Celebrating 40 Years of Community Development

The NY Times ran a short, sweet tribute to the Bedford Stuyvesant Restoration Corporation this weekend, one of the first community development corporations (CDCs) in the U.S. CDC's are non-profits typically serving a low-income neighborhood with a broad mission to generate wealth in these communities. Their major activities include developing and managing affordable housing for renters and homeowners, running small business development and/or employment programs, community organizing, and skills development programs such as financial literacy or savings courses. On occasion, they may also run food pantries, childcare centers, or any range of initiatives that make it easier for low-income households to work, save, learn, stay healthy and safe, and prosper in secure, affordable, and viable neighborhoods.

CDCs are sometimes criticized for failing to stem tides of decline in poor, tough neighborhoods. This is an unfair accusation, as market and economic forces easily dwarf the capabilities of these non-profits, just as they do the food banks, child welfare agencies, and other organizations that work to reduce poverty and inequality. But CDCs can have a positive impact on neighborhoods - they stabilize housing for renters and homeowners, making it easier for these families or individuals to participate in the community, by providing affordable rents and mortgages and guarding against displacement.

I am on the Board of a CDC, the Allston Brighton Community Development Corporation, and we have helped over 500 people purchase their first home since 2004. We also manage over 500 units of housing directly, from Single Room Occupancy properties to two- and three-bedroom units for families. This housing makes a tremendous difference for the many working poor families in our neighborhoods, where the vacany rate is less than 2% and which are home to large elderly and immigrant populations (incl. from Brazil, Russia, China and Latin America).

I am totally tooting our horn here, but this is my sector and I'm proud of the work the 3,000+ CDCs do nationwide - work I think often goes unnoticed by society, as we're effectively the non-profits at the bottom of the real estate and finance food chain. Our donors outside of large foundations and governments are the major banks around the country - their contributions meet regulatory requirements. As you might imagine, small non-profit housing developers like my organization are often invisible as we build 10 properties here, 50 properties there - but our impact builds over time and lasts.

Now, as the banks shore up their bailout funds for bonuses and jets, we are struggling to maintain our programs for our clients and neighborhoods. As the NYT article alludes, BSRC, just like my CDC, has seen better days. Consider supporting CDCs in your neighborhood, whether through volunteering or a financial contribution. Every little bit helps your neighbors and by association, you.