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130518 - CRA Basics-Integrated Condensed Version Atlantic Beach Meeting 11-23-15CRA Basics 1 Agenda Why Redevelopment? What are Community Redevelopment Agencies (CRAs)? What can CRAs Do and Not Do? What are the “Rules of Engagement”? How to be an effective CRA Leader What are the Best Practices? Getting started – What do we do next? 2 Source: Florida Redevelopment Association, 2015 2 Ten Reasons for Redevelopment Remove Slum & Blight Create Clean and Safe Places Prevent Crime Encourage Economic Development Build or Enhance Affordable Housing Fund Streetscape and other Capital Improvements Preserve Historic Buildings/Resources Retain and Recruit Business Enhance Parks and Recreation Increase the Tax Base 3 Source: Florida Redevelopment Association, 2015 3 What is Redevelopment? ANY activity authorized under Chapter 163, Part III, Florida Statutes. Relative to your CRA, activities are authorized by your approved Redevelopment Plan and funded by the increase in assessed values over time, called increment. 4 Source: Florida Redevelopment Association, 2015 4 What is a CRA? Dependent Special District Created to remove slum and blight conditions within a designated district Board Members appointed by local government – may be elected officials or appointees or both Law generally says only one Community Redevelopment Agency (Board) per jurisdiction CRA may have multiple CRA districts 5 Source: Florida Redevelopment Association, 2015 5 Community Redevelopment Agencies (CRAs) Authorization for CRAs was passed in the Redevelopment Act of 1969 which became Chapter 163 Part III of the Florida Statutes Not in widespread use until after 1980 when State of Florida v. Miami Beach was decided As of last review there are 214 CRA Districts registered with the Florida Department of Economic Opportunity Currently the only form of Tax Increment Districts in widespread use in the State of Florida CRAs may be created by a City or County to assist in the elimination of slum and/or blighting conditions State is not involved in the creation of CRAs 6 Source: Florida Redevelopment Association, 2015 FRA01 [INTRODUCE EACH POINT. IF NO QUESTIONS, GO ON TO NEXT SLIDE] – DIRECT TRAINEES TO APPENDIX First let’s briefly review CRA facts and Legislative Intent Authorization for CRAs was passed in the Redevelopment Act of 1969 which became Chapter 163 Part III of the Florida Statutes Not in widespread use until after 1980 when State of Florida v. Miami Beach was decided As of last review there are 212 CRA Districts registered with the Florida Department of Community Affairs Currently the only form of Tax Increment Districts in widespread use in the State of Florida CRAs may be created by a City or County to assist in the elimination of slum and/or blighting conditions State is not involved in the creation of CRAs FOR TEST TEACH – MENTION INTEGRATION WITH REDEVELOPMENT 101 Working Draft - Trainer's Guide 6 Budget, Funding, & Reporting July 27, 2012 Version CRA Legislative Intent Eradication of Slum & Blighted Areas constitutes a serious and growing menace, injurious to public health, safety, welfare of residents contributes to spread of disease and crime constitutes an economic and social liability, decreasing tax base and revenues impairs sound growth retards provision of decent housing accommodations aggravates traffic problems and traffic hazards 7 Source: Florida Redevelopment Association, 2015 FRA01 – SLIDE NEEDS WORK, PHRASE IT [INTRODUCE EACH POINT. IF NO QUESTIONS, GO ON TO NEXT SLIDE] – USE THIS TO INTRODUCE FS 163 PART III CRA Legislative Intent CRAs are created for the Eradication of Slum & Blighted Areas, 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; 7 Budget, Funding, & Reporting July 27, 2012 Version Working Draft - Trainer's Guide How is a CRA Created? All Local Charter counties “delegate” authority to city CRAs. Non charter counties can challenge the creation of city CRA by statutory process. Finding of Necessity and “blight” as defined by statute, and not the standard dictionary meaning. CRA Board is established. Redevelopment Plan is adopted. Trust Fund is created. No state approval required, but reporting requirements. 