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CUOMO APPROVES $60 MILLION IN NEW LOAN GUARANTEES FOR DETROIT
DETROIT -- Housing and Urban Development Secretary Andrew Cuomo today announced that HUD will make available $60 million in new loan guarantees to Detroit, in response to Mayor Dennis Archer's request to help finance the demolition of as many as 7,000 to 8,000 abandoned residential and commercial buildings.
"Today, we are taking an historic step to build a new Detroit for the new century ahead," Cuomo said. "HUD is proud to join Mayor Archer and Detroit in a partnership that will literally remake the face of this great city."
"Mayor Archer's vision is to tear down every abandoned building in Detroit incapable of being rehabilitated," Cuomo said. "We will transform that vision into a reality. By freeing up land to be used for new construction of homes and businesses, this initiative will create jobs, strengthen Detroit's economy, attract new residents and make Detroit a more vibrant and growing city."
Cuomo announced the loan guarantees in Detroit, where he was visiting along with top HUD officials under the HUD For A Day initiative. The Secretary gave final approval to the plan after discussing it with the Mayor today. The $60 million in loan guarantees comes on top of $113.3 million in assistance to Detroit and other Michigan communities that Cuomo announced earlier in the day.
"I'm extremely pleased about HUD's announcement today," Archer said. "It will go a long way towards helping Detroit become a world-class city in the 21st Century. This kind of unique initiative is a fine example of the Clinton Administration's ability to solve long-standing problems facing our cities. Secretary Cuomo has proven once again that HUD can be a catalyst for change."
Congressman John Conyers said: "I am glad to join with Secretary Cuomo and Mayor Archer in this historic effort. It is only with the combined strength of those in Congress, the Administration, the City of Detroit and, most importantly, the people of Detroit, that we can breathe new life into the metro Detroit area. This is the first step in creating a brighter future for Detroit."
Congresswoman Carolyn Cheeks Kilpatrick said: "The approval of the City of Detroit's plan for the demolition of abandoned residential and commercial buildings by Secretary Cuomo complements the significant federal commitment to the physical and economic resurgence of the 15th Congressional District of Michigan. I applaud the effectiveness, efficiency and expeditious manner in which HUD, under Secretary Andrew Cuomo, approved this meritorious request."
The loan guarantees will come from HUD's Economic Development Loan Guarantee Fund, which provides communities with a source of financing for job creation, housing rehabilitation, and construction of public facilities and large-scale development projects.
The loan guarantees, also known as the Section 108 program, save communities money by reducing the interest rate they are charged on loans from commercial lenders. The guarantees also make loans more readily available and often attract other sources of funding from local and state governments, non-profits and the private sector to complete financing for major job creation activities.
Content Archived: January 20, 2009