LAKE WORTH BEACH, Fla. — Local leaders in Lake Worth Beach are sounding the alarm over two bills moving through the Florida Legislature that could terminate Community Redevelopment Agencies (CRAs) statewide.
Senate Bill 1242 and House Bill 991 propose a sweeping end to CRAs, which have long been used to fund projects aimed at revitalizing economically distressed areas. In Lake Worth Beach, city officials said the proposed legislation could derail millions of dollars in annual investment and halt programs that help some of the city's most vulnerable residents.
WATCH: Commissioner shares how bills would impact the city
"We're going to lose millions of dollars of investment every year, and we don't have any other pipelines to get that from," said Lake Worth Beach Commissioner Sara Malega. "With the federal government taking away a lot of grants, and the non-profit agencies that help small cities like us, we're going to see a huge financial impact on our city if these bills pass."
CRAs are funded through a method called Tax Increment Financing (TIF), which allows cities to reinvest increased property tax revenue into improvements like affordable housing, infrastructure, and small business development.
Supporters of the bills said a 2019 effort to reform CRAs in Florida did not provide enough oversight and, in some cases, left questions on just how funds are spent. They also argue that the agencies have drifted from their original mission of addressing blight.
Malega, however, said cities like Lake Worth Beach have used the tool responsibly and with measurable impact.
Where the Bills Stand Now
SB 1242 has passed the Senate Judiciary Committee and is awaiting further hearings.
HB 991 has advanced through the House State Affairs Committee with a 17-8 vote and is now in the Commerce Committee.
If passed, the legislation would not only dissolve existing CRAs but also prohibit the creation of new ones and prevent CRAs from starting new projects or issuing new bonds after a specified date.
Malega is encouraging residents to make their voices heard by contacting their state lawmakers and speak out against the bills before final votes are cast.
