Author: Marino, Dennis R
Summary
This paper is one of a continuing series of papers analyzing publicly initiated reinvestment strategies. Unlike most of the strategies previously discussed, this strategy attempts to encourage investment in business and industrial enterprises as well as housing. The Massachusetts Community Development Finance Corporation (CDFC) is a public entity created by an act of the Massachusetts legislature which was signed into law on January 12, 1976. Although the CDFC will not become fully operational until January 1978, the CDFC model is worthy of consideration by other states which have experienced a lack of private investment capital in distressed communities. CDFC is designed to provide equity and debt financing to economic development projects sponsored by community, development corporations in distressed communities, and to leverage the investment of private capital to help finance these projects.
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The Massachusetts Community Development Finance Corporation as a Vehicle for Reinvestment