8 Source: Florida Redevelopment Association, 2015 8 The CRA Board The Governing Body A board of between 5 and 9 individuals appointed by the Governing Body By interlocal agreement may include representatives of taxing authorities If the Governing Body is only 5 members then it can be the Governing Body + 2 individuals appointed by the Governing Body Chair and Vice Chair of the CRA designated by Governing Body (not the CRA Board members) 9 Source: Florida Redevelopment Association, 2015 9 The Redevelopment Plan is the Blueprint for CRA Activities When writing a Community Redevelopment Plan it is important to remember: If a program or project is contained in the Plan, it NEED NOT be undertaken. But if a program or project is NOT contained in the Plan it CANNOT be undertaken. Put everything you might want to do in the Plan whether you think you will do it or not. 10 Source: Florida Redevelopment Association, 2015 FRA01 [INTRODUCE EACH POINT. IF NO QUESTIONS, GO ON TO NEXT SLIDE] ANYONE NOT HAVE A CRA PLAN? JUST AS WHEN THE Community Redevelopment Plan was written, it is important to remember: If a program or project is contained in the Plan, it need not be undertaken. But if a program or project is NOT contained in the Plan it CANNOT be undertaken. Put everything you might want to do in the Plan whether you think you will do it or not. Working Draft - Trainer's Guide 10 July 27, 2012 Version Budget, Funding, & Reporting Even If Allowed By Statute…… Any project or program a CRA wishes to undertake must be outlined in the Community Redevelopment Plan (CRP) IF IT IS NOT IN THE PLAN YOU CAN’T DO IT !!!!! 11 Source: Florida Redevelopment Association, 2015 FRA01 At the End of the Fiscal Year Funds left in the Redevelopment Trust Fund on the last day of the Fiscal Year shall be: Returned to the taxing authorities Used to reduce debt Deposited in an escrow account for reducing debt later Appropriated to a specific project contained in the Redevelopment Plan that will be completed within three (3) years ASK: WHO WANTS TO DO THE FIRST? ASK ATTENDEES TO SHARE EXPERIENCE OF HOW THEY DO THIS. INTRODUCE THE NOVEMBER RECONCILIATION Working Draft - Trainer's Guide 11 Budget, Funding, & Reporting July 27, 2012 Version What is Increment Revenue? Often referred to as “tax increment financing” or “TIF” Provides the principal source of funding for community redevelopment activities Calculated from increases in taxes collected by certain taxing authorities over what was collected in an established “base year Not ad valorem tax – “amount equal to” 12 Source: Florida Redevelopment Association, 2015 FRA01 - WORDING [BRIEFLY ELABORATE ON EACH POINT, ACCORDING TO STUDY GUIDE/GLOSSARY] INCREMENT REVENUE IS: Often referred to as “tax increment financing” or “TIF” Calculated from increases in taxes collected by certain taxing authorities over what is collected in an established “base year” is remitted by those authorities to the CRA for use in financing redevelopment activities. [REFER TO STATUTE 163.387 – PAGE 35/36 ] Such increment shall be determined annually and shall be that AMOUNT EQUAL TO 95 percent of the difference between: STUDY GUIDE REFERENCE: STRAND DECISION Working Draft - Trainer's Guide 12 Budget, Funding, & Reporting July 27, 2012 Version Calculating the Increment Revenue All taxable properties within the CRA 50% to 95% of the difference in value between ad valorem revenues in current year and revenues calculated for base year when trust fund was established. Generall y limited to municipality and county and future ad valorem districts though some other districts may have to contribute Does not include debt service millage No longer than 40 years (or 60 years if created before July 1, 2002) 13 Source: Florida Redevelopment Association, 2015 FRA01 [INTRODUCE EACH POINT. IF NO QUESTIONS, GO ON TO NEXT SLIDE] To CALCULATE INCREMENT REVENUE: All taxable properties within the CRA 50% to 95% of the difference between ad valorem revenues in current year and the revenues calculated for base year when trust fund was established. – EXPLAIN WHY