Land Use & Zoning

Florida's 'Community Redevelopment Areas' (CRAs) use which financing mechanism to fund improvements?

AState grants
BTax Increment Financing (TIF) — where the increase in property tax revenue after redevelopment funds improvements within the CRA✓ Correct
CSpecial assessment bonds paid by property owners
DFederal CDBG (Community Development Block Grants)

Explanation

Florida CRAs (governed by F.S. 163) use Tax Increment Financing (TIF). A 'frozen' base value is established when the CRA is created. As properties in the CRA are redeveloped and assessed values increase, the incremental increase in tax revenues is captured and reinvested within the CRA for improvements. This allows redevelopment without directly taxing other areas.

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