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Finance committee backs $9.75 million Section 108 loan guarantee to advance Clarendon Hill phase 2
Summary
The Somerville Finance Committee voted to recommend the city authorize a Section 108 loan guarantee of $9,750,000 to support Clarendon Hill phase 2, shifting part of earlier city borrowing to HUD-backed financing and tying repayment to a future market-rate parcel sale and CDBG entitlements.
The Somerville Finance Committee voted 5-0 on April 8 to recommend the City Council authorize a Section 108 loan guarantee of $9,750,000 to help finance Clarendon Hill phase 2, a multi‑phase replacement and mixed‑income redevelopment of public housing along Alewife Brook Parkway, Powder House Boulevard and North Street.
The vote authorizes the city to apply for a federal Section 108 loan (a HUD Community Development Block Grant, or CDBG, loan product) that would let the city borrow against future CDBG entitlement allocations and re‑lend the proceeds to the development team for phase 2 construction. Director Alan Ignacio of the Office of Strategic Planning & Community Development said the move will refinance prior city DIF/general fund borrowings, add roughly $3.75 million to the project’s financing package, and keep the development moving amid difficult market conditions.
The committee’s action follows a detailed presentation…
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