A large U.S. city is investing over $50 million in Section 108 funds, which are used to provide communities with a source of financing for economic development, housing rehabilitation, public facilities and other physical development projects. The city is using these funds to assist with the development of affordable housing and for improvements to streets, sidewalks and other basic infrastructure in hopes of attracting more development to deprived areas. Our firm is representing the city in administering these funds.
The funds are part of a federal loan guarantee program the city was awarded by the U.S. Department of Housing and Urban Development, allowing the city to borrow from private lenders at lower interest rates to fund projects approved by the federal government.
