HUD SECRETARY APPROVES $9.4 MILLION LOAN GUARANTEE TO SALINAS
Guaranteed loan to help Salinas create economic development and hundreds of jobs.
SAN FRANCISCO - U.S. Department of Housing and Urban Development Secretary Shaun Donovan announced that he is approving a $9.4 million loan guarantee to the City of Salinas for a Community and Economic Development Loan Fundthat will provide assistance to third party for-profit entities for special economic development activities. The City will also carry out site improvements and public improvements for existing and planned industrial development, and activities for the preservation of affordable housing. The City estimates that approximately 410 existing jobs will be retained and future industrial development will create approximately 3,150 new jobs.
"This is an important step forward for the City of Salinas’ economic development," said HUD Regional Administrator Ophelia Basgal. "The City, with its Economic and Community Development Department, will administer this loan pool and oversee public improvements and preservation of affordable housing that will save hundreds of local jobs."
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.
For more information, please contact the Salinas Mayor’s office at (831)758-7201.
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, or on facebook at www.facebook.com/HUD.