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There have been a number of pros and cons on neighborhood organizations, which are resident organizations at the basic level of urban areas, in terms of democracy and efficiency. The neighborhood associations in Eugene, Oregon, however, show that neighborhood organizations can bring benefits to local governments as well as the immediate residents. This type of institution needs to be benchmarked for our local self-governance to be improved, for it may guarantee both the high-level participation of citizens in their community and city matters and the efficient municipal administration. The attitudes of local governments toward resident organizations would be critical in the acceptance of this institution. Local governments should recognize that they can pursue common interest with neighborhood organizations and make proper institutional arrangements for more resident-centered organizations to be activated.