Abstract
Community renovation grants have been founded since 2004 in Japan. The grants aims are to improve in citizens' quality of life, and to reverse the declining economy. The purpose of this study is to clarify problems and method of effective use for central city area activation. The major findings include the followings. 1. Solidifying the foundation for community organization in its early stage that make efficient use of prefectural funds is important for straitened local governments. 2. The multiyear grant is effective for continuous activity in community development. 3. The improvement of management system for budget is important problem in the recipient.