CDCs Boost Philadelphia's Economy by Billions

CDCs contributed $3.3 billion to the Philadelphia economy since 1992 according to an economic impact report from the Philadelphia Association of Community Development Corporations.

December 11, 2012

City officials, private sector leaders, and the Philadelphia media are extolling the importance of community development corporations (CDCs) as the result of a new report showing that CDCs contributed $3.3 billion to the Philadelphia economy since 1992. The report was based on a survey of 44 local community development corporations commissioned by the Philadelphia Association of Community Development Corporations and supported by Citi Community Development. It demonstrates how CDCs benefit Philadelphia by adding to the tax base, increasing household wealth and creating jobs.

Documented economic impact

Here are the results:

  • More than $2.2 billion of the $3.3 billion is the result of direct investment in city neighborhoods through new construction and rehabilitation of homes, commercial and public spaces;
  • During the two decades covered by the study, Philadelphia CDC investments resulted in nearly 12,000 jobs in Philadelphia, $28 million added to city tax rolls and $680 million in increased wealth for neighborhood property owners by transforming blight;
  • The report also found that CDCs' investments have had a $5.1 billion impact on the state's economy in the last two decades, supporting 37,100 jobs and generating $118 million in state tax revenue. Most of the benefits were concentrated in the five-county Philadelphia area;
  • Other CDC services have contributed hundreds of millions of dollars to the economy and sustain an additional 3,400 jobs. Among them are housing counseling, job training, energy conservation and after-school programs;
  • On average, homes near CDC investments are worth $4,000 more than homes in similar neighborhoods not near the investments, a $680 million increase in home wealth citywide; and
  • Thanks to CDCs, 9,000 families are living in new or renovated homes.

City officials and press take note

City officials and others lauded the invaluable role of CDCs to the Philadelphia economy at a standing-room only press conference on December 12. Mayor Michael Nutter stated, "The City's long-time investment in CDCs as developers, social service providers, housing counselors, and leaders in neighborhood revitalization has had a tremendous impact not only on the economy, but also on the well-being of our residents. In a time where funding is lean and needs are great, CDCs effectively use support from the City to create jobs, develop affordable housing, and invest in the future of our neighborhoods and our people." Philadelphia City Councilman Wilson Goode, Jr. applauded the "solid, consistant work of CDCs and the leadership of their visionary executive directors."

Read Collective Strength: The $3.3 Billion Impact of Philadelphia Community Development, the economic analysis by Econsult Corporation that was the basis of the report, and view the resulting press coverage.

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