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A Tale of Two CRAs: How Community Redevelopment Agencies in Florida Implement Healthy Community Strategies
- 1. A Tale of Two CRAs How Community Redevelopment Agencies in Florida Implement Healthy Community Strategies 2017 AIA Housing Knowledge Community Webinar December 4, 2017
- 2. What is a CRA? Enabling Legislation: Florida Statutes, Chapter 163 163.330 Short title “Community Redevelopment Act of 1969.” 163.335 Findings and declarations of necessity.— (1) It is hereby found and declared that there exist in counties and municipalities of the state slum and blighted areas which constitute a serious and growing menace, injurious to the public health, safety, morals, and welfare of the residents of the state; that the existence of such areas contributes substantially and increasingly to the spread of disease and crime, constitutes an economic and social liability imposing onerous burdens which decrease the tax base and reduce tax revenues, substantially impairs or arrests sound growth, retards the provision of housing accommodations, aggravates traffic problems, and substantially hampers the elimination of traffic hazards and the improvement of traffic facilities; and that the prevention and elimination of slums and blight is a matter of state policy and state concern in order that the state and its counties and municipalities shall not continue to be endangered by areas which are focal centers of disease, promote juvenile delinquency, and consume an excessive proportion of its revenues because of the extra services required for police, fire, accident, hospitalization, and other forms of public protection, services, and facilities. (5) It is further found and declared that the preservation or enhancement of the tax base from which a taxing authority realizes tax revenues is essential to its existence and financial health; that the preservation and enhancement of such tax base is implicit in the purposes for which a taxing authority is established; that tax increment financing is an effective methodof achieving such preservation and enhancement in areas in which such tax base is declining; that community redevelopment in such areas, when complete, will enhance such tax base and provide increased tax revenues to all affected taxing authorities, increasing their ability to accomplish their other respective purposes; and that the preservation and enhancement of the tax base in such areas through tax increment financing and the levying of taxes by such taxing authorities therefor and the appropriation of funds to a redevelopment trust fund bears a substantial relation to the purposes of such taxing authorities and is for their respective purposes and concerns. This subsection does not apply in any jurisdiction where the community redevelopment agency validated bonds as of April 30, 1984. (6) It is further found and declared that there exists in counties and municipalities of the state a severe shortage of housing affordable to residents of low or moderate income, including the elderly; that the existence of such condition affects the health, safety, and welfare of the residents of such counties and municipalities and retards their growth and economic and social development; and that the elimination or improvement of such condition is a proper matter of state policy and state concern and is for a valid and desirable public purpose. (7) It is further found and declared that the prevention or elimination of a slum area or blighted area as defined in this part and the preservation or enhancement of the tax base are not public uses or purposes for which private property may be taken by eminent domain and do not satisfy the public purpose requirement of s. 6(a), Art. X of the State Constitution.
- 3. CRA Activities • Take on major projects and planning that provide community benefit and spark private investment • Leverage funding • Rely on professional architects, planners, and engineers for services • Tailor solutions to the needs of the specific redevelopment area: for example Westgate and Delray Beach CRAs
- 7. Westgate/Belvedere Homes • Population in 2007: 9,060 • Estimated Median Income in 2015: Westgate/Belvedere Homes: $ 37,295 Florida: $ 49,426 • Estimated median house or condo in 2015: Westgate/Belvedere Homes: $137,444 Florida: $179,800
- 8. Westgate CRA Lack of Infrastructure led to the creation of the CRA in 1985 • CRA District approx. 1,200 acres • Governed by 7‐member volunteer board, appointed by County Commission • Tax Increment Financing (TIFs) primary source of revenues • Activities guided by CRA Plan
- 10. Funding Availability Delray CRA • $17,229,948 TIF Total • $10,306,868 City • $ 6,923,080 County • $29,233.91 Revenue Westgate CRA • $1,900,000 TIF Total • $10 M Revenue (approx.)
