Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Raymond Hodges, Director of Housing
Subject: Section 108 Loan Guarantee Program Application
RECOMMENDATION:
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Adopt a resolution authorizing and directing the Director of the Department of Housing or the Director's designee, as the County's official representative, to submit an application and amendments thereto and all understandings and assurances therein, to the U.S. Department of Housing and Urban Development for a loan of up to $10 million from the Section 108 Loan Guarantee Program, and to provide such additional information as may be required.
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BACKGROUND:
The Section 108 Loan Guarantee Program (Section 108) provides communities with a source of low-cost, long-term financing for economic and community development projects. Section 108 financing provides an avenue for communities to undertake larger, more costly projects, where they may have limited resources to invest upfront.
Section 108 can fund economic development, housing, public facilities, infrastructure, and other physical development projects, including improvements to increase project resilience against natural disasters. This flexibility of uses makes it one of the most potent and important public investment tools that the U.S. Department of Housing and Urban Development (HUD) offers to states and local governments.
Section 108 loans can be deployed by the County either directly to carry out an eligible project, or indirectly by re-lending (or, in limited circumstances, granting) the funds to a developer or business to undertake an eligible project.
The program is authorized under Section 108 of the Housing and Community Development Act of 1974 as the loan guarantee component of the Community Development Block Grant (CDBG) Program. The specific regulations governing the Section 108 Program may be found at 24 CFR 570, Subpart M, Loan Guarantees.
The County wou...
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