local community. the importance of vision so far, my remarks have focused on the tangible aspects of planning and investment. but i do not want to leave out a critical element that is perhaps impossible to measure but underlies each of your undertakings. that element is vision. the washington post has reported that when joe horning walked through this theater eight years ago, he was surrounded by broken windows, rotted floor boards, and leaks in the roof. that ’ s what he saw. but what he envisioned was quite different. he envisioned a beautifully restored theater that would not only serve the community but, more important, also serve as a symbol that columbia heights could be revitalized. indeed, in the past eight years, that vision has been realized, with columbia heights today a vibrant and viable neighborhood. as in similar neighborhoods in the district of columbia and throughout the united states, there is much to celebrate in the results of community investments. the increase in street traffic and economic activity makes the neighborhood a livelier and safer place. property values are rising, and that allows homeowners here to experience the wealth - building power of homeownership that their peers in more - affluent areas have experienced for years. it also enables them to invest in the rehabilitation of their homes. this additional investment improves the look and feel of the entire neighborhood. of course, the higher home prices and rents that result from the increased desirability of this neighborhood also limit the availability of affordable housing. these pressures on the market are being felt here in the washington metropolitan area as well as in other expanding real estate markets. the question of gentrification in columbia heights was interestingly portrayed in the washington post earlier this month through the eyes of a pair of twelve - year old girls who have grown up in this neighborhood. the girls entered a citywide essay contest on gentrification, a word that they had not previously known, and observed very keenly the effects of the development going on around them. they noted their increased feeling of safety as they walked to and from school thanks to the rehabilitation of previously vacant rowhouses and the exciting new diversity of individuals living in their neighborhoods. but they also missed the friends whose families were forced to move out of the neighborhood when it became too expensive to stay. they were saddened by the loss of some of the smaller shops that will be replaced by larger retailers. in the end, the girls concluded that gentrification is a complicated issue, and its results are " not

, and their balance sheets are strong. the reports on first - quarter earnings have been quite positive, and available measures of credit quality, such as credit ratings and loan defaults, show few signs of stress. financing costs have moved up since last fall, but the federal reserve ’ s most recent survey of bank lending practices, which was conducted in april, indicates that domestic banks are noticing increases in requests for business loans. they also indicated an increased willingness to supply business loans in an environment of brisk competition from other lenders, a liquid secondary market for business loans, and an increased tolerance for risk. in that regard, research conducted by federal reserve economists notes that more banks are offering loans to businesses in markets where the banks do not have branch offices ; the research suggests that new technology has spurred competition for some types of small business lending in recent years. more broadly, businesses currently have access to plentiful debt and equity financing from a variety of sources in addition to banks. the challenge that community development practitioners face in working with businesses looking for new investment opportunities is to demonstrate through careful analysis that promising inner - city neighborhoods can be good investments. that the current overall conditions for business investment are positive is thus good news for the work of social compact and its partners. the importance of data to investment decisions community development has come a long way since i first began following it as a young congressional staffer thirty - five years ago. whereas government programs once funded the bulk of inner - city development, public - private partnerships now dominate. in many places, community - based organizations have been able to " jump start " markets by facilitating private investment. the focus of neighborhood revitalization has shifted increasingly toward market - based approaches. in that regard, organizations that seek to promote neighborhood revitalization must focus on what makes their projects competitive. social compact is perhaps best known for its focus on one important input into the investment process - information. timely and accurate information is what project planners need to bring entrepreneurs, investors, and lenders together to objectively assess the proposed undertaking. having been a banker, i know very well how much more efficient the process can be when decisionmakers are presented with a clear assessment of the projected returns and a balanced analysis of risk. another related feature of market - based investment decisions is the importance of built - in measures of accountability. hard data on results are important in establishing the credibility of projects. with data, and results, such investments can also serve as catalysts for additional private investment in