The U.S. Department of Housing and Urban Development (HUD) recently awarded a $39 million federal loan guarantee to the city of Indianapolis to establish a Community and Economic Development Loan Pool.
The loan guarantee will allow the Indianapolis Department of Metropolitan Development to provide loans for financing economic development and housing rehabilitation initiatives that benefit low- and moderate-income individuals. Indianapolis estimates that the loan pool will create 470 full-time, private sector jobs, more than half of which will be for low- and moderate-income individuals.
HUD's Section 108 Loan Guarantee Program provides loans to finance economic development, job creation and public facilities.
The average HUD Section 108 loan amount is $4.9 million. Indianapolis' Loan Pool is one of the first Section 108 projects to provide a loan guarantee for use at local government officials' discretion, rather than a project-specific loan.
A team from FaegreBD Consulting, led by David Gogol and Nick Weber, identified the opportunity, advised the city of Indianapolis on preparation and completion of the successful loan guarantee application, and worked with HUD officials prior to and following its submission.