Bordallo Attends Presidential Bill Signing for S. 811:
Federal Loan Guarantee Program Extended to Guam

FOR IMMEDIATE RELEASE – December 17, 2003 – Washington, D.C. – President Bush signed into law S. 811, the American Dream Downpayment Act, yesterday during a bill signing ceremony at the U.S. Department of Housing and Urban Development (HUD) attended by Congresswoman Madeleine Bordallo. Incorporated within S. 811 are several housing proposals for the Federal Government’s future budgets. Among the included provisions is language based upon H.R. 2422, the Insular Areas Community Development Act, introduced by Congresswoman Bordallo last June to extend eligibility for the Federal Government’s “Section 108 Loan Guarantee Program” to Guam, the Northern Mariana Islands, American Samoa, and the Virgin Islands.

During his speech, President Bush expressed his appreciation for Congresswoman Bordallo’s involvement in this legislation. “Delegate Madeleine Bordallo of Guam is with us today. I'm honored you are here. Thank you for coming, Madeleine. I appreciate you coming,” President Bush said.

S. 811 places Guam and the other insular areas in the national formula for the HUD’s Community Development Block Grant Program (CDBG). Previously the insular areas received these block grants under discretionary authority granted by the Housing and Community Development Act of 1974. Inclusion in the national formula opens the door for Guam’s participation in the Section 108 Loan Guarantee Program, previously only available to the States, D.C., and Puerto Rico.

“I was honored to be invited to join the President today when he signed this legislation into law, along with Representatives Michael Oxley, Katherine Harris, James Leach and Senator Wayne Allard. This new law gives GHURA greater financing flexibility to undertake community and infrastructure development projects. In the recent past, GHURA has sought to participate in the Section 108 Loan Program, but was denied. My provision fixes this problem and opens the door for GHURA to participate,” Bordallo said.

Congress established the Section 108 Loan Guarantee Program in 1974. The program authorizes eligible units of local government to apply for government-backed loans totaling up to five times the entity’s annual CDBG allotment. Guam Housing and Urban Renewal Authority (GHURA) has averaged approximately $2.7 million in annual CDBGs and could feasibly apply for Section 108 loans totaling up to $13.5 million as a result of this legislation. Possible projects for which GHURA could apply for Section 108 financing include construction of schools, public housing, utilities and community centers.

Bordallo took a bi-partisan approach in securing inclusion and passage of her provisions in this legislation, working closely with Congressman Michael Oxley (Financial Services Committee Chairman), Congressman Barney Frank (Financial Services Committee Ranking Democratic Member), Congressman Bob Ney (Housing and Community Opportunities Subcommittee Chairman) and Congresswoman Maxine Waters (Housing and Community Opportunities Subcommittee Ranking Democratic Member).

Now that the President has signed S. 811 into law, the next step will be for HUD to develop and implement regulations to formalize Guam and the insular areas’ eligibility for Section 108.

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Contact: Neil Weare in Washington, D.C., at (202) 225-1188 or Joaquin Perez in Guam at (671) 477-4272.