Section 108 RFI Final_Revised.pdf

Request for Information

Title: Section 108 Loan Guarantee Program – Affordable Housing & Economic Development Opportunities

Number: Request for Information (RFI) 274-HCD-FY27-01

Issue Date: August 4, 2026

Due Date: September 4, 2026, no later than 5:00PM EDT

**LATE RESPONSES WILL NOT BE ACCEPTED**

Issuing Department: Housing and Community Development

Direct all inquiries concerning this RFI to:

William Hartye, Senior Planner

Email: ComplianceandPlanningUnit@raleighnc.gov

Request for Information (RFI) 274-HCD-FY27-01

This is a Request for Information (RFI) only and will not lead to a contractual relationship between a vendor or vendors and the City of Raleigh. It is anticipated that information received in response to this RFI will be used to develop appropriate documentation in support of future procurement processes.

Table of Contents

1. BACKGROUND

2. GENERAL INFORMATION

3. INSTRUCTIONS

4. PROJECT SCOPE

5. PRELIMINARY FINANCING INFORMATION

6. SUBMITTAL REQUIREMENTS

1. BACKGROUND

Raleigh, the capital of North Carolina, is one of the nation's fastest-growing areas, known for its strong economy, top-tier educational institutions, and excellent healthcare. Its mild climate, diverse work force and proximity to Research Triangle Park make Raleigh a great place to live.

As a 21st-century City of Innovation, the City of Raleigh (City) prioritizes environmental, cultural, and economic sustainability. The City implements best practices in conservation, land use, and infrastructure to protect natural resources. The City embraces growth and diversity through policies that preserve neighborhoods, natural spaces, and cultural heritage for future generations. The City collaborates with universities, citizens, and local partners to foster technological innovation, create jobs, and support local businesses. Committed to transparency and excellence, the City equips its staff with the skills needed to carry out the duties of the City through transparent civic engagement and by providing the very best customer service to our community.

The City of Raleigh’s Housing and Community Development Department administers federal housing and community development programs that support affordable housing, neighborhood revitalization, homelessness prevention, public infrastructure, and economic development initiatives throughout the community. Through implementation of the City’s Consolidated Plan and Affordable Housing Plan, the Department works to expand access to affordable housing opportunities, preserve existing housing stock, support vulnerable populations, and encourage strategic reinvestment in areas experiencing growth and change.

To support these goals, the City of Raleigh (“City”) has secured approximately $14.2 million in financing authority through the U.S.

Department of Housing and Urban Development (HUD) Section 108 Loan Guarantee Program.

The Section 108 Loan Guarantee Program allows local governments to leverage Community Development Block Grant (CDBG) funding into larger-scale financing opportunities for eligible affordable housing, economic development, public infrastructure, mixed-use redevelopment, and community revitalization projects.

The City is currently evaluating opportunities to support catalytic projects that advance affordable housing production, neighborhood revitalization, economic development, and broader community development priorities.

Through this Request for Information (RFI), the City seeks to gauge market interest, identify potential eligible projects, better understand financing needs and development barriers, support pipeline development, and inform ongoing program operationalization and underwriting considerations. Additional program information is included in the attached Affordable Housing and Economic Development Section 108 Program One-Pagers.

2. GENERAL INFORMATION

2.1 Responses to this RFI are for informational and planning purposes only and do not constitute an application for funding, a funding commitment, or a contractual relationship between respondents and the City. Information received through this RFI may be used by the City to evaluate potential project opportunities, inform future program structure and underwriting considerations, assess market demand, support pipeline development efforts, and guide potential future financing or procurement activities related to the Section 108 Loan Guarantee Program.

2.2 All materials submitted to the City are subject to the public records laws of the State of North Carolina and it is the responsibility of the respondent to properly designate materials that may be protected from disclosure as trade secrets under North Carolina law as such and in the form required by law.

The respondent understands and agrees that the City may take any and all actions necessary to comply with federal, state, and local laws and/or judicial orders and such actions will not constitute a breach of the terms of this RFI.

2.3 Respondents are solely responsible for any costs associated with responding to the RFI. The City is under no obligation to the respondents regarding the outcome of this RFI.

3. INSTRUCTIONS

3.1 Respondents should, at a minimum, address the items listed in Section 6, Submittal Requirements of the RFI. Information should be provided in the same relative order as requested in the RFI for consistency and continuity.

Responses should be as detailed as possible. Respondents may provide supplemental information in addition to those items requested.

3.2 Please submit responses according to the instructions specified below.

The response should be submitted via email to the following email address by September 4, 2026, no later than 5:00PM EDT:

ComplianceandPlanningUnit@raleighnc.gov.

Questions regarding this RFI must be submitted via email to ComplianceandPlanningUnit@raleighnc.gov no later than 5:00 PM EDT on August 17, 2026.

Late responses will not be accepted. The respondent’s name/company name and RFI number must be included on the subject line of the email.

The response should be a single document in a PDF format, attached to the email. Zip files are not acceptable, and the City will not accept hard copies.

The City will confirm your submission via an email response with ‘Confirmed Receipt’ in the subject line of the email.

