HUD Announces $14.2 Million Investment in Raleigh

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WASHINGTON – Today, the U.S. Department of Housing and Urban Development (HUD) awarded the City of Raleigh, North Carolina a $14.2 million loan guarantee under Section 108 of the Housing and Community Development Act of 1974, as amended, for the Section 108 Loan Pool project. The City will use the loan proceeds for Section 108 eligible activities that meet the low- and moderate-income and elimination of slum and blight national objectives.

“This investment represents our shared commitment to empowering communities, fostering economic growth, and creating opportunities for the people in Raleigh,” said HUD Agency Head, the Honorable Adrianne Todman. “With these funds, the City of Raleigh will be able to invest in neighborhoods and support local businesses.”

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The City’s loan pool approach will assist with targeted equitable investments in economic, housing, and community development activities. The goals of the Section 108 Loan Pool include acquiring land for redevelopment, revitalizing housing stock, development of new public facilities and directly assisting businesses, nonprofits, and real estate development projects that produce a public benefit. The Loan Pool will bridge financing gaps and enable borrowers to proceed with their respective transactions. The Loan Pool will be available to eligible borrowers citywide; however, the City will prioritize investments in projects that are in targeted neighborhood revitalization areas, including downtown neighborhoods and the College Park Neighborhood Revitalization Strategy Area (NRSA).

“Loan pools are an innovate way to finance multiple projects over several years,” said Marion McFadden, Principal Deputy Assistant Secretary for Community Planning and Development. “Section 108’s unique flexibility and range of applications makes it one of the most important public investment tools that HUD offers to state and local governments. Raleigh, North Carolina will be using these funds to make transformative investments in economic, housing, and community development activities.”

Section 108 provides Community Development Block Grant funds to communities as a source of low-cost, long-term financing for economic and community development projects that primarily benefit low- and moderate-income persons. Section 108 can be used for a variety of projects, such as housing, infrastructure, and other physical development projects. The flexibility of the program makes it an attractive and effective tool for state and local governments.