Local Governments React to the Fallout of the Housing Crash

Just four years ago, the real estate market in Florida was flourishing.  Flipping houses was seen as an easy way to make money.  However, an investigation by the Miami Herald uncovered that “government oversight of the housing market was so negligent that over than 10,000 convicted criminals were employed in the mortgage industry”.¹ These types of practices helped contribute to the current worldwide recession.  Because of real estate values declining, a new phenomenon known as Strategic Default is on the rise.  This is when a homeowner owes more than the house is worth and is able to afford the mortgage payment but chooses to walk away, forcing the lender to foreclose.² Strategic Defaults have become a recent trend for Florida homeowners that are managing “underwater” mortgages.  In the last quarter of 2008, this trend represented 28 percent of the defaults in Miami-Dade and Broward Counties.²

The recent increase in foreclosures has led Local Governments to tighten standards for property maintenance code.  Hallandale Beach in Broward County recently adopted an ordinance amending the Property Maintenance and Occupancy Code to mandate cleanliness of property.³

Cocoa Beach in Brevard County is considering adoption of an ordinance to add a registration mandate for properties in foreclosure, hoping to reduce public nuisance due to vacancy.⁴ Titusville, also in Brevard County, is currently considering adoption of a similar ordinance.⁵ More examples are listed below.

Some analysts say real estate market values could continue to fall as much as 30% over the next 3 years.¹ Are Local Governments making the right decision to spend more money on the aesthetic appearance of their neighborhoods?  Do you think these maintenance mandates will help your neighborhood appreciate or will they add fuel to the foreclosure fire?  Is strategic default an ethical way to deal with Real Estate woes?  Please share your thoughts by leaving a comment.

The following are some examples of recent property maintenance issues in Florida tracked by OrdinanceWatch™.  Sign up for pending local government email advisories at http://www.ordinancewatch.com/.

• Hallandale Beach, FL Adopts Ordinance Regarding Minimum Property Maintenance and Occupancy Code

• Hillsborough County, FL to Hold Public Hearing of Ordinance Regarding Property Maintenance Standards

• Cocoa Beach, FL to Continue Public Hearing of Ordinance Regarding Registration and Maintenance of Properties in Foreclosure

• Titusville, FL to Hold Public Hearing of Foreclosed Property Registry Ordinance

• Winter Haven, FL Adopts Ordinance Affecting Abandoned Real Property

^{1. Florida’s Foreclosure Disaster. (n.d.). The New Yorker. Retrieved October 27, 2009, from
http://www.newyorker.com/reporting/2009/02/09/090209fa_fact_packer}

^{2. Hatcher, M. (2009, October 24). Homeowners Walking Away from Underwater Mortgages. In     The Miami  Herald. Retrieved October 27, 2009, from http://www.miamiherald.com/business/real-estate/ v-fullstory/story/1298873.html}

^{3. City Commission Meetings. (2009, November 4). City of Hallandale Beach. Retrieved November 3, 2009, from http://www.hallandalebeach.org/index.aspx?nid=226}

^{4. Agendas & Minutes. (2009, October 27). The City of Cocoa Beach. Retrieved November 3, 2009, from http://www.cityofcocoabeach.com/FlashHomePages/government_home.html}

^{5. City Council: Archive of Minutes – 2009. (2009, October 27). The City of Titusville. Retrieved November 3, 2009, from http://www.titusville.com/Agendas.asp?SectionID=-1&CCBID=8}

75% Recycling Goal by the Year 2020

The Energy, Climate Change and Economic Security Act of 2008 (House Bill 7135) created a statewide recycling goal of 75% by 2020 in Florida.  The Department of Environmental Protection (DEP) is now required to issue recommendations on how to achieve this goal by January 1, 2010.  The next public meeting held by DEP is scheduled for 11/5/09 in Tallahassee, FL.¹

