Website designed by Solius Web Solutions web site design

About the WOLCDC
General Info | What is a CDC? | Board Info

What is a Community Development Corporation?

There are over 15,000 organizations in the United States devoted to economic development with the primary motive being Employment and Property Tax Relief.

A CDC is a non-profit corporation organized exclusively for charitable, literary, and educational purposes as defined in Section 501©(3) of the Internal Revenue Code.

CDCs were organized over 30 years ago to address the problems of social, economic and physical distress in low and moderate income communities throughout the United States. CDCs have been able to build affordable housing, spur economic development, create jobs and provide essential social services in the communities they serve. Community Development Corporations have been key players in urban renewel programs.

CDCs can apply for Federal Grant money through the the Department of Housing and Urban Development (HUD) , and the Local Initiatives Support Corporation (LISC). LISC is the largest community development intermediary in the nation. LISC provides a rangeof technical and financial assistance to community development corporations. To qualify for LISC assistance, communities must invite LISC and undergo a lengthy assessment process; two years is not uncommon.

Grant money is also available through the State of New York. The Empire State Development Corporation is New York's agency for filing application. Ontario County's Industrial Development Corporation is also a source for financing manufacturing and service related businesses.

What can a Community do to promote Economic Growth?
  1. Sales and Promotion of the community
  2. Subsidation
    • Tax abatements, such as 485B which reduces the property taxes owed over 10 yrs
    • Revolving loan funds
    • Other credit granting arrangements
    • The creation of an ENTERPRISE Zone, which is an area in the community specifically zoned for economic development through tax breaks, land use waivers and other incentives pre-approved for that zone
  3. Sites and Buildings
    The availability of sites and buildings is a key factor in economic development. To ensure that adequate sites will be available in the foreseeable future there needs to be a public provision of sites. This can be accomplished by:
    • The community marking for use public funds to purchase and develop commercial and industrial sites
    • The public funding of a "shell building"
    • Appropriate land zoning
Sources of Revenue for a Community are: ( in order of $ importance)
  1. Property Taxes
  2. Sales Tax
  3. Income Tax
  4. Misc local revenues (such as fire and water tax)
  5. Intergovernmental grants-in-aid
   © 2003 - 2004 WOLCDC
   All Rights Reserved