The scheme will give a mixture of loan and grant funding to neighbourhoods in 150 urban and rural areas in England. At least £1m will be available to each neighbourhood over the next 10 years and the funding schemes will be developed and administered by local people.
The BLF announced last year that the CDF was the preferred candidate for the role.
CDF will lead a consortium of organisations, including the environmental justice organisation Capacity Global, the investment company CCLA and the Institute for Voluntary Action Research, to establish a charitable trust for the programme.
Alison Seabrooke, chief executive of CDF, said it was excited to be delivering the project.
"Big Local’s innovative investment approach will create a legacy that will continue to support areas to achieve their priorities beyond the life of the programme," she said.
The first 50 neighbourhoods to receive funding have already been chosen. The BLF will select the next 50 later this year, and the final 50 in 2012.