TO: Mayor and Members of City Council
THRU: Kelly Olivera, Assistant City Manager
FROM: Christopher Cauley, MPA, Economic and Community Development Director
Derrick McArthur, Economic Development Manager
DATE: September 5, 2024
RE:
Title
Section 108 Policy Draft for Development Finance
end
COUNCIL DISTRICT(S):
Council District(s)
All
b
Relationship To Strategic Plan:
GOAL II: The City of Fayetteville will have a Responsive City Government supporting a diverse and viable economy.
GOAL III: The City of Fayetteville will be a city invested in Today and Tomorrow.
GOAL IV: The City of Fayetteville will be a highly desirable place to live, work and recreate.
Executive Summary:
Economic and Community Development staff have been working for the past year with outside legal counsel from The Banks Law Firm to draft a policy for the City to utilize its borrowing capacity under the Section 108 Loan Program offered through the U.S. Department of Housing and Urban Development (HUD). Essentially, the Section 108 Loan Program allows the City to take on larger Community Development Block Grant (CDBG) funded activities than the City typically has the resources for on an annual basis. This administrative report and attached DRAFT policy are submitted as an informational update to City Council.
Background:
The Section 108 Loan Guarantee Program, administered by HUD, provides communities with a crucial source of financing for economic development, housing rehabilitation, public facilities, and large-scale physical development projects. To promote larger-scale economic development, housing, public facilities, infrastructure, and other physical development projects, the City of Fayetteville may consider projects with greater funding needs for financing based on the City's participation in the Department of Housing and Urban Development's Section 108 Loan Guarantee Program. The Section 108 Program enables the City to leverage portions of its CDBG funding to o...
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