Board perfects ordinance to define and certify community development corporations

The Board of Aldermen perfected Board Bill 41, an ordinance that creates a St. Louis certification process for community development corporations (CDCs).

Sponsor Alderwoman Sonier described the bill as setting a definition aligned with state law (RSMo 135.400) and creating a certification process administered by the St. Louis Development Corporation (SLDC). "Essentially establishes a definition of community development corporations ... it defines a definition that aligns with state law," she said, describing four eligible activity areas: housing and real estate development; economic development; neighborhood stabilization/quality of life; and community organizing/advocacy and planning.

Key provisions include a place‑based service area requirement (neighborhood, ward or cluster of census tracts), a governance threshold that 25% of CDC board members must live in the service area, and a 180‑day transition period. The sponsor said transparency is required: certified CDCs would be listed online. SLDC will run the application and certification process.

During questioning, several alderwomen said the 25% residency threshold was too low and pressed whether volunteer organizations without paid staff could qualify; Sonier said the bill allows flexibility on how capacity is demonstrated and that paid staff could be hired after funding is awarded.

The motion to perfect the bill passed on the floor (roll call: 14 yes, one present). The sponsor and colleagues said the measure aims to help the city identify CDCs eligible for sustainable funding and to improve partnership and accountability between city government and neighborhood organizations.

Next steps: the perfected ordinance proceeds through the legislative calendar and the bill text indicates SLDC will build an application and certification materials if the ordinance advances to final passage.