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MARTINEZ ANNOUNCES $78 MILLION IN LOAN GUARANTEE ASSISTANCE TO PUERTO RICO TO FUND PUBLIC IMPROVEMENTS AND AFFORDABLE HOUSING
Funds will support 18 projects in San Juan and Barceloneta

SAN JUAN, Puerto Rico - U.S. Housing and Urban Development Secretary Mel Martinez today announced the Municipalities of San Juan and Barceloneta, Puerto Rico will share $78 million in loans guaranteed by HUD to fund a variety of public improvements and expand affordable housing. San Juan will receive $72.5 million in loan guarantee assistance and Barceloneta will receive $5.5 million in low-cost financing to fund 18 projects including street improvements, affordable housing and a new neonatal intensive care unit.

The funding announced today is guaranteed through HUD's Section 108 Loan Guarantee Assistance Program that provides local governments with a potent public investment tool to help renew communities from the ground up. Public commitment is often needed to inspire private investment to further stimulate community development in distressed areas.

"This assistance demonstrates that HUD is a full partner in helping revitalize neighborhoods," said Martinez. "These guaranteed loans will help bring a new sense of public commitment in areas that serve lower income families in San Juan and Barceloneta."

Section 108 loans enable communities to borrow money at reduced interest rates to promote economic development, stimulate job growth and improve public facilities. In turn, the Municipality of San Juan and the Commonwealth of Puerto Rico (on behalf of Barceloneta) must pledge their annual Community Development Block Grant (CDBG) allocation as collateral in securing these low-cost loans.

San Juan

HUD is awarding the Municipality of San Juan $72,515,000 in loan guarantee assistance to undertake 17 different projects including the reconstruction of streets, upgrading lighting and improving signage in selected low-income neighborhoods (see attached list). In addition, the funds will help improve area parks and recreation centers, create a neonatal intensive care unit at the Río Piedras Medial Center and convert abandoned Coast Guard housing into a development center for abused or orphaned children.

Barceloneta

HUD is awarding the Municipality of Barceloneta $5.5 million in loan guarantee assistance to buy and rehabilitate 20 properties. Ultimately, this assistance will help generate 14,000-square feet of commercial rental space, produce 11 affordable housing units, create 350 parking spaces and make needed sidewalk improvements. The commercial space developed with this funding is also expected to create 65 jobs for lower income persons living in Barceloneta.

HUD is the nation's housing agency committed to increasing homeownership, particularly among minorities, creating affordable housing opportunities for low-income Americans, supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development as well as enforces the nation's fair housing laws. More information about HUD and its programs is available on the Internet.

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