Miami to use millions from MiamiCoin to offer assistance to renters facing hikes
Tenants facing rent hikes in the city of Miami will soon be able to apply for aid under a new $5.25 million assistance program funded by a city-branded cryptocurrency project.
Though the value of MiamiCoin continues to flounder, commissioners on Thursday unanimously agreed to Mayor Francis Suarez’s proposal to divide the money donated to the city by the cryptocurrency project across Miami’s five districts to help struggling tenants facing rent increases of 20% or more.
Under the program, landlords will receive payments directly from the city. The money will be divided up by district according to a formula used to calculate each area’s poverty level. Priority will be given to seniors and families with children under a certain income threshold to be calculated by the city. Eligible residents must have lived inside city limits for at least three years. Qualified residents could receive up to $1,000 per month for 6 months.
MiamiCoin, a project managed by a private organization that agreed to set aside a percentage of dollars put toward the mining of the city-branded cryptocurrency, is one of multiple CityCoins either being created or considered. Supporters such as Suarez have hailed the project as a tech-minded way to raise funds for local governments, while skeptics have blasted the approach as an unsustainable scheme that does not make economic sense for investors — all while using the city’s brand to promote participation.
Before the vote on the rental aid program, Carollo asked if the city could be held liable by anyone who lost money investing in MiamiCoin. City Attorney Victoria Méndez said the gift agreement between CityCoins and the city protects the city and did not establish any sort of partnership.
Suarez, who did not present his proposal, had initially suggested the cash gift from the MiamiCoin project could help fund the development of affordable housing. The plan pivoted toward issuing gift cards as a way to offset rent increases for qualified residents, but commissioners Joe Carollo and Manolo Reyes did not favor giving residents gift cards they could use to buy groceries, medicine and gasoline.
Carollo said he thinks Suarez had the best intentions when he promoted MiamiCoin and its benefits to the city, even if the cryptocurrency’s volatility may lead to lost money for investors. The value of the cryptocurrency, which currently cannot be used to buy or sell goods, has dropped about 93% from its highest value in late August.
“I hate to see who are the ones that lost it but I would imagine the majority of those people were investment funds and what have you,” Carollo said. “It’s not like Joe the plumber put in $1,000 into it, I would imagine. At least I would hope so.”
This story was originally published February 24, 2022 at 8:29 PM.
