Support Community Development Corporations


All states are interested in strengthening their communities and promoting vitality and prosperity for their citizens. The work of government can be enhanced when it collaborates with not-for-profits, faith-based groups, or Community Development Corporations (CDCs). These organizations have generally demonstrated an ability to develop affordable housing and to provide services to community residents. States can assist these organizations by providing funding, education, and technical assistance that can enhance their capacity.


Community organizations often know what needs to be done to catalyze neighborhood revitalization but lack the financial resources to do it. States have several options for building the capacity of CDCs. They can create a funding stream that can be accessed directly by community organizations. They also can encourage private companies to become involved in helping fund local CDCs. Area corporations often have a desire to contribute to neighborhood improvement, but need guidance for effective investment in community organizations.

Programs directed at the state level can provide the financial incentive and infrastructure needed to bring local stakeholders together as partners in neighborhood revitalization. When funding is made available directly to CDCs, it can be done through tax-exempt bonds or via a grant program. Incentives for private corporations to engage in community development can include state tax credits in exchange for their contributions to community-based organizations.


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