2002 Section 108 Project Summaries

Section 108 is the loan guarantee provision of HUD's Community Development Block Grant (CDBG) program. Section 108 funds can be used by local governments to finance a wide range of housing, community, and economic development activities. Local governments may borrow up to 5 times their most recent annual CDBG allocation for terms up to 20 years. In FY 2003, HUD has $573 million available in Section 108 guarantee authority. For further program details, see the 108 fact sheet or the 108 program page.

In FY 2002, HUD approved seventy-four Section 108 commitments totaling $310 million. These projects can be broadly classified into three groups - Economic Development, Public Facilities, and Housing. Listed below is a brief summary of each group along with links to projects approved in 2002.

Economic Development

Section 108 provided financing for 35 economic development projects in 2002. The total amount of these commitments was $123.6 million, which will leverage an additional $390 million in other public and private funds. Section 108-funded economic development activities include:

• Direct Loans to For-Profit Businesses
  
• Business Loan Pools
  
• Property Acquisition
  
• Building Construction/Rehabilitation
  
• Demolition, Clearance and Remediation
  
• Storefront/Facade Improvements

Public Facilities

Section 108 is widely used by local government to finance public facilities as a catalyst for community improvements. In 2002, HUD approved 28 public improvements projects, representing $156.7 million in financing. Section 108 funding can be used for a multitude of public projects such as:

• Community and Senior Centers
  
• Utilities
  
• Streets, Sidewalks, and Curbs
  
• Parks and Recreational Facilities
  
• Cultural Attractions

Housing

Section 108 can finance projects that increase the availability of affordable housing and homeownership opportunities for low- and moderate-income families. In 2002, Section 108 approved financing for 11 housing-specific projects. The aggregate amount of these commitments was $30.6 million and they will leverage an additional $75.4 million in other public and private funds. Section 108 funds can be used to support a variety of housing activities including:

• Property Acquisition
  
• Public Housing Rehabilitation
  
• Senior Citizen Housing and Amenities
  
• Assistance to Private & Non-Profit Developers
  
• Site Improvements (installation of sidewalks, utilities, streetlights, etc.)
  
• Renovation/Conversion of Vacant Buildings.