Section 108 Loan Guarantee Program: Announcement of Fee To Cover Credit Subsidy Costs for FY 2027
What happened
The Department of Housing and Urban Development (HUD) announced a fee change for its Section 108 Loan Guarantee Program. This fee, signed by Donald Trump, will increase from 0.58 percent in Fiscal Year 2026 to 1.05 percent in Fiscal Year 2027. The higher fee will be collected from borrowers to offset credit subsidy costs for guaranteed loans committed in FY 2027, if authorized by statute, and is applicable starting October 28, 2026.
Why it matters
This increase means that borrowers utilizing HUD's Section 108 Loan Guarantee Program will pay more for loan commitments awarded in FY 2027. The fee helps cover the federal government's potential costs associated with guaranteeing these loans, ensuring the program remains self-sustaining under current statutory requirements.
Who it affects
- ›Borrowers of HUD Section 108 guaranteed loans
- ›Entities receiving loan commitments in FY 2027
- ›Communities using Section 108 funds
The receipts are official. The summary is ours.
Read on Federal Register ↗Summaries are generated from the official text and may simplify or omit nuance. The official document is the source of truth.