| Abstract: | The federal Urban Development Action Grant program, begun in1977, provided $5 billion over eleven years revitalizing severelydistressed urban places through the encouragement of privatesector investment. Designed to assist commercial, industrial,and housing projects that "but for" the federal grant wouldnot be built, the program was characterized by a streamlinedgrant-making process administered by finance and developmentexperts. Eight UDA G projects in five New Jersey cities, firststudied in the proposal stage in 1979 and revisited in 1987,show that the UDAGs succeeded in attracting development to thesehard-pressed cities. Although the projects succeeded, the programwas unable to arrest the more general distressed conditionsof the cities. During the Reagan years, the administration soughtto end the program. Congress supported it, but reduced the fundingeach year. In an effort to gain support for the program, eligibilityrequirements were broadened to include more localities. Theseefforts failed, and in 1988 Congress did not fund the program.Despite its demise, UDAG is recognized as having stimulatedurban revitalization and having created a new model for privatesector and public sector collaboration in economic development. |
