CUOMO ANNOUNCES $1.5 MILLION IN HUD ASSISTANCE TO ASHEVILLE, NORTH CAROLINA

WASHINGTON - Housing and Urban Development Secretary Andrew Cuomo today announced $1.5 million in loan guarantees to Asheville, NC to increase the supply of affordable rental housing.

"These loan guarantees will strengthen HUD's partnership with Asheville," Cuomo said. "This is an example of the type of wise investment by the Clinton Administration that is helping communities around the nation."

Cuomo said the loan guarantees will fund activities associated with preserving and increasing the affordable rental housing stock available within Asheville. The City's goal is to rehabilitate between 100 and 150 homes during a three-year period and to leverage an additional $1.5 million in private financing.

HUD Acting Deputy Secretary Saul Ramirez presented the loan guarantees to Asheville Mayor Leni Sitnick.

The Section 108 funds will be made available to private owners of affordable housing through the City's Residential Rehabilitation Program as a CARROT (City of Asheville Rental Rehabilitation for Owners and Tenants) loan. The use of the Section 108 funds will allow the City to free up Community Development Block Grant entitlement dollars used for the CARROT loans and reallocate them to the City's FAIR (Flexible Affordable Inclusive Rehabilitation) loans for owner-occupied properties.

The project will benefit low- and moderate-income people by providing and allowing for the improvement of residential structures.

U.S. Senator Lauch Faircloth said: "Asheville's plan to leverage additional private financing through these funds is to be commended. We must continue to do more for affordable housing through public and private partnerships. I expect the award will be well spent."

Mayor Sitnick said: "The City of Asheville deeply appreciates this generous and timely funding assistance from the U.S. Department of Housing and Urban Development. The Asheville City Council and I look forward to working together with HUD in stabilizing and revitalizing our neighborhoods and improving housing opportunities for our citizens. We are very grateful to HUD, Secretary Cuomo and Deputy Secretary Ramirez."

HUD's Economic Development Loan Guarantee Fund provides communities with a source of financing for job creation, housing rehabilitation, and construction of public facilities and large-scale development projects.

The Economic Development 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.