HUD SECRETARY APPROVES $20 MILLION LOAN GUARANTEE TO TUCSON
Guaranteed loan of $20 million to help Tucson create economic development and hundreds of jobs.

SAN FRANCISCO - U.S. Department of Housing and Urban Development Secretary Shaun Donovan today announced that he is approving a $20 million loan guarantee to the City of Tucson to create an Economic and Community Development Loan Pool program that targets projects that create jobs for low and moderate income persons.

"Today we take a major step forward in a new vision for the city's Recovery Zone area," said HUD Regional Administrator Ophelia Basgal. "The City of Tucson, with its Economic and Community Development Loan Pool program, is expected to develop and improve areas that will benefit from the economic investment and, at the same time, create or retain an estimated 500 jobs."

HUD's Section 108 Loan Guarantee Assistance Program enables local governments to borrow money from private investors 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 that many private firms and individuals need to invest in distressed areas.

The City of Tucson's new loan program will use the Section 108 funds to target projects with pedestrian and transit oriented urban design characteristics that are:

• Located in the Rio Nuevo Tax Increment District
• Located within a 1/4 mile of the Modern Streetcar Alignment
• Located within a 1/4 mile of other regional high capacity transit routes identified in a 2009 High Capacity Transit System Study

The Program will also give priority to projects that support the six livability principles established by the Partnership for Sustainable Communities. The six principles are:

• Provide more transportation choices
• Promote equitable, affordable housing
• Enhance economic competitiveness
• Support existing communities
• Coordinate and leverage federal policies and investment
• Value communities and neighborhoods

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HUD's mission is to create strong, sustainable, inclusive communities and quality affordable homes for all. HUD is working to strengthen the housing market to bolster the economy and protect consumers; meet the need for quality affordable rental homes: utilize housing asa platform for improving quality of life; build inclusive and sustainable communities free from discrimination; and transform the way HUD does business. More information about HUD and its programs is available on the Internet at www.hud.gov and espanol.hud.gov. You can also follow HUD on twitter @HUDnews, on facebook at www.facebook.com/HUD, or sign up for news alerts on HUD's News Listserv.