Section 108 Loan Guarantee Program: Announcement of Fee To Cover Credit Subsidy Costs for FY 2027
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Summary
AI summary — grounded in the notice text
This HUD notice announces that the fee charged to borrowers under the Section 108 Loan Guarantee Program to cover credit subsidy costs will increase from 0.58 percent in FY 2026 to 1.05 percent in FY 2027, applicable to loan guarantee commitments awarded in FY 2027. The fee, applied only at the time of loan disbursement, is intended to fully offset the federal government's expected credit subsidy cost and depends on whether Congress authorizes fee collection in the FY 2027 HUD appropriations act. This is relevant to PHAs or public entities that borrow under Section 108 for community development financing, as it affects the cost of obtaining such guaranteed loans starting in FY 2027.
Key Quotes
Verbatim from the notice
“The fee to offset credit subsidy costs is changing from 0.58 percent in Fiscal Year 2026 to 1.05 percent in Fiscal Year 2027.”
Verbatim from the notice
“HUD determined that the fee for disbursements made under loan guarantee commitments awarded in FY 2027 will be 1.05 percent, which will be applied only at the time of loan disbursements.”
Key Dates
- Published
- Sep 28, 2026
- Effective
- Oct 28, 2026in 15 days