HUD Archives: News Releases

HUD APPROVES $5 MILLION LOAN GUARANTEE TO CHICOPEE

BOSTON - The U.S. Department of Housing and Urban Development today announced that it is approving a $5 million loan guarantee to the City of Chicopee to construct an Older Adult Community Center. The funding will be used for clearance and construction of a 21,000-square foot complex, including parking to be located on the former Facemate site.

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.

"This loan guarantee is one of the most successful investment tools that HUD offers to local governments," said Barbara Fields, HUD New England Regional Administrator. "HUD is committed to strengthening communities and the Community Center will play a vital role in serving Chicopee's growing senior population."

According to the City's application to HUD, the Older Adult Community Center is expected to serve a senior
population of 14,587 by the year 2020; the current senior center serves only 3,000 seniors.

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