Chicopee receives HUD approval for loan
Date: 8/31/2011
Aug. 31, 2011By G. Michael Dobbs
Managing Editor
CHICOPEE —Mayor Michael Bissonnette called the announcement that the U.S. Department of Housing and Urban Development (HUD) has approved a $5 million loan guarantee to be used in the construction of a new senior center “a huge milestone.”
He explained the loan will allow a “two-for-one” for the project —$2 million will be used to demolish the former Facemate building and $3 million will be used for the construction of the new senior center.
“This loan guarantee is one of the most successful investment tools that HUD offers to local governments,” Barbara Fields, HUD New England regional administrator, said. “HUD is committed to strengthening communities and the Community Center will play a vital role in serving Chicopee’s growing senior population.”
HUD’s Section 108 Loan Guarantee Assistance Program enables local communities to borrow money at reduced interest rates to promote economic development, stimulate job growth and improve public facilities.
Bissonnette said the engineering specifications for the demolition of the building have been determined and eight companies are in the bidding process for architectural services.
“Things couldn’t be better,” Bissonnette said of the news. “Of course, the devil is in the details and we are awaiting contracts from HUD.”
He said the HUD loan would keep the project on its timetable.
According to the city’s application to HUD, the senior center is expected to serve a senior population of 14,587 by the year 2020 as compared to the current senior center, which serves 3,000 seniors.
