|HUD No. 16-21
May 5, 2016
HUD AWARDS $19 MILLION TO THE CITY OF NORFOLK TO BOOST ECONOMIC GROWTH AND REVITALIZE DISTRESSED COMMUNITIES
NORFOLK, VA. - The U.S. Department of Housing and Urban Development (HUD) announced today the City of Norfolk has been awarded a $19 million loan guarantee under Section 108 of the Housing and Community Development Act of 1974, as amended, to create an Economic and Community Development Loan Fund. The City of Norfolk's Department of Development and the Economic Development Authority will utilize the Section 108 funding to provide patient, low-cost capital for larger projects that create jobs and revitalize neighborhoods.
The Section 108 Loan Guarantee Program provides communities with a source of flexible investment capital for economic development and revitalization, housing rehabilitation and other physical development projects. The Program enables local governments to borrow money from private sector investing entities atreduced interest rates to promote economic development, stimulate job growth and improve public facilities by transforming 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 Jane C.W. Vincent, Regional Administrator for HUD's Mid-Atlantic region. "It will be a boost to the City of Norfolk's ongoing neighborhood revitalization efforts, and can provide employment opportunities for lower income residents who need them most."
"I'm very pleased Norfolk has been selected to receive this loan funding to invest in projects that will strengthen the community," Senator Mark Warner said. "By helping local businesses expand and improving workforce development programs, this Loan Fund will strengthen Norfolk's economy, create jobs and revitalize local communities."
"This award will allow the City of Norfolk to leverage its dollars to promote large-scale economic and community development activities, spurring job growth and revitalizing the City. I have been a long-time supporter of the CDBG program, which helps establish vibrant and thriving communities across the Commonwealth by providing crucial investments in housing and infrastructure," Senator Tim Kaine said.
"Today's announcement is great news for Norfolk," stated Congressman Robert C. "Bobby" Scott (VA-3). "This loan guarantee from the Department of Housing and Urban Development will assist the City in more effectively leveraging its Community Development Block Grant funds to revitalize neighborhoods throughout Norfolk. I commend Norfolk's leadership for successfully securing this loan guarantee to help improve the lives of its citizens."
"Congratulations to the City of Norfolk on being awarded this loan guarantee," said Congressman Scott Rigell (VA-02), whose district includes parts of Norfolk. "The City's efforts to boost economic growth and job creation through revitalization are essential to the long term health of our region."
According to the City's application to HUD, the Loan Fund will focus investments in 13 priority development areas including Broad Creek, Central Business Park, Church Street Triangle, Downtown, East Ocean View, Fort Norfolk, Hampton Boulevard, Little Creek, Military Circle, Newtown Road, Saint Paul's Southside, Tidewater Drive South and Wards Corner. Six priority commercial districts, Berkley South, Chelsea, Downtown Arts Area, Five Points, Ocean View Avenue and Park Place/35th Street will also be targeted.
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