Community development corporations in the right-sizing city: Remaking the CDC model of urban redevelopment

Progressive Economic Development Policies: A Square PED in a Round Hole

“…Community development corporations (CDCs) represent an attempt by neighborhood organizations, often faith based, to empower residents and local businesses to influence the direction of development and revitalization activities in their neighborhoods. In their initial incarnation, CDCs represented social movements stimulated by the rebellions that occurred in the 1960s in cities such as Detroit (Heil 2018; Newman and Lake 2006). CDCs also emerged out of the public participation requirements of federal anti-poverty and Community Development Block Grant programs with significant support from the federal government and philanthropies such as the Ford Foundation (Perry 1971).…”

“…The scarcity of external funding has increased competition among CDCs. In many declining rustbelt cities that have adopted clustering strategies, some CDCs find themselves representing territories that are now planned for abandonment, with funding directed away from areas slated for “greening” and toward those that are already prospering (Heil 2018). Finally, CDCs can easily become “captured” by elites; indeed, federal funding requirements included preferences for increased participation of local politicians and corporate leadership (DeFilippis 2012).…”

“…On the right side of the intersect, self-reliant communities and other grassroots community economic development efforts have the potential to lead to progressive outcomes using processes that are potentially empowering (Imbroscio 2013); CDCs have similar possibilities but are susceptible to capture by elites (Heil 2018). Policies, such as business incubators, maker spaces, and hiring quotas, can lead to progressive outcomes but tend to have decision-making structures more likely to be limited to local officials or result from negotiation with CDCs or as part of a CBA.…”

“…Many CDCs have become more narrowly focused on activities that generate operating funds. What used to be a focus on community or resident control in marginalized neighborhoods, that is, democratic access, has shifted to a focus on physical infrastructure development and more complex housing and development projects (Heil 2018). Today, many CDCs are operating in survival mode, with little opportunity to pursue a comprehensive community development agenda.…”

“…CDCs have historically been focused on ensuring that neighborhoods reaped the benefits of local development although this has been less the case over time given their reduced funding and general financial straits (Heil 2018). Thus, they have grown less open to resident influence and more open to business concerns.…”