|HUD No. 10-19-2007
October 19, 2007
HUD APPROVES $3.7 MILLION LOAN GUARANTEE TO REDFORD TOWNSHIP
REDFORD TOWNSHIP - The Department of Housing and Urban Development today announced that it is approving a $3.7 million Section 108 Loan Guarantee for Redford Township. These funds will assist with the paving existing gravel roads/streets throughout the Township and improve accessibility. All roads/streets are located within low-and moderate-income neighborhoods. This is Redford�s first Section 108 approval.
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.
According to the Township�s application to HUD, the Township�s street paving project has been an ongoing activity for which the Township has been using Community Development Block Grant (CDBG) funds. The Township has signed an intergovernmental agreement with Wayne County, which allows the County to conduct all street paving construction. The Township will use its future CDBG funds to repay the loan over a 15-year period. As additional security, the Township has pledged tax increments revenues from its Detroit Diesel Corporation Redevelopment project.
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.