One of three fates awaits the aging neighborhood. Decay may continue until the neighborhood becomes a slum. It may face urban renewal, with old buildings being razed and ugly new apartment houses taking their place. Or it may undergo redevelopment, in which government encourages the upgrading of existing housing stock by offering low-interest loans or outright grants; thus, the original character of the neighborhood may be retained or restored, allowing the city to keep part of its identity.
An example of redevelopment at its best is Hoboken, New Jersey. In the early 1970s, Hoboken was a dying city, with rundown housing and many abandoned buildings. However, low-interest loans enabled some younger residents to refurbish their homes, and soon the area began to show signs of renewed vigor. Even outsiders moved in and rebuilt some of the abandoned houses. Today, whole blocks have been restored, and neighborhood life is active again. The city does well, too, because property values are higher and so are property taxes.
—Kevin Cunningham