Community Development Corporations Step In Where Business Fear to Tread

With hundreds of billions of dollars in short-term commercial real estate loans underwater, it's safe to say commercial real estate is in trouble. But can community development corporations confront the lending shortfall?

1 minute read

August 13, 2011, 7:00 AM PDT

By Matthew Brian Hersh


"Commercial defaults, continued restrictions on commercial lending, and the related problems facing retail ventures in our neighborhoods will have profound implications for economic development projects," writes Marcus Weiss.

But as credit tightens and higher and higher numbers of commercial real estate loans enter default, CDCs are stepping up to fill the financing gap in economic development deals as conventional lenders retreat.

"When Industrial Glass Products, Inc., a minority- and woman-owned specialty glass manufacturer that has operated since 1991 in a Los Angeles neighborhood with 98 percent minority population, observed most of its competitors west of the Mississippi closing their operations, it sought financing to expand," says Weiss. "Finding few banks willing to provide additional capital, it turned to TELACU Community Capital (TCC), a CDFI subsidiary of The East Los Angeles Community Union, one of the nation's largest CDCs. TCC provided a loan for working capital and real estate refinancing. The additional investment capital for machinery, equipment, marketing, and improved production schedules, allowed IGP to pursue customers previously served by competitors. As a CDC with years of experience in development, financing, and government contracting, TELACU understood the subtleties of supporting a company capable of growing jobs while working with a customer base of aerospace and other global firms."

Thanks to Matthew Brian Hersh

Thursday, August 11, 2011 in Shelterforce

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

Cover CM Credits, Earn Certificates, Push Your Career Forward

Aerial view of town of Wailuku in Maui, Hawaii with mountains in background against cloudy sunset sky.

Maui's Vacation Rental Debate Turns Ugly

Verbal attacks, misinformation campaigns and fistfights plague a high-stakes debate to convert thousands of vacation rentals into long-term housing.

July 1, 2025 - Honolulu Civil Beat

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.

July 9, 2025 - Diana Ionescu

Map of Haussmann's redesign of Paris in the 1850s through 1870s under Napoleon III.

In Urban Planning, AI Prompting Could be the New Design Thinking

Creativity has long been key to great urban design. What if we see AI as our new creative partner?

June 30, 2025 - Tom Sanchez

Aerial view of suburban housing near Las Vegas, Nevada.

Researchers Use AI to Get Clearer Picture of US Housing

Analysts are using artificial intelligence to supercharge their research by allowing them to comb through data faster. Though these AI tools can be error prone, they save time and housing researchers are optimistic about the future.

30 minutes ago - Shelterforce Magazine

Green bike share bikes parked in a row on a commercial street with outdoor dining and greenery.

Making Shared Micromobility More Inclusive

Cities and shared mobility system operators can do more to include people with disabilities in planning and operations, per a new report.

1 hour ago - Cities Today

View from inside car's driver seat while driving.

Car Designs Make it Harder to See Pedestrians

Blind spots created by thicker pillars built to withstand rollover crashes are creating dangerous conditions for people outside vehicles.

2 hours ago - Bloomberg CityLab

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.

Home and Land Services Coordinator

Appalachian Highlands Housing Partners

Associate/Senior Planner

Gallatin County Department of Planning & Community Development

Senior Planner

Heyer Gruel & Associates PA