3.3 All inquiries concerning this RFI shall be directed to William Hartye at

ComplianceandPlanningUnit@raleighnc.gov. The Respondents shall make no other contact, either written or verbal, with any City employee, staff member, or Council members regarding this RFI.

4. PROJECT SCOPE

4.1 The purpose of this RFI is to identify potential affordable housing, economic development, mixed-use redevelopment, and community revitalization projects that may be eligible for financing assistance through the U.S.

Department of Housing and Urban Development (HUD) Section 108 Loan Guarantee Program.

Through this RFI, the City seeks to better understand potential project opportunities, financing needs, market interest, and development barriers while supporting ongoing program operationalization, underwriting considerations, and project pipeline development activities.

4.2 The City seeks information from developers, nonprofit organizations, businesses, public-private partnerships, and other interested entities regarding projects that may align with the goals of the Section 108 Program and the City’s broader housing and community development priorities.

Potential project types may include, but are not limited to:

• Eligible Affordable housing development

• Affordable housing preservation and rehabilitation

• Mixed-use development

• Commercial redevelopment

• Adaptive reuse

• Public infrastructure supporting redevelopment

• Corridor revitalization

• Site acquisition and preparation

• Neighborhood-serving commercial projects

• Community development and revitalization activities

• Other eligible Section 108 activities

Projects involving affordable housing, mixed-use redevelopment, economic development, infrastructure improvements, and neighborhood revitalization activities are encouraged to respond.

4.3 The City intends to use information gathered through this RFI to support

Section 108 project pipeline development, evaluate potential project opportunities, better understand financing needs and market demand, inform ongoing underwriting and program operationalization considerations, and help guide potential future Section 108 financing activities.

Submission of a response to this RFI does not constitute a funding commitment or guarantee of future financing assistance from the City.

5. PRELIMINARY FINANCING INFORMATION

5.1 Potential Section 108 financing structures may include:

• Long-term financing opportunities

• Flexible financing structures

• Gap financing

• Potential subordinate financing

• Construction and/or permanent financing structures

• Acquisition financing

• Infrastructure-related financing

• Loan terms of up to twenty (20) years, subject to underwriting and HUD requirements

Current interim financing rates under HUD’s Interim Financing Facility are generally based on the 3-Month Treasury Bill rate plus approximately 0.35%. The City’s approved application currently contemplates lending at approximately 1% above the HUD borrowing rate.

Section 108 financing may initially utilize variable-rate interim financing structures prior to potential conversion to fixed-rate obligations through HUD-sponsored public offerings.

HUD generally considers combined loan-to-value (LTV) ratios of up to approximately 80% acceptable for real property collateral, subject to underwriting review and project-specific considerations.

Final financing terms, underwriting standards, collateral requirements, repayment structures, guarantees, and project eligibility determinations will be established on a project-by-project basis and remain subject to City and HUD review and approval requirements.

5.2 Projects utilizing Section 108 financing may be subject to applicable federal requirements, including but not limited to:

• Environmental Review

• Davis-Bacon and Related Acts

• Section 3

• Uniform Relocation Assistance (URA)

• Build America, Buy America (where applicable)

• Applicable HUD underwriting and public benefit requirements

• Other applicable federal cross-cutting requirements

Additional preliminary financing and program information is included in the attached Affordable Housing and Economic Development Section 108 Program One-Pagers.

6 SUBMITTAL REQUIREMENTS

6.1 Responses should be prepared as simply and concisely as possible while providing sufficient detail to describe the respondent’s organization, proposed project, anticipated financing needs, and potential public benefit or community impact. Responses should be limited to pertinent information only. Marketing materials are discouraged unless directly relevant to the proposed project. All parts, pages, figures, and tables should be clearly labeled.

The City, at its discretion, may request additional information or clarification from respondents. Responses should generally be organized into the following sections.

6.2 Organization Background

Respondents should provide:

1. Organization name and primary contact information

2. Brief description of organization and organizational structure

3. Organization type (developer, nonprofit organization, business entity, public-private partnership, etc.)

4. Relevant development, financing, redevelopment, affordable housing, or community development experience

5. Examples of similar completed or active projects

6. Description of target population or community served, if applicable

7. Description of prior experience utilizing public financing, layered financing structures, tax credits, or other public-private financing tools, if applicable.

6.3 Proposed Project Information

Respondents should provide:

1. Project name and location

2. Brief project description

3. Proposed project type (affordable housing, economic development, mixed-use redevelopment, infrastructure, etc.)

4. Estimated total development/project cost

5. Estimated financing gap

6. Estimated Section 108 financing request

7. Anticipated use of Section 108 financing

8. Anticipated project timeline

9. Current project status and readiness

10. Other anticipated financing sources

11. Description of anticipated public benefit or community impact

12. If applicable, anticipated affordability levels, unit counts, or job creation/retention projections

6.4 Financing & Program Feedback

Respondents are encouraged to provide feedback regarding:

1. Financing barriers or gaps the project is currently facing

2. Financing terms or structures that would make Section 108 financing most useful

3. Potential benefits of flexible or subordinate financing structures

4. Program design considerations or financing tools the City should evaluate as it continues operationalizing the Section 108 Program.