A TRANSIENT RENTAL FEE COULD GENERATE AS MUCH AS $750,000 PER YEAR FOR AFFORDABLE HOUSING
EDITOR'S NOTE: City Commissioner Merili McCoy has taken the position that current zoning law allows transient rentals in Truman Annex and, therefore, Truman Annex is exempted from the restrictions contained in the City's new transient rental ordinance. But she is proposing a $1000-per-year fee on transient rental units to be applied to an affordable housing trust fund. Key West The Newspaper asked her to explain her position, Here is her response.
Which makes more sense— almost 100 lawsuits or real funding for affordable housing? This isn't a choice, but it is part of a problem that has to be solved. I have never based any of my decisions wholly on the fear of lawsuits. In fact, my decision to seek a compromise for Truman Annex was based primarily on two other elements, and the lawsuits were only contributing factors.
Our lack of affordable housing in our community has been exacerbated by the very existence of Truman Annex. Even if there were no transient rentals, the high number of residences has been cranked into that computer model deep in the bowels of Tallahassee that works out hurricane evacuations and the limits of new housing starts called "ROGO" (Rate of Growth Ordinance).
There is another factor that I believe to be a myth: Should the ordinance that exists now survive the lawsuits, there will be resultant affordable housing. This is well-intentioned but faulty reasoning. Twelve rentals a year are permitted. Homes that range in the luxury levels will never be rented on a yearly basis that any of our workforce can afford. As an example, a recent 1021-square-foot residence in Shipyards sold for $399,000.
Why only Truman Annex? Truman Annex has a particular type of city zoning that appears only at Truman Annex. Zoning is the concept of differences between districts. Transient rental is already legal in Truman Annex as a conditional use. Owners in Truman Annex could be renting but for ROGO. Their zoning allows conditional transient rental and, believe me, this is a significant factor in those lawsuits, with the promise of more to come.
It is my personal opinion that these lawsuits will drag on for up to five years. What happens in the meantime? The ordinance we passed waits quietly in he background unable to be implemented. Is this fair? Probably not.
Again, my proposal is a compromise. I added four more rentals per year for a total of 16 rentals per year for each transient rental unit (and call it what you will; 30-day rentals are not permanent). In return, I asked for some concessions. The thrust of these elements was twofold: To provide better controls and affordable housing funds.
I know the neighbors of these rentals certainly want and deserve control. That we are bereft of affordable housing dollars is a given. We have two projects which I feel are of paramount importance— Roosevelt Gardens and the delays caused by lack of immediate funding is on all out minds.
The other is lesser known, but in my opinion, a real horror story. The owner of Poinciana Mobile Home Park is anxious to evict his tenants and possibly build modular housing, thereby displacing a whole community of 78 families.
Under my proposal, rentals will not be permitted unless the residents themselves vote for it. The ordinance requires that the residents vote, not the boards. I understand there is already one of the condo associations that will probably vote against it.
Detailed logs will be required to rent transiently. These logs will be open to the City on a daily basis if needed. Anyone not following these and other rules will lose their rights immediately . . . no second chances.
Each owner pays $1000-a-year permit fee for the privilege and a five percent increase each year. These funds will be dedicated to affordable housing exclusively. These funds can be mortgaged, that is, used to pay off bond issues that build housing.
We do have affordable ROGO units. We could possibly buy Poinciana Mobile Home Park and the Monroe County Land Authority has promised to help.
The ordinance has to be consistent with the Key West Comprehensive Plan. The process for this kind of ordinance is for it to appear first before the Key West Planning Board. This will also allow for public debate and those interested can appear before the board. (It's called the democratic system.) The Board will then give their approval or disapproval as to the validity, in regards to the Comprehensive Plan.
Am I insensitive to those objecting to Transient Rentals in their neighborhoods at Truman Annex? Certainly not. I thought about this move long and hard and it was not an easy decision. Those in Truman Annex having difficulty with transient rentals should get relief and we are desperate for affordable housing funds. This is a way to accomplish both.
I don't think my proposal will harm objectors. I would not have done this had I believed this would be the case. I believe that four more times a year, voting requirements and the addition of controls, and the affordable housing funds, will prevent rampant rentals.
Will those objectors get satisfaction while these lawsuits crawl through the court system? Will their opponents, the transient rental owners, win their cases? If not at first, how long will the appeals take? That's why we look for compromise. The alternative will be no real controls and no affordable housing funds.
There is concern from the guest house owners. They, too, have affected our housing situation, but that is done and in the past. They feel it is unfair that the Transient Rentals in Truman Annex do not have to meet the high standards and requirements that they do to stay in business, particularly those regulations required by the State. This is a valid argument, and I have directed the City Attorney to research the situation and see what State components we can require of these rentals and make them part of the ordinance.
Do I expect to stop with Truman Annex? No. But since it has the Conditional Transient Rental Zoning, I realize it must be treated separately. My next move (and here it is ahead of time) will be to require residential transient rentals in the rest of the City to pay a similar $1000 fee per year. It's called mitigation. Actually, there will be an additional $100 added to cover the costs of more code enforcement officers.
Key West has 511 legal, licensed transient residential rental units, exclusive of guest houses. There is an estimated 200 to 250 transient rentals in Truman Annex. This fee could provide for as much as $750,000 a year for affordable housing.
Mark Twain said, "Everyone complains about the weather, but no one does anything about it." I say, "Everyone complains about affordable housing, but no one does anything about it." I am trying to do something about it.