October 13, 2022

HUD: $12.4 Million Loan Guarantee Announced for Baltimore, MD

Renovation and Expansion of a Historic Recreation Center Supported by Loan Guarantee

The U.S. Department of Housing and Urban Development (HUD) today announced a $12.4 million loan guarantee for the renovation and expansion of the Chick Webb Recreation Center in East Baltimore, Maryland.

The loan guarantee, offered through the Section 108 Loan Guarantee Program (Section 108), will be used to finance improvements to a historic recreation center which was originally constructed in 1947 and was built as the first community center and pool for African Americans in segregated East Baltimore. Named after bandleader and drummer, William Henry “Chick” Webb, the facility was designated as a city Landmark in 2017 by the Baltimore City Planning Commission.

The Section 108 project will primarily benefit low- and moderate-income (LMI) persons on an area basis, where at least 51 percent of the residents are low- and moderate-income persons.

“Healthy communities thrive when they have vibrant, welcoming spaces to gather in,” said Marion McFadden, Principal Deputy Assistant Secretary, Office of Community Planning and Development at HUD. “This loan guarantee will support Baltimore in their continuing efforts to build up this neighborhood and create an environment for community engagement.”

Section 108 provides Community Development Block Grant (CDBG) funds to communities as a source of low-cost, long-term financing for economic and community development projects that primarily benefit low- and moderate-income persons. Section 108 can be used for a variety of projects, such as housing, infrastructure, and other physical development projects. The flexibility of the program makes it an attractive and effective tool for state and local governments.

This post was originally published here.