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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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