What is a Community Development Corporation?
A. Community Development Corporation is a broad term that refers to not-for-profit organizations incorporated to provide programs, offer services and engage in other activities that promote and support a community. CDCs usually serve a geographic location such as a neighborhood or town. CDCs often focus on serving lower-income residents or struggling neighborhoods; are involved in a variety of activities including economic development, education and real estate development; are often associated with the development of affordable housing.
The community development corporation is a wide ranging term that is often employed by different types of non-profit associations. In general, a community development corporation will be an organized effort to address an existing problem within a given community. The corporation is modeled after the standard business model, and will attempt to provide services and support that related directly to a current need or problem within a limited geographical area. A community development corporation can be created for any number of reasons. One common application is using real estate within the community to develop affordable housing for lower income families and individuals. The community development corporation may work with civic leaders, businesses, and other non-profit organizations to acquire and renovate unused buildings into workable housing units. For example, office buildings that are almost empty may be renovated into one and two bedroom apartments that can qualify for government a
There are over 15,000 organizations in the United States devoted to economic development with the primary motive being Employment and Property Tax Relief. A CDC is a non-profit corporation organized exclusively for charitable, literary, and educational purposes as defined in Section 501(3) of the Internal Revenue Code. CDCs were organized over 30 years ago to address the problems of social, economic and physical distress in low and moderate income communities throughout the United States. CDCs have been able to build affordable housing, spur economic development, create jobs and provide essential social services in the communities they serve. Community Development Corporations have been key players in urban renewel programs. CDCs can apply for Federal Grant money through the the Department of Housing and Urban Development (HUD) , and the Local Initiatives Support Corporation (LISC). LISC is the largest community development intermediary in the nation. LISC provides a rangeof technical
