|HUD No. 15-065
September 30, 2015
HUD APPROVES NEARLY $1.8 MILLION LOAN GUARANTEE FOR KANKAKEE ILLINOIS
Federally backed loan will facilitate Mercy Housing Senior Independent Living Development Project
CHICAGO - The U.S. Department of Housing and Urban Development (HUD) today announced the approval of a $1.79 million loan guarantee for the City of Kankakee, Illinois, to provide project site, financial assistance to a non-profit development entity for its construction of an affordable, senior housing development, the Mercy Housing Senior Independent Living Development. The Section 108 guaranteed loan proceeds will be used for acquisition of the project site, site preparation and related site, infrastructure improvements.
HUD's Section 108 Loan Guarantee Assistance Program enables local governments to borrow money from private sources at reduced interest rates to promote economic development, stimulate job growth and improve public facilities. The loan guarantee program allows local governments to convert up to five times the allocation of Community Development Block Grant (CDBG) 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 create more opportunities for seniors in Kankakee to reside in an integrated and less restrictive setting as an alternative to institutionalization."
The project is located within the city's Alpiner Park Neighborhood and upon completion, the Mercy Housing Senior Independent Living Development will include 70, one-bedroom apartments and a health clinic for low income senior persons.
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