HUD: $9 Million Loan Guarantee to Cleveland Announced for Development of Nearly 200 Housing Units and Grocery Store

The U.S. Department of Housing and Urban Development today announced a $9 million loan guarantee to the City of Cleveland, Ohio for the development of a mixed-used site that includes nearly 200 housing units and a 40,000 square foot grocery store.

“This is a tremendous opportunity for Cleveland to expand access to affordable housing while increasing access to healthy food for residents and growing sustainable, transit-oriented development,” said Arthur Jemison, Principal Deputy Assistant Secretary, Office of Community Planning and Development. “Cleveland’s mixed-use development will demonstrate how HUD programs and resources, such as the Section 108 Loan Guarantee Program, can create innovative solutions and help build strong, vibrant communities.”

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.

The mixed-use development includes a new 40,000 square foot Meijer Grocery Store, approximately 150,778 square feet of residential space including 90 market rate one-bedroom units, 90 micro+ units, 6 standard micro-units, 10 two-bedroom units, 200 parking garage spaces, and 125 surface-level spaces for the grocery store. The project is expected to create 40 new full-time-equivalent jobs.

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.

Leave A Comment?

You must be logged in to post a comment.