AUBURN, ME – HUD awarded the City of Auburn, Maine a $1 million loan guarantee under Section 108 of the Housing and Community Development Act of 1974 that will be used to develop the Androscoggin Resource Center Project. This project will serve as a resource center for homeless individuals and other at-risk populations in Auburn, providing critical support to those in crisis while helping launch them on a path toward self-sufficiency.

 “At HUD, we are working hand-in-hand with local and state leaders to help vulnerable Americans get off the streets and back on their feet,” said U.S. Housing and Urban Development Secretary Scott Turner. “Supportive services like those slated to be offered at the Androscoggin Resource Center are key to breaking long-term cycles of poverty and uplifting forgotten communities.”

About the Androscoggin Resource Center Project:

This loan guarantee will be used for the development of the Androscoggin Resource Center Project in Auburn.

The development involves the adaptive reuse of a vacant, city-owned facility, located at 121 Mill Street in Auburn.

The funds will be used to transform it into a 15,000-square-foot community resource center that includes different spaces and uses, such as offices, community room, kitchen, and storage.

The Center will create a central location where individuals can access a variety of services, which enhances support for vulnerable populations and strengthens Auburn’s community development initiatives.

Through this facility, nonprofit service providers will be able to offer housing assistance, clothing, food, counseling, and case management services.

 About Section 108:

The Section 108 Loan Guarantee Program (Section 108) provides Community Development Block Grant (CDBG) recipients with the ability to leverage their annual grant allocation to access low-cost, flexible financing for economic development, housing, public facility, and infrastructure projects.

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 areas in need of revitalization 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 investments.