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Section 108 Loan Guarantee Application - Swayne Field
Department of Housing and Community Development
Director Rosalyn Clemens (x3647)
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Approving a Section 108 Loan Guarantee Application for the amount not to exceed $616,000 from Swayne Field Shopping Center, Inc. for renovations and improvements to the Swayne Field Shopping Center located at 3054 Monroe Street, Toledo, Ohio; authorizing the submission of the Application to U.S. Department of Housing and Urban Development (HUD) for Eligibility Determination and final approval of a HUD Section 108 loan guarantee; and declaring an emergency.
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SUMMARY & BACKGROUND:
This legislation provides approval of a Section 108 Loan Guarantee Application ("Application") from Swayne Field, Inc. for renovations and improvements to the Swayne Field Shopping Center; and, authority to the Mayor and Department of Housing and Community Development for submission of the Application to the U.S. Department of Housing and Urban Development (HUD) for Eligibility Determination and final approval of a HUD Section 108 Loan guarantee.
The Section 108 Loan Guarantee Program ("Section 108 Loan") allows Community Development Block Grant (CDBG) entitlement communities to leverage up to five times the annual CDBG allocation to fund economic development, public facilities, acquisition of real property and housing rehabilitation projects, by pledging future CDBG allocations for a HUD guaranteed loan. Entitlement communities can borrow Section 108 Loan funds for a project undertaken by the community (Level 1 Transaction); or, entitlement communities can borrow Section 108 Loan funds and lend funds to a borrower for an eligible income producing project (Level 2 Transaction). When HUD approves an application for a Section 108 loan guarantee, loan documents including a promissory note, are executed by the community and borrower. The Section 108 Loan is made by investors who purchase the HUD guaranteed promissory note or de...
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