CHICAGO – U.S. Housing and Urban Development Midwest Regional Administrator Antonio R. Riley announced today that HUD is approving a $30 million loan guarantee to Indiana to capitalize the state’s Community Enhancement and Economic Development Loan Fund. This state-administered loan program will distribute funds to communities throughout the state to provide financing for a variety of economic development, affordable housing rehabilitation, and community development projects.
“HUD’s Loan Guarantee Program can be a powerful tool to drive economic development in underserved areas. The state will create jobs, support economic development and rehabilitate housing and facilities across Indiana with this money” said Riley.
Indiana’s HUD-assisted loan fund will benefit low- and moderate-income persons by providing affordable housing and creating jobs. Additionally, some projects will aid in the prevention or elimination of slum or blight conditions.
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. It allows them to transform a small portion of their CDBG funds into federally guaranteed loans large enough to pursue physical and economic revitalization projects that can renew entire neighborhoods.