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

Request for Information
Title: Section 108 Loan Guarantee Program - Affordable Housing &
Economic Development Opportunities
Number: Request for Information (RFI) 274-HCD-FY27-01
Issue Date: August 4, 2026
Due Date: September 4, 2026, no later than 5:00PM EDT
**LATE RESPONSES WILL NOT BE ACCEPTED**
Issuing Department: Housing and Community Development
Direct all inquiries concerning this RFI to:
William Hartye, Senior Planner
Email: ComplianceandPlanningUnit@raleighnc.gov

R equest for Information (RFI) 274-HCD-FY27-01
This is a Request for Information (RFI) only and will not lead to a
contractual relationship between a vendor or vendors and the City
of Raleigh. It is anticipated that information received in response
to this RFI will be used to develop appropriate documentation in
support of future procurement processes.
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R equest for Information (RFI) 274-HCD-FY27-01
Table of Contents
1. BACKGROUND ..........................................................................4
2. GENERAL INFORMATION.......................................................6
3. INSTRUCTIONS ........................................................................7
4. PROJECT SCOPE ........................................................................8
5. PRELIMINARY FINANCING INFORMATION ....................10
6. SUBMITTAL REQUIREMENTS .............................................12
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R equest for Information (RFI) 274-HCD-FY27-01
1. BACKGROUND
Raleigh, the capital of North Carolina, is one of the nation's fastest-growing
areas, known for its strong economy, top-tier educational institutions, and
excellent healthcare. Its mild climate, diverse work force and proximity to
Research Triangle Park make Raleigh a great place to live.
As a 21st-century City of Innovation, the City of Raleigh (City) prioritizes
environmental, cultural, and economic sustainability. The City implements
best practices in conservation, land use, and infrastructure to protect
natural resources. The City embraces growth and diversity through policies
that preserve neighborhoods, natural spaces, and cultural heritage for future
generations. The City collaborates with universities, citizens, and local
partners to foster technological innovation, create jobs, and support local
businesses. Committed to transparency and excellence, the City equips its
staff with the skills needed to carry out the duties of the City through
transparent civic engagement and by providing the very best customer
service to our community.
The City of Raleigh's Housing and Community Development Department
administers federal housing and community development programs that
support affordable housing, neighborhood revitalization, homelessness
prevention, public infrastructure, and economic development initiatives
throughout the community. Through implementation of the City's
Consolidated Plan and Affordable Housing Plan, the Department works to
expand access to affordable housing opportunities, preserve existing
housing stock, support vulnerable populations, and encourage strategic
reinvestment in areas experiencing growth and change.
To support these goals, the City of Raleigh ("City") has secured
approximately $14.2 million in financing authority through the U.S.
Department of Housing and Urban Development (HUD) Section 108 Loan
Guarantee Program.
The Section 108 Loan Guarantee Program allows local governments to
leverage Community Development Block Grant (CDBG) funding into
larger-scale financing opportunities for eligible affordable housing,
economic development, public infrastructure, mixed-use redevelopment,
and community revitalization projects.
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R equest for Information (RFI) 274-HCD-FY27-01
The City is currently evaluating opportunities to support catalytic projects
that advance affordable housing production, neighborhood revitalization,
economic development, and broader community development priorities.
Through this Request for Information (RFI), the City seeks to gauge
market interest, identify potential eligible projects, better understand
financing needs and development barriers, support pipeline development,
and inform ongoing program operationalization and underwriting
considerations. Additional program information is included in the attached
Affordable Housing and Economic Development Section 108 Program
One-Pagers.
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R equest for Information (RFI) 274-HCD-FY27-01
2. GENERAL INFORMATION
2.1 Responses to this RFI are for informational and planning purposes only and
do not constitute an application for funding, a funding commitment, or a
contractual relationship between respondents and the City. Information
received through this RFI may be used by the City to evaluate potential
project opportunities, inform future program structure and underwriting
considerations, assess market demand, support pipeline development efforts,
and guide potential future financing or procurement activities related to the
Section 108 Loan Guarantee Program.
2.2 All materials submitted to the City are subject to the public records laws of
the State of North Carolina and it is the responsibility of the respondent to
properly designate materials that may be protected from disclosure as trade
secrets under North Carolina law as such and in the form required by law.
The respondent understands and agrees that the City may take any and all
actions necessary to comply with federal, state, and local laws and/or judicial
orders and such actions will not constitute a breach of the terms of this RFI.