Some Local Governments in Florida are passing initiatives to promote sustainable waste management systems.  Single Stream Recycling is one example, where businesses and residential customers simply place their reusable products into one container to hopefully encourage more recycling.  Weston, Florida in Broward County just adopted an ordinance to provide for single stream recycling, which will commence on 10/1/09.²

Would you like to see single stream recycling practices in your area?
Winter Park, FL of Orange County has recently approved a request to require a recycling surcharge for special event rental rates in parks.  With a 10% increase in rates, the City Commission now requires recycling for all events that take place in city parks.  The surcharge will help cover the cost of recycling bins.³

In Miami, FL the City Commission is currently discussing possible implementation of a RecycleBank Program, a rewards program that is headquartered in New York City.⁴ RecycleBank participants earn points for recycling and for practicing sustainable efforts.  Points are accumulated for actions such as “using renewable energy, reusing products, digital downloads, recycling your electronic waste, and much more”.⁵ Recycle customers can then redeem their points at over 2,400 participating retailers.  For more information visit www.recyclebank.com.

Do you feel that the recycling goal of 75% by 2020 is achievable?  Would this deter from business development and/or economic growth stimulation in FL?  What are your thoughts on recycling in general?

The following are some examples of recent recycling activity in Florida tracked by OrdinanceWatch™.  Sign up for pending local government action advisories at http://www.ordinancewatch.com/.

• Fort Myers, FL Adopts Ordinance Creating Mandatory Recycling Regulations

• Winter Park, FL Approves Request to Increase Special Event Rental Rates for Parks to Allow for Recycling Surcharge

• Miami, FL to Consider Possible Recyclebank Rewards Program

• Weston, FL Adopts Ordinance to Implement Single Stream Recycling

<sup>1. Florida 75% Recycling Goal. (2009, August 18). Florida Department of Enviornmental Protection.
Retrieved September 10, 2009, from http://www.dep.state.fl.us/waste/recyclinggoal75/
2. City Commission; Agendas/Minutes. (n.d.). The City of Weston [Weston Government]. Retrieved
September 10, 2009, from http://www.westonfl.org/Content.aspx?f=/Content/cityCommission/
agendas_Minutes.aspx#
3. “Winter Park City Commission.” Winter Park City Commission. Web. 10 Sept. 2009. <http://www.cityofwinterpark.org/Pages/Government.aspx>.
4. City of Miami. (n.d.). Retrieved September 10, 2009, from http://www.miamigov.com/cms/
5. Curbside Recycling. (n.d.). RecycleBank :: How It Works. Retrieved September 10, 2009, from
http://www.recyclebank.com/how-it-works</sup>

Local Spending to Stimulate Your Local Economy

For years, local business organizations have been promoting the “spend local” concept to help ensure local businesses thrive in their communities.  The local spending initiative, www.BackyardEconomics.com, began promoting this concept in conjunction with several state-wide association partners.¹ Their goal was to increase consumer awareness of how their spending decisions impact jobs and the state’s budget. Some thought this was an isolationist concept and ran counter to economic theories of the open market. However, local governments are also seeking ways to bolster local economies by creating Local Vendor Preference Ordinances for projects that benefit the residents of their City or County.

Broward County, FL adopted an ordinance in June 2009, updating the County Code with the Business Enterprise Act of 2009, helping to establish criteria for contract and procurement goals for the County Commission.²

The City Commission in Pembroke Pines, FL is following the Broward Commission’s lead in local business promotion.  The Pembroke Commission is scheduled to hold a second and final reading on 8/4/09 to consider adoption of a Procurement Procedures Ordinance.³

The Kissimmee, FL City Commission has also just adopted an ordinance affecting the City’s procurement processes.  The ordinance “provides that if the local vendor is the next lowest responsible bidder when compared to the non local vendor lowest bid, then the Osceola County vendor has three days to match that lowest price.”⁴

