HUD
No. 02-039
Contact: Larry Bush, (415)436-8315
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For
Release
Friday
March 29, 2002 |
HUD AWARDS $1 MILLION LOAN COMMITMENT TO VACAVILLE
WASHINGTON - The U.S. Department of Housing and Urban Development has approved
$1 million in loan guarantee assistance to help build a new social service center
in Vacaville, California, Housing and Urban Development Secretary Mel Martinez
announced today.
"The Bush Administration is continues to invest in building a better future
for businesses and families in America," Martinez said. "Projects like this
are win-win, because the new construction will bring jobs, and the completed
social service center will bring better service to Vacaville area residents."
The City of Vacaville will use the $1 million in Section 108 loan guarantees
in conjunction with a previously announced grant of $250,000 from HUD to acquire
land and prepare a site for a social service center in the Brown Street area.
The new center will consolidate resident services, which are now located throughout
the city. The new facility will provide a variety of services, including the
administration of a local homeless shelter. The $250,000 Economic Development
Initiative (EDI) grant funds will be used to assist with acquisition and to
abate Brownfield-like conditions on the site. The City expects the completed
facility to be more cost effective, efficient and more convenient than that
of the existing services located at dispersed sites.
In addition to the funding provided by HUD, the City of Vacaville will utilize
an additional $899,200 in other public funds, for a total project cost of approximately
$2.3 million. HUD's Economic Development Loan Guarantee Fund provides communities
with a source of financing for job creation, housing rehabilitation, and construction
of public facilities and large-scale development projects. The loan guarantees,
also known as the Section 108 program, save communities money by reducing the
interest rate they are charged on loans from commercial lenders. The guarantees
also make loans more readily available and often attract other sources of funding
from local and state governments, non-profits and the private sector to complete
financing for major job creation activities.
HUD is the nation's housing agency committed to increasing minority homeownership,
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 development and community revitalization
across the nation. More information about HUD and its programs is available
on the Internet at www.hud.gov.
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