Where have all the CDCs gone? For decades, Community Development Corporations tackled some of America’s most challenging problems: neighborhood revitalization, affordable housing, community economic development, workforce development and job creation, financial empowerment and food access.
Unfortunately, for many communities, the CDC model has faded away with cuts to funding and new philosophies taking root. No “new philosophy," however, has proven as effective as the Community Development Corporation model.
Aspirations for economic inclusion eventually gave birth to the Economic Opportunity Act of 1964, the signature piece of legislation that is credited with launching CDCs in every state as well as more than 1,000 Community Action Agencies nationally. Cited by some as the United States’ official declaration of War on Poverty, the Act specified a range of workforce training programs, urban and rural community action programs, special programs to combat poverty in rural areas and employment and investment incentives.
Senator Kennedy himself summed up the philosophy that inspired the creation of this first CDC: “An effort in one problem area is almost worthless. A program for housing, without simultaneous programs for jobs, education, welfare reform, healt, and economic development cannot succeed. The whole community must be involved as a whole.”
The first CDC in Bedford-Stuyvesant received its grants from the Stern Family Fund, J. M. Kaplan Fund, Ford Foundation and Astor Foundation. Seven months later they received a $7 million grant from the Department of Labor made possible by a 1966 amendment to the Economic Opportunity Act of 1964 drafted by Kennedy and Javits to provide the private sector with incentive payments in exchange for investments in impoverished areas. The Community Development Corporation concept was launched.
For example, the Ohio CDC Association’s most recent impact report says CDCs across Ohio made substantial gains in multiple areas. In 2016 alone, these CDCs:
The combined efforts of Nonprofits and Social Services agencies in combating systemic poverty is exemplified by the Community Development Corporation. Perhaps it is time for us to take a fresh look at this legacy model.