Community Development: CDCs, CDFI, Co-ops and Land Trusts, Slides of Human Development

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Connecting to Co-op &

Community Development Careers

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What is a CDC?

• Community development corporations are locally based non-profits that promote investment in low and moderate income communities. (Many funding programs require that income group served be at 80% of median income or below).
• Over 51% of board are community residents.
• Founded as part of civil rights movement, goal is to allow low-income residents to exert economic control over their communities.
• From practically no CDCs 40 years ago, there are now 4,600 today. CDCs produce over 86,000 units of affordable housing a year, as well as developing retail, commercial, and community facilities.

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What is a community land trust?

• Non-profit in operation. Board typically consists of one- third residents, one-third non-resident community members, and one-third government officials (although some land trusts structure board differently).
• Most commonly “shared equity” – residents have 99- year lease but land is held by trust, with gain in value split—for instance, residents may get 25% of the equity gain while the other 75% of the gain is held by the trust (but some trusts hold 100% of equity gain, much like group-equity NASCO co-ops).
• Limits on individual equity gains ensure affordability for future residents by keeping prices down, thus making the housing “permanently affordable.”
• In 30 years, number of households in community land trusts has increased from 0 to over 6,000.

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National Community Groups

• CDCs : The three main national groups are LISC (Local Initiatives Support Corporation), Enterprise Community Partners & NeighborWorks. These groups are known as intermediaries because they funnel dollars either from banks and private donors (LISC & Enterprise) or the federal government (NeighborWorks) to local CDCs. They also are important technical assistance & education providers.
• CDFIs : Opportunity Finance Network represents banks & loan funds (including Northcountry, NCB Capital Impact & Cooperative Fund of New England). Association for Enterprise Opportunity represents micro-lenders. The National Federation of Community of Community Development Credit Unions (Natfed) represents low-income community credit unions. National Community Reinvestment Coalition focuses on advocacy.
• Land Trusts : The newly formed National Community Land Trust Network is fueling rapid growth of this form of limited equity housing.
• Community Organizing : There are six large national networks:, Association of Community Organizations for Reform Now (ACORN), Center for Community Change Direct Action for Research & Training (DART), Gamaliel Foundation, Industrial Areas Foundation, and People Improving Communities through Organizing (PICO).