What is a Community Redevelopment Area (CRA)?

A Community Redevelopment Agency (CRA) is a public entity that finances redevelopment within focused geographic areas created under Florida Statutes, Chapter 163.340 (8)(A).

To be eligible to create a CRA, certain conditions must exist within the proposed area, including (but not limited to):

• • Substandard or inadequate structures

  • A shortage of affordable housing

  • Inadequate infrastructure

  • Insufficient roadways

  • Inadequate parking

A survey of the proposed area is conducted to document these conditions, followed by a Finding of Necessity.
If the Finding of Necessity determines these conditions exist, the area may establish a Community Redevelopment Agency to provide tools and resources to support redevelopment efforts.

What is a Community Redevelopment Agency?

The activities and programs offered within a Community Redevelopment Area are administered by the Community Redevelopment Agency.

• • The agency is directed by a five- to seven-member CRA Board created by the local government (city or county).

  • The Board may consist of local government officials and/or individuals appointed by the local government.

  • Although one local government may establish multiple CRA districts, there is generally only one CRA Board.

  • Each district must maintain separate trust funds and may only expend those funds within its respective district.

What is a Community Redevelopment Plan?

The Community Redevelopment Agency is responsible for developing and implementing the Community Redevelopment Plan, which addresses the specific needs of the designated area.

The plan includes:

• • Overall goals for redevelopment

  • Types of projects planned for the area

Examples of traditional projects include:

• • Façade grants

  • Building renovations and site improvements

  • Directional signage

  • Streetscapes, sidewalks, and street tree plantings

  • Community facilities

  • Public parking lots

Any projects funded through the Redevelopment Trust Fund must be identified in the redevelopment plan.

The plan is a living document that can be updated periodically—typically every five years—to address changing community needs.
However, the boundaries of the redevelopment area cannot be changed without restarting the process from the beginning.

What is the Purpose of a CRA?

The purpose of the CRA is to revitalize the physical environment and the economy of the Community Redevelopment Area.

The CRA's activities are designed to solve the underlying problems of slum and blighted conditions through:

• • Planning

  • Redevelopment

  • Historic preservation

  • Affordable housing

These efforts help protect and enhance the tax base through mutually supportive activities.

The work program for the CRA is defined in the Community Redevelopment Plan for the Community Redevelopment Area.
In the redevelopment plans, comprehensive strategies are formulated to promote community development in the Community Redevelopment Areas, and the annual budget is adopted to support these activities.

How is a CRA Funded?

CRA projects are funded by Tax Increment Financing (TIF) from each redevelopment area.

When a redevelopment area is established:

• • The current assessed value of the property within the project area is designated as the base year value.

  • TIF captures a percentage of new tax revenue generated within the redevelopment area.

  • Generating TIF is not an additional tax or supplementary assessment on property owners.

TIF is an economic development tool used to leverage funds to:

• • Promote private sector investment within the primary urban service boundary

  • Generate revenues to finance redevelopment projects

How Does the CRA Process Work?

A public meeting begins the designation process. Several steps must be completed before the Community Redevelopment Area becomes official.

Steps:

1. 1. Adopt the Finding of Necessity

      • Formally identifies blight conditions within the targeted area

      • Establishes the redevelopment area boundary

   2. Develop and Adopt the Community Redevelopment Plan

      • Addresses the unique needs of the targeted area

      • Defines overall goals for redevelopment

      • Identifies specific projects

   3. Create a Redevelopment Trust Fund

      • Enables the Community Redevelopment Agency to reinvest increased property tax revenues back into the targeted area

Summary

CRAs are a specifically focused financing tool for redevelopment.
CRA Boards do not establish policy for the county — they develop and administer a plan to implement that policy.

The CRA functions as a separate and distinct body from the governing body, even if composed of the same members.

The CRA has certain powers that the county alone may not exercise, including:

• • Establishing Tax Increment Financing

  • Leveraging local public funds with private dollars to make redevelopment projects possible