Community Development Credit Unions

Community Development Credit Unions (CDCUs) may be the best vehicle for providing affordable capital and financial services in low- and very low-income areas. So why can't there be more of them? This article seeks to answer that question.

1 minute read

September 17, 2001, 12:00 PM PDT

By Abhijeet Chavan @http://twitter.com/legalaidtech


Community Development Credit Unions (CDCUs) may be the best vehicle for providing affordable capital and financial services in low-income and very low-income areas. So why can't there be more of them? This is the question the author explores in this article on the opportunities and challenges associated with expanding the CDCU industry. The CDCU structure enables them to tailor services, loans and financial education to their members in ways that traditional banks often cannot. But under-qualified management, inadequate capital and liquidity, and the ability to provide only a limited range of services continue to constrain CDCU growth. However, with a concerted effort by credit unions, banks, regulators, trade organizations, and government agencies to dedicate more resources and employ new strategies, these weaknesses can be overcome, and the benefits of the CDCU model can be fully realized.

Thanks to Kurt Sommer

Monday, September 17, 2001 in The Brookings Institution

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Get top-rated, practical training

Close-up of "Apartment for rent" sign in red text on black background in front of blurred building

Trump Administration Could Effectively End Housing Voucher Program

Federal officials are eyeing major cuts to the Section 8 program that helps millions of low-income households pay rent.

April 21, 2025 - Housing Wire

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

April 30, 2025 - Diana Ionescu

Close-up on Canadian flag with Canada Parliament building blurred in background.

Canada vs. Kamala: Whose Liberal Housing Platform Comes Out on Top?

As Canada votes for a new Prime Minister, what can America learn from the leading liberal candidate of its neighbor to the north?

April 28, 2025 - Benjamin Schneider

Washington

Washington State’s Parking Reform Law Could Unlock ‘Countless’ Acres for New Housing

A law that limits how much parking cities can require for residential amd commercial developments could lead to a construction boom.

7 hours ago - Streetsblog USA

Bluebird sitting on branch of green bush.

Wildlife Rebounds After the Eaton Fire

Following the devastation of the Eaton Fire, the return of wildlife and the regrowth of native plants are offering powerful signs of resilience and renewal.

May 1 - AP News

1984 Olympics

LA to Replace Inglewood Light Rail Project With Bus Shuttles

LA Metro says the change is in response to community engagement and that the new design will be ready before the 2028 Olympic Games.

May 1 - Newsweek

Urban Design for Planners 1: Software Tools

This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.

Planning for Universal Design

Learn the tools for implementing Universal Design in planning regulations.