|HUD No. 13-1001
October 25, 2013
HUD APPROVES $4.8 MILLION LOAN GUARANTEE TO RINCÓN, PR
SAN JUAN, PR - The Department of Housing and Urban Development today announced that it is approving a $4,850,000 loan guarantee to the Municipality of Rincón to assist with the reconstruction of a vacant building into an 8,000 square foot multicultural and recreational center. Also, it will help with the construction of an aquatic recreation park on two acres of land adjacent to the Amistad Plaza.
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 HUD Regional Administrator for the Southeast Ed Jennings, Jr. "The program will be a boost to the Municipality's revitalization efforts and provide jobs for Rincón residents who need them most."
According to the application to HUD, The Municipality will use the Section 108 guaranteed loan proceeds to finance two public facilities projects: The former Rincon Theater redevelopment will be used as a multicultural and educational facility, a theater, and will include the construction of a pedestrian boulevard. Construction of the aquatic recreational park will include water sprinklers, facilities for water games, and other recreational amenities. These two public facilities will be open to low and moderate income residents of Rincón, as well as residents of the Municipalities of Aguada, Moca, and San Sebastián.
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