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Agenda 03/11/2025 Item #11C (Advertise and bring back an Ordinance amending the LDC for a public hearing)3/11/2025 Item # 11.C ID# 2024-2266 Executive Summary Recommendation to direct staff to advertise and bring back an Ordinance amending the Land Development Code to modify the prohibition of renting guesthouses on lots zoned Estates (E), located west of Collier Boulevard, to allow for such rentals if all new requirements are met. (PL20240009067) OBJECTIVE: To direct staff to advertise and bring back an Ordinance amending the Land Development Code (LDC) to modify the prohibition of renting guesthouses on lots zoned Estates (E), located west of Collier Boulevard, to allow for such rentals if all new requirements are met. CONSIDERATIONS: The provisions for guesthouses were first adopted in 1974 when the Coastal Planning Area District regulations were established. This ordinance defined them as an “accessory dwelling unit,” which was to be “used exclusively for the non-commercial accommodation of friends or relatives of the occupant or owner of the principal dwelling.” In 1976, the provisions were clarified to prohibit the leasing or renting a guest accommodation facility and to allow one guest house to be a permitted accessory use in both the Agricultural (A) and Estates (E) zoning districts. Since then, the guesthouse provisions have been amended from time to time, but the prohibition of renting them has remained. On February 14, 2023, the Board discussed an item sponsored by Commissioner McDaniel that sought to amend the Land Development Code (LDC) to allow the rental of guesthouses. During the presentation, Commissioner McDaniel suggested that the rental of guesthouses should be restricted to homesteaded properties located in the urban Estates—the rationale of the restriction being that on-site landlords do a good job of managing the actions of their tenants. The Board members further discussed the prospect of amending the LDC but later agreed that Commissioner Hall should first discuss the matter with the Affordable Housing Advisory Committee (AHAC) before the Board gives direction to staff. On May 15, 2023, staff presented the prospect of guesthouse rentals within the Urban Golden Gate Estates to the AHAC. The AHAC supported looking at the rental of guesthouses as a possible solution to the affordable housing shortage within the County. The motion recognized that AHAC desired to increase supply and allow this in urban estates. They also wanted to recommend exploring guesthouse rental for the Rural Estates. Finally, the program should be offered to homesteaded properties (and the exemption would remain) and kept at market-rate rents. The AHAC wanted staff to provide the Board with the rent ranges and the percentage of homesteaded properties out of the 3,559 targeted properties. On May 14, 2024, the Board discussed Item 11.A. under the County Manager’s Report, which was a recommendation to provide staff direction on the Board’s request for staff to gather input on the community’s desire to allow for the legal renting of guesthouses within the urban Estates Zoning District, based upon the conclusions provided for within the Guesthouse Rental White Paper. By a vote of 4-1, the Board directed staff to move forward with an LDC amendment with the provision in writing of the one-year revisit and a specific report from Code Enforcement. The provisions for the Density Rating System in the Future Land Use Element (FLUE) of the Growth Management Plan (GMP) recognize that guesthouses are considered accessory dwellings and are not counted toward density. However, the density Rating System in the FLUE is only applicable to certain geographic areas of the County and yields to either the Immokalee Area Master Plan or Golden Gate Area Master Plan (GGAMP), where applicable, in matters of density and application. The geographic area encompassed by this LDC amendment is located within the jurisdiction of the GMP, but a majority of the lots are located within the GGAMP, specifically the Urban Golden Gate Estates Sub-Element (see Exhibit A). According to the Estates Designation of the Urban Golden Gate Estates Sub-Element of the GGAMP, this designation is characterized by low-density semi-rural residential lots with limited opportunities for other land uses. The typical lot is 2.25 acres; however, some legal non-conforming lots are as small as 1.14 acres. Residential density is limited to a maximum of one unit per 2.25 gross acres or one unit per legal non-conforming lot of record, exclusive of guesthouses. Multiple-family dwelling units, duplexes, and other structures containing two or more principal dwellings are prohibited