THIS IS 50% TO 95% Generally limited to municipality and county and future ad valorem districts though some other districts may have to contribute Does not include debt service millage No longer than 40 years (or 60 years depending on date of creation) 13 Budget, Funding, & Reporting July 27, 2012 Version Working Draft - Trainer's Guide CALCULATING THE TAX INCREMENT The general formula used to calculate increment revenues is: I = r(0.95n - i) where: I = the increment revenues r = the tax rate (millage) in the current year 0.95n = 95% of the assessed valuation for the current year i = the assessed valuation in the base year Source: Steven G. Lindorff, FAICP, 2014 1,000 14 14 Use of Funds – FS 163 Part III Money in the redevelopment trust fund may be expended for undertakings as described in the community redevelopment plan, including, but not limited to: Administrative and overhead expenses Redevelopm ent planning, surveys, & financial analysis Acquisition of real property Clearance/preparation & relocation of occupants Repayment of borrowed funds Expenses related to bonds/other indebtedness Devel opment of affordable housing Community policing innovations 15 Source: Florida Redevelopment Association, 2015 [INTRODUCE EACH POINT. IF NO QUESTIONS, GO ON TO NEXT SLIDE] – added such as The specific areas for expenses identified by Statute 163 include BUT ARE NOT LIMITED TO: Administrative and overhead expenses Redevelopment planning, surveys, & financial analysis Acquisition of real property in the CRA district Clearance/preparation &relocation of occupants Repayment of borrowed funds All expenses related to bonds/other indebtedness Development of affordable housing Community policing innovations Working Draft - Trainer's Guide 15 Budget, Funding, & Reporting July 27, 2012 Version Administrative & Overhead Expenses Executive Director and other staff Technical experts Other such agents & employees as required Counsel and legal staff 16 Source: Florida Redevelopment Association, 2015 FRA01 [INTRODUCE EACH POINT. IF NO QUESTIONS, GO ON TO NEXT SLIDE] ADMINISTRATIVE AND OVERHEAD EXPENSES include: Executive Director Technical experts Other such agents & employees as required Counsel and legal staff 16 Budget, Funding, & Reporting July 27, 2012 Version Working Draft - Trainer's Guide What Increment Revenues Can’t Pay For 163.370 Construction or expansion of administrative buildings for public bodies or police and fire buildings. Each taxing authority can agree to allow this or if the construction or expansion is contemplated as part of a community policing innovation. Any publicly owned capital improvements or projects if such projects or improvements were scheduled and approved in a public capital improvement plan of the governing body or unless and until it is removed from the plan of the governing body and 3 years have elapsed. General government operating expenses unrelated to the planning & carrying out of a community redevelopment plan. 17 Source: Florida Redevelopment Association, 2015 FRA01 [INTRODUCE EACH POINT. IF NO QUESTIONS, GO ON TO NEXT SLIDE] What Increment Revenues Can’t Pay For- 163.370 (3) Construction or expansion of administrative buildings for public bodies or police and fire buildings, unless each taxing authority agrees or unless the construction or expansion is contemplated as part of a community policing innovation. Any publicly owned capital improvements or projects if such projects or improvements were scheduled pursuant to a previously approved public capital improvement or project schedule or plan of the governing body which approved the community redevelopment plan unless and until removed from such schedule or plan of the governing body and 3 years have elapsed. General government operating expenses unrelated to the planning & carrying out of a community redevelopment plan. Working Draft - Trainer's Guide 17 Budget, Funding, & Reporting July 27, 2012 Version Other Expenses Increment Revenues Can’t Pay For Uses not in plan Pay Board Members/Commissioners for their service as a CRA Board member Pay for any project or program outside of the Redevelopment Area (in