Established in 1976 by ordinance, the Redevelopment Agency was created primarily to take advantage of the Neighborhood Development Program which was funded by the Department of Housing and Urban Development (HUD).
This program was eventually replaced by the Community Development Block Grant (CDBG) program which the agency administers.
What is a Redevelopment Agency?
Redevelopment Agencies (RDA´s) are a tool used by the government to cleanup blight and to implement the development goals of communities. Each RDA consists of the elected council or commission which is the RDA board by state statute. The RDA board adopts the plans, policies, and budgets which are implemented by the agency.
What do Redevelopment Agencies do?
RDA´s assist communities in addressing three types of development issues:
- Redevelopment: Encourage private and public investment in previously developed areas that are blighted
- Economic Development: Work with businesses to increase the jobs available in the community and the state as a whole
- Housing Development: Increase the amount and variety of affordable housing within a community.
What is a Project Area?
A project is a part of a community, usually less than 100 acres in size, which has been targeted for RDA assistance. RDA´s create a project area by adopting a plan for redevelopment or economic development of a specific geographic area. Many communities have multiple RDA project areas.
How do RDA´s Pay for Community Improvements?
In most cases, RDA´s pay for only a fraction of development costs related to the new developments they encourage. The RDA´s share of the development costs are paid through the use of property tax increment. Property tax increment is the increase in the property taxes generated prior to the new development (base taxes). Generally, base taxes are used to pay project costs. The use of tax increment. must be approved by a committee made up of representatives from each of the affected property tax.