U.S. Department of Housing and Urban Development Secretary Shaun Donovan has already announced approval of a $20 million loan guarantee to Philadelphia City. This loan was made under Section 108 Loan Guarantee Assistance Program.
Philadelphia needs the funding for various projects lined up for the benefit of their community. This funding is mainly for making economic development activities possible. A part of the funding will also be used for Pennsylvania housing grants and home buyer grants.
This funding will help the development of a 219,000-square foot shopping center located in the northern neighborhood center of Allegheny West and a community retail shopping center to be built at the site of the former Edison High School.
Understanding Housing Grants Construction and Economic Development
Through the said loan, about $15 million will be leveraged in public funding with $3,000,000 allotted for the proposed project of Baker’s Center anchored by a supermarket in Allegheny West. About $1,750,000 is for the construction of the Edison Center to replace the former Edison High School, which is already planned for demolition. This is a proposed 36,188 square foot community retail shopping center that will surely create jobs and opportunities locally.
This said loan for Pennsylvania housing grants was made with the thought of achieving economic development along with the creation of more jobs more specifically to benefit the low to moderate income individuals and families in the state of Pennsylvania. Housing grants construction and housing development grants will hopefully increase more as the funds leverage more through the lined projects.
As HUD Secretary Donovan sees it:
“Today, we take another step forward in a new vision for these neighborhoods. The City of Philadelphia will not only cultivate a community of new homes, retail, and green spaces for citizens but will generate hundreds of new jobs in the process.”
Pennsylvania Housing Grants and Housing Development Grants
Section 108 is a loan guarantee provision of the Community Development Block grant (CDBG) by HUD. Through this program, local authority bodies can borrow money from private investors at a reduced risk rate. This program is for improvement of public facilities and promotion economic development that will both lead to stimulation of more jobs to benefit the local residents.
The Pennsylvania housing grants program is considered as one of the most potent public investment tools that HUD had created. They allow local authorities to improve themselves by leveraging whatever funds have been granted to them. Through this loan, the City of Philadelphia can push through with its plans that are expected to generate about 858 new jobs. This program though is not risk free as local authorities must pledge all their current and future CDBG allocations as security for the loan.
They are a known source of financing for housing rehabilitation, housing development grants such as Pennsylvania housing grants, housing grants construction, and public facilities rehab. All these can be included as part of the economic development and will benefit low to moderate income persons and to aid in slum prevention nationwide.
As per HUD Regional Administrator Jane C. W. Vincent:
“This is a win win for the City and all those involved. These projects will create jobs for Philadelphia residents, leverage private investment, expand retail goods and services in the designated neighborhoods, eliminate blight and increase revenue.”