in all Districts and Subdistricts in the Estates Designation. The density exclusion for guesthouses is also provided for in the Residential Estates Subdistrict of the Estates – Mixed Use District. Since the Urban Golden Gate Estates Sub-Element is silent with respect to the rental of guesthouses, no GMP amendment will be necessary or required to amend the LDC to allow guesthouse rentals in the Estates zoning district. Transportation Planning staff reviewed the proposed Amendment and anticipate that there will be minimal impact on the road network based on the Page 407 of 4027 3/11/2025 Item # 11.C ID# 2024-2266 following findings: • There are a limited number of parcels affected by the Amendment. • The Urban Subdistrict has an established road network with major north-south and east-west arterials and collectors. • Traffic impacts resulting from the rental units should be more widely distributed within the subdistrict than traditional PUD developments with single-point trip impacts. • There is a reasonable network of interconnected local-neighborhood roads providing alternative routes. • There are numerous goods/services/employment opportunities adjacent to this subdistrict area to reduce trip lengths on the network compared to longer rural commuter-residential trips. COLLIER COUNTY PLANNING COMMISSION (CCPC) RECOMMENDATION: The CCPC reviewed this LDC amendment on January 16, 2025, and unanimously approved it as presented by staff but with the recommendation that when this item is presented to the BCC, that staff include in their presentation, a description or an example of the property tax implications once a guesthouse structure is rented and no longer eligible for the homestead exemption. The CCPC was very concerned about making sure the tax implications are clearly described to the BCC and to the public. Staff from the Property Appraiser’s Office were present at the meeting to explain the taxing nuisances and described the investigative process they use to determine eligibility for a homestead exemption. They suggested that the public is invited to review the tax estimator tool that is provided on their website. DEVELOPMENT SERVICES ADVISORY COMMITTEE (DSAC) RECOMMENDATION: The DSAC recommended approval of the Amendment on November 6, 2024. The DSAC specifically wanted: 1) The CCPC and BCC to be fully apprised of the potential tax implications; and 2) The staff report to be revised to indicate the aforementioned as a potential fiscal impact (e.g., the fiscal impact to the County may be positive given the additional revenue, but the increase in additional tax rate to the homeowner may impact rent, which may impact the portability). Two members of the DSAC voted in opposition to the Amendment. The DSAC-LDR Subcommittee recommended approval of the Amendment on October 15, 2024. Two noteworthy changes were made after the hearing, which were presented to the DSAC. The first change was to incorporate a sunsetting clause of five years. The second change was to specify a minimum duration of nine months for any lease agreement between a lessor and lessee of the guesthouse. A minimum duration will help ensure the guesthouses will not be used for short-term lodging but remain part of the County’s housing supply to indirectly promote the goal of addressing the affordable housing problem. FISCAL IMPACT: There are no anticipated fiscal impacts to the County, except for the cost of advertising an ordinance amending the LDC, which is estimated $50.00. Funds are available within the Unincorporated Area General Fund (1011) and Zoning & Land Development Cost Center (138319). Homeowners may experience an increase in their property taxes due to the loss of the homestead exemption on the guesthouse structure when the guesthouse is rented. GROWTH MANAGEMENT IMPACT: No growth management impact is associated with this action. LEGAL CONSIDERATIONS: This item has been approved as to form and legality and requires a majority vote for Board approval. -DDP RECOMMENDATIONS: To direct staff to advertise and bring back an Ordinance amending the LDC for a pubiic hearing. Page 408 of 4027 3/11/2025 Item # 11.C ID# 2024-2266 PREPARED BY: Eric L Johnson, AICP, CFM, Planning Manager, Zoning Division ATTACHMENTS: 1. Draft Ordinance (12-02-2024) Page 409 of 4027 DRAFT 12/2/24 ORDINANCE NO. 2025 _ AN ORDTNANCE OF THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA, AMENDING ORDINANCE NUMBER 0441, AS AMENDED, THE GOLLIER COUNTY LAND DEVELOPMENT CODE, WHICH INCLUDES THE COMPREHENSIVE LAND REGULATIONS FOR THE UNINCORPORATED AREA OF GOLLIER COUNTY, FLORIDA, TO MODIFY THE PROHIBITION OF RENTING GUESTHOUSES ON LOTS ZONED ESTATES (E) LOCATED WEST OF COLLIER BOULEVARD, TO ALLOW FOR SUCH RENTALS