WASHINGTON – RealEstateRama – The Department of Housing and Urban Development (HUD) today announced a $37 million loan guarantee for the City of Toledo, Ohio for the Loan Pool Project to spur equitable community development, create jobs, and increase affordable housing.
The Loan Pool will be available to prospective borrowers citywide and will provide a ready source of long-term, fixed-rate, and reasonably priced financing that is not available conventionally. The Loan Pool will bridge financing gaps and enable borrowers to proceed with their respective transaction, create and retain jobs, increase affordable housing, advance equity and equitable development opportunities, and expand the existing tax base. Equitable development projects will include projects that support investments in communities and neighborhoods of color or provide financing to black, indigenous, and people of color (BIPOC) led developers, businesses, or organizations.
“Often times, due to credit or other financial factors, many people lack access to loans,” said Arthur Jemison, Principal Deputy Assistant Secretary, Office of Community Planning and Development at HUD. “This loan guarantee will facilitate access to borrowing for many people, bridging financing gaps that too many low-income communities are familiar with.”
The loan guarantee assistance was awarded through the Section 108 Loan Guarantee Program (Section 108), which provides Community Development Block Grant (CDBG) recipients with the ability to leverage their annual grant allocation to access low-cost, flexible financing for economic development, housing, public facility, and infrastructure projects.
This project will meet the Community Development Block Grant national objective of benefit to low- and moderate-income persons on an area basis.
The Section 108 Loan Guarantee Program allows local governments to leverage 5 times their current CDBG award into federally guaranteed loans large enough to pursue physical and economic revitalization projects capable of redeveloping entire neighborhoods. Public investment, such as Section 108 loans, can spur private economic activity, providing the resources or the confidence that private firms and individuals may need to invest in distressed areas. Read more about HUD’s Section 108 Loan Guarantee Program.
As the need for economic recovery and community development continues, HUD’s Section 108 program serves as a critical source of federal financing that helps to move projects forward and build strong, sustainable, inclusive communities.
HUD’s mission is to create strong, sustainable, inclusive communities and quality affordable homes for all.
More information about HUD and its programs is available at www.hud.gov and https://espanol.hud.gov.
HUD Public Affairs