|HUD No. 15-054
August 31, 2015
HUD APPROVES A $2.73 MILLION LOAN GUARANTEE TO ROCKFORD ILLINOIS
ROCKFORD - The Department of Housing and Urban Development announced that it is approving a $2.73 million loan guarantee to the City of Rockford, IL to provide financial assistance for needed improvements to the Cliffbreakers Riverside Resort and Conference Center. The City sought a Section 108 Loan Guarantee to renovate 105 hotel rooms, the lobby and breakfast area and to replace the roof among other improvements.
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. The Section 108 loan guarantee program allows local governments to convert up to five times the allocation of Community Development Block Grant funds into federally guaranteed loans that are large enough to pursue physical and economic revitalization projects that are capable of renewing entire neighborhoods. Such public investment is often necessary to inspire private contributions, to provide seed money or simply to 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 Antonio R. Riley, HUD Midwest Regional Administrator. "It will be a huge boost to the City of Rockford's ongoing neighborhood revitalization efforts and will provide employment opportunities for lower income residents who need them most."
"This is great news for our efforts to support Cliffbreakers and Northwest Rockford," said Mayor Morrissey. "We appreciate HUD's quick response to the application and look forward to bringing it to our City Council for consideration."
According to the City's application to HUD, the City of Rockford will use the Section 108 loan proceeds to facilitate renovations to replace the roof of the nearly 87,000 square foot hotel, renovate 105 hotel rooms, provide new carpeting for over 27,000 square feet of flooring, renovate the hotel lobby and breakfast area. While the developer purchased the hotel out of foreclosure and has reduced unusable rooms from 25 to 7, additional repairs and renovations are necessary to retain 53 full-time jobs and to provide 228 new full-time hotel service jobs in the area.
HUD's mission is to create strong, sustainable, inclusive communities and quality affordable homes for all. More information about HUD and its programs is available on the Internet at www.hud.gov and http://espanol.hud.gov.
You can also connect with HUD on social media and follow Secretary Castro on Twitter and Facebook or sign up for news alerts on HUD's Email List.