The fee that HUD will collect from borrowers for Section 108 loan guarantee commitments made in FY 2020 will go into effect on October 1, 2019. Federal Register Notice FR–6167–N–01: Section 108 Loan Guarantee Program: Announcement of Fee To Cover Credit Subsidy Costs for FY 2020 sets the fee for Section 108 loan disbursements under loan guarantee commitments awarded for FY 2020 at 2.00 percent of the principal amount of the loan. Borrowers may pay the fee with Section 108 loan proceeds, CDBG funds, or other sources.

Please reach out to the Section 108 team with questions at Section108@hud.gov and visit the Section 108 Loan Guarantee Program page on the HUD Exchange for resources on how to apply.