Title
Rental Assistance Using Tax Increment Funds in the CRA Districts (B)
This item involves a request from the City Commission to the Community Development Committee to determine if it is legal to use TIF funding to provide rental assistance similar to Section 8 vouchers to individuals and families.
Explanation
On January 14, 2008, the City Commission referred to the Community Development Committee (CDC) the issue of whether Tax Increment Funds (TIF) from the Community Redevelopment Trust Funds may be lawfully used as rental assistance similar to Section 8 housing vouchers.
On May 8, 2008 CRA staff informed the CDC that it didn't find statutory authority for using TIF as rental assistance similar to Section 8 housing vouchers, which are in essence grants to individuals to subsidize the payment of that individuals rent. The "Community Redevelopment Act of 1969" (Part III of Chapter 163, Florida Statutes) establishes the powers of the CRA. These powers do not include the power to grant or loan funds to an individual for that individual's private purpose, such as rent or mortgage payments. Although the Act provides authority for CRA's "developing and demonstrating new or improved means of providing housing for families and persons of low income," staff does not believe that replicating an existing rental subsidy program, such as Section 8, would be a "new or improved means " of providing such housing. To encourage affordable housing, the CRA rewrote the Transformational Incentive Program to mandate that 10% of housing units (either rental or ownership) be set aside as affordable housing units. The analysis indicated that support is there for affordable housing and the City should look at ways of encouraging more participation. The CDC suggested that the City explore the pros/cons of the matter, and noted that it might be worthwhile to put the item on the next Joint City/County meeting agenda.
Fiscal Note
None.
Recommendation
Co...
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