The U.S. Department of Housing and Urban Development (HUD) today announced an $8,081,000 loan guarantee to the City of Mount Vernon, New York for the Mount Vernon Public Facilities Improvement Fund Project. Funds from HUD will allow the City of Mount Vernon to improve municipal facilities by making accessibility improvements that align with Americans with Disabilities Act (ADA) requirements and repurposing existing historical landmarks as public facilities to serve residents, particularly for low-and moderate-income families. The Mount Vernon Public Facilities Improvement Fund Project also includes delivering much-needed repairs to several local fire stations and acquiring new fire protection equipment for firefighters.
“In addition to housing, HUD prioritizes strong community development,” said Acting Secretary Adrianne Todman. “Communities thrive when investments focus on the needs of the people who live there and support an inclusive economy.”
“With our new Legacy Challenge, I’m delighted to share that you can now access up to five times your CDBG funds in flexible, low-cost financing,” said Principal Deputy Assistant Secretary Marion McFadden for Community Planning and Development. “I look forward to seeing how you apply this low-interest funding toward increasing your community’s affordable housing stock and ensuring everyone has access to a safe home.”
Section 108 of the Housing and Community Development Act of 1974 provides Community Development Block Grant (CDBG) funds to communities as a source of 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 state and local governments.
Earlier this month, HUD launched a Legacy Challenge, where up to $250 million in low-cost capital will be made available through the Section 108 Loan Guarantee to make transformative housing-forward changes in local communities across America.
This funding can be used to make transformative changes in local communities through:
- Adaptive reuse, including commercial-to-residential conversion
- Preservation and rehabilitation of existing units
- Infrastructure to support housing production such as utility installation or upgrades
- Manufactured housing, including facilities to build new homes
- Eligible housing uses within mixed-use or transient oriented development projects
- Revolving loan pools to support local housing development
For communities that express interest by November 1, 2024, HUD will offer additional repayment flexibilities and waivers to streamline program requirements. HUD will invite applicants to participate in a technical assistance cohort and provide tools to support application development. On August 29, 2024, HUD will host a kickoff webinar to share more about the Legacy Challenge. To learn more and register for the webinar, please visit HUD’s website.