Author: Pascal, Erica
Summary
This report discusses how the use of Community Development (CD) funds for leveraging is attractive for the following reasons. First, stimulating the use of private investment to achieve a public purpose, such as reinvestment in inner city neighborhoods, may diminish the financial burden experienced by the public sector. Secondly, the limited availability of public funds for housing rehabilitation efforts requires that available public money be stretched as far as possible. Using CD funds to leverage private resources may provide a way to stretch scarce public resources for residential rehabilitation. Third, CD funds are flexible and can be used for leveraging. CD grant funds can be used to pay service fees for loan transactions, provide interest subsidiaries or establish loan guarantee reserve funds.
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Using Community Development Block Grant Funds for Leveraging
