HUD No. 08-14
Adam Glantz (212) 264-1100
Olga Alvarez (212) 542-7142
August 20, 2013
HUD APPROVES $12 MILLION LOAN GUARANTEE TO NEWARK
City to create development loan pool to spur economic growth and create 350 jobs
NEWARK - The U.S. Department of Housing and Urban Development today announced that it has approved a $12 million loan guarantee to the City of Newark to create a business loan pool to spur economic and real estate development that is expected to create at least 350 new jobs.
"HUD's Loan Guarantee Program can be a powerful tool to drive economic development in underserved areas," said Acting Regional Administrator Mirza Orriols. "The program will be a boost to the City's revitalization efforts and provide jobs for Newark residents who need them most."
"This kind of public-private partnership can help to drive economic growth and create good jobs, especially in our underserved communities," said New Jersey Senator Robert Menendez. "With this loan guarantee, Newark can leverage private sector resources, invest in needed neighborhood revitalization projects, and put people back to work."
Newark's Development Loan Pool will be implemented and administered by Brick City Development, a non-profit business development company organized by the City to retain business, and assist real estate development within the City. The Development Loan Pool will provide financing for the redevelopment of vacant properties for commercial uses that will create new job opportunities. The Section 108 financing will support the assembly of under-utilized commercial sites for the development of light industrial and manufacturing facilities. The Development Loan Pool will also finance neighborhood development projects, including the rehabilitation of older housing into mixed-income, affordable units. Some of neighborhoods being considered for financing include: the Broad Street Station area; Military Park; the University district and the Passaic riverfront area; the arena area in the vicinity of the Prudential Center and Newark Penn Station; the Springfield Avenue Corridor; Port Corridor; the Martin Luther King Corridor; and, the Clinton Hill Corridor.
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 the confidence private firms and individuals may require to invest in distressed areas.
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