Section 108 Program
Overview
Section 108 enables states and local governments participating in the Community Development Block Grant (CDBG) program to obtain federally guaranteed loans to fund large economic development projects and undertake revitalization activities. Under Pennsylvania’s initiative to use Section 108 the loans are guaranteed by the Commonwealth, committing the use of future CDBG funds to pay off the loan in case of default.
Uses
- Acquisition
- Rehabilitation
- Relocation
- Clearance
- Site preparation
- Special economic development activities
- Certain public facilities
- Housing construction
Eligibility
- Loan Guarantees as security for federal loans
- Local governments that are not designated by HUD as urban counties or entitlement municipalities
Funding
Varies
Purpose of Funding
- Community Development
- Infrastructure
- Land & Building
- Housing
Terms
Refer to program guidelines