Local governments are able to designate areas as Community Redevelopment Areas (CRA) when certain conditions exist. Since all the monies used in financing CRA activities are locally generated, CRAs are not overseen by the state, but redevelopment plans must be consistent with local government comprehensive plans. Examples of conditions that can support the creation of a Community Redevelopment Area include, but are not limited to:
- Inadequate infrastructure
- Inadequate parking
- Insufficient roadways
- The presence of substandard or inadequate structures
- A shortage of affordable housing
To document that the required conditions exist, the local government must survey the proposed redevelopment area and prepare a Finding of Necessity. If the Finding of Necessity determines that the required conditions exist, the local government may create a Community Redevelopment Area to provide the tools needed to foster and support redevelopment of the targeted area. The ultimate goal of a CRA is to increase the taxable value within the CRA through specific projects as outlined in the CRA Plan.