October 4, 2012
HUD SOUTHEAST REGIONAL ADMINISTRATOR ANNOUNCES $2.2 MILLION LOAN GUARANTEE TO MONTGOMERY, ALABAMA
Historic Webber Building will be redeveloped into retail, residential and community space
BIRMINGHAM, AL - U.S. Housing and Urban Development Southeast Regional Administrator Ed Jennings, Jr. announced today that HUD is approving a $2.2 million loan guarantee to the City of Montgomery to finance the redevelopment of the historic Webber Building in the business district. The building is in an area of the City's downtown that the City has designated as blighted and needing redevelopment.
"This historic building is currently vacant and the new influx of activity will benefit the quality of life for area residents while also creating approximately 30 jobs, many of which will be held by low and moderate-income persons-- truly a win-win situation for Montgomery," said Jennings.
HUD's loan guarantee will leverage another $1.2 million in city and private funding. The building will have retail, residential and community space. It is anticipated that the basement will have a copy shop and the first floor will host a popular local deli and a small grocery market. The second floor will be dedicated to a modern office space. The third and fourth floors will be converted into seven 1,400 square foot market-rate loft apartment units.
HUD's Section 108 Loan Guarantee Assistance Program enables local governments to borrow money from private investors at reduced interest rates to promote economic development, stimulate job growth and improve public facilities. Such public investment is often needed to inspire private contributions, to provide seed money, or to simply boost confidence that many private firms and individuals need to invest in distressed areas. It allows them to transform a small portion of their CDBG funds into federally guaranteed loans large enough to pursue physical and economic revitalization projects that can renew entire neighborhoods.
HUD's mission is to create strong, sustainable, inclusive communities and quality affordable homes for all. HUD is working to strengthen the housing market to bolster the economy and protect consumers; meet the need for quality affordable rental homes: utilize housing as a platform for improving quality of life; build inclusive and sustainable communities free from discrimination; and transform the way HUD does business. More information about HUD and its programs is available on the Internet at www.hud.gov and espanol.hud.gov. You can also follow HUD on twitter @HUDgov, on facebook at www.facebook.com/HUD, or sign up for news alerts on HUD's News Listserv.