HUD APPROVES $1.4 MILLION LOAN GUARANTEE TO BERKS COUNTY

PHILADELPHIA - The U.S. Department of Housing and Urban Development (HUD) announced today a $1.47 million loan guarantee to Berks County to finance the revitalization of the historic Colebrookdale Railroad, which runs between the boroughs of Boyertown and Pottstown in Southeastern Pennsylvania. The project is anticipated to create 42 full-time jobs.

The Berks County Redevelopment Authority, in conjunction with the Colebrookdale Railroad Preservation Trust and Eastern Berks Gateway Railroad, will make improvements on railroad boarding locations and restore historic passenger cars. The project also involves the rehabilitation of the rail line, including the replacement of track ballast and ties, the reconstruction of grade crossings and storm drainage, and the rehabilitation of bridges. The county seeks to support economic development by initiating freight and passenger traffic along the 8.6 mile railroad line.

"With this loan guarantee, local officials will be able to boost the quality of life of residents in both Berks and Montgomery Counties by creating employment and business opportunities through the restoration of the railroad," said Jane C.W. Vincent, Regional Administrator of HUD's Mid-Atlantic region.

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 raise confidence private firms and individuals may need to invest in distressed areas.

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