HUD MIDWEST REGIONAL ADMINISTRATOR ANNOUNCES
$5.9 MILLION LOAN GUARANTEE TO LANSING, MICH.
Historic downtown building to house office and retail
CHICAGO - U.S. Housing and Urban Development Midwest Regional Administrator Antonio R. Riley announced today that HUD is approving a $5.9 million loan guarantee to the City of Lansing to finance development of the Knapp's Building Historic Renovation Project. The renovation and adaptive reuse of the former Knapp's Department Store, vacant since 2002, is expected to create 230 new jobs, as well as create mixed-use commercial and office space. The Lansing Economic Development Corporation will occupy two levels providing space and services for start-up businesses.
"HUD's Loan Guarantee Program can be a powerful tool to drive economic development in underserved areas," said Riley. "This project will turn a deserted National Historic Register Building into a vibrant keystone to new jobs and new businesses in the community."
HUD's loan guarantee has leveraged more than $30.8 million federal, state, city and private funds, and at least 51 percent of the jobs created will be made available to low- and moderate-income persons.
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 at @HUDnews or on Facebook at www.facebook.com/HUD. or sign up for news alerts on HUD's News Listserv.