HUD SECRETARY APPROVES $20 MILLION LOAN GUARANTEE TO WINCHESTER

RICHMOND - U.S. Department of Housing and Urban Development Secretary Shaun Donovan today announced that he is approving a $20 million loan guarantee to the City of Winchester to facilitate the renovation of the former Bushrod Taylor Hotel which is listed on the National Registry of Historic Places.

HUD's loan guarantee will be used in conjunction with city funds to acquire the property, stabilize the structure for safety, carry out rehabilitation for health and safety, and develop an onsite public pocket park. These parks are surrounded by existing buildings on three sides and they form a small pocket among other buildings.

"Today, we take another step forward in a new vision for this historic site," said Donovan. "The City of Winchester will renovate the former hotel and retain its historic facade, and install five upper floor apartments. This will generate hundreds of news jobs in the process."

HUD's Section 108 Loan Guarantee Assistance Program enables local governments to borrow money from private investors 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 that many private firms and individuals need to invest in distressed areas.

"This renovation will also include the rehabilitation of the fly tower in the rear of the former hotel, that will contain some ground level retail shops," said HUD Regional Administrator Jane C.W. Vincent. "This project will create jobs for Winchester residents, eliminate blight, expand retail goods and services and provide a half acre pocket park that will bring shade and quiet in the Old Town Winchester Historic District."

According to the City's plans, this project is expected to generate new jobs. The Section 108 are not risk-free, however; local governments borrowing funds secured by this loan guarantee program must pledge their current and future Community Development Block Grant (CDBG) allocations to cover the loan amount as security for the loan.

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