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CUOMO ANNOUNCES $6.8 MILLION IN HUD ASSISTANCE TO MONTEBELLO, CALIFORNIA
MONTEBELLO, CA - Housing and Urban Development Secretary Andrew Cuomo today announced $6.8 million in loan guarantees to Montebello, CA to help revitalize commercial and industrial sections of the city.
Cuomo said the city will use HUD's loan guarantees to back loans to businesses along with real estate projects, tenant improvements and public infrastructure improvements. Funds will be targeted to Whittier Boulevard, Telegraph Road, Via Campo, and the South Industrial Area.
In addition, Banco Popular pledged to make additional loans in the area to increase funding available for community development projects that benefit low- and moderate-income people.
Cuomo presented the HUD loan guarantees to Mayor Art Payan at a ceremony at Montebello City Hall. The Secretary began a four-day visit to Southern California Monday to see HUD programs in action, meet with mayors and others, and learn more about challenges facing the region.
"These loan guarantees will strengthen HUD's partnership with Montebello," Cuomo said. "This is an example of the type of wise investment by the Clinton Administration that is helping communities around the nation."
Congressman Esteban Torres said the loan guarantees are "an example of Secretary Cuomo's and the Clinton Administration's commitment in assuring the continued economic growth in communities across America."
Mayor Payan said: "The HUD funding received by the City of Montebello will have a tremendous result on our efforts to provide economic development programs for our community."
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 majority of jobs created by each project are available to people with low and moderate incomes.
The loan guarantees, also known as the Section 108 program, save communities money by reducing the interest rates 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.
Cuomo also said that President Clinton's proposed 1999 budget would further benefit Montebello, by boosting other HUD assistance to the city from about $1.8 million this year to an estimated $2 million next year.
In addition, Montebello could apply for further assistance if President Clinton's proposal for a HUD Community Empowerment Fund is approved as part of the 1999 federal budget. The Community Empowerment Fund would make $400 million in grants to help economically distressed communities create and retain an estimated 280,000 jobs. The communities would use the funds to leverage an estimated $2 billion in private sector loans to businesses.
Content Archived: January 20, 2009