A metropolitan city identified an economic development opportunity, developed a strategic plan and submitted a winning application to the U.S. Department of Housing and Urban Development (HUD), with assistance from our firm. The city was awarded a $39 million federal loan guarantee to establish a Community and Economic Development Loan Pool, allowing the city to provide loans for financing economic development and housing rehabilitation initiatives that benefit low- and moderate-income individuals.
City officials estimate that the loan pool will create 470 full-time, private sector jobs — more than half of which will be for low- and moderate-income individuals. With $4.9 million the average HUD Section 108 loan award, the metropolitan city's loan pool reaches a milestone and becomes one of the first such projects to provide a loan guarantee for use at local government officials' discretion, rather than a project-specific loan.