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110 CHAPTER 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 HRAs 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 HRA <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 a one-third mill levy and the use of revenue <br /> bonds. <br /> Greater efficiency.Because of the specialized functions of an HRA,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 /> Flexibility.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 function.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 /> II/ 17-6 HANDBOOK FOR MINNESOTA CITIES <br />