The Federal Housing Administration (FHA) has agreed to a new $1.9 billion loan guarantee to help build a community center in the southern Massachusetts town of Suffolk.
The FHA loan guarantee is a major step forward for a community building project in Suffolk, which the city has struggled to complete and has been struggling to pay its bills.
The $1 billion is expected to come from the FHA’s Mortgage Settlement Fund, which helps the FHFA with the cost of foreclosures.
The program, announced Monday, includes a $750,000 credit to help defray the cost for the community center.
The center will include space for an arts and cultural event, music and dance performances, community meetings, and more, according to a news release.
The community center will open in late 2021, and the project will be overseen by the local housing authority, the city of Sufforn, the U.S. Department of Housing and Urban Development, and two Massachusetts-based nonprofit organizations, The Suffolk Neighborhood Development Corp. and the Rhode Island-based Community Development Corporation.