Committee backs ordinance to define and certify city community development corporations

A St. Louis alderwoman secured a committee recommendation Tuesday for legislation that would formally define and certify community development corporations (CDCs) in St. Louis and create a pathway for those organizations to receive prioritized city funding.

The Housing, Urban Development and Zoning Committee voted 5–0 to give Board Bill 41 a do‑pass recommendation after more than an hour of presentations and public testimony. The bill sponsors say the measure is intended to make local grant, loan and contract decisions more transparent and to ensure city dollars go to groups with sustained neighborhood ties.

Alderwoman Schweitzer, the bill sponsor, told the committee the ordinance would do three things: establish a citywide definition for CDCs, set a certification process and permit the city to give priority consideration — and in limited cases reserve funding streams — for certified CDCs. “We need a uniform criteria to promote consistency across city departments and to protect the integrity of public expenditures,” she said.

Local CDC leaders who testified in support described place‑based work already rooted in St. Louis neighborhoods. Becky Reinhardt, executive director of the Sales Community Development organization in Fox Park, said CDCs are often long‑standing neighborhood institutions and would benefit from a predictable path to public funding. “Formal recognition and accountability standards help strengthen partnerships within the city and other stakeholders,” Ella Gross of Tower Grove CDC said.

Steven Westbrooks, chief executive of the St. Louis Development Corporation (SLDC), told the committee his agency supports the bill and is preparing to manage the certification process. Westbrooks said SLDC is building capacity to administer certification and compliance and estimated staff could complete an individual certification review within about 90 days once applications begin arriving, although he emphasized the timing depends on applicants providing complete materials.

Key provisions in the ordinance include governance and capacity requirements: at least 25% of a CDC’s board must be residents of the organization’s core service area; a CDC must have at least one full‑time paid employee; applicants must show active work in three of four community revitalization categories (housing/real estate development, economic/community organizing, planning/engagement/advocacy, neighborhood stabilization/quality of life); and applicants must supply articles of incorporation, bylaws, 501(c)(3) documentation and two most recent fiscal‑year financial statements (plus audited statements if available).

Organizations already receiving city funding that would qualify as CDCs have 180 days from an ordinance effective date to file certification applications, the bill says. Initial certification would be valid for three years with a renewal application due 90 days before expiration; organizations with timely pending renewals would remain provisionally certified.

The ordinance also requires SLDC to operate a public registry listing each certified organization’s name, designated core service area, certification date and expiration date, and to update the registry within 15 days of any certification action (approval, suspension, revocation, restoration).

Committee members pressed the sponsor and SLDC on details, including how the new definition differs from federal CDC/CHDO/CBDO designations and how SLDC would manage additional certification responsibilities. Westbrooks said the city’s criteria aim to reflect local priorities — for example emphasizing community organizing and resident governance — and that SLDC is strengthening staff capacity to administer certification and monitoring.

Byron Clemens, a resident and spokesperson for AFT St. Louis who testified during public comment, said he supported the bill with a proviso that stakeholders pay their fair share of taxes or participate in a pilot. Several aldermen asked the sponsor to consider clearer language around “preference” versus “priority” when departments award funds; the committee adopted clarifying amendments including a reporting requirement that SLDC provide an annual implementation report to the committee.

The committee’s do‑pass recommendation advances the measure to the full Board of Aldermen for further consideration. If passed by the board, SLDC would begin accepting certification applications under the timeline written into the ordinance.