general) There MAY be legal uses of funds outside the Redevelopment Area 18 Source: Florida Redevelopment Association, 2015 FRA01 [BRIEFLY ELABORATE ON EACH POINT, ACCORDING TO STUDY GUIDE/GLOSSARY] Other Expenses Increment Revenues Can’t Pay For Uses not in plan Pay Board Members/Commissioners for their service as a CRA Board member 163.356(3)(a) A commissioner shall receive no compensation for services, but is entitled to the necessary expenses, including travel expenses, incurred in the discharge of duties. Repair utilities usually paid by a user fee Pay for any project or program outside of the Redevelopment Area [SAY – YOU MAY BE ABLE TO FIND LEGAL USES OF FUNDS OUTSIDE THE REDEVELOPMENT AREA] 18 Budget, Funding, & Reporting July 27, 2012 Version Working Draft - Trainer's Guide Some of the Things TIF Can Be Used for Capital expenditures Incentives and grants Code enforcement Land acquisition Cost sharing/allocation for services 19 Source: Florida Redevelopment Association, 2015 INTEGRITY FRA01 [INTRODUCE EACH POINT. IF NO QUESTIONS, GO ON TO NEXT SLIDE] Other expense, not specifically mentioned by statute, but reflecting Best Practices include: Capital expenditures Promotion, marketing & events Code enforcement Incentives and grants Cost sharing/allocation for services REMEMBER CRA EXPENSES MUST PROVIDE A GREATER LEVEL OF SERVICE WITHIN THE CRA DISTRICT IN ORDER TO MEET THE OBJECTIVES OF THE REDEVELOPMENT PLAN. Budget, Funding, & Reporting Working Draft - Trainer's Guide July 27, 2012 Version 19 Expenses Requiring Careful Consideration Marketing/direct funding of events (AG-2010-40) Funding non-profits or others to undertake activities in the CRA Plan (AG-2010-40) Substitution of CRA funding for prior City/County funding (must be after more than 3 years for CIP) Maintenance and repair of CRA Projects Community policing Reimbursement to City/County of expenses 20 Source: Florida Redevelopment Association, 2015 [BRIEFLY ELABORATE ON EACH POINT, ACCORDING TO STUDY GUIDE/GLOSSARY] There are expenses that REQUIRE CAREFUL CONSIDERATION. These include: Marketing/direct funding of events Funding non-profits or others to undertake activities not in the CRA Plan Substitution of CRA funding for prior City/County funding Maintenance and Repair of CRA Projects Community Policing ELABORATE ON EACH OF THESE – DISCUSSION WITH ATTENDEES [STUDY GUIDE REFERENCES] ATTORNEY GENERAL OPINION 2010-40 DECEMBER 2011 – Memorandum – Shepard, Smith & Cassady, P.A. *** Working Draft - Trainer's Guide 20 Budget, Funding, & Reporting July 27, 2012 Version Powers of a CRA Chapter 163, Part III (highly recommended reading) 163.345 – Encouragement of private enterprise. 163.358 – Exercise of powers in carrying out redevelopment and related activities. 163.360(7)(d) Community Redevelopment Plans maximum opportunity for rehabilitation and redevelopment by private enterprise. 163.370 (2)(c) Powers; counties and municipalities; community redevelopment agencies. 163.380 – Disposal of Real Property. 163.400 Cooperation by public bodies. 163.410 Exercise of powers in counties with home rule charters. 163.415 Exercise of powers in counties without home rule charters. 21 Source: Florida Redevelopment Association, 2015 21 Interlocal Agreements 163.387 (3)(b) states: Alternate provisions contained in an interlocal agreement between a taxing authority and the governing body….may supersede the provisions of this section with respect to that taxing authority. The Community Redevelopment Agency may be an additional party to any such agreement. 