In Toledo, Ohio, the city established a $37 million loan pool to provide financing for housing rehabilitation, real property acquisition, and economic development. In Oakland, California, a $34 million loan pool supports developers operating in historically underinvested neighborhoods.
Both cities tapped into HUD’s Section 108 loan guarantee program, which provides communities of all sizes with low-cost, long-term, fixed-rate financing to support a wide range of housing, economic and community development projects.
Increasingly, access to flexible financing is a critical need for jurisdictions looking to drive economic growth and revitalize communities. Enterprise Advisor’s new Section 108 Implementation Guide, Leveraging HUD’s Section 108 Loan Guarantee Program for Equitable Development — funded by the Robert Wood Johnson Foundation — is a comprehensive resource designed to help local governments utilize HUD’s Section 108 Loan Guarantee Program to finance transformative projects.
The Section 108 program, which allows states, counties, and cities to borrow up to five times their annual CDBG allocation, remains largely underused, with more than half of eligible jurisdictions yet to access their Section 108 Loan Authority. By providing communities with the knowledge and resources needed to navigate this program, we aim to empower more communities to unlock opportunities for equitable growth and development.
How our Guide can help:
For local governments looking to finance catalytic projects, our Section 108 Implementation Guide serves as a roadmap for success, providing:
- Overview of the program’s structure, eligibility requirements, and application process
- Benchmarks to help grantees assess their readiness to apply
- Strategies for building internal and external capacity to support a Section 108 loan pool
- Best practices for establishing a strategy-driven Section 108 loan pool
- Guidance on creating an effective delivery system for a Section 108 loan pool
- Approaches for leveraging 108 with other common sources of funding
The Guide also showcases successful projects across the country to illustrate how communities are using Section 108 to achieve their development goals.
Cities Leading the Way with Section 108
With funding from the Robert Wood Johnson Foundation, Enterprise Advisors is providing technical support to a cohort of cities, helping them access Section 108 financing and deploy it for transformational projects. We highlight two cities that are effectively using Section 108 to drive impactful development projects.
Toledo, Ohio
Toledo, Ohio used Section 108 funding to establish a $37 million loan pool — launched in 2022 — to provide financing for projects that focus on housing rehabilitation, real property acquisition, economic development, and public facilities. While the loan pool is available citywide to eligible borrowers, the city prioritizes projects that support investments in communities of color or those led by BIPOC developers, businesses, or organizations. The city is also prioritizing the renovation of public facilities across the city, including senior centers and community centers.
Oakland, California
Launched in late 2023, Oakland’s $34 million Section 108 Loan Pool supports developers operating in historically under resourced neighborhoods. The city is proposing to use approximately $9 million in Section 108 funds to support the acquisition of a multi-family building with 81 affordable units in Oakland’s Fruitvale District by The Unity Council – a non-profit social equity development enterprise with a more than 60-year legacy in Fruitvale that is planning to preserve 80 units as affordable rental housing.
“Oakland Housing and Community Development Department (HCD) is grateful for the technical assistance provided by Enterprise to utilize the City’s Section 108 Loan Pool for deeply needed affordable housing units,” said Emily Weinstein, Director of HCD. “The HCD/Enterprise partnership is instrumental to understanding, accessing, and ultimately spending these funds.”
Ready to explore how Section 108 can support your city’s development goals? Download our guide and take the next step toward transformative community development.
For additional insights on how to access and leverage Section 108 financing please contact Advisors at [email protected].
