2006 Section 108 Housing Projects - Michigan

New Homes Project
East Lansing, MI
Section 108 Guaranteed Loan- $1,500,000

The City of East Lansing will utilize its Section 108 Guaranteed Loan to finance the development of a single-family housing community in a one-block area in the City's HUD approved Neighborhood Revitalization Strategy Area (NSRA). The NRSA is a designated neighborhood in the City that will benefit from comprehensive redevelopment activities. This redeveloped neighborhood will consist of twenty one single-family detached homes, six townhouses, and twelve single-family duplexes and triplexes in five housing structures.

The City will use the Section 108 Guaranteed Loan for the site acquisition, relocation costs, clearance of the site, site preparation including site clearance, demolition and removal, and payment of Section 108 Guaranteed Loan issuance costs. The City will also use the guaranteed loan funds for the construction and installation of public site improvements. The total cost of these activities is $1,500,000.

The Community Development Block Grant (CDBG) national objective for the City's use of the guaranteed loan proceeds is to benefit low-moderate income households through the creation of permanent housing.

The City will repay its guaranteed loan over a twenty-year period using its annual CDBG funding. To secure repayment of the guaranteed loan, the City pledges a first lien on the land and building commonly known as Grove Street Parking Ramp, as well as its CDBG funds.