22 Source: Florida Redevelopment Association, 2015 22 Reporting Requirements – Remember all five of them Copy of Proposed and Final Budgets posted on official website (two days prior/30 days after) (September/October) Special district reporting to the Florida Department of Economic Opportunity (DEO), Division of Community Development, Special Districts Information Program (December) Annual Report to governing body – (March 31) Audit (separate or City/County) to each taxing authority and to Auditor General (45 days after completion or June 30) Annual Financial Report (AFR/CAFR) to the Florida Department of Financial Services – City or County function (June 30) 23 Source: Florida Redevelopment Association, 2015 JEFF: 218.39 (7) All audits conducted pursuant to this section must be conducted in accordance with the rules of the Auditor General adopted pursuant to s. 11.45. Upon completion of the audit, the auditor shall prepare an audit report in accordance with the rules of the Auditor General. The audit report shall be filed with the Auditor General within 45 days after delivery of the audit report to the governing body of the audited entity, but no later than 9 months after the end of the audited entity’s fiscal year. The audit report must include a written statement describing corrective actions to be taken in response to each of the auditor’s recommendations included in the audit report. [INTEGRITY ISSUE – FRA101 & BOARD TRAINING] There are five specific REPORTING REQUIRMENTS for CRAs” Copy of Tentative and Final Budgets posted on official website (two days prior/30 days after) (September/October) – new requirement, but to what ‘level of detail’? √Special district reporting to the Florida Department of Economic Opportunity (DEO), Division of Community Development, Special Districts Information Program (December) – I think everyone gets this. √Annual Report to governing body – (March 31) – I think everyone gets this. Audit (separate or City/County) to each taxing authority [that pays into the Trust Fund] and to Auditor General (45 days after completion or June 30) – If City/County function, who’s sending to Taxing Authorities? Annual Financial Report (AFR/CAFR) to the Florida Department of Financial Services – City or County function (June 30) – new deadline (just passed) Working Draft - Trainer's Guide 23 Budget, Funding, & Reporting July 27, 2012 Version At the End of the Fiscal Year Funds left in the Redevelopment Trust Fund on the last day of the Fiscal Year shall be: Returned to the taxing authorities Used to reduce debt Deposited in an escrow account for reducing debt later Appropriated to a specific project contained in the Redevelopment Plan that will be completed within three (3) years 24 Source: Florida Redevelopment Association, 2015 FRA01 At the End of the Fiscal Year Funds left in the Redevelopment Trust Fund on the last day of the Fiscal Year shall be: Returned to the taxing authorities Used to reduce debt Deposited in an escrow account for reducing debt later Appropriated to a specific project contained in the Redevelopment Plan that will be completed within three (3) years ASK: WHO WANTS TO DO THE FIRST? ASK ATTENDEES TO SHARE EXPERIENCE OF HOW THEY DO THIS. INTRODUCE THE NOVEMBER RECONCILIATION Working Draft - Trainer's Guide 24 Budget, Funding, & Reporting July 27, 2012 Version At the End of the Fiscal Year In a CRA there is no carryover into the next fiscal year of an “Undesignated Fund Balance” 25 Source: Florida Redevelopment Association, 2015 FRA01 At the End of the Fiscal Year Funds left in the Redevelopment Trust Fund on the last day of the Fiscal Year shall be: Returned to the taxing authorities Used to reduce debt Deposited in an escrow account for reducing debt later Appropriated to a specific project contained in the Redevelopment Plan that will be completed within three (3) years ASK: WHO WANTS TO DO THE FIRST? ASK ATTENDEES TO SHARE EXPERIENCE OF HOW THEY DO THIS. INTRODUCE THE NOVEMBER RECONCILIATION Working Draft - Trainer's Guide 25 Budget, Funding, & Reporting July 27, 2012 Version Even If Allowed By Statute…… Any project or program a CRA wishes to undertake must be outlined in the Community Redevelopment Plan (CRP) IF IT IS NOT IN THE PLAN YOU CAN’T DO IT !!!!! 