2022-01 Code Amendment - Fractional Home OwnershipORDINANCE NO. 2022-01
AN ORDINANCE OF THE VILLAGE COUNCIL OF THE VILLAGE OF NORTH
PALM BEACH, FLORIDA, AMENDING APPENDIX C (CHAPTER 45),
"ZONING," OF THE VILLAGE CODE OF ORDINANCES TO INCORPORATE A
DEFINITION OF FRACTIONAL OWNERSHIP AND EXPRESSLY PROHIBIT
FRACTIONAL OWNERSHIP UNITS AND TIME-SHARE UNITS IN THE
VILLAGE'S RESIDENTIAL ZONING DISTRICTS; AMENDING SECTION 45-2,
"DEFINITIONS," AND SECTION 45-36, "GENERAL PROVISIONS;"
PROVIDING FOR CODIFICATION; PROVIDING FOR SEVERABILITY;
PROVIDING FOR CONFLICTS; AND PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, to the extent not preempted by state or federal law, the Village possesses the Home Rule
Authority granted by the Florida Constitution and Chapter 166, Florida Statutes, to regulate local land
use issues; and
WHEREAS, the Village Code of Ordinances currently allows time-share units within specified mixed
use and commercial zoning districts, specifically the C -MU US -1 Mixed Use District, the C -NB
Northlake Boulevard Commercial District, and the C-3 Regional Business District; and
WHEREAS, according to the general principles applicable to the interpretation of municipal
ordinances, the specific inclusion of a permitted use in one district means that the use is prohibited in
other zoning districts where not specifically listed; and
WHEREAS, the Village Council wishes to confirm and expressly prohibit time-share units within its
residential zoning districts and to expand the prohibition to include fractional ownership; and
WHEREAS, fractional ownership of residential property is an emerging trend in which shares of
ownership rights to a property are sold to multiple buyers, thus providing each buyer an ownership
interest and the right to use the property for a certain period of time; and
WHEREAS, although this model effectively operates similarly to a time-share, it typically conveys
actual ownership rights instead of a right to use of the property for a certain period of time only, and
also divides a property into fewer fractions than a typical time-share arrangement; and
WHEREAS, in a typical fractional ownership scheme, the fraction of ownership may directly
correlate to the amount of time the owner is permitted to use and/or occupy the dwelling unit, whereas
in a typical time-share scheme, the customer typically buys only the rights to use the property for a
set period of time; and
WHEREAS, recent trends indicate that fractional ownership schemes are being applied to single-
family residences; and
WHEREAS, both time-shares and fractional ownership negatively impact and undermine the stability
of established residential neighborhoods by introducing a transient use and the adverse impacts
typically associated with such use; and
WHEREAS, the introduction of time-share units and fractional ownership properties within
established neighborhoods can disturb the quiet enjoyment of the residents of the neighborhood and
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create numerous secondary impacts, including noise, loss of privacy, traffic, parking and a greater
demand on public services; and
'\ fractional ownership further reduces the number of available housing units from the
WHEREAS, act p g
housing market for long-term residents to utilize; and
WHEREAS, fractional ownership can adversely impact future development, redevelopment, safety
and property maintenance as a result of the complexities associated with the incongruent and changing
objectives, intents and goals of multiple owners; and
WHEREAS, as required by Section 21-12 of the Village Code of Ordinances, the Village's Planning
Commission conducted a duly advertised public hearing on this Ordinance and provided its
recommendation to the Village Council; and
WHEREAS, the Village Council determines that the adoption of this Ordinance benefits the public
health, safety and welfare of the residents of the Village of North Palm Beach.
NOW, THEREFORE, BE IT ORDAINED BY THE VILLAGE COUNCIL OF THE VILLAGE OF
NORTH PALM BEACH, FLORIDA as follows:
Section 1. The foregoing "Whereas" clauses are hereby ratified and incorporated herein.
Section 2. The Village Council hereby amends Article I, "In General," of Appendix C (Chapter
45), "Zoning," of the Village Code of Ordinances by amending Section 45-2 to read as follows
(additional language underlined):
Sec. 45-2. Derinitions.
For the purposes of this Code, certain words and terms are defined as follows:
Fractional ownership shall mean the occupancy or use of a dwelling unit by
co-owners pursuant to a fractional ownership plan for any length of time. Fractional
ownership includes direct ownership in a property as well as indirect ownership
through a corporation, limited liability company or other entity holding title to the
property.
Fractional ownership plan means an arrangement whether by tenancy in
common, sale, deed or any other means, whereby the purchaser or co-owner receives
an ownership interest and the right to use the property for a specific and discernible
period through time -based division.
Time-share unit is a dwelling unit in which the right of use or occupancy
circulates among various persons for specific periods of time less than one (1) year in
accordance with a fixed time schedule.
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Section 3. The Village Council hereby amends Article III, "District Regulations," of Appendix
C (Chapter 45), "Zoning," of the Village Code of Ordinances by amending Section 45-36 to read as
~� follows:
Sec. 45-36. General provisions.
The provisions of this article shall be subject to the following provisions and
exceptions:
V. Time-share units and fractional ownership.
Time-share units and the fractional ownership of any parcel of real property
shall be prohibited in all residential zoning districts. Such prohibition shall not include
community residences or vacation rentals as defined and regulated in this chapter.
Section 4. The provisions of this Ordinance shall become and be made a part of the Code of the
Village of North Palm Beach, Florida.
Section 5. If any section, paragraph, sentence, clause, phrase, or word of this Ordinance is for
any reason held by a court of competent jurisdiction to be unconstitutional, inoperative or void, such
holding shall not affect the remainder of the Ordinance.
Section 6. All ordinances or parts of ordinances in conflict with this Ordinance are hereby
repealed to the extent of such conflict.
Section 7. This Ordinance shall become effective immediately upon adoption
PLACED ON FIRST READING THIS 9TH DAY OF DECEMBER, 2021.
PLACED ON SECOND, FINAL READING AND PASSED THIS 13TH DAY OF JANUARY, 2022.
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