HUD APPROVES $1.7 MILLION LOAN GUARANTEE TO READING
PHILADELPHIA – The U.S. Department of Housing and Urban Development (HUD) announced today that it is approving a $1.75 million loan guarantee to Reading, PA, for the construction of a 211-room Double Tree Hotel in the downtown area. The city will lend the Section 108 funds to Reading Hospitality Group, LLC, which is the developing entity. The project is expected to create 176 jobs.
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 Loan Guarantee Program can be a powerful public investment tool to drive economic development in underserved areas,” said Jane C.W. Vincent, Regional Administrator of HUD’s Mid-Atlantic region. “The program will be a boost to the city’s revitalization efforts and provide jobs for residents who need them most.”
According to the city’s application, this economic development project is vital to its revitalization and is expected to increase economic opportunity for low- and moderate-income persons. The 9-story full-service hotel will be approximately 200,000 square feet with a ballroom and meeting space, restaurant/lounge, exercise room, business centers, gift shop and an indoor pool.
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.govand http://espanol.hud.gov. You can also follow HUD on Twitter @HUDgov and @HUDMidAtlantic, on Facebook at www.facebook.com/HUD, or sign up for news alerts on HUD’s Email List.