Why Are There CRAs? Part 1

By Hallandale Beach Mayor, Joy Cooper

Apr 17, 2025

Why Are There CRAs? In Short, They Were Set Up To Address Areas Within Cities That Had Been Typically Underserved When It Came To Economic Factors. The Factors Could Include: Basic Infrastructure, Abandoned And Unsafe Housing, Shuttered Stores, Lighting, Crime And Other Factors That Create A Lack Of Private Investment. Community Redevelopment Agencies Are Different From The Community Investment Act Which Was Set Up In 1977 As A Federal Banking Tool.

Community Redevelopment Agencies were enabled by Florida in 1969 as a vehicle for cities to leverage funds to address these neglected areas. Chapter 163 governing Intergovernmental Programs. There are various parts to this chapter that include districts that provide specific services. Transportation, Public Safety, Planning, Special Commissions and CRAs.

Our City has three special districts. We have two safe neighborhood districts that grant taxing authority to allow additional safety measures. Three Islands and Golden Isles Safe Neighborhood Districts are granted the ability to tax up to 2 Mills on properties within the district to enhance safety. The money can only be used in the district.

CRAs are different in the fact that they do not have a separate Millage Rate. CRAs are set up based on the need to remove slum and blight within a designated boundary. The Property Taxes within the boundaries are put into the CRA Trust. The fund is called Tax Increment Funding, TIF.

Once there is an established need based on criteria defined as slum and blight conditions, the Property Tax Values within the boundaries are set as the base. Once a base year is set, all Property Tax Revenue including the increases from the base are placed in the CRA trust for the purpose of paying for the CRA Plan to address slum and blight.

Our CRA was established 28 years ago. It was not without a fight between the county and the city. The CRA does not simply include City Property Taxes but includes: County, Children’s Service Tax and Hospital District Tax Revenues. At that time, there were 13 CRAs in Broward County that were established with TIF. They are all different in size. Some cities have more than one.

The county did not want to give up control of their money. They fought and won the battle requiring TIF on the state level. After this, the first CRA that was created without TIF was Dania Beach.

Our City set up the CRA from 14th Avenue west. The designation of this area was not supported by all stakeholders as it included both parimutuel tracks. While the tracks were operational there was not any investment occurring to redevelop. The homes in the area heading west lacked sidewalks, lighting and parking. Stores had been closed and were going out of business.

Other stakeholders fought against the CRA as the Property Tax Revenues in the CRA area were in a lock box and could not be used for the general fund. The biggest opposition was from Police and Fire agencies that view this as taking money from their budgets for salaries and equipment. Sounds like a fair argument unless the CRA plans did not include crime prevention and plans to enhance public safety. In our case, our plan does!

For years, the counties continued to go to the state and complain about CRAs. Opponents would complain about fraud and abuse. They would target expenditures or programs and report them to be investigated. This happened Statewide and there was an all-out war on CRAs.

In the end, CRAs were not totally abolished but other government agencies were not required to contribute to the trust. There are seven CRAs that have either no TIF or are simply City TIF.

As always, I am available anytime for your questions, concerns and ideas to make our City a better place on my Phone/Text at: (954) 632-5700. Or you can email me at: jcooper@cohb.org. Please visit me on my Facebook page at Mayor Joy Cooper. Like! Follow And share!