seconded by: Vice Mayor Ervin VOTE: 4-0 Commissioner Bass YES Commissioner Kelley YES Commissioner Williams ABSENT Vice Mayor Ervin YES Mayor Taylor YES 3 City of Opa-locka Agenda Cover Memo City Manager: Darvin Williams CM Signature: �r Vii i `,/ Commission Meeting Date: 07.12.2023 Item Type: (EnterX in box) Resolution Ordinance Other X Fiscal Impact: (EnterXin box) Yes No Ordinance Reading (Enter X in box) 1st Reading 2nd Reading X Public Hearing: (Enter X in box) Yes No Yes No X X Funding Source: Account# : (Enter Fund & Dept) Ex: See Financial Impact Section Advertising Requirement: (EnterX in box) Yes No X Contract/P.O. Required: (EnterX in box) Yes No RFP/RFQ/Bid#: X Strategic Plan Related (EnterX in box) Yes No Strategic Plan Priority Enhance Organizational Bus. & Economic Dev Public Safety Quality of Education Qual. of Life & City Image Communication Area: • Strategic Plan Obj./Strategy: (list the specific objective/strategy this item will address) X MI MI • IN Sponsor Name Mayor Taylor Department: City Commission Short Title: A resolution of the City Commission of the City of Opa-locka directing the interim City Manager to develop in conjunction with the County Property Appraiser a plan for an Affordable Housing property tax exemption based on Florida Senate Bill 102. Staff Summary: The City of Opa-locka desires to take the initiative to ensure affordable housing is available for its residents. During the 2023 Legislative session, the Florida State Legislature passed SB 102 allowing local municipal governments to grant an affordable housing property tax exemption. In an effort to mitigate the current City housing crisis, the City desires to take bold and immediate action upon the enactment of this new law and implement it to incentivize rental property owners to rent their properties at affordable rental rates. Owners who rent their affordable housing properties will be eligible for a limited property tax exemption for qualified rental properties within the City of Opa-locka. The City is proposing that the percentage of the exemption be determined based on the percentage of reduction in rent below fair market value, over a period of 6 months for the first year of the exemption, and a period of one year for the subsequent renewals of the exemption. To properly develop an effective property tax exemption plan, it will be necessary for staff to meet with the County Property Appraiser to ensure that the proposed property tax exemption fully meets all requirements established in SB 102 and those of the County Property Appraiser. Upon establishing a property tax exemption plan in conjunction with the County Property Appraiser, the proposed plan will be presented to the City Commission for adoption. Financial Impact - Currently there is no estimate as to the number of landlords who would take advantage of this plan. If 1,000 rental units each received an exemption of $1,000, at the current millage rate of 9.3500 mills, the City's property tax revenue would be reduced by approximately $9,000. Proposed Action: Staff recommends the City Commission approve legislation directing the Interim City Manager to develop an affordable housing property tax exemption plan based on Florida Senate Bill 102 and present it to the City Commission for adoption. Attachment: