Community Development Block Grants Section 108 Loan Guarantees

 

To provide communities with a source of financing for economic development, housing rehabilitation, public facilities, and large scale physical development projects.

Active 14.248 Assistant Secretary For Community Planning and Development, Department of Housing and Urban Development F - Guaranteed/Insured Loans Not applicable. Housing and Community Development Act of 1974, as amended, Title 24, Part 570, Section Subpart M Eligible Applicants include: metropolitan cities and urban counties, i.e., CDBG entitlement recipients; nonentitlement communities that are assisted in their submission of applications by States that administer the CDBG program; nonentitlement communities eligible to receive CDBG funds under the HUD-Administered Small Cities CDBG program; and Insular Areas (American Samoa, Guam, Northern Mariana Islands, and the Virgin Islands). The public entity may be the borrower or it may designate a public agency to be the borrower. Furthermore, HUD's FY 2018 and FY 2019 appropriations acts continue HUD's authority to provide loan guarantees to States borrowing on behalf of local governments in nonentitlement areas. The principal beneficiaries are low and moderate income persons. Costs will be determined in accordance with 2 CFR 200, Subpart E. Preapplication coordination is required. An environmental impact assessment is required for this listing. Preapplication Coordination: Preapplication requirements are found in 24 CFR Section 570.704. Presubmission requirements are similar to those applicable for the Community Development Block Grants program. Proposed activities must be consistent with a unit of local government's Consolidated Plan submitted for HUD's Community Planning and Development Programs. This program is eligible for coverage under E.O. 12372, "Intergovernmental Review of Federal Programs." An applicant should consult the office or official designated as the single point of contact in his or her State for more information on the process the State requires to be followed in applying for assistance, if the State has selected the program for review. 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards applies to this program. Application requirements are found in 24 CFR Section 570.704. Upon approval of an application, HUD will issue to the applicant an offer of commitment to guarantee notes or other obligations issued by the applicant or its public agency designee. The commitment will be subject to compliance with applicable requirements and such conditions as HUD may specify in the commitment document. Furthermore, borrowers are required to pledge current and future CDBG funds as security for the loan guarantee. HUD also requires that the loan guarantee be secured with other collateral. Beginning in FY 2016, borrowers are required to pay a fee based on a percentage of loan disbursements (2% in FY 2020). The fee is applied only at the time of loan disbursement and may be financed as part of the guaranteed loan. Not applicable. From 30 to 60 days. Approximately 45 days from submission of complete application to appropriate HUD Field Office and Program Office. Not applicable. Not applicable. Applications are reviewed against criteria set forth at 24 CFR 570.704. For purposes of determining eligibility, the Community Development Block Grant (CDBG) rules and requirements apply. As with the CDBG program, all projects and activities must either principally benefit low- and moderate-income persons, aid in the elimination or prevention of slums and blight, or meet urgent needs of the community. Performance Reports: Monitoring is conducted through on-site visits by HUD staff. Recipients are selected for monitoring through a risk-based analysis. Each recipient's annual CAPER is reviewed by HUD staff. HUD does not mandate audit procedures, other than those specified in 2 CFR 200, Subpart F. The record keeping requirements of Subpart J of 24 CFR Part 570 apply to entitlement public entities receiving grants under Subpart D of 24 CFR Part 570. The record keeping requirements of Subpart J of 24 CFR Part 570 apply to nonentitlement public entities receiving grants under Subpart F of 24 CFR Part 570. The record keeping requirements of Subpart I of 24 CFR Part 570 apply to State-assisted public entities. Statutory formula is not applicable to this assistance listing.

Matching requirements are not applicable to this assistance listing.

MOE requirements are not applicable to this assistance listing. The maximum repayment period for a Section 108 loan is twenty years. Repayment schedules and terms are negotiable. Restriction on time permitted to spend guaranteed loan funds is specified in contract executed by HUD and the borrower. Loans funds are advanced under promissory notes or other obligations guaranteed by HUD. Contact appropriate Community Planning and Development staff in the HUD Field Office listed in HUD's Website: https://www.hud.gov/program_offices/field_policy_mgt/localoffices Paul D. Webster
451 7th Street, SW Room 7282
Washington, DC 20410 US
paul.webster@hud.gov
Phone: (202) 402-4563
Fax: (202) 708-1798

Seema M. Thomas
451 7th Street, SW Room 7282
Washington, DC 20410 USA
seema.m.thomas@hud.gov
Phone: (202) 402-6266
Fax: (202) 708-1798 https://www.hud.gov/program_offices/comm_planning/section108 86-4096-0-1-451 (Guaranteed/Insured Loans) FY 22$171,293,000.00; FY 23 est $300,000,000.00; FY 24 est $400,000,000.00; FY 21$91,905,000.00; FY 20$38,654,000.00; FY 19$63,146,000.00; FY 18$58,600,000.00; FY 17 est $250,000,000.00; FY 16$85,003,000.00; - In FY 2022, commitments were issued in amounts ranging from $500,000 to $38,500,000. The average commitment amount was $10,076,000. 24 CFR 570 Subpart M. Not applicable.