May 27, 2005

Pitts, Santorum, Specter announce $3.5 million award for Reading

Reading , Pa. — Congressman Joe Pitts (R, PA-16) along with Senators Rick Santorum (R-PA) and Arlen Specter (R-PA) announced today that the U.S. Department of Housing and Urban Development (HUD) has issued a $3.5 million loan guarantee to the City of Reading for use in revitalizing the city.  All three leaders touted the award as a key part of the city’s efforts to revitalize the area’s economy and create jobs.

This Section 108 loan guarantee from HUD allows the City of Reading to leverage funds received under the Community Development Block Grant  (CDBG) Program into “federally-guaranteed loans large enough to pursue physical and economic revitalization projects that can renew entire neighborhoods or provide affordable housing to low- and moderate-income persons,” according to the announcement from HUD.

“ Reading is a key economic player on this side of the state.  As the city works to revitalize itself and prepare for future growth, awards like these will play a key role in those efforts.   Government can’t create jobs.  But government can help remove barriers to bringing new jobs to cities and communities like Reading ,” said Congressman Pitts.

“I am pleased that the City of Reading has received this important loan guarantee to assist with the current revitalization project,” said Senator Santorum.  “CDBG has been extremely helpful in assisting Pennsylvania ’s local communities leverage millions of dollars of other funding for use in needed housing and community development.  I have been and will continue to be a strong advocate of the CDBG program.  As a member of Senate leadership I will continue to do all that I can to see that federal funding continues to go to local programs at home that fight poverty and encourage community and economic development across Pennsylvania .”

“I am pleased the Department of Housing and Urban Development is providing the financial stability needed for the City of Reading to invest in the Sovereign Bank Building ,” Senator Specter said.  “This loan guarantee will provide resources needed to make capital improvements to the building, support local jobs, and inject new life into the Reading economy.”

In this case, the loan guarantee will be used to cover costs associated with completed and ongoing construction of the Sovereign Bank building located at Fifth and Penn Streets.  Once completed, the building will house back office operations for Sovereign Bank and support dozens of jobs in the Reading area.

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