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February 15, 2012

Impact of Community Development Corporations on Neighborhoods


By M. Isi Eromosele

Over the past 30 years, the most promising alternative model to direct governmental administration of community development programs has been that of community development corporations. Unlike government, community development corporations can respond quickly to the development opportunities offered by a changing marketplace.

They also can mix and match programs to respond to the multiple needs within a neighborhood more easily than can city government, which is responsible for programs in all neighborhoods.

And  CDCs are directly accountable to governing boards that include community representation, linking CDC directors  and staff links to a variety of community institutions, which can be enlisted in the task of community change.

As intermediaries between the community and the market, CDCs possess two great strengths: they pro-duce housing units, commercial space, community facilities, and other visible neighborhood improvements to help make the lives of people in the community better.

And they work with disparate community residents and leaders to help bring external resources to bear on the task of neighborhood improvement.

CDC Impacts on Neighborhood Markets

Differences across cities in CDC ability to improve neighborhood quality can be explained by differences in part by the strength of regional markets, but also by the quality of CDC industries, and the quality of the community development support system.

Overcoming deep and complex neighborhood problems demands long-term and consistently applied strategic investments, which few CDCs have been able to make     historically.

Industries with large numbers of CDCs able to make these long-term investments have achieved results, but not all industries have reached this level of size and quality. Those that have done so benefited from creation of strong community development support systems.

CDCs achieved the broadest results where they pursued a consistent community improvement strategy over time, supported by strategic alliances with other neighborhood and citywide actors.

CDCs most often credited with observable impacts in their neighborhoods were groups
that had been at work for at least a decade. These CDCs combined two necessary strengths - a track record of successful redevelopment, including a blended portfolio
of physical development and human service programs, and an ability to manage and   govern themselves effectively.

CDCs in cities that created effective community development systems early on tend to have multiple, strong, capably managed CDCs able to pursue neighborhood revitalization over the long haul. The key component of support systems is the relationships among individuals and institutions that can be used to mobilize and wield finance, expertise, and political influence for community development.

M. Isi Eromosele is the President and CEO of Oseme Group.

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