HUD MIDWEST REGIONAL ADMINISTRATOR ANNOUNCES $3.8 MILLION LOAN GUARANTEE TO AKRON, OHIO
Local Grocery Store to Provide Fresh Food in Highland Square Neighborhood
CLEVELAND – U.S. Housing and Urban Development Midwest Regional Administrator Antonio R. Riley announced today that HUD is approving a $3.8 million loan guarantee to the City of Akron to finance development of the Highland Square Grocery Store Project. The grocery store, which will be leased by locally owned grocery store chain Mustard Seed Market, will be part of a new retail district including stores and a library.
"This part of Akron has been a food desert since 2002. A grocery store will provide fresh food at reasonable prices to benefit the health and quality of life for area residents while also creating approximately 57 jobs -- truly a win-win situation for Akron," said Riley.
HUD's loan guarantee has leveraged more than $3 million federal, city and private funds. Currently developed businesses in Highland Square are rented by the city and producing income to help finance the grocery store.
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 @HUDgov or on facebook at www.facebook.com/HUD, or sign up for news alerts on HUD's News Listserv.