$24 million awarded under the Section 108 Loan Guarantee Program and an additional $2.4 million
awarded under the Declared Disaster Recovery Fund
WASHINGTON, D.C. – August 20, 2015 – (RealEstateRama) — U.S. Department of Housing and Urban Development (HUD) Secretary Julián Castro announced Wednesday the allocation of more than $26 million from the Community Development Block Grant (CDBG) Program for St. Louis County, Missouri. St. Louis County received $24 million under the Section 108 Loan Guarantee Program to establish a loan pool for community development projects, while an additional $2.4 million in Declared Disaster Recovery Funds was awarded to the North County area of St. Louis County to help communities impacted by tornadoes and severe storms in 2013.
“Today’s announcement reflects a simple truth: we believe in this area, its people and its future,” said Secretary Julián Castro. “This is flexible funding that will be used to improve housing, support entrepreneurship, increase transit options and strengthen communities in St. Louis County.”
“Secretary Castro and his staff have demonstrated a strong commitment to improve the lives of people in St. Louis County,” said County Executive Steve Stenger. “The Section 108 Loan Guarantee Program and the Community Development Block Grant money will advance our mission to address poverty and disparity.”
Section 108 Loan Guarantee program
Under HUD’s Section 108 Loan Guarantee Program, St. Louis County will be able to fund transit-oriented development; mixed-use commercial, retail and multi-family rental development; business development loans; and public infrastructure and facilities, including collaborative projects that cross municipal borders.
The Section 108 loan guarantee program allows local governments to transform a small portion of their CDBG funds into federally guaranteed loans to spur economic revitalization projects. Local governments borrowing funds guaranteed by HUD through the Section 108 program must pledge their current and future CDBG allocations as security for the loan.
Declared Disaster Recovery Fund
On July 18, 2013, FEMA issued a major disaster declaration (4130-DR) that covered 27 counties in the State of Missouri, including St. Louis County. The disaster involved an EF-3 tornado that impacted a 32-mile area, primarily in St. Louis County. The tornado and associated severe weather damaged numerous small businesses and disrupted the Lambert-St. Louis International Airport for over two weeks.
HUD’s mission is to create strong, sustainable, inclusive communities and quality affordable homes for all.
More information about HUD and its programs is available on the Internet
at www.hud.gov and http://espanol.hud.gov.
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