Los Angeles City Hall is seeking to give a loan of up to $22.5 million to the developers of a new soccer stadium near downtown Los Angeles.

A motion submitted this week by City Councilman Curren Price asks for city approval for a U.S. Department of Housing and Urban Development (HUD) loan for the backers of the Los Angeles Football Stadium.

The City Council in May approved plans for the $250 million sports facility, which will house the Los Angeles Football Club, Major League Soccer’s new team. The stadium is planned on the site of the Sports Arena, which will be torn down for the new stadium.

Under the terms of the HUD loan, the funds must be used for the construction of the ancillary facility, such as the meeting spaces, retail, dining options, and not the stadium itself, said Price spokeswoman Angelina Valencia.

With the goal of revitalizing urban areas, HUD makes a certain amount of money available to cities. City leaders apply for loans after selecting the projects. The loans are also tied to employment and developers need to promise a set number of jobs in return for the funds.

A January report released by the city’s Economic and Workforce Development Department states that the city’s portfolio currently contains 31 loans totalling $241 million.

Critics argue politically-connected entities receive HUD loans. Sparking controversy, the Kodak Theater (now the Dolby Theater), received a $30 million loan in 2009 to do renovations for its Cirque Du Soleil show. A $2.6 million HUD loan was also given to a South Los Angeles restaurant in 2011.

Valencia said the stadium project will generate thousands of jobs and bring in $2.5 million in taxes annually, so the councilman supports the loan. “Plus, this is one of the biggest investments coming to (Council District 9) that will help revitalize the South LA community,” Valencia said.