In this paper we consider distributed control of n dynamic agents to optimize an overall system performance metric. Due to limited communication resources, there exist structured interconnections among the agents and the design interest is placed in synthesizing a suitably distributed control law to provide a given performance level. Based on a Youla-Kucera parameterization approach, the problem of designing a distributed controller to deliver given performance levels for different network topologies is convex in the YoulaKucera parameter Q. Furthermore, if packet drops exist in information transmission among the agents, we provide convex conditions to guarantee mean square stability and optimize system performance.