- 12. Dennis P. Koehler Preserve CRA Master Plan 2003 Drainage Study • Ideal quantity of land area superimposed on WCRA area • 15% or 200 acres of WCRA land for water storage for 100‐yr flood protection 2004 CRA Plan (Preferred Option) • Existing canals/lakes widened • New lakes proposed • Consolidated and linked system and land use changes • Significantly improved storm‐ water management with only 10% of land area for storage
- 13. Dennis P. Koehler Preserve Site Conditions & Land Assemblage Elimination of Blight • Demolition of 11 Derelict Residential Structures • Eliminated Illegal Dumping • Expansion and Conversion of Existing Detention Area Land Assemblage • 7.85 acres total • Vacant and dilapidated structures on 6.85 acres • Voluntary sellers • $2 million in total acquisition costs • NO DISPLACEMENT OF RESIDENTS
- 14. Dennis P. Koehler Preserve Conceptual Plan Phases I and I (completed 2012) • Native vegetation • Butterfly attractants • Wildlife habitats • 50% littoral plantings for pre‐treatment of stormwater runoff prior to discharging to the Lake Worth Lagoon Phase III (completed 2013) • EcoArt component and pilot Audubon Urban Oasis • Water quality monitoring and education program through partnership with Oxbridge Academy
- 15. Dennis P. Koehler Preserve Total Project Cost = $4.55 Million ($450,000 Leveraged TIF) Project Funding: • Westgate CRA TIF ($450,000) • Palm Beach County District 2 • ($1.2 million) • CDBG /DRI Grant ($400,000) • Lake Worth Lagoon ($1 million) • Chain of Lakes ($250,000) • Office Community Revitalization ($550,000) • FEMA HMGP ($700,000) Phases I & II 6.85 acre lake Phase III 1 acre EcoArt Before After
- 16. Dennis P. Koehler Preserve Project Benefits: • Additional stormwater storage capacity for the Westgate Community for flood mitigation • Community amenity and newly created habitat for returning wildlife • Land Stewardship and Preservation of Lake Worth Lagoon, containing over 4,000 acres of seagrasses and habitat for most species, including 195 different fish species • Monitoring of wildlife habitat using Citizen Scientists and Youth Engagement through pilot Audubon Urban Oasis Program and partnership with Oxbridge Academy
- 17. Dennis P. Koehler Preserve Project Benefits: • Local job creation and contribution to the regional economy: Artificial and natural reef systems of Palm Beach County contributed to $3.8 billion in sales and 60,000 jobs • Ecotourism – Provides opportunity to link public open spaces and few remaining places with pristine Everglades remnant
- 18. Dennis P. Koehler Preserve Project Benefits: Flood Mitigation Project Allows Development of Scattered Infill Housing Layering of Funds & Justification • WCRA is flood prone area – lowest point in C‐ 51 Canal Basin • Older housing uses Septic Tanks • Standing flood water mixed with drainfield • Cost Benefit Analysis
- 19. Belvedere Homes Sanitary Sewer WCRA NSP2 Homes • 500 Single Family Dwellings changed from septic to sewer • $7M project • Funded by CDBG DRI #4
- 20. Belvedere Homes Sanitary Sewer WCRA NSP2 Homes Results
- 21. Infill Housing –CDBG DRI #3 • 182 mobile units destroyed by Wilma in WCRA • Public‐Private‐Nonprofit partnership between the WCRA, Palm Beach County, Florida Community Loan Fund (FCLF), and Neighborhood Renaissance, Inc. (NR), a 501(c)(3) nonprofit development corporation • WCRA applied for the DRI #3 Funds, performed entitlement, and provided lots at reduced cost and 0% interest loan to be paid in 13 increments, 30 days after closing of each unit ($550,000 approx. land acquisition) • 11 ‐ 3 and 4 bedroom single‐family units, 1 ‐ 3 bedroom 2‐unit townhouse located on scattered sites within the North Westgate Neighborhood. • The project was funded by the Florida 2005 CDBG Disaster Recovery (DRI) Fund Program ($2,058,461) and FCLF ($850,000)
- 22. Tax Increment Financing(TIF) • TIF is NOT a new or additional tax. It is a portion of the taxes collected and transferred to the CRA, based on incremental increases in property values • 1985 is Delray CRA’s “base year” • City receives tax revenues based on 1985 assessed values plus 5% of increased revenues • CRA receives 95% of tax revenues that accrue from increase in assessed value since base year • Includes both City and County tax dollars • TIFs are reinvested in redevelopment area - 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 14,000,000 16,000,000 1987 1990 1991 1993 1996 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 Millions Year Delray Beach CRA TIF Revenue 1987-2015 History County TIF City TIF Total TIF 1985 Tax Roll Value for CRA District: approx. $250 million 2015 Tax Roll Value for CRA District: approx. $1.56 billion
- 23. 30 year Timeline
- 25. Affordable Mixed-Use West Settler’s Building • Rehab of historic structure • 3 affordable residential condos • 2 ground floor commercial condos • Architect: David Miller
- 26. CRA Capacity Building Housing Partners CRA Habitat for Humanity Coda Units
- 27. DBCRA and DB Community Land Trust • Land Trust Model • Land Lease Management • A‐Guide recipient • RFPs
- 28. Eagle Nest Construction Academy 2014 FRA Awards Creative Partnerships
- 29. A Unique Partnership The Palm Beach County School Board, the City of Delray Beach and the Delray Beach CRA enter into an Interlocal Agreement defining each party’s role. • Vacant lots are donated by the CRA or City. • The CRA provides construction financing. • Atlantic High administration ensures that students arrive safely to the job site and receive supervision and training in the construction trades. • The City inspects the work, processes the draws, and arranges for the sale of the homes to low/moderate income families High school students design and build energy efficient, affordable single family homes in the CRA and CDBG target neighborhoods.
