[Congressional Record Volume 145, Number 141 (Monday, October 18, 1999)]
[Extensions of Remarks]
[Pages E2122-E2123]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




 TRENDS AND ACHIEVEMENTS OF COMMUNITY-BASED DEVELOPMENT ORGANIZATIONS 
                           FROM 1994 TO 1998

                                 ______
                                 

                          HON. MELVIN L. WATT

                           of north carolina

                    in the house of representatives

                        Monday, October 18, 1999

  Mr. WATT of North Carolina. Mr. Speaker, I submit the document 
titled, ``Trends and Achievements of Community-based Development 
Organizations from 1994 to 1998.'' For printing in the Congressional 
Record.

               COMMUNITY-BASED DEVELOPMENT--COMING OF AGE


    The 1999 NCCED Census Report on the Trends and Achievements of 
               Community-based Development Organizations

                           Executive Summary

       Over the past ten years, the National Congress for 
     Community Economic Development has conducted a series of four 
     national census surveys to record the trends and achievements 
     of community-based development organizations. This report, 
     Coming of Age--The Achievements of Community-based 
     Development Organizations, contains NCCED's most recent 
     census findings from 1994 to 1998.
       Commonly known as CDCs (community development 
     corporations), these non-profit organizations share several 
     common characteristics: they focus on win-win outcomes 
     benefiting business and community; they are multi-
     disciplined; they are based on economic practices; and they 
     are indigenous. They derive their leadership and governance 
     from residents and other stakeholders in the communities they 
     serve and can therefore uniquely assess local needs and tap 
     into local resources.
       The census of CDCs commissioned by NCCED--the national 
     trade association for the community-based development 
     industry. The NCCED census report has become the definitive 
     source of data on the characteristics and achievements of 
     these organizations, which are found throughout urban and 
     rural America.
       Community-based development is not well-known--and is less 
     understood. It is a movement borne of the poverty programs 
     and policies of the sixties. Today, after three decades, it 
     is an industry of considerable strength that is quietly 
     transforming lives and communities across America. It is 
     uniquely American force in the best traditions of the social 
     and economic institutions observed by Alexis deTocqueville in 
     early 19th century communities.
       The achievements of CDCs are a story of remarkable success 
     in the face of considerable uncertainty and challenge. The 
     1999 NCCED Census Report indicates that the industry of CDCs 
     has grown by 64% to an estimated 3,600 organizations in the 
     last four years alone. The productivity of the industry over 
     its 30 years history is reflected in the following figures:
       71 million square feet of commercial and industrial space 
     developed;
       $1.9 million in loans outstanding (at the end of 1997) to 
     59,000 small and micro-businesses;
       247,000 private sector jobs created; and
       550,000 units of affordable rental and ownership housing 
     built or renovated, nearly 40% of which has been completed in 
     the last four years.
       These figures account for the most measurable outputs of 
     the community development industry. They represents, however, 
     only a part of the picture. The rest of the picture is 
     found in the expanding role of CDCs in the delivery of 
     services in such areas as pre- and post-employment 
     training and support, entrepreneurship, and transportation 
     services. Important to this story of productivity is the 
     fact that most of it has occurred during the 1990s. 
     Community-based development is an industry of considerable 
     strength that is quietly transforming lives and 
     communities across America.
       The coming of age of the CDC as an economic force is in 
     response to community needs, profound changes in public 
     policy, and an awakening in the corporate sector to the 
     economic opportunities that CDC communities represent. These 
     communities--both urban and rural--are more and more 
     recognized as a labor source to fill a growing job

