The first public hearing to discuss amendments to Auburn's Community Development Block Grant was held Tuesday morning.
Under the Section 108 loan application, the city is requesting a loan of $3.95 million from the federal government.
"The Section 108 loan is a process by which the city is able to borrow funds against its Community Development Block Grant program," said Jim Byram, the consultant for the city of Auburn on the Section 108 initiative and CDBG. "What the law allows the city to do is to borrow five times its annual allocation on its most recent appropriation."
The loan will go toward four issues: $2 million for renovations on the Moton Public Housing Development; $1.25 million for economic development aimed at creating and maintaining jobs; $300,000 to create a micro-loan program to aid small and start-up businesses; and $400,000 as a debt service reserve to help with annual payments.
While all of these programs can benefit the community, Byram said having a low or moderate income is a requirement to receive any funding.
Built in 1952, the Moton Public Housing Development is in need of renovations which will enable it to meet health and safety codes, as well as making it livable again.
Sharon Tolbert, director of community development, said the complex currently has 38 units, but with the loan, they will be able to create 16 three-bedroom units, 16 two-bedroom units and 6 one-bedroom units.
The loan will give technical assistance to those applying for a small business micro-loan of up to $35,000, with the help of Auburn University's Small Business Development Center,
"This partnership with Auburn University Small Business Development Center is for them to work with small businesses one-on-one," Tolbert said.
Whether it is financial help or how to better structure the business, Tolbert said the people applying for the loan can benefit from these meetings.
While the amendment could take months to pass, the City Council is confident the community will embrace and benefit from the loan.
"We've gotten really good support," said Phillip Dunlap, director of economic development. "I'm comfortable with it, and the City Council is obviously comfortable with it."
Tolbert said while there has not been any strong opposition, a few residents, like Jimmy Glenn, have voiced their opinions on changes that could be made to the amendment.
Glenn, an Auburn resident and member of the Community Action Group of Auburn, questioned the amendment's impact on minorities.
"One of the goals of a program like this," Byram said, "should be to reach out and get minority business start-ups and business owners."
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