HUD APPROVES $1.3 MILLION LOAN GUARANTEE TO LOS ANGELES

LOS ANGELES - The Department of Housing and Urban Development today announced that it is approving a $1,317,000 loan guarantee to the City of Los Angeles to assist with acquiring a site to construct two light manufacturing facilities. A 52,746 square foot building housing a 48,540 square foot light manufacturing facility and
a 4,206 square foot office area will be constructed on a vacant lot within the Los Angeles' Brownfield Program. The project will create an estimated 38 new full-time equivalent jobs to be either held by or made available to low- and moderate-income persons.

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 lend the funds to the developer to assist with an economic development project. The new building will allow Calko to expand its operations and relocate its fabrication and distribution operations to the new building. The overall economic development project has an estimated cost of
$4.9 million, with additional funding from the Community Redevelopment Agency, equity investment and private debt.

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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 at espanol.hud.gov.