Community development corporations in California
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| Community development corporations in California | |
|---|---|
| Name | Community development corporations in California |
| Type | Nonprofit organizations |
| Founded | 1960s–present |
| Focus | Community revitalization, affordable housing, economic development |
| Headquarters | Various cities across California |
Community development corporations in California provide neighborhood-based housing development, economic development initiatives, and social services across urban and rural areas. Operating in municipalities such as Los Angeles, San Francisco, Oakland, and San Diego, these nonprofits partner with entities like the U.S. Department of Housing and Urban Development, California Department of Housing and Community Development, and private philanthropic organizations to develop affordable housing and local business support. CDCs in California work at intersections with institutions including the California Housing Finance Agency, Federal Reserve Bank of San Francisco, and municipal redevelopment agencies to implement community-driven projects.
Overview and Purpose
Community development corporations (CDCs) in California aim to stabilize neighborhoods by building and preserving affordable housing, fostering small business growth, and delivering workforce development. CDCs often collaborate with county governments like Los Angeles County, San Francisco County, and Alameda County as well as regional entities such as the Metropolitan Transportation Commission and the Association of Bay Area Governments. Their purposes encompass partnerships with banks like Wells Fargo, Bank of America, and California Bank & Trust for financing, and engagement with funders including the James Irvine Foundation, The California Endowment, and the Ford Foundation.
History and Development in California
The emergence of CDCs in California traces to community activism of the 1960s and 1970s, influenced by nationwide models from the South Bronx and urban programs such as those associated with the Model Cities Program and the Office of Economic Opportunity. In Los Angeles and San Francisco, neighborhood organizations responded to disinvestment, redlining, and urban renewal projects tied to policies from the Federal Housing Administration and local redevelopment agencies. The 1980s and 1990s saw CDC growth alongside the expansion of the Low-Income Housing Tax Credit, tax-exempt bond financing, and state initiatives like the California Tax Credit Allocation Committee. Post-1990s redevelopment dissolution and the 2008 financial crisis reshaped CDC practice, prompting new collaborations with actors such as the California Community Foundation and the Local Initiatives Support Corporation.
Structure, Governance, and Funding
CDCs in California are typically structured as nonprofit corporations with boards composed of local residents, civic leaders, and representatives from institutions like University of California, Berkeley, Stanford University, and local chambers of commerce. Governance standards reflect regulations under the California Corporations Code and oversight by entities including the Attorney General of California and the Internal Revenue Service. Funding mixes public sources—such as Community Development Block Grant allocations, HOME Investment Partnerships Program funds, and state tax credit programs—with private capital from community development financial institutions like Enterprise Community Partners, California Community Reinvestment Corporation, and local credit unions. CDCs negotiate financing with municipal housing departments in cities like Sacramento, Long Beach, and Fresno and leverage philanthropic grants from groups such as the Gates Foundation and Annenberg Foundation.
Major Programs and Services
California CDCs run programs across affordable housing development, commercial corridors revitalization, and resident services. Common initiatives include transit-oriented development projects near Bay Area Rapid Transit stations, supportive housing for populations served by Department of Veterans Affairs programs, and small business incubators funded with help from Small Business Administration programs. CDCs often provide tenant counseling aligned with legislation such as the Costa–Hawkins Rental Housing Act impacts, coordinate services with nonprofit healthcare providers like Kaiser Permanente and Sutter Health, and implement workforce training in partnership with community colleges including the California Community Colleges System.
Notable CDCs and Regional Examples
Prominent organizations and regional examples include longstanding groups and emergent nonprofits: in Los Angeles, entities that operate in neighborhoods with ties to the Watts riots history; in San Francisco and Oakland, CDCs that have worked with the San Francisco Redevelopment Agency legacy and the City of Oakland housing initiatives; in San Diego, community development projects collaborating with the Port of San Diego revitalization; in the Central Valley, CDCs addressing housing needs in Fresno and Bakersfield. National organizations with major California operations include Local Initiatives Support Corporation, Enterprise Community Partners, and Habitat for Humanity. Regional players often collaborate with universities such as University of Southern California and with civic organizations like the California League of Cities.
Impact, Outcomes, and Criticism
CDCs have contributed to production of affordable housing units, neighborhood commercial revitalization, and local job creation, often documented in reports by the California Housing Partnership Corporation and research from the Urban Institute. Positive outcomes cite stabilization of disinvested neighborhoods and creation of mixed-income developments working with agencies such as the U.S. Department of Health and Human Services. Criticism centers on concerns about gentrification and displacement observed in areas like Mission District, San Francisco and parts of East Oakland, debates over public subsidy use similar to controversies involving the Hudson Yards-style public financing elsewhere, and scrutiny from tenant advocacy groups and civil rights organizations including the ACLU of Northern California.
Legal and Policy Environment in California
The policy framework shaping CDC activity includes state statutes such as the California Environmental Quality Act, housing finance mechanisms like the Low-Income Housing Tax Credit administered through the California Tax Credit Allocation Committee, and municipal zoning codes in cities like San Jose and Pasadena. Federal statutes and programs—Community Reinvestment Act, Section 8 vouchers, and HUD discretionary grants—also influence operations. California ballot measures and legislation, including initiatives by the California State Legislature and executive actions from the Governor of California, periodically alter the landscape for CDC financing and land-use authority, as do court decisions from the California Supreme Court and federal courts.