Community Redevelopment Agencies (CRAs)

Transcription

1 Community Redevelopment Agencies (CRAs) Senate Committee on Community Affairs Laila Racevskis, PhD, Senior Legislative Analyst November 7, 2017

2 Legislative Scope OPPAGA CRA review addressed Primary activities Governance structure Funding mechanisms Program/project overlap Achievement of established goals Options for improvement 2

3 BACKGROUND 3

4 CRAs Created to Revitalize Slum and Blighted Areas 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 4

5 219 Active CRAs; Number per County Varies Widely 5

6 QUESTIONS AND ANSWERS 6

7 What Are the Primary Activities of CRAs? State Law Provides Guidance Regarding Community Redevelopment Activities Section (2), F.S. Outlines powers granted to counties and municipalities for community redevelopment, including furnishing or repairing streets, utilities, and playgrounds Section (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 7

8 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%) 8

9 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 9

10 How Are CRAs Funded? Tax increment financing (TIF) is primary source of funding For Fiscal Year , 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 10

11 How Are CRAs Funded? (Continued) During a 10-year period, CRAs issued $1.35 billion in bonds; 10 CRAs issued the vast majority 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 11

12 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 12

13 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 13

14 OPTIONS FOR IMPROVEMENT 14

15 Improve Governance Provide county taxing authorities more control over expenditures of CRAs created by municipalities Expand board composition to include non-elected citizen members 15

16 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 (8), F.S. Require audits to determine compliance with laws pertaining to expenditure and disposition of unused CRA trust fund moneys 16

17 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 17

18 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 18

19 QUESTIONS 19

20 Contact Information Laila Racevskis, PhD Senior Legislative Analyst (850) Kara Collins-Gomez Staff Director (850) THE FLORIDA LEGISLATURE 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.