The U.S. Department of Housing and Urban Development (HUD) today announced a $500,000 loan guarantee for the City of Downey, California for the Solar Photovoltaic and Battery Energy Storage Systems Project.
The loan guarantee, offered through the Section 108 Loan Guarantee Program, will be used to help finance the installation of energy efficiency upgrades, such as solar photovoltaic (PV) panels, carport canopies, and battery energy storage systems (BESS) at city-owned buildings and facilities. The loan funds will be used for the Solar PV and BESS at the Barbara J. Riley Community and Senior Center.
“Sustainability is a critical piece of our mission at HUD,” said Jemine A. Bryon, Acting General Deputy Assistant Secretary, Office of Community Planning and Development at HUD. “This loan guarantee emphasizes our path towards ensuring that all communities have equitable access to clean energy.”
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 people with low and moderate incomes on an area basis by enabling lowering utility coasts for seniors.
The Section 108 Loan Guarantee Program allows local governments to leverage five 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.
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