- 30. Students are Trained in Homebuilding Starting in drafting class, students learn how to design a single family home on a vacant lot. A registered architect finalizes and seals the draft plan. More than 200 students have participated in the academy. Many have gone into construction trades after graduation or entered college programs in fields such as construction management
- 31. Energy Efficient and Green Technologies • Students learn the latest construction techniques‐‐Eagle Nest 2 was constructed with foam blocks made from recycled materials. • Energy star appliances and roof insulation will keep utility bills low for the home’s residents. Students work on the homes during the week
- 33. DB Housing Authority La France Apartments After Before Capacity Building Steps • CRA Owned / Redeveloped • DBHA Managed – Initial Property management experience Healthy Communities Steps • Kick off renovation of blighted area • Senior housing within area to preserve support network
- 34. DB Housing Authority La France Apartments
- 35. DB Housing Authority West Settlers Service Center Capacity Building Steps • CRA donated land, renovated alley and made parking agreements for whole neighborhood. • DBHA – Traditional construction financing. Healthy Communities Steps • Redevelopment of blighted area in historic African American Commercial corridor • Grandparents raising Grandchildren units – programs for non nuclear family
- 36. DB Housing Authority Village Square-The Villas and the Courts (formerly Carver Estates) Post‐Hurricane Wilma (Before)
- 37. Post‐Hurricane Wilma (Before) DB Housing Authority Village Square-The Villas and the Courts (formerly Carver Estates)
- 38. Village Square was a 200‐unit deteriorating public housing complex which was condemned following Hurricane Wilma • Phase 1 ‐ 144 low income housing tax credit rental units (completed) • Phase 2 ‐ 84 low income elderly units (under construction) • Phase 3 ‐ 30 affordable for‐ sale SFD and duplex units (early planning phase) Phase 1 Phase 2 Phase 3 DB Housing Authority Village Square-The Villas and the Courts (formerly Carver Estates)
- 39. • The Delray Beach CRA provided over $1 million dollars infrastructure and roadway funding to help attract a private partner for the Housing Authority. • Roundstone Development was selected through a competitive bid process. The Housing Authority is about to get additional income from assisting in the management of this property. • This redevelopment project is part of the Delray Beach Housing Authority’s strategy to support the overall revitalization of the western section of the city. DB Housing Authority Village Square-The Villas and the Courts (formerly Carver Estates)
- 40. DB Housing Authority Lakes Delray Apartments The Lake Delray Apartments is a 55 and older apartment community with 403 units • DBHA has over 200 project based section 8 units within this community • Community listed for sale in late 2015, a partner was sought to buy the property with the Delray Beach Housing group as the property manager • Through property management and private developer opportunities fostered by the CRA the Delray Beach Housing Authority has been able to increase their property management portfolio thus supplementing income to lessen its dependency on HUD and agencies like the CRA.
- 41. Outcomes • Commercial rents on E. Atlantic Avenue increased from average of $6‐8/sq. ft. to a range of $60‐ $90/sq. ft. • Commercial Vacancy rate decreased from 35% to approximately 5% • Approximately 130 restaurants and 20 art galleries established downtown • More than 2,000 residential units and 400 hotel rooms approved and/or constructed • New affordable units created • Active nightlife and cultural scene