In the 1992 amendments to the Juvenile Justice and Delinquency Prevention Act, Congress established incentive grants for local delinquency prevention programs, know as the Community Prevention Grants Program. This report is the third annual report on this program, which provides the framework, tools, and funding for communities to help divert at-risk youth from crime toward positive growth and development. The 1996 report begins with a review of current trends in juvenile justice and the role the Community Prevention Grants Program plays in the prevention and control of juvenile problem behaviors. The need for a balanced juvenile crime reduction strategy is described, and an overview of the grants program is given. The next chapter describes local implementation of the program, some early outcomes, and planned efforts for more intense evaluation of the program. Examples of successful local programs, most of which function in urban areas, are provided. The third chapter discusses how state and local governments have supported implementation of the community programs. The final chapter reviews the need for prevention programs and the characteristics of successful programs. An appendix summarizes risk factors for unhealthy adolescent behavior. (Contains 6 exhibits and 80 references.) (SLD)