HUD Section 108 Loan Guarantee
Federally-guaranteed loans for economic development, public facilities, and housing issued by CDBG entitlement cities. FY 2026 fee is 0.58% (down from 0.82%). Useful for catalytic projects too large for NOF/SBIF but too small for conventional capital markets.
Check an Address — Free Snapshot
See whether a specific Chicago address sits inside the area that unlocks HUD Section 108 Loan Guarantee, alongside every other incentive that touches that parcel.
Projects sponsored by Chicago (a CDBG entitlement city) that further CDBG national objectives — economic development, public facilities, housing rehabilitation, large-scale physical development.
HUD Section 108 Loan Guarantee is administered at the federal level. Depending on the program, eligibility may depend on the specific location, property type, or business activity rather than a single drawn boundary.
Boundaries are precise and change over time, so exact eligibility always depends on the specific address. The fastest way to know is to run a free snapshot for the parcel you have in mind.
Typical range · Federally-guaranteed loan, 30-year term, 0.58% FY26 fee
- +Federally-guaranteed loans up to 5x the city's annual CDBG allocation
- +30-year maturity (matching useful life)
- +FY 2026 fee: 0.58% of guaranteed amount
- +$250M of $400M FY 2026 authority prioritized for affordable housing
- 1Develop project concept with City of Chicago DPD
- 2DPD submits Section 108 loan application to HUD on behalf of the city
- 3HUD reviews national-objective compliance and credit underwriting
- 4Loan proceeds disbursed to the city, which on-lends to the project
Discuss the project with Chicago DPD before approaching HUD
- Project pro forma and CDBG national-objective documentation
- Environmental review (NEPA/24 CFR Part 58)
- City Council ordinance authorizing pledge of CDBG
This page is a starting point, not eligibility, legal, or tax advice. Verify current requirements, deadlines, and boundaries with the administering agency before applying or spending money — program rules and funding change over time.
- Phone
- (800) 998-9999
- Web
- Visit site ↗
Last verified 2026-05-21
Created by the 2017 Tax Cuts and Jobs Act and made permanent by the One Big Beautiful Bill Act (OBBBA, Pub. L. 119-21, July 2025) on a 10-year designation cycle. OZ 2.0 governor nominations underway July 2026; new OZ 2.0 map effective 1/1/2027. Existing OZ 1.0 tracts remain valid through 12/31/2028.
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