Community Development Trust is a REIT providing long-term debt and equity capital for affordable housing development and preservation across 45 states, currently managing $3.2 billion in investments.
Editorially reviewed by Harvey Brooks
Community Development Trust (CDT) was founded in 1998 and has spent 28 years establishing itself as a specialized real estate investment trust focused exclusively on affordable housing and community development financing. The company operates as a mission-driven investment vehicle rather than a traditional consumer lender, targeting institutional investors and housing developers seeking long-term capital solutions. CDT's business model centers on providing stable, patient capital to support the creation and preservation of high-quality affordable housing throughout the United States, with a particular emphasis on supporting communities and enhancing resident quality of life.
CDT offers long-term debt and equity capital specifically designed for affordable housing projects and community development initiatives. Their investment portfolio currently spans 45 states and regions, supporting over 35,000 residential units that have positively impacted more than 125,000 residents. The company structures investments to provide both financial returns for investors and measurable social impact for communities. CDT works with developers, housing authorities, and community organizations to finance the creation of new affordable units and the preservation of existing affordable housing stock. Their capital takes the form of both debt instruments and equity investments tailored to individual project needs.
CDT distinguishes itself through its certified status as a Community Development Financial Institution (CDFI) and its membership with the Federal Home Loan Bank of New York. The company is Fannie Mae-approved and maintains membership in the National Alliance of Affordable Housing Lenders (NAAHL). Their "double bottom line" approach explicitly balances financial returns with documented social outcomes, and they publicly track community impact metrics including unit preservation, resident benefits, and property renovations. This transparency around impact measurement and their 28-year track record in the specialized affordable housing finance sector sets them apart from general commercial real estate investors.
CDT is fundamentally a B2B institutional lender, not a consumer finance company. They do not offer products or services directly to individual consumers seeking personal credit, mortgages for home purchase, or emergency cash. The company's business model requires substantial project scale and long-term capital commitment, making it inaccessible to typical consumer finance customers. While their mission is admirable and their track record solid, consumers should understand that CDT operates in an entirely different market segment—serving developers, nonprofits, and institutional investors rather than individual borrowers.
Yes. Community Development Trust is a registered company headquartered in 1350 Broadway # 700, New York, NY 10018. They hold a NR rating with the Better Business Bureau.
CreditDoc Diagnosis
Community Development Trust is exclusively a B2B institutional lender serving affordable housing developers, nonprofits, and mission-driven investors—not individual consumers. They provide long-term capital for housing creation and preservation projects at institutional scale, making them appropriate only for developers and organizations managing large affordable housing portfolios, not for personal borrowing needs.
AAFE Community Development Fund is a HUD-certified housing counselor and CDFI offering free homebuyer education, down payment assistance loans, and homeowner repair financing for low- to moderate-income New Yorkers.
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Bank of America Financial Center in Philadelphia's Kensington neighborhood offering full-service banking, financial advice, and walk-up ATM access with extended Saturday hours.
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Read guide →New to credit and lending? Here are the key terms used on this page, explained in plain language with real-number examples.
The total yearly cost of borrowing money, including the interest rate plus any fees the lender charges. Think of it as the 'true price tag' on a loan.
Lenders must show APR by law (Truth in Lending Act) because the interest rate alone can hide fees. Comparing APR across lenders is the most reliable way to find the cheapest loan.
Example
You borrow $10,000 at 6% interest for 3 years, but there's a $300 origination fee. The interest rate is 6%, but the APR is 6.9% because it includes that fee. You'd pay $304/month and $946 total in interest.
The percentage a lender charges you for borrowing their money, calculated on the amount you still owe. It's the lender's profit for taking the risk of lending to you.
Even a 1% difference in interest rate can cost you thousands over a loan's life. Lower rates mean less money out of your pocket.
Example
On a $20,000 car loan for 5 years: at 5% you pay $2,645 in interest. At 8% you pay $4,332. That 3% difference costs you $1,687 extra.
The original amount of money you borrowed, before any interest or fees are added. It's the 'real' amount of your debt.
Your interest is calculated on the principal. Paying extra toward principal (not just interest) is the fastest way to reduce your total cost and pay off a loan early.
Example
You borrow $25,000 for a car. That $25,000 is your principal. Your first payment of $450 might split as $150 toward interest and $300 toward principal, bringing your balance to $24,700.
How long you have to repay the loan, measured in months or years. A shorter term means higher monthly payments but less total interest paid.
Longer terms feel more affordable monthly but cost much more overall. A 30-year mortgage costs almost double in interest compared to a 15-year mortgage on the same amount.
Example
Borrowing $200,000 at 6.5%: A 15-year term costs $1,742/month ($113,561 total interest). A 30-year term costs $1,264/month ($255,088 total interest). You save $141,527 with the shorter term.
A one-time fee the lender charges to process and set up your loan. It covers their costs for underwriting, verifying your information, and preparing paperwork.
Origination fees are usually 1-8% of the loan amount and are often deducted from your loan proceeds — so you receive less than you borrowed.
Example
You're approved for a $10,000 personal loan with a 5% origination fee. The lender deducts $500 upfront, so you receive $9,500 in your bank account but owe $10,000 plus interest.
A person who agrees to repay your loan if you can't. They're equally responsible for the debt, and their credit is affected by your payment behavior.
Cosigning helps people with thin credit get approved or get better rates. But it's a huge risk for the cosigner — they're on the hook for the full amount if you default.
Example
A parent cosigns their child's $30,000 student loan. The child stops paying after 6 months. The parent is now legally required to make the payments or face collections, lawsuits, and credit damage.
The process where a lender evaluates your finances — income, debts, credit history, assets — to decide whether to approve your loan and at what rate.
Understanding what underwriters look for helps you prepare a stronger application. They check your DTI ratio, employment stability, credit score, and the asset's value.
Example
You apply for a mortgage. The underwriter reviews your pay stubs (income), bank statements (savings), credit report (history), and orders an appraisal (home value). This takes 2-4 weeks.
Want to learn more? Read our Financial Wellness Guides for in-depth explanations and practical advice.
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