Auburn to hold public hearing on $4M loan

Press Release 

AUBURN, AL - The City of Auburn proposes to amend its Community Development Block Grant (CDBG) 2010 – 2014 Consolidated Plan and 2010 Action Plan.

An amendment to the Con Plan and Action Plan is recommended to eliminate the Revolving Loan Fund as an eligible CDBG activity.  Beginning with program year 2010, funds accrued from CDBG housing activities will be reported as program income to comply with 24 CFR Part 570.426.

The City proposes to add a new activity to the CDBG 2010 Action Plan, the Economic Development Technical Assistance activity. 

The City proposes to collaborate with Auburn University's Small Business Development Center to provide technical assistance to persons applying for a CDBG economic development loan and/or grant. The City proposes to decrease the Program Administration allocation by $10,000 to fund the activity.

The City of Auburn proposes to request a loan in the principal amount of $3,950,000.00 under Section 108 loan guarantee provisions of the U.S. Department of Housing and Urban Development's (HUD) Community Development Block Grant (CDBG) Program (24 CFR Part 570.700). 

Loan proceeds will be utilized for funding three activities and to provide a debt service reserve to assure repayment of the guaranteed loan.  The first activity will be renovation of the Moton Public Housing Development located at 700 Martin Luther King Drive. 

The second activity will be to fund an economic development fund for the purpose of undertaking projects eligible under §570.203 specifically related to creating and/or retaining jobs in the local economy, principally for low and moderate- income persons. 

The third and final activity is for the creation of a micro-loan program to provide assistance to qualified small and minority businesses and business start-ups.

Two public hearings will be held to receive citizen input regarding the proposed amendments and the Section 108 application submission. 

 A hearing will be on August 31, 2010 at 10:00 a.m. in the City Meeting Room located at 122 Tichenor Avenue and on September 9, 2010 at 5:30 pm at the Boykin Community Center (Meeting Room C) located at 400 Boykin Street.

Written comments will be accepted for consideration until September 15, 2010. Comments may be mailed to the City of Auburn, Community Development Division, 144 Tichenor Avenue, Auburn, Alabama 36830. 

Comments received after September 15, 2010 will not be considered.  For additional information, please call 334-501-7280.

Source: City of Auburn