HUDFinal Rule
FR-6561-N-01 Section 108 Loan Guarantee Program: Announcement of Fee To Cover Credit Subsidy Costs for FY 2026
HousingFinance & Banking
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Summary
The Department of Housing and Urban Development (HUD) is announcing a fee that lenders must pay when they use the Section 108 Loan Guarantee Program, which helps finance community development projects. This fee covers the government's costs for guaranteeing these loans, and the new amount applies to loans approved in fiscal year 2026.
Key Points
- 1HUD is setting a specific fee that lenders must pay when they borrow money through the Section 108 program to fund community development projects like housing, infrastructure, or economic development
- 2The fee exists because the federal government is taking a financial risk by guaranteeing these loans—if borrowers fail to repay, taxpayers could lose money
- 3Community development organizations and local governments that use this loan program will likely face higher costs due to the fee, which may affect their project budgets
- 4This fee announcement only applies to new loans approved starting in fiscal year 2026 (October 2025 onward)
- 5The regulation helps ensure that the actual cost of the government's loan guarantee program is paid for rather than being subsidized by taxpayers
Key Dates
Published
November 19, 2025
This summary is for informational purposes only. It may not capture all nuances of the regulation. Always refer to the official text for authoritative information.
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