[[Page E2123]]

     market. They also represent an underserved market for the 
     sale of goods and services. The forces that brought about the 
     growth of community development represent challenges and 
     opportunities for CDC communities. In many distressed 
     communities, CDCs are at the center of initiatives that are 
     the difference between being economically marginalized or 
     being economically viable.
       The convergence of public policy shifts and the forces of 
     an economy in a period of unprecedented growth has created a 
     set of conditions in which community-based development 
     organizations are uniquely positioned to be agents of 
     economic change and instruments of public policy. As the 1999 
     NCCED Census Report illustrates, CDCs are ideally positioned 
     to bring together the economic interests and assets of 
     communities, companies and city halls for the benefit of all.
       The findings of the 1999 NCCED Census Report have 
     significance for decision-makers in both the private and 
     public sectors, and they demonstrate the credibility of NCCED 
     as a value-added advisor to business. CDCs have established a 
     track record as effective instruments in multiple areas:
       Commercial and industrial real estate development. CDCs 
     have produced an estimated 71,400,000 square feet of 
     commercial and industrial facilities. In the latest four-year 
     census period, CDCs provided nearly $600 million in financing 
     for commercial and industrial development. This record 
     establishes CDCs as capable development partners of shopping 
     centers, manufacturing facilities, distribution centers, 
     business incubators, office centers, and community 
     facilities.
       Small and Micro-business lending. CDCs have emerged as 
     ``surrogate'' commercial lenders for banks in underserved 
     markets. CDCs and community development financial 
     institutions (CDFIs) are often the only source of credit for 
     micro-entrepreneurs and start-up businesses. CDCs and CDFIs 
     enhance their lending services with technical assistance and 
     support to their business borrowers, which has been central 
     to their success as loan services and portfolio managers. 
     Nationally, at the end of 1997, the estimated amount of CDC 
     loans outstanding was $1.9 billion of 59,000 businesses.
       Business partners. CDCs are the key to facilitating 
     business relationships, locating equity capital and real 
     estate opportunities, and providing the technical assistance 
     to forge partnerships between community and corporate 
     interests.
       Affordable housing production. CDC housing production is on 
     the rise. Thirty percent of the assisted housing in the 
     nation has been produced by CDCs. A total of 245,000 units of 
     affordable housing were produced during the latest four-year 
     census period.
       Increasing home ownership. Of CDC housing production, 26 
     percent in urban areas and 53 percent in rural areas is for 
     ownership by low and moderate income home buyers. Many CDCs 
     have become home buyer counselors, and mortgage loan 
     packagers and originators in partnership with banks and 
     mortgage companies. This capacity is a valuable resource for 
     achieving increased home ownership as a national and a local 
     policy strategy for family asset building and neighborhood 
     stabilization.
       Workforce development. For the first time, the NCCED census 
     indicates that CDCs are increasingly engaged in providing 
     employment support and training to community residents. A 
     growing number of CDCs are direct providers of job readiness 
     training and job skill training, and such employment support 
     services as child care and transportation to work. CDCs are 
     natural partners in the welfare reform effort.
       Neighborhood revitalization. CDCs have been working to 
     revitalize distressed neighborhoods, often while municipal 
     investment priorities have been focused on the downtowns of 
     major cities. As municipal investment priorities shift 
     attention to neighborhoods, CDCs are ready and able to act as 
     brokers and partners with city halls and the business 
     community.
       Community building. The broad vision of CDCs is evident in 
     the census results. Their community building activities are 
     significantly on the rise and include child care, education 
     programs, training, counseling, transportation, and health 
     care services.
       These findings reflect the extraordinary growth of the 
     community-based development industry over the past decade. As 
     the 1999 NCCED Census Report illustrates, CDCs have truly 
     come of age in the 1990s. Tangible impact of their successes 
     are visible in low-income urban and rural communities across 
     the country. CDCs, with their comprehensive scope and 
     indigenous origins, are uniquely positioned as the driving 
     force in American renewal by bringing about win-win outcomes, 
     benefiting both business and the community.
       NCCED as the trade association for the community-based 
     economic development industry is the voice for the policy 
     interests of economically distressed rural and urban 
     communities. Through its membership network, programs, and 
     national public and private sector partnerships. NCCED is 
     recognized as a leading information and technical assistance 
     resource for community-based development organizations as 
     they expand their capacity to undertake the diversity of 
     strategies for the development of healthy communities.

     

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