Title
Section 108 Loan Guarantee Application
Action
Action:
A. Approve the City of Charlotte's application to the U.S. Department of Housing and Urban Development's Section 108 Loan Guarantee program, and
B. Authorize the City Manager or his designee to execute all necessary documents required by the U.S. Department of Housing and Urban Development.
Body
Staff Resource(s):
Rebecca Hefner, Housing and Neighborhood Services
Warren Wooten, Housing and Neighborhood Services
Explanation
* The city is submitting a Section 108 Loan Guarantee application for the U.S. Department of Housing and Urban Development's (HUD) Section 108 Loan Guarantee program.
* The program allows recipients of Community Development Block Grants (CDBG) to borrow low-cost, long-term, federally guaranteed funds to help fund CDBG-eligible projects by using a portion of their current and future CDBG allocations as guaranteed payment.
* The most recent city participation in the program was the collaborative public-private partnership to redevelop the former Double Oaks development into the vibrant Brightwalk community.
* The proposed application establishes the Charlotte Community Impact Investment Fund (Fund) to finance CDBG-eligible affordable housing initiatives and economic development projects.
* Eligible projects include property acquisition, rehabilitation, infrastructure improvements, and innovative homeownership models. All projects must benefit low- and moderate- income (LMI) residents and meet all other CDBG requirements.
* The total Fund amount applied for is $25,000,000. Funds will only be drawn down from HUD as they are awarded to project recipients.
* Funding will be made available to development partners through future Request for Proposals (RFP) and Request for Qualifications (RFQ) processes and will be provided to help finance approved projects in the form of loans (Loans).
* Loans will be secured by collateral that exceeds the value of the loan, primarily in the form of ...
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