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Last updated on Wednesday, August 17, 2016
(HAMMOND) - The U.S. Department of Housing and Urban Development (HUD) announced the approval of nearly $8.7 million for a loan guarantee to help the City of Hammond, Indiana finance the construction of a new community Wellness Center.
HUD's Section 108 Loan Guarantee Assistance Program enables local governments to borrow money from private sources at reduced interest rates to promote economic development, stimulate job growth and improve public facilities among other key goals. The loan guarantee program allows local governments to convert up to five times their most recently approved allocation of Community Development Block Grant (CDBG) funding into federally guaranteed loans that are large enough to pursue physical and economic revitalization projects that are capable of renewing entire neighborhoods. Such public investment is often necessary to inspire private contributions, to provide seed money or simply to boost confidence private firms and individuals may need to invest in distressed areas. HUD estimates that for every dollar of public investment spent nationally in CDBG funds, 21 new jobs per million were created and 5 new businesses were created or expanded.
"HUD's Loan Guarantee Program can be a powerful public investment tool to drive economic development in underserved areas," said Antonio R. Riley, HUD Midwest Regional Administrator. "It will be a huge boost to Hammond's ongoing revitalization efforts and will provide employment opportunities for residents, 51.7% of which have low to moderate income."
The loan guarantee assistance announced today will facilitate financing for the construction of a new 85,000 square foot Wellness Center consisting of two main areas primarily serving local youth and the elderly. The complex will include an indoor sports area and an area dedicated for family entertainment and a senior/youth room.
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