Draft 2026 Plan for Affordable Housing Development in Maryland Set To Guide More Than $300 Million Worth of Critically Needed Housing
Maryland Department of Housing and Community Development emphasize project readiness and community amenities through Housing Starts Now and Lovable Places incentives
NEW CARROLLTON, MD (January 15, 2026) – The Maryland Department of Housing and Community Development today released a draft plan for allocating funding and federal tax credits to develop affordable housing projects in 2026. As drafted, the Qualified Allocation Plan would guide more than $300 million worth of investments in housing development through two application periods in 2026 by incentivizing project readiness and community amenities, increasing the federal tax credit amount per project, expanding the loan products offered, and placing greater emphasis on mixed-income housing.
“Marylanders are facing high housing costs, and the Moore-Miller Administration is using every available tool to address the nearly 100,000 unit housing shortage driving rent and home prices higher,” said Jake Day, Secretary of the Maryland Department of Housing and Community Development. “The draft Qualified Allocation Plan demonstrates the Administration’s commitment to build more homes faster, so relief reaches Maryland families sooner.”
The Department’s Community Development Administration has added a Housing Starts Now incentive that would provide more points on applications for developments that are ready to break ground – having already secured all necessary government approvals. Additionally, new Lovable Places criteria expands on existing incentives for project amenities to award more points to projects incorporating childcare facilities, libraries, or retail space for fresh food.
“The draft 2026 Qualified Allocation Plan represents the Department’s most expansive update in its history, offering additional tools for our partners to better serve Marylanders,” said Greg Hare, Assistant Secretary of the Department’s Community Development Administration. “These changes ensure housing projects that are selected are ready to break ground, maximize a site’s development potential, and offer residents amenities that support residents’ everyday needs.”
The Department will also increase the competitive Low Income Housing Tax Credit award limit amount per project to $2 million – with $30,000 provided per unit up to $1.5 million, or $25,000 per unit up to $2 million. Additionally, through an expansion of loan products, the Department can offer financing with lower interest rates, greater flexibility in operating expense limits, and cash flow splits to meet the needs of a broader range of transactions and organizational demands.
Public comment on the draft begins today and will end on Monday, February 16, 2026. Public comments can be sent to [email protected]. Listening sessions on the draft Qualified Allocation Plan will be held on:
- Tuesday, February 3rd at 10 AM
- Wednesday, February 4th at 12 PM
- Video call link: meet.google.com/mhn-zeic-dpa
- Or dial: (US) +1 843-779-9672 PIN: 511 027 150#
- Thursday, February 5th at 6 PM
- Video call link: meet.google.com/ign-cbkz-kym
- Or dial: (US) +1 614-881-0057 PIN: 396 939 869#
Following the listening sessions, the Department will incorporate feedback into the plan and publish a final draft. Upon the Governor’s approval of the plan, the documents will be updated with the approval date and re-posted to the Department’s website.
The Department anticipates the application round will open in late spring or summer for affordable housing developers to apply for 9% Low-Income Housing Tax Credits. The Department will also open a second application round later in the year.
Questions or feedback on the document should be sent to [email protected]. Stay informed about affordable housing news in Maryland by signing up for updates from the Department at dhcd.maryland.gov/subscribe.