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

The City of Raleigh Housing and Community Development Department is issuing a Request for Information on the Section 108 Loan Guarantee Program to assess market interest in affordable housing production, neighborhood revitalization, and economic development projects, with responses due September 4, 2026 by 5:00 p.m. EDT. This is an informational solicitation only and does not constitute a funding commitment or contractual relationship.

The City has secured approximately $14.2 million in financing authority through the HUD Section 108 Loan Guarantee Program, which leverages Community Development Block Grant funding into larger-scale financing. Eligible project types include affordable housing development, 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, and community development activities. Respondents may include developers, nonprofit organizations, businesses, and public-private partnerships.

Financing structures available through the program include long-term financing, flexible structures, gap financing, subordinate financing, and construction/permanent financing arrangements with loan terms of up to twenty years. Current interim financing rates are based on the 3-Month Treasury Bill rate plus approximately 0.35%, with the City approved to lend at approximately 1% above the HUD borrowing rate. HUD generally considers combined loan-to-value ratios of up to approximately 80% acceptable for real property collateral, subject to underwriting review. Projects are subject to applicable federal requirements including environmental review, Davis-Bacon and Related Acts, Section 3 compliance, Uniform Relocation Assistance, and Build America, Buy America provisions where applicable.

Questions are due August 17, 2026. Responses should be submitted via email to ComplianceandPlanningUnit@raleighnc.gov. All submitted materials are subject to North Carolina public records laws, and respondents bear all costs associated with responding to the RFI.