Patricia Campbell/Scott Hudman
(817) 978-5974/(713) 718-3107
May 30, 2019
TEXARKANA, AR RECEIVES $885,000 IN HUD LOAN GUARANTEES TO REHABILITATE FORMER BOYS AND GIRLS CLUB INTO COMMUNITY RECREATION CENTER
LITTLE ROCK - The U.S. Department of Housing and Urban Development (HUD) today announced the approval of a $885,000 loan guarantee to the city of Texarkana, AR, which will be used to rehabilitate a former Boys and Girls Club facility for the Texarkana Recreational Facility project.
HUD is providing the loan guarantee assistance under its Section 108 Loan Guarantee Assistance Program (www.hudexchange.info/programs/section-108) which enables local governments to borrow money from private investors at reduced interest rates. State and local governments use this financing to assist with a variety of community and economic development projects, including those projects that create employment opportunities.
The Recreational Facility will provide recreational space and facilitate community programs and events for area residents. It will also seek to generate economic development through sports tourism. The 12,245-square foot building will provide the community with indoor sports capability with a basketball/multipurpose gym and fitness/activity room. In addition, the Recreation Facility will have a play area for younger children, a computer lab, a tutoring room, and meeting areas. Located in the city's Ward 2, the service area for the project is over 71% Low to Moderate Income and is located adjacent to an Opportunity Zone (www.irs.gov/newsroom/tax-reform-creates-opportunity-zone-tax-incentive).
"This loan guarantee will take an old Boys and Girls Club and transform it into a modern facility that will be an asset to the community," said Beth Van Duyne, HUD Regional Administrator. "Not only will it provide athletic programs, but it will also ensure a larger community service through a computer lab and tutoring room for the young, helping to address their educational needs and preparing for future opportunities."
Section 108 loans are not risk-free, however; local governments borrowing funds secured by this loan guarantee program must pledge a portion their current and future Community Development Block Grant (CDBG) allocations, as well as additional project assets to cover the loan amount as security for the repayment of the loan. The length of time for repaying these loans can be up to 20 years.
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 on the Internet at www.hud.gov and https://espanol.hud.gov.
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