The history of public housing illustrates how historical trends and government initiatives contributed to the current state of decay in public housing. However, the Philadelphia Housing Authority (PHA) and other government housing providers are attempting to reverse these conditions through the HOPE VI initiative that provides funding to revitalize public housing.

Community Development Corporation (CDCs) arose from perceived needs in the community caused by inadequate public housing. These non-profit organizations are based in specific neighborhoods and focus on rejuvenating the particular community they serve. While they cannot replace public housing, CDCs can help decrease the population needing public housing and can help to revive communities in which both CDC and public housing developments exist.

Key success factors are commonalities needed by each business in a particular industry in order to thrive. Through conducting interview, visiting housing sites, and reading literature, four key success factors became apparent for the low-income housing revitalization efforts of public housing, and can create a model for the development of new or the expansion of existing CDCs.

Hire a dedicated and professionally competent staff. While government agencies have always hired a professional staff, CDCs must professionalize their work force by seeking people with past construction or property management experience. By locating offices on-site housing developments, employees can understand the specific needs faced by the community. PHA must provide their employees with more opportunities to interact with the community. One means of increasing dedication is by hiring community members and providing them with the proper training needed to excel.

Obtain steady sources of funding. The amount that low-income tenants can afford to pay for rent or mortgage payment is less than the cost of building or rehabilitating housing units. Therefore, alternative sources of funding are needed. In the past, public housing authorities could rely on the government for funding, but these policies are changing. CDCs have always struggled with funding. Government subsidies are important but unpredictable, so CDCs must seek private funds, make investments, and develop fundraisers to sustain their organizations.

Create pride and personal responsibility among tenants. Public housing projects failed to create pride among tenants by concentrating people in small, unattractive spaces. Personal responsibility was lacking because tenants did not need to pay a fixed amount of rent, and penalties for crime and vandalism were not enforced. PHA is remedying this by remodeling buildings and creating defensible space. In contrast, the community respects the housing developments of CDCs, which result in decreased vandalism.

Develop support programs. Another failure of public housing was their assumption that providing housing would alleviate all other problems in the lives of their tenants. Low-income housing providers should focus on establishing housing counseling programs to teach people to care for their homes and save money, luring businesses into the community to provide tenants with jobs and necessary goods, creating open spaces for children to play, and developing other services to deal with education, health, safety, and drug and alcohol abuse. These initiatives have led to the success of CDCs.