|HUD No. 22-014
HUD Public Affairs
January 25, 2022
HUD ANNOUNCES $700,000 LOAN GUARANTEE FOR THE CITY OF PEKIN TO IMPROVE FIRE PROTECTION
Loan guarantee will provide financing for the purchase of a fire truck, support service area that is primarily residential and low- and moderate-income
WASHINGTON - The U.S. Department of Housing and Urban Development (HUD) today announced a $700,000 loan guarantee to the City of Pekin, Illinois for the purchase of a fire truck for the City’s Fire Station #3. The loan guarantee will support improved fire protection in a service area that is primarily residential and low- and moderate-income.
“This loan guarantee reiterates HUD’s commitment to the safety and well-being of families and communities,” said Arthur Jemison, Principal Deputy Assistant Secretary, Office of Community Planning and Development at HUD. “We believe that everyone in this nation has the right to a safe and secure home, and that includes assisting cities with financing services that ensure safety for all communities.”
The loan guarantee assistance was awarded through the Section 108 Loan Guarantee Program (Section 108), which provides Community Development Block Grant (CDBG) recipients with the ability to leverage their annual grant allocation to access low-cost, flexible financing for economic development, housing, public facility, and infrastructure projects.
This project will meet the Community Development Block Grant national objective of benefit to low- and moderate-income persons in a target area. The proposed project’s service area in Pekin will be within a Census Tract that is primarily residential and 51.3 percent low- and moderate-income.
The Section 108 Loan Guarantee Program allows local governments to leverage 5 times their current CDBG award into federally guaranteed loans large enough to pursue physical and economic revitalization projects capable of redeveloping entire neighborhoods. Public investment, such as Section 108 loans, can spur private economic activity, providing the resources or the confidence that private firms and individuals may need to invest in distressed areas. Read more about HUD’s Section 108 Loan Guarantee Program.
As the need for economic recovery and community development continues, HUD’s Section 108 program serves as a critical source of federal financing that helps to move projects forward and build strong, sustainable, inclusive communities.