HUD #22-014
HUD Public Affairs
(202) 708-0685

January 25, 2022

The loan guarantee will provide financing for the purchase of a fire truck, a support service area that is primarily residential and low to moderate income

WASHINGTON – The U.S. Department of Housing and Urban Development (HUD) today announced a $700,000 loan guarantee to the city of Peking, Illinois, for the purchase of a fire truck for the City Fire Station No. 3. The loan guarantee will support the improvement of fire protection in a service area that is primarily residential and low to middle income.

“This loan guarantee reiterates HUD’s commitment to the safety and well-being of families and communities,” said Arthur Jemison, principal assistant assistant secretary, Office of Community Planning and Development at HUD. “We believe that everyone in this country has the right to safe and secure housing, and that includes helping cities fund services that keep all communities safe.”

The loan guarantee assistance was provided under the Section 108 (Section 108) Loan Guarantee Program, which provides Community Development Block Grant (CDBG) recipients with the opportunity to leverage their annual grant allocation to access flexible, low-cost funding for economic development, housing, public amenities and infrastructure projects.

This project will meet the national objective of the Community Development Block Grant to benefit low- and middle-income people in a target area. The service area of ​​the proposed project in Beijing will be in a census tract that is primarily residential and 51.3% low-to-moderate income people.

The Section 108 Loan Guarantee Program allows local governments to leverage 5 times their current CDBG allocation in federally guaranteed loans large enough to pursue physical and economic revitalization projects capable of redeveloping entire neighborhoods. Public investments, such as Section 108 loans, can stimulate private economic activity, providing the resources or confidence that private businesses and individuals may need to invest in distressed areas. Learn 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 an essential source of federal funding that helps move projects forward and build strong, sustainable, and inclusive communities.