IF ALL NEW REQUIREMENTS ARE MET, BY PROVIDING FOR: SEGTION ONE, RECITALS; SECTION TWO, FINDINGS OF FACT; SECTION THREE, ADOPTION OF AMENDMENTS TO THE LAND DEVELOPMENT CODE, MORE SPECIFICALLY AMENDING THE FOLLOWING: GHAPTER TWO ZONING DISTRICTS AND USES, INCLUDING SECTION 2.03.01 AGRICULTURAL DISTRICTS AND CHAPTER FIVE SUPPLEMENTAL STANDARDS, INCLUDING SECTION 5.03.03 GUESTHOUSES; SECTION FOUR, CONFLICT AND SEVERABILITY; SECTION FIVE, INCLUSION IN THE COLLIER COUNTY LAND DEVELOPMENT CODE; SECTION SlX, SUNSET PROVISION; AND SECTION SEVEN, EFFECTTVE DATE. 1PL20240009067) Recitals WHEREAS, on October 30, 1991, the Collier County Board of County Commissioners adopted Ordinance No. 91-102, the Collier County Land Development Code (hereinafter LDC), which was subsequently amended; and WHEREAS, the Collier County Board of County Commissioners (Board) on June 22, 2004, adopted Ordinance No.04-41, which repealed and superseded Ordinance No.91-102, as amended, the Collier County Land Development Code, which had an effective date of October 18,2004', and WHEREAS, on March 18, 1997, the Board adopted Resolution 97-177 establishing local requirements and procedures for amending the LDC; and WHEREAS, all requirements of Resolution 97-177 have been met; and WHEREAS, the Collier County Planning Commission, sitting as the land planning agency, did hold an advertised public hearing on 2025, and reviewed the proposed amendments for consistency with the Comprehensive Plan and did recommend approval; and WHEREAS, the Board of County Commissioners, in a manner prescribed by law, did hold an advertised public hearing on , 2025, and did take action concerning these amendments to the LDC; and WHEREAS, the subject amendments to the LDC are hereby determined by this Board to be consistent with and to implement the Collier County GroMh Management Plan as required by Subsections 163.3194 (1) and 163.3202 (1), Florida Statutes; and Page 1 of7 Words s+ue*+n+eugh are deleted, words nderlined are added CAO Page 410 of 4027 DRAFT 12/2/24 WHEREAS, this ordinance is adopted in compliance with and pursuant to the Community PlanningAct(F.S. S 163.3161 ef seg.), and F.S. S 125.01(1)(t) and (1)(w); and WHEREAS, this ordinance is adopted pursuant to the constitutional and home rule powers of Fla. Const. Art. Vlll, S 1(g); and WHEREAS, all applicable substantive and procedural requirements of the law have otherwise been met. NOW, THEREFORE BE lT ORDAINED by the Board of County Commissioners of Collier County, Florida, that: SECTION ONE: RECITALS The foregoing Recitals are true and correct and incorporated by reference herein as if fully set forth. SECTION TWO: FINDINGS OF FACT The Board of Commissioners of Collier County, Florida, hereby makes the following findings of fact: 1. Collier County, pursuant to $ 163.3161, ef seg., F.S., the Florida Community Planning Act (herein after the "Act"), is required to prepare and adopt a comprehensive plan. 2. After adoption of the Comprehensive Plan, the Act and in particular S 163.3202(1), F S., mandates that Collier County adopt land development regulations that are consistent with and implement the adopted comprehensive plan. 3. Section 163.3201, F.S., provides that it is the intent of the Act that the adoption and enforcement by Collier County of land development regulations for the total unincorporated area shall be based on, be related to, and be a means of implementation for, the adopted comprehensive plan. 4. Section 163.3194(1Xb), F.S., requires that all land development regulations enacted or amended by Collier County be consistent with the adopted comprehensive plan, or element or portion thereof, and any land regulations existing at the time of adoption which are not consistent with the adopted comprehensive plan, or element or portion thereof, shall be amended so as to be consistent. 5. Section 163.3202(3), F.S., states that the Act shall be construed to encourage the use of innovative land development regulations. Page 2 ol 7 Words strue*+n+eugh are deleted, words underlined are added cao Page 411 of 4027 DRAFT 12J2/24 6. On January 10, 1989, Collier County adopted the Collier County Growth Management Plan (hereinafter the "Growth Management Plan" or "GMP") as its comprehensive plan pursuant to the requirements of $ 163.3161 et seq., F.S. 7. Section 163.3194(1)(a), F.S., mandates that after a comprehensive plan, or element or portion thereof, has been adopted in conformity with the Act, all development undertaken by, and all actions taken in regard to development orders by, governmental agencies in regard to land covered by such comprehensive plan or element shall be consistent with such comprehensive plan or element as adopted. 