CUOMO ANNOUNCES $20.7 MILLION IN ECONOMIC DEVELOPMENT ASSISTANCE FOR HARTFORD AND NEW HAVEN, CONNECTICUT

WASHINGTON - Housing and Urban Development Secretary Andrew Cuomo today announced $20.7 million in economic development assistance to Hartford and New Haven, CT, that will lead to the creation of about 383 jobs and stimulate about $27 million in additional public and private investment.

"We're investing in building a better future for businesses and families in Connecticut," Cuomo said. "By helping businesses to start up and grow, we'll create jobs, we'll create new opportunity for families, and we'll help revitalize communities."

Cuomo made the announcement today in a telephone conference call with Connecticut U.S. Senators Christopher Dodd and Joseph Lieberman, and U.S. Representatives Rosa L. DeLauro and John B. Larson.

A total of $16.7 million of the new assistance is in the form of Economic Development Loan Guarantees under HUD's Section 108 program. The loan guarantees enable communities to borrow money at reduced interest rates to fund job creation, housing rehabilitation, the construction of public facilities and large-scale development projects.

The remaining $4 million of the assistance is in the form of HUD Economic Development Initiative (EDI) grants, which go to localities to fund economic development activities that create jobs, primarily for people with low and moderate incomes. Working with Congress, Cuomo created the EDI grants in 1994, when he was an Assistant Secretary at HUD, to work in tandem with HUD's loan guarantees.

The HUD assistance announced today by Cuomo will go to: (see attachment for details):

CITY	LOAN GUARANTEES	EDI GRANTS	TOTAL ASSISTANCE
Hartford	$ 6.2 million	$2 million	$ 8.2 million
New Haven	$10.5 million	$2 million	$12.5 million
TOTAL	$16.7 million	$ 4 million	$20.7 million

Sen. Dodd said: "This assistance - like gas in the tank - can help fuel our state's economic engine as we enter the 21st century. It propels our state forward by creating jobs and economic vitality -- while securing housing and a better quality of life for families in Hartford and New Haven. That's good news for our major cities, and good news for the people of Connecticut."

Sen. Lieberman said: "The way to revitalize Connecticut's poorest inner-city neighborhoods is to empower its residents. Those living on Hartford's Southside and in New Haven's Church Street South development want what every American deserves-real job opportunities, education and training to start a business, and capital to buy a home. This HUD assistance will provide that and will enable Connecticut to tap the vast potential of its urban communities."

Rep. DeLauro said: "I'm excited about the possibilities that the EDI program will create for New Haven. These funds will improve housing for low and moderate-income residents and attract jobs and economic growth to the Hill neighborhood. This is a wonderful program that will help build strong neighborhoods for families to live and work in."

Rep. Larson said: "I think I speak for all of us who care about Hartford's future when I say how grateful we are to HUD for awarding this EDI grant. This award is evidence of how determined the City and the Southside Institutions Neighborhood Alliance are to revitalize these Southside neighborhoods. It is one thing to talk about change, but the City and SINA are making it happen."

Cuomo said the HUD assistance will help create new markets as well as jobs in cities, leading to community revitalization and economic expansion.

The Secretary accompanied President Clinton last week on part of the President's New Markets Tour of economically distressed communities that highlighted the economic potential for investment in underserved markets. The President is proposing tax incentives and investment tools that will make it more attractive for corporate America to search for opportunities in such communities.

A HUD report issued last week titled New Markets: The Untapped Retail Buying Power In America's Inner Cities showed that America's inner city neighborhoods - with $331 billion in annual retail purchasing power - hold major economic potential for retail business growth.

The two major findings of the HUD report were:

• America's inner city neighborhoods possess enormous retail purchasing power - estimated at $331 billion last year, or one-third of the $1.1 trillion total for the central cities in which those neighborhoods are located. The report suggests that businesses not yet operating in inner cities should not ignore that large domestic market.

• Despite their huge buying power, many of America's inner city communities are "under-retailed," with sales that fall significantly short of residents' retail purchasing power. The report makes clear that not only is there a large inner city consumer market worth competing for, but there is also room for expansion of that market.

DESCRIPTION OF $20.7 MILION IN HUD ECONOMIC DEVELOPMENT ASSISTANCE FOR HARTFORD AND NEW HAVEN, CONNECTICUT

HARTFORD

A $2 million EDI grant and a $6.2 million Loan Guarantee to provide goods, services and jobs to four underserved target neighborhoods located in the southside of the City. Funds will be used to construct 6,000 square feet of retail space for the Learning Corridor Project. This activity will complement the on-going project, which includes the development of a new Montessori school, middle school, high school, family resource center, parking garage and a Boys and Girls Club. The Zion Street Project will use funds to construct 19,000 square feet of retail space within a two block area in the Charter Oak Zion District. The $6.2 million in loan guarantees will leverage an additional $2 million in public and private sector support. The project will create an estimated 283 jobs.

NEW HAVEN

A $2 million EDI grant and a $10.5 million Loan Guarantee to assist in the creation of 110 owner-occupied houses and the redevelopment of a distressed 301-unit assisted housing development known as Church Street South in the Hill neighborhood. The Hill area has 286 vacant buildings and 175 empty lots. The City will use $1.6 million of the EDI Grant funds to defray interest expenses on construction loans, $250,000 to fund Individual Development Accounts, and $150,000 to provide housing counseling. The new homes will be targeted to low- and moderate-income families earning no more than 60 percent of median income. The Hill neighborhood, as part of the New Haven federal Empowerment Zone, will receive resources from a $25 million commitment for workforce readiness activities, expanded day care capacity, and other social services. The construction of the project will create an estimated 100 jobs.

Content Archived: January 20, 2009