HUD Announces Over $75 Million in Loan Guarantees for Public Safety, Facility Improvements, Economic Development, and Housing Projects
WASHINGTON – Today, the U.S. Department of Housing and Urban Development (HUD) awarded a total of $75 million in loan guarantee commitments to the cities of Omaha, Nebraska, Oakland, Fresno, and Redding in California. This funding will enable transformative investments in housing, community facilities, and economic development.
“The Biden-Harris Administration and HUD are committed to building and preserving more housing, supporting small businesses, and strengthening communities,” said Secretary Marcia L. Fudge. “This loan guarantee will support projects in Nebraska and California that will transform their economies and communities.”
The $75 million provided through the Section 108 Loan Guarantee Program will support impactful projects that build stronger communities and provide inclusive, robust opportunities for low- and moderate-income individuals.
$20 million to Omaha, NE - The City of Omaha will establish a Section 108 Affordable Housing Loan Pool of $20 million, which will allow for loans to be made available to prospective housing developers, targeting Neighborhood Revitalization Strategy Areas (NRSAs) to focus resources better.
$20 million to Fresno, CA - The City of Fresno will use its $20 million of Section 108 guaranteed loan proceeds to finance the construction of a Senior Activity Center, the first of its kind for the City's more than 63,000 residents aged 65 and older.
$34 million to Oakland, CA - Oakland's $34 million Loan Pool will bridge financing gaps to enable projects that create and retain jobs, increase affordable housing, advance equity, and equitable development opportunities.
$2 million to Redding, CA - The City of Redding plans to use $2 million in Section 108 funds to finance improvements to the nearly 100-year-old South City Park in Downtown Redding, including the removal of mobility barriers that restrict access for elderly and disabled community members.
"HUD is proud to partner with cities to boost housing supply, support small business, and enhance neighborhood amenities," said Principal Deputy Assistant Secretary Marion McFadden. "I applaud these jurisdictions for using every resource at their disposal to deploy innovative strategies to invest in their local community development priorities."
Section 108 provides Community Development Block Grant (CDBG) funds to communities as a source of low-cost, long-term financing for economic and community development projects primarily benefiting low- and moderate-income persons. Section 108 can be used for various projects like housing, infrastructure, and other physical development projects. States and localities can access up to five times their annual CDBG allocation through the Section 108 program. The program's flexibility makes it an attractive and effective tool for state and local governments.