8. Pursuant to $ 163.3194(3)(a), F.S., a development order or land development regulation shall be consistent with the comprehensive plan if the land uses, densities or intensities, and other aspects of development are compatible with, and further the objectives, policies, land uses, densities, or intensities in the comprehensive plan and if it meets all other criteria enumerated by the local government. 9. Section 163.3194(3)(b), F.S., states that a development approved or undertaken by a local government shall be consistent with the comprehensive plan if the land uses, densities or intensities, capacity or size, timing, and other aspects of development are compatible with, and further the objectives, policies, land uses, densities, or intensities in the comprehensive plan and if it meets all other criteria enumerated by the local government. 10. On October 30, 1991, Collier County adopted the Collier County Land Development Code, which became effective on November 13, 1991. The Land Development Code adopted in Ordinance 91-102 was recodified and superseded by Ordinance 04-41. 11. Collier County finds that the Land Development Code is intended and necessary to preserve and enhance the present advantages that exist in Collier County; to encourage the most appropriate use of land, water and resources consistent with the public interest; to overcome present handicaps; and to deal effectively with future problems that may result from the use and development of land within the total unincorporated area of Collier County and it is intended that this Land Development Code preserve, promote, protect and improve the public health, safety, comfort, good order, appearance, convenience and general welfare of Collier County; to prevent the overcrowding of land and avoid the undue concentration of population; to facilitate the adequate and efficient provision of transportation, water, sewerage, schools, parks, recreational facilities, housing and other requirements and services; to conserve, develop, utilize and protect natural resources within the jurisdiction of Collier County; to protect human, environmental, social and economic resources; and to maintain through orderly growth and development, the character and stability of present and future land uses and development in Collier County. Page 3 of 7 y'/ords sku€k+h+eugh are deleted, words underlined are added caoPage 412 of 4027 A DRAFT 12/2/24 12. lt is the intent of the Board of County Commissioners of Collier County to implement the Land Development Code in accordance with the provisions of the Collier County Comprehensive Plan, Chapter 125, Fla. Stat., and Chapter 163, Fla. Stat., and through these amendments to the Code. SECTION THREE: ADOPTION OF AMENDMENTS TO THE LAND DEVELOPMENT CODE ********** SUBSECTION 3.A. AMENDMENTS TO SECTION 2.03.01 . AGRICULTURAL DISTRICTS Section 2.03.01, Agricultural Districts, of Ordinance 04-41, as amended, the Collier County Land Development Code, is hereby amended to read as follows: SECTION 2.03.01 - Agricultural Districts Rural Agricultural District (A). The purpose and intent of the rural agricultural district (A) is to provide lands for agricultural, pastoral, and rural land uses by accommodating traditional agricultural, agricultural related activities and facilities, support facilities related to agricultural needs, and conservation uses. Uses that are generally considered compatible to agricultural uses that would not endanger or damage the agricultural, environmental, potable water, or wildlife resources of the County, are permissible as conditional uses in the A district. The A district corresponds to and implements the Agricultural/Rural land use designation on the future land use map of the Collier County GMP, and in some instances, may occur in the designated urban area. The maximum density permissible in the rural agricultural district within the urban mixed use district shall be guided, in part, by the density rating system contained in the future land use element of the GMP. The maximum density permissible or permitted in A district shall not exceed the density permissible under the density rating system. The maximum density permissible in the A district within the agricultural/rural district of the future land use element of the Collier County GMP shall be consistent with and not exceed the density permissible or permitted under the agricultural/rural district of the future land use element. The following subsections identify the uses that are permissible by right and the uses that are allowable as accessory or conditional uses in the rural agricultural district (A). 