26 Source: Florida Redevelopment Association, 2015 FRA01 At the End of the Fiscal Year Funds left in the Redevelopment Trust Fund on the last day of the Fiscal Year shall be: Returned to the taxing authorities Used to reduce debt Deposited in an escrow account for reducing debt later Appropriated to a specific project contained in the Redevelopment Plan that will be completed within three (3) years ASK: WHO WANTS TO DO THE FIRST? ASK ATTENDEES TO SHARE EXPERIENCE OF HOW THEY DO THIS. INTRODUCE THE NOVEMBER RECONCILIATION Working Draft - Trainer's Guide 26 Budget, Funding, & Reporting July 27, 2012 Version The “Rules” of Engagement Open Meetings – “Sunshine Law” Open Records – FS 119.01 Ethics/Conflicts of Interest/Gifts Recent Amendments SB 2/HB 7131 Comprehensive Ethics Reform HB 1075 Public Records Exception for “Agency” Employee Misconduct 27 Source: Florida Redevelopment Association, 2015 27 Why is the Public Sector Concerned? Attract private investment (capital) into slum or blighted areas Increase the tax base Investment may not occur without public assistance 28 Source: Florida Redevelopment Association, 2015 Attract private investment (capital) into slum or blighted areas Increase the tax base Investment won’t occur without public assistance Budget, Funding, & Reporting Working Draft - Trainer's Guide September 21, 2012 Version 28 Why Private Sector Investment May Not Occur Without Public Assistance Investors perceive an inadequate Return on Investment (ROI) Understand how investors measure ROI Learn to adjust the imbalance between cost and revenues Lenders perceive an unacceptable level of risk Understand how lenders evaluate risk Learn to reduce risk of default and foreclosure 29 Source: Florida Redevelopment Association, 2015 FRA05 [INTRODUCE EACH POINT. IF NO QUESTIONS, GO ON TO NEXT SLIDE] Why Investment Does Not Occur Without Public Assistance Investors perceive an inadequate Return on Investment (ROI) Understand how investors measure (ROI) Learn to adjust the imbalance between cost and revenues Lenders perceive an unacceptable level of risk Understand how lenders evaluate risk Learn to reduce risk of default and foreclosure Working Draft - Trainer's Guide Budget, Funding, & Reporting July 27, 2012 Version 29 Redevelopment - a Contact Sport Chapter 163, Part III encourages government to invest public funds with private enterprise to ultimately bring an area back to life. Local funds, generated by cities and counties, can be a political football. Diverse groups have vastly differing ideas on how to use the money. Lack of vision, leadership, buy-in, and responsible implementation can lead to mission drift. Public does not understand the ‘Who, What, When, Where and Why’ of the process. 30 Source: Florida Redevelopment Association, 2015 30 Successful CRAs Vision Leadership Plan the work, then work the plan A passion for partnerships Community support and trust Patience and the “guts” to stick with it Wisdom to evolve and embrace the next opportunity 31 Source: Florida Redevelopment Association, 2015 31 Some Best Practices Always separate CRA vs. Commission meetings Consider joint procedures for CRA and city, e.g.. Personnel Policies, Financial Management, Purchasing, etc. Maintain separate insurance (errors/omissions, liability) Monitor CRA contracts Complete all appropriate reports Use your legal counsel - pay now or pay more later 32 Source: Florida Redevelopment Association, 2015 32 Establishing a CRA starts with a “blight study” and adoption of a finding of necessity for redevelopment of an area (Resolution) Source: VHB Consultants, Inc., 2015 33 First things first! Getting started…… 33 First things first! Getting started…… Next, a community redevelopment plan is prepared and adopted for the district found to be in need of redevelopment (Resolution). After the redevelopment plan is adopted, the governing body establishes a “base year” assessed valuation and creates a TIF district (Ordinance). Once the TIF District is established, the taxing authorities must appropriate and pay into a tax increment trust fund an amount equal to 95% of the taxes that would be paid on the increment (increased) assessed value over the base year amount. Source: VHB Consultants, Inc., 2015 34 34 QUESTIONS? 35 FINDING OF NECESSITY 163.355 Finding of necessity by county or municipality.