Why use it?

Asset Building and Ownership Opportunities for Residents.   Resident stock ownership in CDC projects represents a promising asset-building strategy in neighborhoods where residents do not own assets and where private sector development interest is emerging.  CDCs possess the technical expertise and access to financial resources needed to engage in development activities; but, to date, they have lacked the tools to enable residents to participate as owners in their projects. Developing tools for residents to invest in CDC real estate projects provides significant ownership and asset- building opportunities for local families.

Integrating Efforts to Improve People and Place. Resident ownership in CDC projects is one way to enhance "place-based" development activities with a "people-based" focus.  CDCs improve places by increasing the affordable housing stock, stimulating commercial revitalization and improving the physical condition of neighborhoods. Enabling residents to invest in CDC projects benefits people by offering them the possibility of direct financial returns from neighborhood development activities.

Promotes Voice and Participation.   One reason that CDCs are investigating resident ownership is to give residents a greater voice in economic development planning efforts at the local and regional level.  Resident Ownership can give community members an opportunity to learn about the development process - and to use that knowledge to better understand and engage in public planning decisions that are affecting their communities.