Section 108 Case Studies

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Section 108 financing is at work in hundreds of communities across America. Over 1200 projects have been funded since the program's inception in 1978.

Alhambra, California
Type of Project: Abandoned Retail Redevelopment
Number of full-time jobs created: 200
Project Description: Fremont Plaza represents a new and aggressive strategy in economic development for the City of Alhambra. The project is centered around a renovated former Sears retail building. The closing of the Sears store created an immediate loss of over 200 jobs and $180,000 in sales tax revenue from the City general fund. Initially the Alhambra Redevelopment Agency approached commercial developers, offering traditional subsidy, to redevelop the site. These developers declined to participate, and the Agency made a decision to develop the site itself using Section 108 financing.

Wichita, Kansas
Type of Project: Neighborhood Revitalization
Project Description: The City of Wichita and Cessna Aircraft Company acquired a large site in a troubled neighborhood to undertake a two-phase project. The first phase included the construction of the Cessna Learning Work Complex, including a light assembly facility and a learning/day care facility to be used by Cessna trainees living in the neighborhood. Since construction, the 21st Street Corridor has seen substantial investment, including a new bank, senior center, police substation, Boys and Girls Club, library, and affordable housing complexes.

Jacksonville, Florida
Type of Project: Micro-enterprise Development and Finance
Number of full-time jobs created: 702
Project Description: The City of Jacksonville used five Section 108 loans to finance development projects with five for-profit developers. The city used 108 financing in lieu of CDBG funds in order to keep those CDBG funds free for other low- and moderate-income uses, such as provision of services. The goal of the five projects is to create a total of 1,130 new jobs for the Jacksonville community.

Worcestor, Massachusetts
Type of Project: Business Development
Number of full-time jobs retained: 135
Project Description: The City of Worcestor has used Section 108 funds to provide gap financing as a credit enhancement for local business and industry to start-up or expand. The city only draws down the Section 108 funds as it uses them on a project-by-project basis, and therefore incurs no interest costs.

Greenville, South Carolina
Type of Project: Neighborhood Revitalization
Number of full-time jobs created: 25
Project Description: The City of Greenville and the West End Neighborhood Association combined efforts to construct a "public market" as an anchor attraction in the area. Local residents and businesses are provided with a public area to exchange commerce, and 16 businesses, five of them created after the construction of the market, utilize the facility. Associated development that has occurred in the area has produced countless new job opportunities as well as reduced blighted conditions.

Portsmouth, New Hampshire
Type of Project: Affordable Housing Construction
Project Description: Portsmouth's Mariner's Village apartment complex was a substandard, 600-unit complex, of which only 220 units were still occupied. Through a partnership of local and federal government, as well as state and local housing agencies and the private sector, the complex was replaced with a mixed-use development designed to stabilize the neighborhood. A zoning change allowed the construction of 329 rental townhomes, half of which were affordable. Families not wishing to remain the area were relocated to other standard, affordable housing.