Maryland Department of Housing and Community Development Announces $15 Million in Catalytic Revitalization Tax Credits Available
Program fills financing gaps for redevelopment of certain properties formerly owned by State or federal government
NEW CARROLLTON, Md. (August 21, 2024) – The Maryland Department of Housing and Community Development today announced the opening of the third application round of the Catalytic Revitalization Tax Credit (CRTC) program, which provides funding to rehabilitate eligible properties formerly owned by the State or federal governments, for the purposes of driving economic and community development.
“By supporting the adaptive reuse of properties that have often been sitting vacant for years or even decades, the Catalytic Revitalization Tax Credit program makes large redevelopment projects possible,” said Secretary Jake Day. “This program is an important tool in revitalizing communities and fostering economic growth across Maryland.”
CRTC is designed to fill financing gaps between the cost of rehabilitation and the market-rate value of the redeveloped property. An eligible project must be a formerly State or federally-owned college or university, K-12 school, hospital, mental health facility, or military facility or installation, and may no longer be in service. Proposed revitalization projects related to the rehabilitation of these government-owned properties must foster economic growth, job creation, affordable housing, or other community improvements and services.
Eligible applicants can apply for a 20% tax credit of total eligible project costs, capped at $15 million. Credits may be claimed each year for the first five years after the project has been put into service or spread among multiple completed phases.
The program was created in 2021 through Senate Bill 885 as a response to recommendations in a study conducted by the Maryland Department of Planning. During the 2024 Legislative Session, Senate Bill 394 was signed into law which accelerates the rate at which the credits may be disbursed to awardees and allows the Department to make multiple awards per year, capped at $15 million.
In 2021, the Department awarded the first round of tax credits to The Warfield Companies’ redevelopment of Warfield at Historic Sykesville in Carroll County. The second award was made in 2023 to Cascade Properties, LLC for redevelopment of Historic Fort Ritchie, a former military base located in Washington County.
Applications are due on Friday, October 11, 2024, at 5 p.m. For more information about the Catalytic Revitalization Tax Credit and to apply, visit dhcd.maryland.gov.
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