2006 Section 108 Project Summaries - Puerto Rico

Tourist Villa Hotel Facility
Camuy, PR
Section 108 Guaranteed Loan- $4,264,000

The Municipality of Camuy will finance the construction of a Tourist Villa-Hotel facility which will include twenty villas containing eighty short-term hotel rental rooms, and a main building with a lobby, front desk, reservation office, convenience stores, parking facilities and other recreational facilities. The project will be developed on approximately seven acres of land owned by the Municipality located in a rural area of the Municipality known as the Yeguada Ward. The Section 108 Guaranteed Loan will be used to fund the construction of the Tourist Villa-Hotel facility in its entirety.

The Community Development Block Grant (CDBG) national objective for the Municipality's use of the guaranteed loan is to benefit low-moderate persons through the creation of jobs. The project will create an estimated 104 new full-time jobs.

The Municipality will repay the guaranteed loan over a twenty-year period, paying interest only for the first two years. To secure repayment of the guaranteed loan funds, the Municipality pledges a first lien position on the seven-acre project site and Villa Hotel, as well as its CDBG funds.