The funding is guaranteed through HUD’s Section 108 Loan Guarantee Program, which provides local governments with a public investment tool to help renew communities and catalyze development in underserved areas. HUD said Section 108 provides access to low cost, flexible financing that can serve as the public commitment often needed to inspire private investment to further stimulate community development in distressed areas.
“These guaranteed loans will help to develop and preserve affordable housing to serve low-income families in Washington, D.C.,” James Arthur Jemison, HUD’s principal deputy assistant secretary for Community Planning and Development, said in a news release. “(This) demonstrates HUD’s commitment to working collaboratively with communities to help revitalize neighborhoods and realize their priorities.”
DHCD said it is using Section 108 guaranteed loan funds to establish an affordable housing rehabilitation loan fund that will provide third-party loans for the preservation of housing for households earning up to 80 percent of the area median family income. The loan fund will be established to expand the DHCD’s financing capacity, enabling preservation of additional affordable housing in the District of Columbia.
In addition, these loan funds will rehabilitate owner-occupied affordable housing and existing affordable rental properties that will use Low Income Housing Tax Credits and Limited Equity Cooperatives that typically have difficulty securing competitive financing terms from the private market.
Loans for both types of projects will be made to qualified for-profit and nonprofit developers with eligible affordable housing projects.
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