The U.S. Department of Housing and Urban Development (HUD) has approved a $5 million loan guarantee to the city of Chicopee for the construction of a community center for elderly residents.

The funding will be used for clearance and construction of a 21,000-square-foot complex, including parking, to be located on the former Facemate site. 

HUD’s Section 108 Loan Guarantee Assistance Program enables local governments to borrow money at reduced interest rates to promote economic development, stimulate job growth and improve public facilities.  

"This loan guarantee is one of the most successful investment tools that HUD offers to local governments," HUD New England Regional Administrator Barbara Fields said in a statement. "HUD is committed to strengthening communities and the community center will play a vital role in serving Chicopee’s growing senior population." 

According to the city’s application, the older adult community center is expected to serve a senior population of 14,587 by the year 2020; the current senior center serves 3,000.