Section
108 is the loan guarantee provision of HUD's Community Development
Block Grant (CDBG) program. Section 108 funds can be used by local
governments to finance a wide range of housing, community, and economic
development activities. Local governments may borrow up to 5 times
their most recent annual CDBG allocation for terms up to 20 years.
In FY 2003, HUD has $573 million available in Section 108 guarantee
authority. For further program details, see the 108
fact sheet
or the 108
program page.
In
FY 2002, HUD approved seventy-four Section 108 commitments totaling
$310 million. These projects can be broadly classified into three
groups - Economic Development, Public Facilities,
and Housing. Listed below is a brief summary of each group
along with links to projects approved in 2002.
Economic
Development
Section
108 provided financing for 35 economic development projects in 2002.
The total amount of these commitments was $123.6 million, which
will leverage an additional $390 million in other public and private
funds. Section 108-funded economic development activities include:
- Direct
Loans to For-Profit Businesses
- Business
Loan Pools
- Property
Acquisition
- Building
Construction/Rehabilitation
- Demolition,
Clearance and Remediation
- Storefront/Facade
Improvements
States
with Economic Development Projects
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Public
Facilities
Section
108 is widely used by local government to finance public facilities
as a catalyst for community improvements. In 2002, HUD approved
28 public improvements projects, representing $156.7 million in
financing. Section 108 funding can be used for a multitude of public
projects such as:
- Community
and Senior Centers
- Utilities
- Streets,
Sidewalks, and Curbs
- Parks
and Recreational Facilities
- Cultural
Attractions
States
with Public Facilities Projects
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Housing
Section
108 can finance projects that increase the availability of affordable
housing and homeownership opportunities for low- and moderate-income
families. In 2002, Section 108 approved financing for 11 housing-specific
projects. The aggregate amount of these commitments was $30.6 million
and they will leverage an additional $75.4 million in other public
and private funds. Section 108 funds can be used to support a variety
of housing activities including:
- Property
Acquisition
- Public
Housing Rehabilitation
- Senior
Citizen Housing and Amenities
- Assistance
to Private & Non-Profit Developers
- Site
Improvements (installation of sidewalks, utilities, streetlights,
etc.)
- Renovation/Conversion
of Vacant Buildings.
States
with Housing Projects
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