Governor Hogan Announces $200 Million Affordable Housing Package to Address Rising Costs
New Tools and Programs Will Create More Than 6,000 Additional Affordable Units Statewide
ANNAPOLIS, MD (April 27, 2022) — Governor Larry Hogan today announced that more than $200 million in financing 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 financing and tax credits to create or preserve more than 22,000 affordable rental units across the state—a level of production never before seen in the State of Maryland,” said Governor Larry Hogan. “To continue to build on these accomplishments, we are meeting the challenges created during the pandemic head on with a responsive set of tools to address shortfalls and create new housing opportunities.”
To address the shortfalls for affordable housing projects, the administration is announcing the following updates and new programs:
- Increasing the Rental Housing Financing Program funds available for the 2022 competitive application round, which will be announced later this year.
- Increasing the amount of Rental Housing Works financing available for ongoing projects that have yet to close financing.
- Establishing the Construction Relief Fund to provide additional financing for previously funded 4% Low Income Housing Tax Credit (LIHTC) and Multifamily Bond projects that are experiencing cost shortfalls.
- Establishing the Development Relief Fund for projects that previously received a 9% LIHTC award.
- Establishing the Multifamily Capital Fund which will provide additional financing in FY23 for projects related to the State of Maryland’s economic growth and development activities and initiatives.
- Establishing the Emerging Developer Pre-Development Loan Fund to support projects by newer developers working with historically undercapitalized communities.
“Even though COVID-19 has impacted our efforts to respond to an ongoing shortage of affordable housing, affecting supply chains, construction costs, interest rates, and labor, our department has worked with its development partners to find solutions,” said Secretary Kenneth C. Holt. “With the new initiatives announced today, we are working to ensure the state has a successful economic recovery that includes new affordable housing opportunities for Marylanders.”
Additional details on these program updates can be found at Multifamily 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. Visitors to the site can also view information about future leasing opportunities for projects that are currently under construction.
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