From Staff Reports
A Community Redevelopment Agency (CRA) is a special government entity created by a city or county to revitalize blighted or economically distressed areas. CRAs are designed to promote infrastructure improvements, affordable housing, economic development, and beautification projects in specific districts.
In Florida, CRAs are credited with transforming cities. Look no further than Winter Garden for proof. But if the Florida Legislature passes a bill that currently won a 17-8 vote in its committee, CRAs could cease to exist.
Apopka City Attorney Cliff Shepard presented that alarming possibility to the City Council at its March 19th meeting. Shepard, also the General Counsel of the Florida Redevelopment Association, spelled out the grim reality of the two bills.
"There is a bill afoot to attack CRAs. It's something that the FRA deals with quite frequently. The Senate bill is 1242," Shepard said. "It's actually of the two, not bad, comparatively speaking. The House bill, on the other hand, 991, is really bad for CRAs."
Shepard explained that both bills would end CRAs no later than 2045. However, the bigger issue in the House bill is that it stops new projects from being funded, and there will be no new projects after October 2025.
"So if it's not in the budget for this fiscal year, and it's not a project that's underway before October of 2025, that is the end of your spending on CRAs," said Shepard. "The optimistic notice is that it may be that the Senate version, which doesn't contain that portion, may be the more likely to get through. It would simply include the end of CRAs in 2045. That's the hope, but we have, from the FRA perspective, been involved in multiple phone calls with the lobbyists that we retain to address this issue. And I am cautiously optimistic. But if the House bill gets passed and it's signed, then effectively, I don't have to be the General Counsel of the FRA for a whole lot longer. And you don't have a CRA a whole lot longer."
It's a subject covered in a March 13th article in Florida Politics entitled "Mike Giallombardo’s CRA-killing bill advances, but even some supporters disagree with its aim."
In Context:
The impact of HB 991 on Orange County and Apopka could be significant, especially if CRAs are eliminated over the next two decades. Here’s how it could affect the area:
- Economic Development and Infrastructure Projects at Risk – Apopka and Orange County rely on CRAs to potentially fund revitalization efforts in blighted areas. The elimination of CRAs could slow or halt major infrastructure improvements, affordable housing projects, and business development initiatives that are currently in the pipeline.
- Loss of Local Funding for Redevelopment – CRAs use tax increment financing (TIF) to reinvest in communities. Without them, local governments would have to find alternative funding sources to continue these projects. This could mean relying more on state and federal grants or increasing taxes, which may not be politically viable.
- Impact on Affordable Housing – Apopka has been growing rapidly, and affordable housing is a pressing issue. CRAs play a role in funding and incentivizing workforce and low-income housing projects. If eliminated, this could make it more difficult for lower-income residents to find housing, potentially exacerbating homelessness and displacement.
- Challenges for Small Businesses – Small businesses in CRA-designated areas benefit from lower property tax burdens due to frozen taxable values. Without CRAs, property values could rise, increasing rents and potentially pushing small businesses out of areas undergoing redevelopment.
- Uncertain Future for Ongoing Projects – If the bill passes as written, new projects cannot be initiated after October 1, and existing projects may not have enough time to be completed. This could result in unfinished developments and wasted public investment.
- Local Government Autonomy Reduced – The bill transfers control of redevelopment funding back to city and county governments without a guaranteed funding mechanism. This means local leaders would have less flexibility in directing redevelopment efforts, possibly leading to slower progress on blight removal and urban renewal.
- Political and Legal Battles Over CRA Funds – There may be legal and financial conflicts as cities and counties try to transition CRA-funded projects back to general revenue sources. Apopka and Orange County leaders would need to navigate how to manage existing debts, bonds, and obligations tied to CRAs before they are phased out.
If HB 991 becomes law, Apopka and Orange County must find alternative ways to stimulate economic growth and fund redevelopment. Without CRAs, projects meant to improve infrastructure, housing, and business opportunities could stall or disappear altogether. This could slow economic growth and increase financial pressure on local governments to find replacement revenue sources.
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Disclosure: The research and sourcing for the "In Context" portion of this article were produced using ChatGPT, an AI language model, to enhance research, generate ideas, or draft content. The Apopka Voice performed all final edits and fact-checking to ensure accuracy and alignment with our journalistic standards. An earlier edition left out the AI disclosure.
