HUD APPROVES $16.9 MILLION LOAN GUARANTEE TO MESA, ARIZONA

MESA - The Department of Housing and Urban Development today announced that it is approving a $16,915,000
loan guarantee to the City of Mesa to create an Economic Development Loan Fund (EDLF) to assist new or existing businesses wishing to undertake real estate development or business expansion for the purposes of carrying out economic development or community economic development activities throughout the City. The City estimates that 484 jobs will be created as a result of the program. HUD's approval allows the City to now market its program.

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 Secretary Shaun Donovan. "The program will be a boost to the City's revitalization efforts and provide jobs for L.A. residents who need them most."

According to the City's application to HUD, the city will give priority to projects located in specific target areas, including the Town Center area, the City of Mesa's Enterprise Zone Area, the Economic Activity are that includes
the Union Pacific Business Corridor, Falcon Field Airport and Downtown areas. The City may use funds directly or provide loans to for-profit and non-profit businesses. A variety of activities will be eligible, including acquiring real property for economic development purposes, clearance and demolition, site preparation, and public facilities.

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HUD is the nation's housing agency committed to sustaining homeownership; creating affordable housing opportunities for low-income Americans; and supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development and enforces the nation's fair housing laws. More information about HUD and its programs is available on the Internet and espanol.hud.gov.