Do local spending campaigns like these support economic models? Are there Local Vendor Preference regulations in your area?   If not, do you feel there should be?  What is your outlook on spending locally to survive and hopefully defeat the current recession?  The following are some Local Vendor Preference examples from OrdinanceWatch™:

• Palm Beach County, FL to Hold Public Hearing of Local Vendor Preference Ordinance
• Broward County, FL Adopts Ordinance Regarding Procurement     and Contracting Opportunities for County Business Enterprises
• Kissimmee, FL Adopts Ordinance Regarding Local Vendor     Preference Procedure
• Parkland, FL to Hold First Reading of Ordinance Regarding     Procurement Procedures
• Pembroke Pines, FL to Hold First Reading of Ordinance Regarding     Procurement Procedures and Promoting Business with the City

<sup>1. “Backyard Economics.” 1. http://www.backyardeconomics.com/. Summer 2009. Web. July 2009. <1. http://www.backyardeconomics.com/>.
2. “Broward County Commission, Florida.” Http://www.broward.org/commission/welcome.htm. June 2009. Web. July 2009. <http://www.broward.org/commission/welcome.htm>.
3. “Pembroke Pines, FL, City Commission.” Http://www.ppines.com/. June 2009. Web. July 2009. <http://www.ppines.com/>.
4.   “Kissimmee, FL, City Commission.” Http://www.kissimmee.org/ch_gov_commission.aspx?id=73. June 2009. Web. July 2009. <http://www.kissimmee.org/ch_gov_commission.aspx?id=73>.</sup>

Local Governments Preempted from Adopting Parking Security Camera Ordinances in Florida

On June 1, 2009 Governor Crist approved SB 360, which included language to preempt Local Governments from adopting security camera ordinances that require retail establishments to provide 24 hour surveillance of their parking lots and make the footage available to law enforcement officers in an attempt to expedite capturing perpetrators.  Retailers were glad to hear the final bill was signed because it relieved them of this expensive unfunded mandate.  In light of these developments, the conversation now turns to how local governments and businesses work together to achieve the mutually desired end, to ensure that people are adequately protected against crime in retail parking lots.

The County Commission of Broward County, FL first proposed an ordinance in August 2008.  At that time, the County had approximately 10,000 retailers that did not meet those standards.¹ A Task Force was formed and many public hearings were held over the next year, and other cities and counties began to initiate the same measures.  The Town Council of Cutler Bay in Miami-Dade, FL adopted an ordinance in January 2009 to regulate malls and businesses with parking lots containing 25 or more spaces.² However, the ordinance was made null and void by SB 360.³

So how can Local Governments protect their citizens that support local retailers?  Samantha Hunter Padgett, Deputy General Counsel of Governmental Affairs with the Florida Retail Federation, says Local Governments can “adopt model standards and recognize good examples” of retailers with high safety standards in their parking lots.  “Partnering with successful businesses and creating best practices” can be beneficial to the retailers and to the general public.  She says a good solution for Local Governments is to have a “comprehensive approach, to increase prosecution and punishment and to educate citizens on safety solutions in their community”.

To view the Broward County and Cutler Bay activity tracked by OrdinancWatch™ see the following links:

• Broward County, FL Will Not Adopt Ordinance Affecting Retail Establishment Parking Security

• Cutler Bay, FL Parking Security Camera Ordinance Affected by SB 360

<sup>1. Www.broward.org/commission. June 2008. Broward County Commission. 10 June 2009 <1. http://www.broward.org/commission/welcome.htm>.
2. Www.cutlerbay-fl.gov. January 2009. Cutler Bay Town Council. 10 June 2009 <http://www.cutlerbay-fl.gov/agenda.php>.
3. Www.flsenate.gov. 10 June 2009 <http://www.flsenate.gov/session/index.cfm?BI_Mode=ViewBillInfo&Mode=Bills&ElementID=JumpToBox&SubMenu=1&Year=2009&billnum=360>.</sup>