The Impact of Community Development Corporations on Urban Neighborhoods

Research Report

The Impact of Community Development Corporations on Urban Neighborhoods

Abstract

Supporters of urban revitalization have relied on community development corporations (CDCs) to carry a major share of the front-line burden. This research presents new evidence that these community-controlled, market-responsive organizations can indeed spark a chain reaction of investment. Advanced econometric analysis shows that CDC residential and commercial investments have led to increases in property values--the single-best measure of neighborhood improvement--as great as 69 percent higher than they would have been otherwise. To achieve these results, CDCs did more than just develop projects; they also brought business people, civic organizations, and public agencies into the neighborhood improvement process.

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