1 b 6 Accessory uses , subject to LDC section 5.03.03 AMENDMENTS TO SECTION 5.03.03 - GUESTHOUSES Page 4 of 7 Words stru€k+h+eugh are deleted, words underlined are added SUBSECTION 3.8. CAA Page 413 of 4027 C DRAFT 12/2/24 Section 5.03.03, Guesthouses, of Ordinance 04-41, as amended, the Collier County Land Development Code, is hereby amended to read as follows: SECTION 5.03.03 - Guesthouses Where a guesthouse is an allowable use, it shall be permitted only in compliance with the following standards. See LDC section 1.08.02 Guesthouse for additional information. A. No guest accommodation facility in a single-family residential district, whether a freestanding guest house or guest accommodations which are structurally integrated with the main dwelling, may be utilized for commercial purposes. B. Leasing or renting a guest accommodation facility shall constitute a violation of this LDC, cvt:ent AS nrnvided for I l-)(1 eantinn 5 O? O? tr lf a main residenee the principal dwellinq is leased or rented, a guest accommodation facility accessory to it may not be occupied by the property owner, since that would constitute the unlaMul utilization of single-family zoned property for two-family dwelling purposes. D. The following site design standards apply to all guest houses 1. Minimum lot area shall be 43,560 square feet. 2. Minimum lot width shall be 105 feet. 3.The maximum floor area shall be forty (40) percent of the air-conditioned, enclosed living area (excluding garages, carports, patios, porches, utility areas, and the like) of the principal dwelling. 4.Detached guest houses shall not be closer than twenty (20) feet to the principal dwelling. A guesthouse may be constructed prior to a principal dwelling, provided the guest house meets the minimum requirements of a single-family residence in the district in which it is being constructed. At such time as a principal residence is constructed, then the floor area percentages listed above shall apply. requrrem are met 1. The subiect propertv is located within the Estates (E) zoninq district west of Collier Boulevard. 2. and to whom a homestead exemotion. as defined in Florida Statutes section '196.031. has been qranted and continues or remains. 3. lf the Propertv Appraiser determines the landlord is no I onqer eliqible, entitled, or Page 5 of 7 Words sk#*+n+eugh are deleted, words underlined are added E caoPage 414 of 4027 4. The questhouse must contain s no facilities. a bathroom. and a kitchen. 5. A minimum of one off-street parkinq space shall be required for each questhouse under this subs Deve nt shall establish the application submittal requirements to I ease or rent a questhouse under this section. 7. The minimum duration of any lease between a lessor and lessee shall be nine months. 8. The provisions of LDC section 5..03 F. shall sunset five vears from [the Commissi oners bv resolution SECTION FOUR: CONFLICT AND SEVERABILITY ln the event that any provisions of this ordinance should result in an unresolved conflict with the provisions of the Land Development Code (LDC) or Growth Management Plan (GMP), the applicable provisions of the LDC or GMP shall prevail. ln the event this Ordinance conflicts with any other Ordinance of Collier County or other applicable law, the more restrictive shall apply. lf any phrase or portion of this Ordinance is 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 portion. SECTION FIVE: INCLUSION lN THE COLLIER COUNTY LAND DEVELOPMENT CODE The provisions of this Ordinance shall become and be made a part of the Land Development Code of Collier County, Florida. The sections of the Ordinance may be renumbered or re-lettered to accomplish such, and the word "ordinance" may be changed to "section," "article," or any other appropriate word. SECTION SIX: SUNSET PROVISION Subsection 3.8., Amendments to Section 5.03.03 - Guesthouses, of this Ordinance, shall sunset and are repealed effective as of the date that is five years after the date of this Page 6 of 7 Words strue*+nreush are deleted, words underlined are added CNO DRAFT 12/2/24 via certified letter of the denial of the homestead exemption. Page 415 of 4027 Ordinance's Effective Date, Commissioners. DRAFT 12/2/24 unless extended by Resolution of the Board of County SECTION SEVEN: EFFECTIVE DATE This Ordinance shall become effective upon filing with the Florida Department of State PASSED AND DULY ADOPTED by the Board of County Commissioners of Collier County, Florida, this _ day of 2025. ATTEST: CRYSTAL K. KINZEL, CLERK By , Deputy Clerk Approved as to form and legality Derek D. Perry Assistant County Attorney o4-cMD-01 077 I _ (_t _125) 24-LDS-00 332t _ (_t J 25) BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA By: Burt L. Saunders, Chairman PageT ol7 Words s+uef+n+eugh are deleted, words underlined are added CAOPage 416 of 4027