Community Development Corporations, or CDCs, sometimes evolve from neighborhood associations; others have been started from scratch.  However, CDCs have a distinctly different purpose than neighborhood associations...they focus primarily on developing the physical and economic base of the neighborhood or community (as distinct from the social base), typically through housing development and job development projects.

 

CDCs may engage in advocacy for their neighborhoods, and may work to organize residents and provide opportunities to participate in community affairs.  But their advocacy usually is confined to development issues, and their organizing usually focuses on strengthening the community base for their development projects.

 

CDCs acquire property, build and renovate residential, commercial and industrial structures.  They provide financing and planning assistance to businesses, recruit businesses to the area, and promote job development activities.  These activities are typically carried out by paid staff skilled in the technical details of these kinds of projects.

 

While most CDCs are controlled by area residents, many seats on their boards are allocated to representatives from other institutions or specialized experts.  The board of directors is composed of unpaid, community volunteers...concerned homeowners, renters, local business owners, and representatives from the local social services and major institutions.  

 

Funding is typically achieved through foundation grants.  IRS charitable, non-profit status is required to qualify for such funding.  Both financial and a wide range of technical assistance is available through grants.  Support from area financial institutions by pledges of matching project funds is often needed.  Other desirable forms of assistance can include access to pro bono services of lawyers, architects, financial advisors, and other special professionals; access to meeting places, copy machines, office equipment, computers, software and furniture, building supplies, office equipment, etc. and access to civic leaders, and influential community and area persons.

 

Many neighborhoods face issues which are difficult to solve, such as eliminating crime or drug problems.  Stemming housing deterioration may mean reversing thirty (30) year old trends.  Organizations must therefore develop capacities to achieve the momentum needed to secure additional resources and stage a meaningful response to local problems.  CDC should be continually developing organizational skills, long-range planning and varied agendas.  They can maximize their strengths by developing their volunteer members’ abilities and establishing a “share the load” teamwork atmosphere.

 

Neighborhoods in which leaders and residents are committed to improvement  are resource to city departments whose work is adversely affected by apathy.  Many interests of CDC neighborhoods and local government are compatible.  Both want to see a higher quality of life, decent housing stock, business and job opportunities, safe streets and good recreational facilities.  These common interests lend themselves to cooperation between organizations and local government.  Active, effective organizations such as CDCs can make a city “look good”.