CDBG funding transforms communities, but we know it isn’t enough to address all of your community’s housing needs. Multiply your CDBG grant power by accessing a Section 108 Loan Guarantee to develop a housing fund or invest in a transformational project. Borrow up to 5 times your CDBG allocation in flexible, low-cost, low-interest financing.
HUD is offering new flexibilities for up to $250 million of our $400 million loan guarantee authority for affordable housing projects. You can use this capital for:
- Infrastructure to support housing production such as utility installation or upgrades
- Adaptive reuse, including converting unused office space and other commercial space into housing
- Preservation, rehabilitation, and repairs of existing units
- Manufactured housing, including facilities to build new homes
- Eligible housing uses within mixed-use or transit-oriented development
- Revolving loan pool to support local housing development
- Other eligible housing activities
With this Legacy Challenge, you can easily apply for Section 108 for your legacy project. From ideation to implementation, HUD is offering additional flexibilities and assistance to communities who express interest in maximizing their CDBG grant to advance local housing goals. Flexibilities and resources include:
- Waivers to streamline and ease program requirements
- Access to flexible capital/financing
- Certain repayment flexibilities (more information coming soon)
- Unlimited targeted 1-on-1 support and guidance
- New resources and step-by-step guides for faster approval
HUD is here to partner with you. For more information, contact Section108@hud.gov. A one-pager on the Legacy Challenge is available here.
August 29, 2024: Overview Webinar Series
- Registration link here: https://events.gcc.teams.microsoft.com/event/3b7f6e63-f63b-46cf-a96f-736a368ed3ce@615524c5-22e9-4bcd-a893-1180a53fc7b2
August – September: Office Hours
- Interested in attending? Email Section108@hud.gov to schedule a session!
November 1, 2024: Deadline to Express Interest in Joining the Legacy Challenge
May 1, 2025: Deadline to Post proposed Application for Public Feedback
- Applications are processed on a rolling basis as they are received (first come, first served).
- Applicants are encouraged to submit their proposed applications for feedback ahead of formal submission.
July 1, 2025: Deadline to Submit Final Application to HUD
We know Section 108 works, because we’ve seen it. Learn more about transformative legacy projects below:
Crosstown Concourse, Memphis, TN
How Section 108 enabled conversion of a 100-year-old Sears distribution facility into a vertical village.
Faxon School Apartments, Kansas City, MO
How Section 108 enabled the rehabilitation of a historic school building to provide stable senior housing.Hotel Grim Lofts Project, Texarkana, TX
How Section 108 paired with other federal funds enabled the adaptive reuse of a historic hotel.
Northside Commons Project, Spartanburg, SC
How Section 108 enabled the new construction of a mixed-use project.Aurora Arts Center, Aurora, IL
How Section 108 enabled the transformation of two historic buildings into a mixed-use development.
What Will Be Your Legacy?
Content current as of August 13, 2024.