Federal Register #FR-6561-N-03

HUD announces updated fee for Section 108 Loan Guarantee Program for FY 2027

HUD has announced an updated fee for the Section 108 Loan Guarantee Program for Fiscal Year 2027. - Government Buyer: - U.S. Department of Housing and Urban Development (HUD) - Office of the Assistant Secretary for Community Planning and Development - No OEMs or vendors are involved, as this is a financial notice rather than a procurement opportunity. - Products/Services Requested: - No products or services are being requested; the notice pertains to a fee adjustment for loan guarantees. - Notable Requirements: - The fee for borrowers under the Section 108 Loan Guarantee Program will increase from 0.58% to 1.05%. - The fee is intended to offset credit subsidy costs associated with guaranteed loans. - The fee is collected at the time of loan disbursement. - The announcement includes statutory and regulatory details, calculation methodology, and the purpose of the fee. - No purchase quantities, part numbers, or procurement-specific requirements are provided.

Description

This document announces the fee that HUD will collect from borrowers of loans guaranteed under HUD's Section 108 Loan Guarantee Program to offset the credit subsidy costs of the guaranteed loans pursuant to commitments awarded in Fiscal Year 2027. The fee is changing from 0.58% in FY 2026 to 1.05% in FY 2027. The fee will be applied at the time of loan disbursements and is intended to offset the expected cost to the Federal Government due to default, financing costs, and other relevant factors. The announcement is effective October 28, 2026.

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