Community Development Corporations Emerge as Major Generators of Economic Development in Urban Neighborhoods
New Ford Foundation Report Details Efforts to Rebuild Neighborhood Economies
Improved access to investment
capital and better information about the economic potential of
low-income neighborhoods could increase the pace of urban
revitalization, according to a report released today by the Ford
Foundation.
The report, Seizing Opportunities: The Role of CDCs in Urban Economic
Development, highlights the accomplishments of about 50 community
development corporations (CDCs) in Boston, Cleveland, Philadelphia,
Pittsburgh and Washington, D.C. These organizations have invested more
than $135 million to develop 3.1 million square feet of commercial,
industrial and retail property. They have also helped channel more than
$140 million in investments for small businesses, and created or
retained 10,719 jobs in the communities they serve.
"Capital markets are flush with investment dollars, but few cities
provide the data necessary to help investors analyze the economic
potential of urban neighborhoods," says Roland Anglin, deputy director
of the Ford Foundation's Community and Resource Development program. "As
a result, securing financing for even small inner-city commercial
development projects can require 18 months to three years of work. If
we can cut that timeframe in half, we could accelerate the pace of
revitalization efforts."
The Ford Foundation report was released during the National Congress for
Community Economic Development (NCCED) Policy Conference in Washington,
DC. The three-day conference, which is focusing on workforce
development issues, will be attended by more than 400 community
development specialists.
According to NCCED, more than 2,200 CDCs are at work in urban and rural
communities, revitalizing long-neglected neighborhoods by creating
affordable housing, providing support services, conducting job training
and placement programs, and initiating enterprise development
activities.
The Ford Foundation report notes that the lack of readily available
market information about urban neighborhoods forces communities to rely
on CDC-led development activities to attract investment from
individuals, companies, and government.
"Many retailers are skeptical of the profit potential of inner-city
markets -- until they open a store and experience the economic vitality
of these neighborhoods," Anglin says. "The Athlete's Foot company and
Starbucks both discovered strong demand for their products in urban
neighborhoods. The success of the Athlete's Foot store in the Anacostia
section of Washington, D.C. helped convince Pizza Hut and Dollar Store
to open stores in the same neighborhood."
The five cities featured in the report were selected because they
represent mature community development networks and have completed
substantial economic development programs. Their experiences represent
the opportunities and challenges now confronting the field.
The Ford Foundation has supported community development for more than 30
years. In 1983, the Foundation began the Community Development
Partnership Strategy, an initiative that pools resources from the
private sector, foundations, government agencies, and institutions to
support efforts to revitalize neighborhoods.
So far, the Ford Foundation has invested $30 million in this strategy.
These funds have created 20 public-private partnerships and are
producing tangible results in Atlanta, Baltimore, Boston, Camden (N.J.),
Cleveland, Detroit, El Paso, Los Angeles, Miami, Newark, New Orleans,
Philadelphia, Pittsburgh, Portland, Richmond, San Diego, Seattle,
Washington, D.C., North Carolina, and Puerto Rico.
Through their ability to attract resources and funding from other
sources, these partnerships have helped more than 150 CDCs to construct
or rehabilitate more than 17,000 affordable housing units and nearly 4
million square feet of commercial, industrial and retail space, and
provide a broad range of services to their communities. Overall, the
Ford Foundation's investment has leveraged more than $400 million for
community development projects.
The Ford Foundation, established in 1936, is a private, nonprofit
institution that serves as a resource for innovative people and
institutions worldwide. Its goals are to strengthen democratic values,
reduce poverty and injustice, promote international cooperation, and
advance human achievement. A national and international philanthropy
with assets of more than $9 billion, the Foundation has granted more
than $9 billion to some 9,000 institutions and 100,000 individuals
worldwide.
To obtain free copies of the report write to the Foundation's Office of
Communications, 320 East 43 St., New York, NY 10017, call 212-573-5169,
or visit our Web site at www.fordfound.org. (When ordering, please refer
to Title #566.)
The Ford Foundation is an independent, nonprofit grant-making organization. For more than half a century it has been a resource for innovative people and institutions worldwide, guided by its goals of strengthening democratic values, reducing poverty and injustice, promoting international cooperation and advancing human achievement. With headquarters in New York, the foundation has offices in Africa, the Middle East, Asia, Latin America, and Russia.