SECRETARY CUOMO JOINS CONGRESSMAN DINGELL AND MAYOR PITONIAK IN TAYLOR CEREMONY MARKING CITY'S PURCHASE OF APARTMENTS AND ANNOUNCES $6.5 MILLION IN AID TO TAYLOR AND WAYNE COUNTY

TAYLOR, MI - Housing and Urban Development Secretary Andrew Cuomo today joined Congressman John Dingell and Mayor Gregory E. Pitoniak in Taylor to give HUD's formal approval to the sale of the Southwest Development Project to the city, enabling Taylor to transform the deteriorated apartment complex into an attractive residential community.

As part of the plan, HUD will defer $16.5 million in debt on the portion of the complex that HUD insures. The agreement between the Department and the City of Taylor notes that HUD will eventually be repaid the outstanding principal, with interest.

Cuomo also announced $788,000 in HUD grants for housing and community development programs in Taylor. The funds will be used to renovate 40 houses in Taylor, upgrade the city's senior citizens center, improve public facilities that benefit seniors, and renovate a park located in a low-income neighborhood.

In addition, Cuomo announced $5.7 million in grants and loan guarantees to Wayne County, as part of a total of $27.4 million in HUD assistance to Michigan communities. Other communities receiving assistance are: Ann Arbor, Grand Rapids, Holland, Kent County, Lansing, Pontiac, Portage, Royal Oak, Sterling Heights and Warren. (See separate release).

"I congratulate Congressman Dingell, Mayor Pitoniak and the many others whose work to redevelop the Southwest Development Project has succeeded," Cuomo said. "This is one of the largest public-private partnerships in the history of metropolitan Detroit. Not only does it represent the kind of local initiative that HUD encourages, it will stand as a model for the state and the nation."

"If you want to see the real experts on what Taylor needs to improve this community don't look at my Department or any other federal Department in Washington - look at yourselves," Cuomo told officials and citizens in Taylor.

"I've come here to tell you that HUD wants to work in partnership with Taylor, with Wayne County, and with other local governments to help you achieve what you want to achieve," Cuomo said. "We're empowering you to chart your own destiny, with our strong support."

"The Southwest Development Project is a bold and innovative new direction for our nation's housing policy," said Congressman Dingell. "HUD officials have worked tirelessly with city officials and my office to successfully reach an agreement. It is a fine example of what can result when a city and the federal government work together in partnership for the common good."

"The complexity of our city's redevelopment proposal proved to be a great challenge to attain the necessary approvals," said Mayor Pitoniak. "Yet, willing partners, such as the Department of Housing and Urban Development and First of America Bank, helped us create a truly unique plan. It will be good for the residents of the neighborhood and the community at large."

Taylor will purchase the 2,186-unit Southwest Development Project apartment complex from its current owner for almost $40 million. The City will reduce the density of units in the complex, rehabilitate all of the units, and create an 18-acre park and community areas. During the first phase of the project, 300 currently vacant units will be renovated.

Once the redevelopment is complete, two-thirds of the units in the complex, which will be called Villages at Taylor, will be set aside for low-income families. Former residents will be given the option of returning to the property.

The assistance Cuomo announced for Wayne County will provide:

• $3.6 million in Community Development Block Grant funds to rehabilitate 140 houses, improve street, water and sewer systems, and provide transportation services to senior citizens.

• Almost $1.5 million in HOME Investment Partnership program funds to help provide downpayment assistance to 90 families.

• $141,000 in Emergency Shelter Grant funds to support the county's Family Center for Homeless Families.

• $535,000 in HUD loan guarantees to help provide municipal water service to a low- and moderate-income area in Sumpter Township. The project calls for constructing an almost two-mile long water main that will enhance fire fighting capabilities in the township by completing a major link in the public water system. 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.