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HUD's section 108 Program is the loan guarantee provision of the Community Development Block Grant (CDBG) program and authorized by section 108 of the Housing and Community Development Act of 1974 (42 U.S.C. 5308). The section 108 Program provides local governments with access to long-term (up to 20 year) fixed-rate loans at relatively low interest rates to finance certain categories of eligible CDBG projects. Consistent with the President's budget request for Fiscal Year 2014, this proposed rule would amend the regulations for the section 108 Program to permit HUD to collect fees from section 108 borrowers to cover the credit subsidy costs of operating the program. This rule also proposes to establish the procedure by which HUD will determine the amount of the fee.