HUD SECRETARY APPROVES $32 MILLION LOAN GUARANTEE TO LOS ANGELES
Loan guarantee program helps Los Angeles 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 $32 million loan guarantee to the City of Los Angeles for threecommunity development projects that promote economic growth and create jobs for low and moderate income persons.
“Public investment like this 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,” said HUD Regional Administrator Ophelia Basgal. “Collectively these projects will have positive impact on affordable housing, job creation, urban redevelopment and health care.”
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.
The three Los Angeles Section 108 Loan Guarantee projects ($31,989,000.00 total):
The Vermont: $12,500,000 Section 108 loan guarantee to Los Angeles for The Vermont, which is a mixed-use residential, retail and parking development in the Koreatown neighborhood of Los Angeles. The Vermont will provide approximately 35,000 square feet of retail space, 464 market-rate apartment units, and 910 indoor parking spaces. The City's guaranteed financing will assist the project's developer with the construction costs of the retail component of and related parking. The City estimates that this assistance will cause the creation of 250 full-time equivalent jobs.
Harold & Belle’s: $2,629,000 Section 108 loan guarantee to Los Angeles to provide financing to expand a business known as Harold & Belle's Creole restaurant. The business will use the financing to rehabilitate the existing facility and expand its operations with the addition of a mobile food truck service. The project is estimated to retain 45 fulltime equivalent jobs at the restaurant and create 20 new jobs related to the mobile food truck service.
Las Villas Medical Office: $16,860,000 Section 108 loan guarantee to Los Angeles for the Las Villas Medical Office and Retail Project. The City's Section 108 guaranteed financing will assist the Project's developer with the construction costs of a four story structure that will house community-based medical service providers and retail businesses. The project will provide necessary medical services to the underserved and economically depressed Lincoln Heights neighborhood.
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.govand espanol.hud.gov.You can also follow HUD on twitter @HUDgovor on facebook at www.facebook.com/HUD.