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Section 108 Loan Guarantee Applications - Community and Senior Centers Improvements
Department of Housing and Community Development
Director Rosalyn Clemens (x3647)
Title
Approving Section 108 Loan Guarantee Applications for the amount not to exceed $4.5 million from the City of Toledo for renovations and improvements to Community and Senior Centers; authorizing the submission of the Applications 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 Applications ("Applications") from the City of Toledo for renovations and improvements to the Believe Center, located at 1 Aurora Gonzalez Drive, the Chester J. Zablocki Community Center located at 3014 Lagrange Street, the East Toledo Senior located at 1001 White Street, and the East Toledo Family Center located at 1020 Varland Avenue; and, authority to the Mayor and Department of Housing and Community Development for submission of the Applications 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, l...
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