—No county or municipality shall exercise the community redevelopment authority conferred by this part until after the governing body has adopted a resolution, supported by data and analysis, which makes a legislative finding that the conditions in the area meet the criteria described in s. 163.340(7) or (8). The resolution must state that: (1) One or more slum or blighted areas, or one or more areas in which there is a shortage of housing affordable to residents of low or moderate income, including the elderly, exist in such county or municipality; and (2) The rehabilitation, conservation, or redevelopment, or a combination thereof, of such area or areas, including, if appropriate, the development of housing which residents of low or moderate income, including the elderly, can afford, is necessary in the interest of the public health, safety, morals, or welfare of the residents of such county or municipality. 36 36 Chapter 163.340(7) Definitions (7) “Slum area” means an area having physical or economic conditions conducive to disease, infant mortality, juvenile delinquency, poverty, or crime because there is a predominance of buildings or improvements, whether residential or nonresidential, which are impaired by reason of dilapidation, deterioration, age, or obsolescence, and exhibiting one or more of the following factors: (a) Inadequate provision for ventilation, light, air, sanitation, or open spaces; (b) High density of population, compared to the population density of adjacent areas within the county or municipality; and overcrowding, as indicated by government-maintained statistics or other studies and the requirements of the Florida Building Code; or (c) The existence of conditions that endanger life or property by fire or other causes. 37 37 Chapter 163.340(8) Definitions (8) “Blighted area” means an area in which there are a substantial number of deteriorated, or deteriorating structures, in which conditions, as indicated by government-maintained statistics or other studies, are leading to economic distress or endanger life or property, and in which two or more of the following factors are present: (a) Predominance of defective or inadequate street layout, parking facilities, roadways, bridges, or public transportation facilities; (b) Aggregate assessed values of real property in the area for ad valorem tax purposes have failed to show any appreciable increase over the 5 years prior to the finding of such conditions; (c) Faulty lot layout in relation to size, adequacy, accessibility, or usefulness; (d) Unsanitary or unsafe conditions; 38 38 Chapter 163.340(8) Definitions (e) Deterioration of site or other improvements; (f) Inadequate and outdated building density patterns; (g) Falling lease rates per square foot of office, commercial, or industrial space compared to the remainder of the county or municipality; (g) Falling lease rates per square foot of office, commercial, or industrial space compared to the remainder of the county or municipality; (h) Tax or special assessment delinquency exceeding the fair value of the land; 39 39 Chapter 163.340(8) Definitions (i) Residential and commercial vacancy rates higher in the area than in the remainder of the county or municipality; (j) Incidence of crime in the area higher than in the remainder of the county or municipality; (k) Fire and emergency medical service calls to the area proportionately higher than in the remainder of the county or municipality; (l) A greater number of violations of the Florida Building Code in the area than the number of violations recorded in the remainder of the county or municipality; 40 40 Chapter 163.340(7) Definitions (m) Diversity of ownership or defective or unusual conditions of title which prevent the free alienability of land within the deteriorated or hazardous area; or (n) Governmentally owned property with adverse environmental conditions caused by a public or private entity. However, the term “blighted area” also means any area in which at least one of the factors identified in paragraphs (a) through (n) are present and all taxing authorities subject to s. 163.387(2)(a) agree, either by interlocal agreement or agreements with the agency or by resolution, that the area is blighted. Such agreement or resolution shall only determine that the area is blighted. For purposes of qualifying for the tax credits authorized in chapter 220, “blighted area” means an area as defined in this subsection. 41 41