New tools and programs will create more than 6,000
Affordable Units Statewide
Annapolis, MD—Governor Larry Hogan today announced that more than $200 million in funding tools and new programs will be made available to create new affordable housing opportunities in the state. The Maryland Department of Housing and Community Development (DHCD) will administer the funds to produce more than 6,000 additional units statewide amid rising construction costs and interest rates.
“During our administration, we have provided funding and tax credits to create or preserve more than 22,000 affordable rental housing units across the state, a level of production never seen before in the State of Maryland,” said Gov. Larry Hogan. “To continue to build on these achievements, we are addressing the challenges created during the pandemic with a responsive set of tools to fill gaps and create new housing opportunities.”
To address the gaps in affordable housing projects, the administration is announcing the following updates and new programs:
- Increase the Rental Housing Financing Program funds available for the 2022 competitive application cycle, to be announced later this year.
- Increase the amount of rental housing work funding available for ongoing projects that have not yet closed funding.
- Creation of the Building Assistance Fund to provide additional funding to previously funded 4% Low Income Housing Tax Credit (LIHTC) and Multi-Family Bond projects that are experiencing cost shortfalls.
- Creation of the Development Assistance Fund for projects that had previously received a 9% LIHTC award.
- Established the Multifamily Capital Fund which will provide additional funding in FY23 for projects related to economic growth and the State of Maryland’s development activities and initiatives.
- Creation of the Pre-Development Loan Fund for Emerging Developers to support projects by new developers working with historically under-capitalized communities.
“While COVID-19 has impacted our efforts to address an ongoing shortage of affordable housing, affecting supply chains, construction costs, interest rates and labor, our department worked with its development partners to find solutions,” said Secretary Kenneth C. Holt. “With the new initiatives announced today, we are working to secure the state a successful economic recovery that includes new affordable housing opportunities for Marylanders.”
Additional details on these program updates are available at Multi-Family Notice 22-10.
Marylanders looking to access affordable rental housing can Search and find current Maryland listings with accessibility features, amenities, affordability, and more at MDHousingSearch.org. Site visitors can also view information on future rental opportunities for projects currently under construction.