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| Community Development Corporations of the United States | |
|---|---|
| Name | Community Development Corporations (CDC) |
| Founded | 1960s–1970s |
| Area served | United States |
| Focus | Neighborhood revitalization, affordable housing, economic development |
Community Development Corporations of the United States are nonprofit, community-based organizations that engage in localized urban renewal and neighborhood revitalization initiatives, originated during the postwar urban crises of the 1960s and 1970s. They operate at the intersection of housing policy, economic development, and social services, partnering with municipal agencies such as the Department of Housing and Urban Development, philanthropic entities like the Ford Foundation, and financial intermediaries including the Community Development Financial Institution Fund.
Community development corporations trace roots to grassroots mobilization during the Civil Rights Movement, the War on Poverty, and urban uprisings such as the Watts riots and the 1968 riots. Early prototypes emerged in neighborhoods influenced by advocates like Saul Alinsky and institutions such as the Model Cities Program and the Office of Economic Opportunity, with funding experiments involving the Kennedy administration and the Johnson administration. The movement evolved alongside federal legislation including the Housing Act of 1949 and the Community Reinvestment Act of 1977, while influential nonprofits like the Local Initiatives Support Corporation and the Enterprise Community Partners helped disseminate organizational models.
Most CDCs incorporate as tax-exempt entities under Internal Revenue Code §501(c)(3) or §501(c)(4) and must comply with Nonprofit Corporation Law in states such as New York (state) and California. Governance typically features a volunteer board drawn from neighborhood stakeholders, faith institutions like the National Council of Churches, and civic institutions including colleges and universities such as Columbia University or University of Pennsylvania. Legal relationships with municipal actors include contracts, Community Benefits Agreements, and tax-credit partnerships under programs like the Low-Income Housing Tax Credit administered by state housing finance agencies.
CDCs undertake a portfolio of activities: developing affordable housing projects financed through mechanisms like the Low-Income Housing Tax Credit and the HOME Investment Partnerships Program, operating workforce development centers in collaboration with Department of Labor initiatives, and managing commercial corridor revitalization linked to Small Business Administration lending and New Markets Tax Credit allocations. Community services often include health outreach tied to institutions like the Centers for Disease Control and Prevention, educational partnerships with systems such as New York City Department of Education or Chicago Public Schools, and public safety collaboration with municipal police departments and neighborhood watch alliances.
Funding for CDCs is diversified across philanthropic grants from organizations like the MacArthur Foundation and Robert Wood Johnson Foundation, public capital from programs such as the Community Development Block Grant administered by the Department of Housing and Urban Development, and private investment sourced via tax increment financing and community development banks such as Boston Community Loan Fund. Fee-for-service contracts with municipal agencies, equity syndication with intermediaries like Enterprise Community Partners, and revenue from commercial leases or property sales form additional streams, while regulatory incentives like the New Markets Tax Credit and Historic Preservation Tax Incentives support project viability.
Evaluations of CDC impact reference metrics from studies by institutions like Urban Institute, Brookings Institution, and Harvard Kennedy School, measuring housing units preserved, jobs created, and increases in local tax base. Case studies often contrast outcomes in cities such as Philadelphia, Detroit, and Newark, New Jersey, with attention to displacement dynamics noted in research by scholars at Columbia University and Princeton University. Performance assessment employs mixed methods drawing on quantitative indicators used by the Joint Center for Housing Studies of Harvard University and qualitative community-based participatory research methods advocated by Robert Wood Johnson Foundation–funded initiatives.
Critiques of CDCs include accusations of facilitating gentrification and displacement documented in analyses by PolicyLink and the American Civil Liberties Union, tensions between professionalized staff and grassroots boards noted in reports by National Community Reinvestment Coalition, and concerns over accountability when CDCs receive public subsidies as highlighted in investigations by local media such as the New York Times and the Chicago Tribune. Debates continue over the efficacy of market-oriented tools like the Low-Income Housing Tax Credit versus preservation strategies championed by groups including National Low Income Housing Coalition.
Prominent organizations and projects include Bedford Stuyvesant Restoration Corporation in Brooklyn, University City District in Philadelphia, LISC-supported initiatives in Chicago, Southwest Organizing Project collaborations in Minneapolis, and Jubilee Housing-style developments in Los Angeles. Landmark projects involve partnerships among entities such as Enterprise Community Partners, Local Initiatives Support Corporation, and municipal housing authorities like the New York City Housing Authority; comparative studies cite redevelopment outcomes in Harlem, South Bronx, Lower East Side, and King County, Washington.
Category:Non-profit organizations based in the United States