HUD MIDWEST REGIONAL ADMINISTRATOR ANNOUNCES $37 MILLION LOAN GUARANTEE TO CINCINNATI
City to establish economic and community development loan pool
CHICAGO - U.S. Housing and Urban Development Midwest Regional Administrator Antonio R. Riley announced today that HUD is approving a $37 million loan guarantee to the City of Cincinnati to establish an Economic and Community Development Loan Pool. The City's Department of Community Development will originate loans to provide financing to support economic development, housing rehabilitation, public facility rehabilitation, construction and installation of equipment which will benefit persons of low- and moderate-income.
"HUD's Loan Guarantee Program, which is available to state and local governments receiving Community Development Block Grants, can be a powerful tool to drive economic development in underserved areas. The city of Cincinnati will create jobs, support economic development and rehabilitate housing and facilities with this money" said Riley.
The Loan Pool financing will be used for the following types of projects:
- Economic Development Projects: The City will allocate up to $11 million for economic development projects, expected to create at least 350 new jobs.
- Tax Credit Equity Bridge Loan Project: The City will allocate up to $17 million for housing rehabilitation financing to leverage Low Income Housing Tax Credit equity to benefit low- and moderate-income families.
- Homeless to Homes Program: The City will allocate up to $7 million for financing the construction and improvement of two shelters and homeless prevention facilities.
- Community Development Projects: The City will allocate up to $2 million to support projects involving rehabilitation of residential structures and/or the construction of additional public facilities and improvements.
HUD's Section 108 Loan Guarantee Assistance Program enables eligible state and 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 @HUDgov or on Facebook at www.facebook.com/HUD. or sign up for news alerts on HUD's News Listserv.