WASHINGTON – RealEstateRama – The U.S. Department of Housing and Urban Development (HUD) announced a $15 million loan guarantee to the City of Cleveland, Ohio. The loan guarantee, offered through the Section 108 Loan Guarantee Program (Section 108), will be used to finance the construction of the Centennial Project in downtown Cleveland.
Cleveland will use the Section 108 guaranteed loan funds to finance the Centennial Project: the rehabilitation of the historic Huntington Building located at 925 Euclid Avenue at the corner of East 9th Street and Euclid Avenue. This historic building is over 99% vacant. The project will renovate this building and convert it back into productive use, including affordable housing, commercial and retail space, and a museum. At least 51% of the units will be occupied by low- and moderate-income households.
“Section 108 Loan Guarantees allow communities to invest in critical infrastructure, including housing,” said Marcia L. Fudge, HUD Secretary. “I am pleased that Cleveland will be able to use this funding to transform this historic space and bring much needed affordable housing and community amenities to the area.”
“With HUD’s loan guarantee, Cleveland will revive a gorgeous historic building in the heart of its downtown that has sat vacant for the past decade. The property will turn into a hub for retail, commerce, and affordable housing,” said Marion McFadden, Principal Deputy Assistant Secretary, Office of Community Planning and Development at HUD. “Prioritizing affordable housing units with historic preservation isn’t just good for our economy. It gives families a new opportunity to strive for more, once they have rent they can afford.”
Section 108 provides states and communities with 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 states and local governments that receive funding under the Community Development Block Grant program.
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