Loan guarantee will provide financing for the construction and planning costs, site development, and construction of a multipurpose community center and library facility.
The U.S. Department of Housing and Urban Development (HUD) today announced a $5,075,000 loan guarantee to St. Johns County, Florida to help finance the construction of the Hastings Community Center and Library Project. The development of the site will provide ample space for a variety of social services, as well as partnership opportunities with non-profit organizations. The building will house a St. Johns County satellite library, community meetings rooms, and government offices that will provide public services. The loan guarantee will help revitalize the community and provide needed services in an area that is primarily residential and low- and moderate-income.
“This opportunity highlights HUD’s commitment to revitalizing communities nationwide,” said Arthur Jemison, Principal Deputy Assistant Secretary, Office of Community Planning and Development at HUD. “This loan guarantee will facilitate the development of a center that will provide needed resources, community services, and opportunities for the Hastings community in St. Johns County.”
The loan guarantee assistance was awarded through the Section 108 Loan Guarantee Program (Section 108), which provides Community Development Block Grant (CDBG) recipients with the ability to leverage their annual grant allocation to access low-cost, flexible financing for economic development, housing, public facility, and infrastructure projects.
This project will meet the Community Development Block Grant national objective of benefit to low- and moderate-income persons on an area basis.
The Section 108 Loan Guarantee Program allows local governments to leverage 5 times their current CDBG award into federally guaranteed loans large enough to pursue physical and economic revitalization projects capable of redeveloping entire neighborhoods. Public investment, such as Section 108 loans, can spur private economic activity, providing the resources or the confidence that private firms and individuals may need to invest in distressed areas. Read more about HUD’s Section 108 Loan Guarantee Program.
As the need for economic recovery and community development continues, HUD’s Section 108 program serves as a critical source of federal financing that helps to move projects forward and build strong, sustainable, inclusive communities.