Philadelphia City Council proposes Community Capacity Building Fund to support local CDCs

The Philadelphia City Council's Committee on Finance convened on June 10, 2025, to discuss critical funding initiatives aimed at enhancing the capacity of Community Development Corporations (CDCs) across the city. The meeting highlighted the essential role CDCs play in delivering services related to affordable housing, social services, and neighborhood economic development.

The session began with a presentation emphasizing the significant economic impact of CDC investments, which have reportedly generated over $5.4 billion for Philadelphia. Despite this success, concerns were raised regarding the limitations of current funding mechanisms, which are often too specific and insufficient to meet the growing needs of communities. The proposed legislation, known as the Community Capacity Building Fund, aims to address these issues by providing reliable, flexible, and multi-year funding to support 50 nonprofits at a rate of $125,000 per year.

Councilmember Ahmad underscored the importance of evaluating the return on investment from CDCs, noting that the modest city investment yields substantial community benefits. The proposed fund is designed to enable CDCs to engage in long-term planning and attract qualified staff, thereby enhancing their ability to respond to emerging community needs.

Testimonies from various CDC representatives, including Jamila Harris Morrison from Achievability and Majida Rashid from Nicetown CDC, reinforced the necessity of this funding. They described CDCs as "invisible heroes" that provide vital services, from affordable housing initiatives to eviction prevention and community engagement efforts. The representatives stressed that the current funding landscape is unpredictable, making it challenging for CDCs to maintain operations and effectively serve residents.

The meeting concluded with a strong call for support of the proposed legislation, which aims to strengthen CDCs as key partners in addressing Philadelphia's pressing challenges, including the affordable housing crisis and public safety concerns. The committee members were urged to report favorably on the bill, recognizing the critical role of CDCs in fostering resilient communities.