2.3 Respondents are solely responsible for any costs associated with responding
to the RFI. The City is under no obligation to the respondents regarding the
outcome of this RFI.
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R equest for Information (RFI) 274-HCD-FY27-01
3. INSTRUCTIONS
3.1 Respondents should, at a minimum, address the items listed in Section 6,
Submittal Requirements of the RFI. Information should be provided in the
same relative order as requested in the RFI for consistency and continuity.
Responses should be as detailed as possible. Respondents may provide
supplemental information in addition to those items requested.
3.2 Please submit responses according to the instructions specified below.
The response should be submitted via email to the following email address
by September 4, 2026, no later than 5:00PM EDT:
ComplianceandPlanningUnit@raleighnc.gov.
Questions regarding this RFI must be submitted via email to
ComplianceandPlanningUnit@raleighnc.gov no later than 5:00 PM EDT on
August 17, 2026.
Late responses will not be accepted. The respondent's name/company name
and RFI number must be included on the subject line of the email.
The response should be a single document in a PDF format, attached to the
email. Zip files are not acceptable, and the City will not accept hard copies.
The City will confirm your submission via an email response with
'Confirmed Receipt' in the subject line of the email.
3.3 All inquiries concerning this RFI shall be directed to William Hartye at
ComplianceandPlanningUnit@raleighnc.gov. The Respondents shall make
no other contact, either written or verbal, with any City employee, staff
member, or Council members regarding this RFI.
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4. PROJECT SCOPE
4.1 The purpose of this RFI is to identify potential affordable housing, economic
development, mixed-use redevelopment, and community revitalization
projects that may be eligible for financing assistance through the U.S.
Department of Housing and Urban Development (HUD) Section 108 Loan
Guarantee Program.
Through this RFI, the City seeks to better understand potential project
opportunities, financing needs, market interest, and development barriers
while supporting ongoing program operationalization, underwriting
considerations, and project pipeline development activities.
4.2 The City seeks information from developers, nonprofit organizations,
businesses, public-private partnerships, and other interested entities
regarding projects that may align with the goals of the Section 108
Program and the City's broader housing and community development
priorities.
Potential project types may include, but are not limited to:
* Eligible Affordable housing development
* Affordable 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
* Community development and revitalization activities
* Other eligible Section 108 activities
Projects involving affordable housing, mixed-use redevelopment, economic
development, infrastructure improvements, and neighborhood revitalization
activities are encouraged to respond.
4.3 The City intends to use information gathered through this RFI to support
Section 108 project pipeline development, evaluate potential project
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R equest for Information (RFI) 274-HCD-FY27-01
opportunities, better understand financing needs and market demand, inform
ongoing underwriting and program operationalization considerations, and
help guide potential future Section 108 financing activities.
Submission of a response to this RFI does not constitute a funding
commitment or guarantee of future financing assistance from the City.
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R equest for Information (RFI) 274-HCD-FY27-01
5. PRELIMINARY FINANCING INFORMATION
5.1 Potential Section 108 financing structures may include:
* Long-term financing opportunities
* Flexible financing structures
* Gap financing
* Potential subordinate financing
* Construction and/or permanent financing structures
* Acquisition financing
* Infrastructure-related financing
* Loan terms of up to twenty (20) years, subject to underwriting and HUD
requirements
Current interim financing rates under HUD's Interim Financing Facility are
generally based on the 3-Month Treasury Bill rate plus approximately
0.35%. The City's approved application currently contemplates lending at
approximately 1% above the HUD borrowing rate.
Section 108 financing may initially utilize variable-rate interim financing
structures prior to potential conversion to fixed-rate obligations through
HUD-sponsored public offerings.
HUD generally considers combined loan-to-value (LTV) ratios of up to
approximately 80% acceptable for real property collateral, subject to
underwriting review and project-specific considerations.
Final financing terms, underwriting standards, collateral requirements,
repayment structures, guarantees, and project eligibility determinations will
be established on a project-by-project basis and remain subject to City and
HUD review and approval requirements.
5.2 Projects utilizing Section 108 financing may be subject to applicable federal
requirements, including but not limited to:
* Environmental Review
* Davis-Bacon and Related Acts
* Section 3
* Uniform Relocation Assistance (URA)
* Build America, Buy America (where applicable)
* Applicable HUD underwriting and public benefit requirements
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