Submitted By
Tammie Grossman, Director of Development Customer Services
Reviewed By
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Agenda Item Title
Title
A Resolution Authorizing the Submission of a Section 108 Loan Guarantee Program Application with the U.S. Department of Housing and Urban Development
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Overview
Overview
The draft Section 108 Loan Guarantee Program application for a business loan fund in the amount of $3 million was previously approved by the Board and released for a 30 day public comment period, which has ended with no comments being received. The Board is now being asked to approve the final Section 108 Loan Guarantee Program application.
Body
Staff Recommendation
Approve the resolution, directing Village staff to submit the application to HUD
Fiscal Impact
The Section 108 application to HUD is expected to have positive economic benefits to the Village by assisting businesses and creating and/or retaining jobs for low- and moderate income persons. If Village fails to make a required payment on its note, HUD could deduct that payment from the Village's CDBG Line of Credit. In accepting this loan guarantee, the Village would pledge all HUD entitlement grants made to the Village, or those for which the Village may become eligible, as security for the loan guarantee.
Background
The Village has made economic development a high priority and, for over one year, has planned to pursue a Section 108 Loan Guarantee Program in 2016. The Section 108 Program is administered by the U.S. Department of Housing and Urban Development (HUD) and is based on the Community Development Block Grant (CDBG) Program.
The Village now seeks to establish a Section 108 loan fund in the amount of $3 million. These funds, if approved by HUD, will be used by the Village to support businesses expansion and improvement, create and/or retain jobs, assist low/moderate-income households, and deliver positive economic benefits for the Village and its residents. The draft Section 108...
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