Innovation Forum: Can CDCs Achieve Scale and Maintain Local Accountability

1.17.2020 — LISC StoriesCommunity Leadership

To help CDCs think creatively in achieving their missions at a larger scale while maintaining accountability to their residents and local boards, LISC partnered to host this forum showcasing some of the creative models community developers are using to share operations support and staff, collectively own assets, merge, or pursue other unique ventures. Presenters were Ann Houston showcasing Opportunity Communities (OppCo), Rob Corley of NeighborWorks Housing Solutions, and Peter Madden of the Joint Operating Entity NYC (JOE NYC).

Click here for the PowerPoint presentation. Each model comes with its benefits and challenges. Presenters and CDC leaders attending the forum discussed the models and their experiences with them.

Forum Co-Sponsors: MACDC/Mel King Institute, LISC Boston, NeighborWorks, Joint Center for Housing Studies, Enterprise, Citizens Bank

The Models:

The Merger Model
presented by Rob Corley of NeighborWorks Housing Solutions

Corley described the merger model as useful when two organizations are sufficiently aligned and comfortable working together that a merger of the two enables all of their work to be more sustainable. NeighborWorks Southern Mass and Housing Solutions for Southeastern Massachusetts recently finalized an over 2-year process of merging into the single organization called NeighborWorks Housing Solutions.

For more about NeighborWorks Housing Solutions, visit nwsoma.org.

The Pooled Ownership-Entity Model
presented by Peter Madden of JOE NYC

Joint Operating Entity (JOE) NYC, according to their webiste, was founded by a group of New York City Community Development Corporations to strengthen the asset and property management capacity and outcomes of participating CDCs and the industry as a whole; to bolster the cash flow and balance sheets of participating CDCs; to enhance the ability of CDCs to secure financing for their development projects; and to help ensure the long-term affordability of the properties in its portfolio and the stability of the communities within which they are located. Property ownership and asset management is aggregated within JOE NYC, with each contributing nonprofit owning a percentage interest in the aggregate owner entity.

For more about JOE NYC, visit www.joenyc.org

Backbone Capacity Model
presented by Ann Houston of Opportunity Communities, OppCo

Opportunity Communities, LLC (OppCo) was created to enable CDCs to retain local control of resources and assets to reinvest back into the community, while benefiting from the efficiency and effectiveness of a larger scale entity. According to their website, participating community development non-profits leverage their combined resources to create administrative support and programmatic capacity in areas that benefit from scale and expertise. Control and governance remains local, guiding strategic direction, local programs, budget and assets. Without sacrificing local control, OppCo seeks to attain a more sustainable, efficient and robust structure for community development activities to support stronger families, greater economic equality, and thriving communities that benefit all people.

For more on Opportunity Communities (OppCo), visit www.oppcommunities.org.