The U.S. Department of Housing and Urban Development has approved a $1.8 million loan guarantee to Danbury for public infrastructure upgrades. City officials say the project is a key component of the City’s larger effort to transform its downtown area into a healthier, more walkable environment.
HUD New England Regional Administrator Barbara Fields says this loan guarantee is one of the most successful investment tools that HUD offers to local governments. She says HUD is committed to strengthening communities and this funding will have a tremendous impact on Danbury.
HUD’s Section 108 Loan Guarantee Assistance Program enables local governments to borrow money at reduced interest rates to promote economic development, stimulate job growth and improve public facilities. Such public investment is often needed to inspire private contributions; to provide seed money or to simply boost confidence private firms and individuals may need to invest in distressed areas.