HUD No. 08-128
August 25, 2008
HUD SECRETARY AND MAYOR MCCRORY ANNOUNCE $10 MILLION LOAN GUARANTEE TO CHARLOTTE
Guaranteed loan part of $120 million project, creating new housing and hundreds of jobs
WASHINGTON - U.S. Department of Housing and Urban Development Secretary Steve Preston today announced that he is approving a $10 million loan guarantee to the City of Charlotte to purchase 70 acres in the Double Oaks neighborhood. �This purchase will complete the site assembly of 98 acres in preparation for the eventual development of 108,000 square feet of retail space and 940 new apartments, condominiums and single-family homes.
HUD's loan guarantee will leverage $15 million in other public funding and $95 million in private sector investment to stimulate development of a new mixed-use community including a new grocery store, retail establishments, office space and mixed-income housing.
"Today, we take another step forward in a new vision for this neighborhood," said HUD Secretary Steve Preston. �"Mayor McCrory and the City of Charlotte will not only cultivate a community of new homes, retail and green spaces for its citizens but will generate hundreds of news jobs in the process."
"This latest HUD partnership allows Charlotteto implement our ambitious plans to invest in the Double Oaks neighborhood and to continue the revitalization of the Statesville Avenue corridor," stated Charlotte Mayor Pat McCrory upon learning of the loan guarantee from HUD Secretary Preston.
HUD's Section 108 Loan Guarantee Assistance Program�enables local governments to borrow money from private investors at reduced interest rates to promote economic development, stimulate job growth and improve public facilities. Such public investment is often needed to inspire private contributions, to provide seed money, or to simply boost confidence that many private firms and individuals need to invest in distressed areas.
The City of Charlotte requested HUD's loan guarantee to assist the Charlotte Mecklenburg Housing Partnership to purchase the 70 acres, partially occupied Double Oaks Apartment Complex and to assemble this site with an additional 28 acres for mixed use development in the Double Oaks neighborhood. Once the site is acquired, The Charlotte Mecklenburg Housing Partnership will prepare the entire 98 acres as the future site of 940 residential units, including 300 affordable apartments, 212 condominiums, 120 market-rate apartments, and 308 single-family homes/townhouses.
According to the City's plans, the retail development is expected to generate 270 full-time jobs, more than half of which will be made available to low-and moderate-income persons. Section 108 loans are not risk-free, however; local governments borrowing funds secured by this loan guarantee program must pledge their current and future Community Development Block Grant (CDBG) allocations to cover the loan amount as security for the loan.
HUD is the nation's housing agency committed to increasing homeownership, particularly among minorities; creating affordable housing opportunities for low-income Americans; and supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development and enforces the nation's fair housing laws. More information about HUD and its programs is available on the Internet and espanol.hud.gov.