Section 108 Loan Guarantee Program
Packing House
Anaheim, California used $7 million of HUD Section 108 guaranteed loan funds to finance the restoration of a historic orange packing facility, originally built in 1919. The dilapidated building was rehabilitated into a food market with local vendors that has catalyzed economic development in Anaheim’s downtown.
Addington Ridge
With $694,000 in Section 108 guaranteed financing, High Point, North Carolina acquired and improved a site in its Deep River neighborhood that it then sold to a developer in order to construct a 58-unit, affordable housing development.
Practice Yoga
After a devastating fire forced a small business to relocate and left the building vacant for three years, Austin, Texas made a low-interest loan under its Family Business Loan Program with $150,000 in Section 108 guaranteed funds for the Practice Yoga studio to renovate the space and create 12 new, full-time jobs.
Green City Growers Greenhouse Cooperative
Cleveland, Ohio lent $8M of Section 108 Loan Guarantee financing to remediate and redevelop 10.68 acres of an industrial/residential site into an employee-owned cooperative greenhouse that created 42 full-time jobs producing 2 million pounds of healthy greens and 200,000 pounds of fresh herbs annually.
The Section 108 Loan Guarantee Program (Section 108) provides Community Development Block Grant (CDBG) recipients with the ability to leverage their annual grant allocation to access low-cost, flexible financing for economic development, housing, public facility, and infrastructure projects. Communities can use Section 108 guaranteed loans to either finance specific projects or to launch loan funds to finance multiple projects over several years.
Section 108's unique flexibility and range of applications makes it one of the most potent and important public investment tools that HUD offers to state and local governments. It is often used to catalyze private economic activity in underserved areas in cities and counties across the nation or to fill a financing gap in an important community project. The program's flexible repayment terms also make it ideal for layering with other sources of community and economic development financing including, but not limited to, New Markets Tax Credits (NMTC), Low Income Housing Tax Credits (LIHTC), and Opportunity Zone equity investments.
- Learn more about the Section 108 Loan Guarantee Program
- Get a quick overview of how the program works and the typical timelines associated with steps in the process
- View your State's or community's current availability of Section 108 financing to see if it has capacity to access additional assistance for eligible projects
Featured Resources & Topics
Section 108 Loan Guarantee Program Application Tool
The Section 108 Loan Guarantee Program Application Tool lists the general elements that states and local governments seeking to apply for Section 108 loan guarantee assistance should include in an application to HUD.
Program Design and Application Process
The Program Design and Application Process webinar describes how Section 108 can serve as an important financing tool in targeting reinvestment for economic development, public facilities and improvements, and housing rehabilitation.
Section 108 Underwriting Guidelines for Income-Producing Projects
The Section 108 Underwriting Guidelines for Income-Producing Projects assists Section 108 recipients in underwriting third party loans that finance the development of income producing properties.
Is HUD's Section 108 Loan Guarantee Program Right for My Needs?
View these new resources intended to provide communities with tools for developers and business owners to conduct high-level assessments to determine whether Section 108 financing could be an appropriate resource for their needs.
