[Congressional Record Volume 141, Number 84 (Friday, May 19, 1995)]
[Senate]
[Page S7023]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


            RIVER BEND NEIGHBORHOOD ASSOCIATION, DES MOINES

 Mr. GRASSLEY. Mr. President, with the seemingly never-ending 
stories of urban decline, I thought it would be a welcome change to 
tell about a community that has bucked this downward trend. River Bend 
Neighborhood Association is a community on the north side of Des 
Moines, IA. River Bend is unique in that it has taken control of its 
own future. Of course, there have been helping hands along the way, but 
the true reason behind their success is the desire and motivation of 
the community members to attain a better life.
  The background of River Bend will sound familiar to many. The 
neighborhood consists of approximately 4,000 residents and the average 
household income is $11,880. Increasingly, River Bend was succumbing to 
the problems of crime, drugs, disinvestment, and abandoned property. 
Businesses were moving out, and corruption started to take over.
  The key to halting this decline was the formation of the Designated 
Neighborhood Action Plan. The goal of the plan, which was started in 
1990, is to better meet the needs of Des Moines' communities, with the 
emphasis on housing and infrastructure. The logistics are the tricky 
part. The plan involved the Des Moines government, Polk County 
government, and the financial services industry to invest in the 
Neighborhood Finance Corporation, the NFC for short. Due to this 
investment, the NFC is able to provide mortgage capital at low rates 
and planning services to keep private investment in local communities. 
This allows for low income families, even families earning as low as 30 
percent of median income, to own their own homes, a goal most Americans 
share.
  To date, over $35 million in private capital has been raised by the 
NFC--all from the local financial services industry. One notable figure 
is The Principal Financial Group, which has provided investments of 
over $3 million, continuing funding for operating costs, and leadership 
to keep the NFC in the right direction. Financial institutions like the 
Principal and others in Des Moines make it possible for communities 
such as River Bend to become productive and attractive.
  Mr. President, I think the example of River Bend is an important one. 
The successes of River Bend are tangible: the fact that 161 homes have 
either been constructed or salvaged and new families are moving into 
these homes, the fact that crime has decreased, and the fact that over 
$4 million has been invested in the area. These successes are proof 
that something like the Designated Neighborhood Action Plan can work if 
it is given a chance. The key is to make more urban communities aware 
of such possibilities, and show that these goals are indeed within 
reach. State and local governments need to support partnerships like 
that of River Bend and the financial institutions of Des Moines. Having 
cleaner, safer, and more productive neighborhoods is beneficial to 
everyone in a large urban area, and this is the necessary common 
denominator that makes these partnerships work.


                          ____________________