August 19, 2010

There are many different definitions of a CDC, however, all would agree that a community development corporation (CDC) is a non-profit organization that is created to revitalize a low- or moderate-income community. Many CDCs are grassroot organizations created by people with a stake in the community itself. As a matter of fact some of the founders of a CDC may include residents of the target area, churches or other religious institutions, and sometimes, small business owners. The CDC model is a great example of self-help because persons from the target area form their own organization to address their own needs. The CDC is not the creation of people from outside the community!

What do CDCs do in their communities?

Many of the CDCs are involved in the development of affordable housing for community residents - rental housing or homeownership. Other CDCs provide housing counseling programs and some develop housing for people with special needs, such as the elderly, ill, and disabled. Even other CDCs provide or are involved in social service programs, small business creation and revitalization, micro-business development, job development, education and training, commercial development and lending programs.

How Do I Start a CDC??

Starting a CDC is the same legal process as starting any other type of non-profit organization. Legally a CDC is the same as any other non-profit organization. The term CDC describes the types of activities that engaged by the non-profit. CDCs are not certified as a CDC by any federal or national organization. You should consult an attorney that focuses on serving nonprofits for assistance in forming a CDC. The attorney will help you with the legal process to create your CDC and can provide you with legal assistance once your CDC is up and running.