Today, the U.S. Department of Housing and Urban Development (HUD) announced a $4.1 million loan guarantee to the City of Laredo, Texas. The loan guarantee, offered through the Section 108 Loan Guarantee Program (Section 108), will be used to finance the Southern Hotel Affordable Housing Rehabilitation Project. The project will rehabilitate an existing historical building – a former hotel in the heart of downtown Laredo at 1210 Matamoros St – to repurpose as affordable rental housing units for low- and moderate-income (LMI) households.
Laredo intends to add a total of 22 housing units, consisting of 13 low-income and 9 market rate units. This building will be entirely residential with amenities such as a laundry room, fitness center, and community room.
“Section 108 Loan Guarantees allow communities to invest in critical infrastructure, including housing,” said Marcia L. Fudge, HUD Secretary. “I am pleased that Laredo will be able to use this funding to transform this historic space and bring much needed affordable housing and community amenities to the area.”
“Converting this historic hotel -into affordable housing units is an excellent example of how HUD funding can support the adaptive reuse of existing properties to increase housing supply,” said Marion McFadden, Principal Deputy Assistant Secretary, Office of Community Planning and Development at HUD. “The impact of rehabilitations and renovations like these cannot be understated — thanks to this loan guarantee, Laredo families with modest means will have the chance to live in safe, quality, and reliable housing.”
Section 108 provides states and communities with low-cost, long-term financing for economic and community development projects that primarily benefit low- and moderate-income persons. Section 108 can be used for a variety of projects, such as housing, infrastructure, and other physical development projects. The flexibility of the program makes it an attractive and effective tool for states and local governments that receive funding under the Community Development Block Grant program.