July 20, 2012
HUD APPROVES $2.8 MILLION LOAN GUARANTEE TO DELANO
Loan guarantee program gives Delano the opportunity to construct needed new community center
SAN FRANCISCO—U.S. Department of Housing and Urban Development Secretary Shaun Donovan announced that he is approving a $2.8 million loan guarantee to the City of Delano for a community development project that funds construction of a new 13,000 sq. ft. community center. The Section 108 loan guarantee to the City of Delano meets the program’s national requirement to provide public facilities to communities.
“Public investments in community facilities like this can stimulate commercial investment and result in long term community development,” said HUD Regional Administrator Ophelia Basgal. “The new community center will provide Delano citizens a core civic venue that also offers amenities that promote health and physical activity. I am pleased that HUD is able to assist in making this badly needed community center a reality.”
HUD’s Section 108 Loan Guarantee Assistance Programenables local governments to borrow money from private investors at reduced interest rates to promote economic development, stimulate job growth and improve public facilities.
The Delano Section 108 Loan Guarantee project ($2,800.00):
The City of Delano is proposing to finance the construction of a 13,000± square foot Community Center. The Center will include gym space, basketball courts, a kitchen, a stage, storage area and 92 parking spaces for visitors. The project’s service area is primarily residential and the benefits of the center will be available to all the residents within the City’s jurisdiction, of which 61.9% are low and moderate income persons. The Community Center will be located on a nine acre site owned by the City.
The City’s current community center is more than 40 years old, too small and in disrepair. The population of 53,155 has more than tripled in the last 40 year and no other centers have been built.
The Borrower’s Public Works & Engineering Dept. (PW) and Economic Development Dept (EDD) will be responsible for construction, expenditure of CDBG loan funds and project oversight.
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 @HUDnewsor on facebook at www.facebook.com/HUD.