HUD APPROVES $2.5 MILLION LOAN GUARANTEE TO NASHUA
BOSTON – The U.S. Department of Housing and Urban Development today announced that it is approving a $2.5 million loan guarantee to the City of Nashua for the acquisition and rehabilitation of an eight-story, 160,000 square foot historic cotton mill building, known as The Cotton Mill Square Project. Originally constructed in 1902, the mill has served a number of industrial uses over the decades. The mill was abandoned in 2001 and has slowly deteriorated since that time.
The Cotton mill will be substantially rehabilitated for use as a residential building, resulting in the construction of 109 rental units. Of these housing units, 53 will be market-rate and 56 will be affordable.
“This loan guarantee is one of the most successful investment tools that HUD offers to local governments," said Barbara Fields, HUD New England Regional Administrator. "HUD is committed to strengthening communities and this funding will have a tremendous impact on revitalizing this historic Nashua building and neighborhood."
The redevelopment of the cotton mill structure is part of the city’s larger “Nashua River Redevelopment Corridor.” The City of Nashua has developed a strategy to spur the revitalization of this area which includes remediation of industrial waste and other environmental hazards; construction of a new parkway to link the Corridor to downtown Nashua; renovation of a pedestrian bridge to connect a nearby public river-walk; and the redevelopment of other key properties in the Corridor. Additionally, the city has contracted to make improvements to the nearby Jackson Falls Dam in order to decrease the size of the 100-year floodplain and significantly reduce flood risk for nearly 70 area buildings, including the mill.
HUD’s Section 108 Loan Guarantee Assistance Program enables 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 inspire private contributions; to provide seed money or to simply boost confidence private firms and individuals may need to invest in distressed areas.
HUD’s mission is to create strong, sustainable, inclusive communities and quality affordable homes for all. 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.