An Examination of the Perceived Effectiveness of Community Development Corporations: A Pilot Study

Abstract

This study reports the results of a nationwide evaluation of community development corporations. Collective models of neighborhood economic revitalization are compared with other strategic approaches to community development. Special attention is given to the policy implications of the findings. The future of community development corporations is discussed, especially in light of Reaganomics and the decline in funds for the urban poor.

Options to Conventional Public Housing Management

“…Originating during the "war on poverty" years, community development corporations (CDCs) are a common vehicle for promoting neighborhood-based revitalization. Although initially designed to be neighborhood-based and -controlled not-for-profit corporations that undertook commercial and industrial development projects in low-income neighborhoods (Cummings & Glaser, 1983), many CDCs have become involved in housing rehabilitation and construction. No exact figure is available on how much housing has been built or renovated and is now managed by CDCs, but the Local Initiatives Support Corporation (LISC) estimates that it alone, between 1980 and 1985, provided financial and technical assistance to over 400 CDCs, which constructed or rehabilitated over 10,000 units of housing (Robbins & Bowsher, 1987).…”

Neighborhood participation in community development: A comparison of strategic approaches

“…CDCs, on the other hand, were largely financed through the Community Services Administration of the federal government and as such were able to retain somewhat greater flexibility in operational style and administrative autonomy (Cummings and Glaser, 1983). Further, some CDCs obtained private financing or foundation support, thereby decreasing their dependency on public dollars (Perry, 1973).…”

Community of Choice or Ghetto of Last Resort: Community Development and the Viability of an African American Community1

“…Those favoring community development argue that social networks and the bonds of community can be used to produce socioeconomic improvements (Kelly, 1977). The success of community development hinges on the assumption that people will pull together using combined resources and shared objectives to collectively accomplish what individuals cannot (Cummings & Glaser, 1983;DeRienzo, 1995;Pecorella, 1985).…”