A new report commissioned by REACH CDC seeks to better understand the added value of local affordable housing nonprofits, primarily in the Portland Metro area. The report, titled “Community Development Corporations (CDC) Are Important,” highlights how nonprofit CDCs are reinvesting in their communities, supporting diverse communities, and contributing to the local tax base and creating long-term construction and operating jobs.

Participating organizations included Bienestar Inc., Central City Concern, Community Partners for Affordable Housing (CPAH), Farmworker Housing Development Corporation (FHDC), Home Forward, Innovative Housing, Inc., Northwest Housing Alternatives, and REACH CDC. The study, examining data covering 132 developments with 8,789 units, was conducted by ECONorthwest.

While rents in Portland increased nearly 40 percent between 2021 and 2022, rents in these developments averaged only 42 percent of the Area Median Income, well below a typical Low Income Housing Tax Credit project in Oregon. In addition, 44 percent of all residents in these mission driven affordable housing developments were People of Color.

These eight nonprofit CDCs reinvested $31.7 million, or 44%, of developer fees back into their housing communities subsidizing upwards of 60 percent of programmatic costs for resident services, community spaces, or other programs for residents or contributed to new affordable housing developments.

Over the past two decades, these developments contributed a combined investment of $1.45 billion. Combined, the annual average direct and indirect fiscal effect from their activities on state and local governments was equal to nearly $2.9 million. Ongoing property management and operations of these units added an additional average of $3.3 million in direct and indirect tax revenue.

Lastly, these investments over 20 years supported an average of 594 direct construction jobs annually, paying $44.5 million in labor income. Property management and other building operations and activities directly and indirectly employ 380 workers annually contributing $22.6 million in labor income.

Find the report HERE