community redevelopment agencies (cras) - oppaga · the florida legislature’s office of program...

THE FLORIDA LEGISLATURE’S OFFICE OF PROGRAM POLICY ANALYSIS & GOVERNMENT ACCOUNTABILI TY

Community Redevelopment Agencies (CRAs)

Senate Committee on Community Affairs

Laila Racevskis, PhD, Senior Legislative Analyst

November 7, 2017


Legislative Scope

OPPAGA CRA review addressed Primary activities

Governance structure

Funding mechanisms

Program/project overlap

Achievement of established goals

Options for improvement

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BACKGROUND

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CRAs Created to Revitalize Slum and Blighted Areas

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Community Redevelopment Act provided funding for local redevelopment efforts 1969 act stated that local governments can establish

CRAs in areas containing slum or blight where there is a shortage of affordable housing and where redevelopment is in the interest of public welfare

2002 act amendment stipulated that lack of affordable housing no longer an independent reason for creating a CRA


219 Active CRAs; Number per County Varies Widely

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QUESTIONS AND ANSWERS

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What Are the Primary Activities of CRAs?

State Law Provides Guidance Regarding Community Redevelopment Activities Section 163.370(2), F.S. – Outlines powers granted

to counties and municipalities for community redevelopment, including furnishing or repairing streets, utilities, and playgrounds

Section 163.387(6), F.S. – Provides that CRA trust funds may be expended for several purposes, including administration and planning and property acquisition and preparation for redevelopment

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What Are the Primary Activities of CRAs? (Continued)

OPPAGA survey shows most frequently reported CRA activities include Enhancing appearance of residential or commercial

areas (64%)

Rehabilitating commercial properties (42%)

Improving transportation infrastructure (28%)

Improving utilities (28%)

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How Are CRAs Governed?

76% governed by a board that mirrors or is very similar to the local government that oversees the CRA

72% of OPPAGA survey respondents reported that their board membership consists solely of elected officials

27% of OPPAGA survey respondents reported that private citizens serve on their board

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How Are CRAs Funded?

Tax increment financing (TIF) is primary source of funding

For Fiscal Year 2014-15, CRAs reported $594.4 million in revenues $605.2 million in expenditures $714.5 million in debt

Bond issues provide upfront money to fund redevelopment projects; TIF is used to pay the debt service on the bonds

80% of OPPAGA survey respondents reported that their CRAs have never issued bonds

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How Are CRAs Funded? (Continued)

During a 10-year period, CRAs issued $1.35 billion in bonds; 10 CRAs issued the vast majority

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Community Redevelopment Agency Amount Issued

Miami Beach Redevelopment Agency $322,095,000

Orlando CRA 205,235,000

Hollywood CRA 128,575,000

West Palm Beach CRA 121,964,000

Port St. Lucie CRA 86,922,530

Southeast Overtown/Park West CRA 55,885,000

Pompano Beach CRA 34,100,000

Fort Pierce Redevelopment Agency 31,055,000

Collier County CRA 28,057,900

Riviera Beach CRA 25,570,000

TOTAL $1,039,459,430


Do CRA Programs and Projects Overlap With Those of Other Entities?

47% of survey respondents do not think there is overlap between their CRA’s activities and those of other organizations

39% of survey respondents reported that there is overlap Of these respondents, 97% reported that other similar

projects may be funded by local government entities such as cities or counties

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Are CRAs Achieving Established Goals?

Studies of CRAs in other states show mixed results

Florida-specific reports have raised concerns about effectiveness

CRAs use a variety of performance measures, but no standard gathering and reporting of performance data across CRAs

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OPTIONS FOR IMPROVEMENT

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Improve Governance

Provide county taxing authorities more control over expenditures of CRAs created by municipalities

Expand board composition to include non-elected citizen members

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Ensure Appropriate Use of Funds

Specify types of expenditures that qualify for undertakings of a CRA

Require all municipally-created CRAs to submit annual budget requests with sufficient time to allow the county commission to review

Promote compliance with the audit requirement in s.163.387(8), F.S.

Require audits to determine compliance with laws pertaining to expenditure and disposition of unused CRA trust fund moneys

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Enhance Accountability

Require CRAs to submit digital map files depicting geographical boundaries and total acreage

Require CRAs to annually report on a set of standard performance measures that include job creation, business establishment growth, unemployment, and other metrics

Require CRAs to annually submit a project list that includes project description, anticipated project costs, project expenditures, and other data

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Enhance Accountability

In order to be reauthorized, CRAs must demonstrate progress in areas such as business, employment, and wage growth as well as poverty, unemployment, and crime reduction

Create a dissolution process for CRAs that do not demonstrate progress during the first 20 years of existence or during the first 20 years since the last reauthorization

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QUESTIONS

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T H E F L O R I D A L E G I S L A T U R E ’ S OFFICE OF PROGRAM POLICY ANALYSIS & GOVERNMENT ACCOUNTABILITY

OPPAGA supports the Florida Legislature by providing data, evaluative research, and objective analyses that assist legislative budget and policy deliberations.

Contact Information

Laila Racevskis, PhDSenior Legislative Analyst

(850) 717-0524 [email protected]

Kara Collins-GomezStaff Director

(850) 717-0503 [email protected]

mailto:[email protected]

mailto:[email protected]

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