HUD PRESENTS $13 MILLION LOAN GUARANTEE CHECK TO HELP REVITALIZE TOMMYTOWN NEIGHBORHOOD OF PASCO COUNTY

DADE CITY - In a ceremony held at the new Redlands Christian Migrant Association Dade City Community Center, Karen Jackson Sims, Field Director, the U.S. Department of Housing and Urban Development's Tampa Field Office presented a $13,000,000 check to Pasco County Officials. Combined with an additional $7,000,000 from State
(SHIP) and local sources, the funds will be used for extensive infrastructure improvements such as water, sewer
and roadway improvements in the target area.

Recently the U.S. Department of Housing and Urban Development approved a Section 108 Loan Guarantee to assist Pasco County in the revitalization of the Tommytown Neighborhood. Primarily composed of low and moderate income individuals and families, Tommytown is an area which has long needed public infrastructure improvements, such as water and sewer, paved streets, drainage and street lighting.

Pasco County's objective is to bring about a rapid revitalization and thereby improve the living environment for the residents of Tommytown in a relatively short period as opposed to treating the area over a period of several years. This approach is one of the primary advantages that the use of Section 108 Loan funds affords CDBG Entitlement recipients.

The Section 108 Loan is a pledge against future CDBG Entitlement amounts. Pasco County has agreed to a 20 year repayment of the $13,000,000 which can come from the current funding years entitlement amount or from other sources such as CDBG program income, SHIP Funds and HOME Funds. The County has also pledged as additional sources of repayment its program income from economic development, rental rehabilitation and demolition loans
which average $120,000 annually. If needed, the County will also make available its Revenue Sharing Funds as a source for repayment.

$897,000 in HUD Community Development Block Grant Funds were used to construct the recently completed Dade
City Community Center.

HUD is the nation's housing agency committed to increasing homeownership, particularly among minorities, creating affordable housing opportunities for low-income Americans, supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development as well as
enforces the nation's fair housing laws. For more information about HUD and its programs, logon to our website and espanol.hud.gov.

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