Urban and rural development requires an innovative problem-solving mechanism that would better use the leverage inherent in available resources. There is a model of such an institution now evolving in depressed areas which warrants a substantial investment of Ford Foundation funds: the Community Development Corporation (CDC)--an organization whose raison d'etre is the efficient allocation of resources to improve the conditions of life in minority communities. The CDC is a locally controlled, tax-exempt corporation that operates programs aimed at both immediate relief of severe social and economic disadvantaged and at eventual regeneration of its community. Its programs are usually funded by grants or investments from government and the private sector; and they seek primarily to increase jobs and income, to improve housing and to secure better services from local government, business, and utilities, and to foster a sense of hope in communities that have been stagnant or deteriorating. Although governed by boards representing coalitions of local interests, the most effective CDCs are run by strongly individualistic executives. The National Affairs Division of the Foundation has embarked on a series of experiments to develop and test this new kind of institution through support of a group of CDCs, which vary by race, region, organizational structure, and program emphasis. The primary goal of these experiments is to strengthen a promising development institution. A directly related purpose is to conduct operational research on the development process; i.e., especially minority community development; still another objective is to train leaders and managers. (Author/JM)