Label
CDBG - Section 108 Loan Pool Application
Department of Housing and Community Development
Director Rosalyn Clemens (x3647)
Title
Authorizing submission to U.S. Department of Housing and Urban Development (HUD) a Substantial Amendment to the City of Toledo 2020-2024 Consolidated Plan and the 2021-2022 Annual Action Plan for use of the Section 108 Loan Guaranty Program; submittal of a generic application to HUD to establish a Section 108 Loan Pool; and declaring an emergency.
Body
SUMMARY & BACKGROUND:
This legislation provides authority to the Mayor and Department of Housing and Community Development for submission of a Substantial Amendment to the 2020-2024 Consolidated Plan and the 2021-2022 Annual Action Plan for use of the Section 108 Loan Guaranty Program; and for submittal of a generic application to HUD for establishing a Section 108 Loan Pool.
The Section 108 Loan Guarantee Program allows CDBG entitlement communities to leverage up to five times the annual CDBG allocation to fund economic development projects, public facilities, acquisition of real property and housing rehabilitation. The City of Toledo will submit an application to establish a Section 108 Loan Pool of an estimated $37 million, approximately five times the City's annual CDBG allocation. The Section 108 Loan Pool will be available to prospective borrowers citywide and will provide a ready source of long-term fixed-rate and reasonably priced financing that is not available conventionally.
The establishment of a Section 108 Loan Pool is a specific Year 1 Implementation Action of Toledo Together, A Guiding Vision & 10-Year Action Plan for Housing (Comprehensive Housing Strategy) unanimously adopted by the Toledo City Council. The establishment of a Section 108 Loan Pool supports the Comprehensive Housing Strategy goal of diversifying local funding sources to finance housing and community development needs of Toledo.
The financial impact of this Ordinance is the provision of c...
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