|HUD No. 14-7
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June 2, 2014
HUD APPROVES $3,524,000 LOAN GUARANTEE TO CHAMPAIGN, IL
CHICAGO – The U. S. Department of Housing and Urban Development today announced that it has approved a $3.5 million loan guarantee under Section 108 of the Housing and Community Development Act of 1974, as amended, to the City of Champaign to provide financial assistance for the Bristol Park Neighborhood Redevelopment Project.
The Bristol Park Neighborhood Redevelopment Project consists of two phases of redevelopment, resulting in the construction of 80-120 mixed-income, mixed-tenure housing units. As proposed, the project will also include development of public facilities such as parks and a public mixed-use structure housing a new community fire station, public storm shelter, and a neighborhood community center. In addition, certification under the Leadership for Energy and Environmental Design, or LEED, Neighborhood Development rating system is proposed.
"The Section 108 Program is the loan guarantee provision of HUD's Community Development Block Grant funding and will serve as a catalytic investment in the economically-challenged Bristol Park neighborhood," said HUD Regional Administrator for the Midwest, Antonio R. Riley. "This investment will not only help facilitate the development of new housing and neighborhood socio-recreational amenities, but public safety facilities, which are vital when we consider the impact of disasters on Illinois and Midwest residents and communities. We are pleased to be a partner with the City of Champaign in their use of Section 108 funds to implement a broader, more resilient vision for the Bristol Park," said Riley.
HUD's Section 108 Loan Guarantee Assistance Program enables states and local governments to borrow money at reduced interest rates to promote economic development, stimulate job growth and improve public facilities. Such public investment is often needed to stimulate private contributions, to provide seed money, or to simply boost private investor confidence in making investments in distressed areas. This makes it one of the most potent and important public investment tools that HUD offers to states and local governments.
According to its application to HUD, Champaign will use its' Section 108 loan funds specifically for land acquisition, demolition, and resident relocation assistance payments. Section 108 provides states and communities with a source of financing for economic development, housing rehabilitation, public facilities, and large-scale physical development projects. This makes it one of the most potent and important public investment tools that HUD offers to states and local governments.
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.
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