Committee backs local certification for community development corporations with reporting requirement

Vice Chair Sonia Sonnier introduced Board Bill 41 on Tuesday, saying the ordinance would create a city definition and certification process for community development corporations (CDCs), set basic governance and capacity requirements and allow the city to prioritize or reserve funding streams for certified CDCs.

Sonnier told the committee the bill requires at least 25% of the certified CDCs' boards to be residents of the designated core service area, at least one full-time paid employee, documentation of 501(c)(3) status and two years of financial statements, and demonstration of activity in at least three of four program areas (housing/real-estate development; economic/community organizing; planning, engagement and advocacy; and neighborhood stabilization and quality-of-life work). She described a 180-day window after the ordinance’s effective date for currently funded organizations to apply and a three-year certification term with a 90-day renewal window.

DeSales Community Development director Becky Reinhardt and Tower Grove CDC’s Ella Gross testified in support, describing decades of neighborhood-focused affordable housing and organizing work and urging a consistent city framework. Michael Burns, president of Northside Community Housing, said CDCs had been first responders during disasters and that predictable local support would improve long-term neighborhood capacity.

Steven Westbrooks, CEO of the St. Louis Development Corporation (SLDC), told the committee SLDC would operate the certification process and said staff could begin implementing the program immediately following passage. Westbrooks said SLDC expected to certify applicants within approximately 90 days of application, while acknowledging actual timing depends on applicant responsiveness.

Committee members pressed about overlaps with federal CHDO/CBDO definitions and about whether the local standard would disqualify existing organizations. Sponsor Sonnier and SLDC staff said the local definition is intended for city funding and accountability, not to prevent organizations from doing work, and that most established CDCs already meet the proposed criteria. The bill also directs SLDC to maintain a public registry of certified CDCs and flags (suspensions, revocations) with 15-day update expectations.

Two committee amendments were adopted before the committee vote. Amendment 3 revised funding language to replace the phrase "priority consideration" with "preference" (to clarify departmental discretion in awarding place-based funds). Amendment 2 added an annual implementation report requirement: the certifying authority must report to the HUDZ committee within 90 days after the close of each fiscal year on certification activity, organizations certified, implementation challenges and recommendations.

After amendment, the committee moved Board Bill 41 with a due-pass recommendation; the roll call recorded five aye votes. The sponsor said she would continue stakeholder discussions about technical changes before the Board of Aldermen floor vote.

What’s next: The bill now advances to the full board with a due-pass recommendation; SLDC says it can begin the certification program immediately after final passage and applicants would have 180 days to submit certification packets. The ordinance establishes a local mechanism to prioritize place-based nonprofit partners for certain city funding while requiring public transparency through a registry and annual reporting.

Quote: "This is about creating a transparent, accountable pathway so we know who the city is partnering with at a neighborhood level," Sonnier said in opening remarks.

Ending: The committee passed the amended bill and recorded the recommendation; sponsors and SLDC will continue stakeholder outreach as the bill moves to the Board of Aldermen.