|HUD Region V No. 13-08
Laura J. Feldman
February 28, 2013
HUD MIDWEST REGIONAL ADMINISTRATOR ANNOUNCES $30 MILLION LOAN GUARANTEE TO COOK COUNTY
Funding to assist in financing sustainable economic development projects
CHICAGO - U.S. Housing and Urban Development Midwest Regional Administrator Antonio R. Riley announced today that HUD is approving a $30 million loan guarantee to Cook County to help finance four types of sustainable developments in the county: transit-oriented, mostly mixed-use developments within a half mile of passenger rail; cargo-oriented projects near freight rail lines; mixed-use hospitality/service sector projects near transit lines and business development loans.
"HUD's Loan Guarantee Program can be a powerful tool to drive economic development," said Riley. "This funding will assist for-profit businesses carry out economic development, benefitting low- and moderate-income residents and is expected to create 600 new jobs."
According to the County's application to HUD, the County's Department of Planning and Development will administer this sustainable economic development initiative and will provide financing assistance for the economic development projects that qualify. The County will be working in partnership with its smaller communities to support these job-creating, economic developments.
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. It allows them to transform a small portion of their CDBG funds into federally guaranteed loans large enough to pursue physical and economic revitalization projects that can renew entire neighborhoods.
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 as a 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 at @HUDnews or on Facebook at www.facebook.com/HUD, or sign up for news alerts on HUD's News Listserv.