|HUD No. 15-048
August 6, 2015
HUD APPROVES A $1.76 MILLION LOAN GUARANTEE TO ST. CLAIR SHORES MICHIGAN
ST. CLAIR SHORES - The Department of Housing and Urban Development announced that it is approving a $1.76 million loan guarantee to the City of St. Clair Shores, Michigan to provide financial assistance for needed improvements at the City's 10,000 square feet public facility Senior Activity Center. This Center was originally constructed over 30 years ago. The City sought a Section 108 Loan Guarantee to expand the existing center as well as make significant renovations to the now outdated facility.
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 transform a small portion of their Community Development Block Grant funds into federally guaranteed loans large enough to pursue physical and economic revitalization projects 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 boost to the City of St. Clair Shores' ongoing neighborhood revitalization efforts, and can provide employment opportunities for lower income residents who need them most."
"After over two years of planning, we are excited and grateful that the City is one step closer to providing our seniors with the state of the art facilities and programming to help keep them 'ageless'," said Mayor Kip C. Walby.
According to the City's application to HUD, the City of St. Clair Shores will use the Section 108 loan proceeds to facilitate interior repairs to include redesign of offices, conference room, café, and kitchen at the Senior Activity Center as well as infrastructure improvements to include landscaping, and improvements to its parking lot, sidewalks and curbs. The renovation of the Senior Activity Center will add a 2,600 square foot addition to include a new fitness center and partially covered patio.
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