Do non-profit CDCs and for-profit private developers do the same thing?
Yes and no. While both may provide affordable housing in a community, each has different goals and motives. The private developers primary interest is profit, which is the way the system of incentives intends it. The CDCs motivation is its mission, i.e., to provide affordable housing. However, both the for-profit and the non-profit must make a profit to stay in business. Frequently, the two types of developers form cooperative partnerships with one another, such as when using tax credit financing. In general, non-profit organizations are more willing to tackle the more difficult, higher need, lower profit projects, while private developers naturally look for projects which reward them with a greater profit incentive.
