Community Redevelopment Area (CRA)
What is a CRA?
CRA refers to a public entity created by a city or county to implement the community redevelopment activities outlined under the Community Redevelopment Act which was enacted in 1969 (Chapter 163, Part III, Florida Statutes). The CRA is established by the local government and functions within that local government.
The Agency operates on a budget funded through tax increment revenues generated by the defined special district, or the community redevelopment area.
The City of Cocoa has 3 Community Redevelopment Areas (CRA):
Services generally provided by a Community Redevelopment Agency are as follows:
- Commercial façade grants
- Engineering and construction
- Stormwater improvements
- Streetscaping design
- Workforce housing development
What is Tax Increment Financing?
Tax Increment Financing, also known as TIF, is a tool to use future gains in taxes to finance the current improvements that will create those gains. When a public project such as a road, school, or hazardous waste cleanup is carried out, there is an increase in the value of surrounding real estate and often new investment (new or rehabilitated buildings, for example).
This increased site value and investment creates more taxable property, which increases tax revenues. The increased tax revenues are the "tax increment." Tax Increment Financing dedicates that increased revenue to finance debt issued to pay for the project. TIF is designed to channel funding toward improvements in distressed or underdeveloped areas where development would not otherwise occur. TIF creates funding for public projects that may otherwise be unaffordable to localities.