Challenges for Nonprofit Housing Organizations Created by the Private Housing Market

Abstract

ABSTRACT:Community development corporations (CDCs) and other large nonprofit housing organizations are major producers of housing for low-income households. One of the least recognized and examined set of challenges facing these groups relates to how the workings of the private housing market—both weak and strong market conditions—impact their ability to carry out their mission. After presenting examples of how housing market conditions create challenges for nonprofits, the article explores how organizational strategic planning can help the nonprofit to more explicitly focus on housing market dynamics and plan its activities taking into account these concerns. An analysis of the two major training programs for nonprofit housing organizations that were available during 2007 revealed that out of the 216 different courses offered by NeighborWorks America and the Local Initiatives Support Corporation, only 8% appear to relate closely to housing market dynamics and land-use issues and 3% relate to strategic planning. Initiatives that would assist nonprofits to both recognize the importance of the private housing market and to assist them in developing strategies for confronting market-based challenges are presented.