|HUD No. 15-031
June 30, 2015
HUD APPROVES $3.7 MILLION LOAN GUARANTEE TO BIRMINGHAM, AL
BIRMINGHAM, AL - The Department of Housing and Urban Development today announced that it is approving a $3,710,000 loan guarantee to the City of Birmingham to acquire the former Powell schoolhouse building and convert it into 24 apartments. This vacant, unrepaired historic structure, built in 1888, is owned by the Alabama Trust for Historic Preservation and it is located in a State-designated redevelopment area just northeast of downtown Birmingham.
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 Birmingham's revitalization efforts in downtown and provide jobs for Birmingham residents who need them most. Developing this vacant, historic building into newly renovated apartments will remove a deteriorating and blighting structure from the area," said Jennings.
According to the application to HUD, Birmingham will make a loan of its the Section 108 guaranteed loan proceeds to a local developer, which will use the funds to acquire this former schoolhouse and convert it into 24 units of studio, one-bedroom, and two-bedroom apartments.
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