Miami Beach committee hears industry pitch, staff suggest registration and existing-code enforcement for co-ownership platforms

Commissioners and staff discussed how to regulate companies that fractionalize single‑family homes for multiple owners, after Mayor-appointed Commissioner Fernandez brought the topic to the Miami Beach Committee for Land Use and Sustainability on Sept. 28.

Why it matters: The model — represented in Miami Beach by a company identified in the meeting as Pacaso — blends condominium-style fractional ownership with third‑party management. Commissioners said state law likely prevents a local ban on corporate ownership forms, so the city must focus on tools to protect neighbors from noise, parking and trash problems while allowing other policy goals, such as increasing housing efficiency, to proceed.

Tom (city administration) told the committee the city cannot regulate ownership form but can require companies that manage co‑owned homes to register so the city has contact information and a party it can hold to basic standards. “A registration requirement gives us an idea of who is managing the property, and a contact and a phone number,” Tom said.

Mike Yorente of Ellis & Lawn, representing Pacaso, said Pacaso’s model creates a property‑specific LLC that holds title and then offers up to eight shares to co‑owners. Cesar Fernandez, identified as Pacaso’s director of U.S. public affairs, said the company’s agreements prohibit short‑term rentals and that the company provides a “good neighbor” policy to co‑owners addressing noise, parking and rental prohibitions.

Staff and commissioners agreed on a stepped approach: research whether an existing business tax receipt (BTR) or property‑management registration is required for these managers, and whether state rules that govern timeshares apply. Nick Collerigis (city attorney’s office/staff) said the city’s current property‑management registration and BTR requirements are limited and would need review.

Next steps and process: The item’s sponsor said he would coordinate with industry and the city attorney to draft language for a future committee meeting. Commissioners asked staff to confirm whether the entity needs a BTR and to research how management companies for condos and timeshares are regulated at the state level.

Ending: The committee did not draft an ordinance at the meeting. The sponsor said he will work with the city attorney and industry representatives on draft language and return to the committee in December with proposed code language and any BTR/registration recommendations.

Votes at a glance: No formal vote on an ordinance. The committee requested staff follow‑up and draft language for a future meeting.

Speakers quoted or referenced: Tom (city staff), Mike Yorente (Ellis & Lawn, counsel for Pacaso), Cesar Fernandez (Pacaso director of U.S. public affairs), Nick Collerigis (city attorney’s office), Commissioner Alex Fernandez (item sponsor), Commissioner Richardson.