HUD Publishes Section 108 Underwriting Guidelines for Income-Producing Projects
Including: Residential, Office, Retail, Industrial and Mixed-Use Real Estate Projects for Section 108 Loan Guarantee Recipients
Section 108 is the loan guarantee provision of the Community Development Block Grant (CDBG) Program. It provides CDBG grantees with a source of financing for economic development, housing rehabilitation, public facilities, and other large-scale physical development projects.
The United States Department of Housing (HUD) is providing the Section 108 Underwriting Guidelines for Income-Producing Projects to assist Section 108 recipients in underwriting third party loans that finance the development of income producing properties. Although compliance with these guidelines is not mandatory, HUD’s acceptance of third party loans as collateral for Section 108 guaranteed loans will be facilitated if they meet these guidelines.