Community Development Banking Strategy for Revitalizing our Communities

CDCUs and CDLFs may outnumber CDBs, but their scope of lending activity pales in comparison. Despite CDBs’ relatively small number, their impact on their respective communities warrants an in-depth discussion of their structures and formulas for success. This Article will provide an overview of the CDBs in the United States. Part I first sets forth the legal structure and purpose of CDBs, and then reviews the history and current status of mature CDBs and emerging CDBs. Part II considers community development credit unions, after which Part III gives community development loan funds similar treatment. Finally, Part IV analyzes the potential impact of federal legislation on CDBs including the Community Reinvestment Act with regulations proposed in 1994, and the recently introduced Community Development Banking and Financial Institutions Act. Throughout this Article, the effectiveness of CDBs in revitalizing our urban communities will be evaluated.