HUD APPROVES $2.4 MILLION LOAN GUARANTEE TO MALDEN

BOSTON - The U.S. Department of Housing and Urban Development today announced that it is approving a $2.4 million loan guarantee to the City of Malden, Massachusetts to support a citywide program to reconstruct deteriorated roadways through the Malden Redevelopment Authority. This reconstruction effort is tied to an aggressive program begun in 2011 to replace Malden's aging water mains, thirty-nine percent of which are more than 100-years old. Since the replacement of these water mains has left miles of damaged roadways, the city is using Section 108 guaranteed financing to design and reconstruct seven neighborhood streets. "This loan guarantee is one of the most successful investment tools that HUD offers to local governments to help strengthen their communities," said Kristine Foye, HUD New England Deputy Regional Administrator.

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.

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