CRA [SEE-R-A], noun: A dependent special district in which future increases in property values are set aside to support redevelopment projects and related activities within that district.

Visit the site below to see a full list of special districts including CRAs in Florida.

https://specialdistrictreports.floridajobs.org/OfficialList/CustomList

Community Redevelopment Agencies: What, When, and How

CRAs, as they are known, are quite common, but often there are many questions in the minds of those who don’t work with them every day. How are they authorized? Who oversees them? What is involved in their operation? How are they funded? This article is intended to simply answer those questions. For further information, please contact Jeff Blomeley of the Florida Redevelopment Association at jblomeley@flcities.com or call (850) 701-3614.

What is a Community Redevelopment Agency?

The activities and programs offered within a Community Redevelopment Area are administered by the Community Redevelopment Agency (CRA). CRAs are a five- to nine-member board created by the local government (city or county) to direct redevelopment projects and related activities within Community Redevelopment Area(s). The Board can be comprised of local government officials and/or other individuals appointed by the local government. Although a jurisdiction may establish multiple Community Redevelopment Areas or Districts, there may be only one CRA per jurisdiction; except in Charter Counties having a population less than or equal to 1.6 million people​. The CRA maintains the Redevelopment Trust Fund for each Community Redevelopment Area and expends those funds only in the Community Redevelopment Area.

What is a Community Redevelopment Area or District?

Under Florida law (Chapter 163, Part III), Counties or Municipalities designate areas as Community Redevelopment Areas when certain conditions exist. Since all the monies used in financing CRA activities are locally generated, CRAs are not directly overseen by the State, though they must comply with Florida law. Examples of conditions that can support the establishment of a Community Redevelopment Area include, but are not limited to:

    • presence of substandard or inadequate structures
    • shortage of affordable housing
    • inadequate infrastructure
    • insufficient roadways
    • inadequate parking

To document that the conditions required under Florida law exist, the County or Municipality seeking to establish the Community Redevelopment Area must conduct an assessment of the proposed Community Redevelopment Area by preparing a Finding of Necessity Study. If the Finding of Necessity Study determines that the required conditions exist, the County or Municipality may establish a Community Redevelopment Area to be governed by the CRA to provide the tools needed to foster and support redevelopment projects and related activities within the Community Redevelopment Area.

What is a Redevelopment Plan?

The CRA is responsible for developing and implementing a Redevelopment Plan that addresses the unique needs of the Community Redevelopment Area. The Redevelopment Plan includes the overall goals for the Community Redevelopment Area, as well as identifying the redevelopment projects and related activities for the Community Redevelopment Area. Examples of traditional redevelopment projects include:

    • streetscapes and roadway improvements
    • building renovations
    • new building construction
    • flood control initiatives
    • water and sewer improvements
    • parking lots and garages
    • neighborhood parks
    • sidewalks and street tree plantings

The Redevelopment Plan can also include redevelopment incentives and grants such as façade improvements, infrastructure improvements, fire prevention system upgrades, signage, and structural improvements. The Redevelopment Plan is a living document that can be updated to meet the changing needs within the Community Redevelopment Area; however, the boundaries of the Community Redevelopment Area cannot be changed without conducting a new Finding of Necessity Study.

What is Tax Increment Financing?

Tax increment financing (TIF) is a unique tool available to Counties and Municipalities for funding of redevelopment projects and related activities. TIF is utilized by leveraging public funds to prompt or otherwise attract private investment activity into Community Redevelopment Area(s). The assessed value of all real property in the Community Redevelopment Area is determined as of a fixed date, this represents the “Base Value”. Taxing authorities, which contribute to the Redevelopment Trust Fund, continue to receive property tax revenues from the Base Value. These Base Value revenues remain available to the taxing authorities for their purposes. However, any property tax revenues from increases in the assessed value of real property within the Community Redevelopment Area, referred to as “increment,” are deposited into the CRA’s Redevelopment Trust Fund and restricted for use withing the Community Redevelopment Area for redevelopment projects and related activities.

It is important to note that property tax revenue collected by School Districts and other special districts specified by Florida law (Florida Statute, Chapter 163.387) are exempt from contributing to the Redevelopment Trust Fund. Unlike TIF districts in some states, in Florida taxing authorities direct increment revenues to a Redevelopment Trust Fund after they are received from the Tax Collector.

The increment revenues can be used immediately, saved for a particular project, or can be bonded to maximize the funds available. Any increment revenue generated by a Community Redevelopment Area must be used within the Community Redevelopment Area for specific redevelopment purposes described or otherwise contemplated within the Redevelopment Plan and may not be repurposed or otherwise allocated for general government purposes.

How does the CRA Process Work?

A public meeting begins the process. Several steps will have to be accomplished before the Community Redevelopment Area becomes a reality. These steps are briefly outlined below.

I. Adopt the Finding of Necessity. This will formally identify the slum and blight conditions within the proposed Community Redevelopment Area, establishing its geographic boundary.

II. Create Community Redevelopment Agency. When the County or Municipal governing body adopts a resolution declaring the need for a CRA, that body shall, by ordinance, appoint a board of commissioners of the CRA, which shall consist of not fewer than five or more than nine members.

III. Prepare and adopt Redevelopment Plan. The Redevelopment Plan addresses the unique needs of the Community Redevelopment Area and includes the overall goals for redevelopment within the Community Redevelopment Area, as well as identifying redevelopment projects and related activities.

IV. Create Redevelopment Trust Fund. Establishment of the Redevelopment Trust Fund enables the CRA to direct increment revenues back into the Community Redevelopment Area.

Florida Redevelopment Association Legislative Position

The FRA supports the ability of local governments to create and effectively utilize CRAs to redevelop and revitalize Community Redevelopment Area, this includes the use of increment revenues. We further support local control and disposition of any disputes between local governments over the use of such CRAs and increment revenues. The Florida Redevelopment Association is available for technical assistance, legislative advocacy and redevelopment educational resources.

For copies of current or past bills, statutes or further legislative information, you may visit https://www.leg.state.fl.us/.

FRA Mission

The goal of the Florida Redevelopment Association (FRA) is to transform urban places into vibrant, thriving commercial areas and neighborhoods. The FRA does this beyond the latest urban renewal trends – we advocate for effective legal and financial tools to support long term, solid alternatives to urban blight.

Summary

CRAs are a specifically focused tool to carry out community redevelopment purposes as defined in Florida law (Chapter 163, Part III). CRAs do not establish policy for the governing body that created the CRA – they develop and administer a Redevelopment Plan to implement policy. The CRA acts officially as a body distinct and separate from the governing body which created it, even when the CRA board is composed of that same governing body. The CRA has certain powers that the County or Municipality by itself may not, such as leveraging public funds to prompt or otherwise attract private investment activity into Community Redevelopment Area(s) and disposition of property acquired in the Community Redevelopment Area at its fair value.