Section 108 Application

Publication Date: 08/22/2024
Document Type: Plans and Reports
Sponsor: Community Development Administration

Summary
The City of St. Louis, through the Community Development Administration (CDA), is preparing to submit an application to the Department of Housing and Urban Development (HUD) for a Section 108 Loan Guarantee. The Section 108 Loan Guarantee provides low-cost loans to municipalities to further their efforts at transformational community development and reinvestment. In accordance with 24 CFR 570.704 and through CDA’s Citizen Participation Plan (24 CFR 91.105, 24 CFR 570.704), the pre-application is made available for public input. Also the four proposed activities, listed below, are detailed for public comment. 

HUD’s Section 108 Loan Guarantee program provides access to low-cost capital to eligible communities. Communities can use Section 108 guaranteed loans to either finance specific projects or to launch loan funds to finance multiple projects over several years. Section 108's unique flexibility and range of applications makes it one of the most potent and important public investment tools that HUD offers to state and local governments. It is often used to catalyze private economic activity in underserved areas in cities and counties across the nation or to fill a financing gap in an important community project. The program's flexible repayment terms also make it ideal for layering with other sources of community and economic development financing including, but not limited to, New Markets Tax Credits (NMTC), Low Income Housing Tax Credits (LIHTC), and Opportunity Zone equity investments.

The Community Development Administration (CDA) will conduct an in-person/virtual public hearing to solicit public comments and answer questions about HUD Section 108 Financing Proposed-Application
Documents Available for Review

The HUD Section 108 Financing Proposed-Application document is available for review as of August 29, 2024, at CDA, located at 1520 Market Street, Suite 2000 and online: www.stlouis-mo.gov/CDA/documents/Section-108.cfm

Public Comment Period/Written Comments
The views of citizens, public agencies, and other interested parties are strongly encouraged. The public comment period will begin on Thursday, August 29 and end Monday, September 30, 2024 at 4 pm. Written comments or suggestions should be addressed to the Community Development Administration, 1520 Market Street, Suite 2000, St. Louis, MO 63102, or via email at CDA@stlouis-mo.gov

Public Hearing
The public is invited to attend a Hybrid Public Hearing in person or virtually to provide comments and feedback. 3 p.m. on Thursday, September 12, 2024, at 1520 Market Street, 2nd Floor Boardroom, St. Louis, MO 63103.

Zoom information: TBA