ABSTRACT
Community development block grants were introduced in 1974 to replace various "categorical" programs of federal aid to cities; the federal government allocates a lump sum to each city, and the local government decides, within very general guidelines, how that money will be spent. Local government's toughest task in the New Community Development Program is deciding where and on what projects within the city to spend the limited federal funds available. This chapter presents several major principles relevant to the Community Development Program and discusses how they might be used by local governments. Creating an effective Community Development Program is aided in the long run if local officials first determine what stage of condition each neighbourhood in the city has reached. Unfortunately, the Community Development program as structured creates strong incentives for local governments to avoid long-range, large-scale redevelopment. In healthy neighborhoods, the main purpose of public Community Development spending should be to produce high-visibility effects.
