Community development corporations

Definition

Community development corporations (CDCs) are non-profit organizations designed to support and revitalize neighborhoods, especially in economically distressed areas. They focus on various aspects such as housing, job creation, and improving local services to enhance the quality of life for residents, particularly within marginalized communities. CDCs aim to empower residents by involving them in the decision-making process and promoting economic development while addressing systemic inequalities.

5 Must Know Facts For Your Next Test

1. CDCs emerged prominently in the 1960s as a response to urban decline and social inequities, with a focus on improving living conditions for African American communities.
2. They often engage in real estate development, transforming vacant lots and abandoned buildings into affordable housing and community spaces.
3. Funding for CDCs typically comes from a mix of government grants, private donations, and partnerships with local businesses, allowing them to implement various community projects.
4. Many CDCs provide training and employment opportunities aimed at increasing economic self-sufficiency for community members through skills development programs.
5. CDCs also play a critical role in advocating for policy changes that benefit low-income neighborhoods, pushing for resources and support from local governments.

Review Questions

• How do community development corporations influence economic growth in urban areas facing economic challenges?
  • Community development corporations (CDCs) significantly influence economic growth by focusing on job creation, affordable housing, and infrastructure improvement. By investing in distressed neighborhoods, CDCs can attract new businesses and services, creating employment opportunities for local residents. This empowerment leads to increased spending within the community, promoting a cycle of economic growth that addresses long-term economic challenges.
• Evaluate the effectiveness of community development corporations in addressing systemic inequalities within urban communities.
  • Community development corporations are often effective in addressing systemic inequalities by providing resources and support specifically tailored to marginalized populations. They engage residents in the decision-making process, ensuring that projects meet the community's needs. By focusing on affordable housing and job training, CDCs help reduce poverty levels and improve overall quality of life. However, their effectiveness can vary based on funding availability and political support, which can limit their impact.
• Discuss the long-term implications of community development corporations on urban planning and policy-making processes in economically challenged cities.
  • Community development corporations have profound long-term implications on urban planning and policy-making by serving as advocates for sustainable practices that prioritize community needs. Their grassroots approach encourages local involvement, leading to more equitable policy outcomes that consider the voices of residents. Over time, CDCs contribute to reshaping policies that address urban decay while promoting inclusivity and resilience. As they gain recognition, their models can inspire similar initiatives elsewhere, potentially influencing broader national policies related to housing and economic development.

Related terms

Economic Development: A process that seeks to improve the economic well-being and quality of life for a community by creating jobs and increasing the tax base.

Urban Renewal: A program aimed at eliminating slums and revitalizing urban areas through redevelopment projects and investment in infrastructure.

Social Capital: The networks of relationships among people in a community, enabling society to function effectively and fostering cooperation for mutual benefit.