The Los Angeles Community Development Bank: The possible pitfalls of public-private partnerships

Julia Rubin, Gregory M. Stankiewicz

Research output: Contribution to journalArticle

19 Citations (Scopus)

Abstract

In response to the 1992 Los Angeles riots, the federal government, city and county officials, commercial banks and community leaders established the nonprofit Los Angeles Community Development Bank (LACDB). This public-private partnership was a new development model, designed to spur economic growth in some of Los Angeles' most disadvantaged areas. The LACDB was capitalized with $435 million from the U.S. Department of Housing and Urban Development and ranks as the federal government's largest inner-city lending initiative. By January 2001, however, the bank had experienced unacceptably high losses and was seeking permission to continue operations, after reducing its staff by half and closing most of its offices. This article examines why this innovative public-private economic development partnership confronted such difficulties. Public-private partnerships continue to be an important vehicle for urban economic development. This case study provides a warning of potential pitfalls that can occur from such arrangements.

Original languageEnglish (US)
Pages (from-to)133-153
Number of pages21
JournalJournal of Urban Affairs
Volume23
Issue number2
DOIs
StatePublished - Jan 1 2001

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public-private partnership
public private partnership
community development
bank
economic development
Federal Government
urban development
economic growth
housing development
development model
lending
economics
leader
staff
federal government
community
loss
office
county
inner city

All Science Journal Classification (ASJC) codes

  • Sociology and Political Science
  • Urban Studies

Cite this

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The Los Angeles Community Development Bank : The possible pitfalls of public-private partnerships. / Rubin, Julia; Stankiewicz, Gregory M.

In: Journal of Urban Affairs, Vol. 23, No. 2, 01.01.2001, p. 133-153.

Research output: Contribution to journalArticle

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