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CAAPTBR 17 <br />8. Federal certification <br />In order for a local HRA to use federal Dept. of Housing and Urban <br />Development (HUD) assistance programs, it must submit a transcript of <br />organizational documents to the HUD area office. <br />9. Pros and cons of the HRA <br />While H1tAs have demonstrated competence and professional expertise in <br />many areas, any special purpose agency like an HRA will have some pros <br />and cons. <br />a. Pros <br />Fiscal self-sufficiency. Due to the nature of the programs an H1LA. <br />addresses, it can fund projects usually outside the general government <br />budget with minimal, direct impact on the city budget. The enabling <br />legislation also allows for aone-third mill levy and the use of revenue <br />bonds. <br />Greater efficiency. Because of the specialized functions of an HI2A, it can <br />organize its operations in a certain area better than general government, <br />• focusing resources on the delivery of a specific program rather than on a <br />wide-range of conventional services. <br />Fle~bility. An HRA can act swiftly to meet a problem and has the <br />flexibility to be more innovative than a city council in developing new <br />approaches. Furthermore, it has the ability to coordinate public and private <br />resources to solve problems. <br />b. Cons <br />Operating too independently. Because it is somewhat free of political <br />pressure, an HRA can administer programs with only a minimal amount of <br />accountability for its actions. <br />Fragmentation of the local government functfon. An HRA can run the <br />risk of operating at cross-purposes or in contradiction to city policies, which <br />can result in conflict with and duplication of efforts. <br />Responsiveness to public opinion. HRA operations, insulated from the <br />electoral process, can risk being insufficiently responsive to public opinion <br />or community thinking. <br />• 17-6 HANDBOOK FOR MR~lNESOTA CITIES <br />ao <br />