More Affordable Housing Coming To Maryland In 2023

Governor Hogan Announces $200 Million Affordable Housing Package to Address Rising Costs

  This spring and summer developers will have the chance to get in on the action of providing 6,000 additional affordable housing units to Maryland residents. The new residences will be allocated in the state of Maryland through financing tools and new programs. This project is made available through the $200 million affordable housing package recently announced by the Hogan Administration and The Maryland Department of Housing and Community Development (DHCD).

Although officials could not specify the number of units coming to Prince George’s County, they report that more than 22,000 of affordable units statewide have been available during Hogan's administration, including over 2,000 units in Prince George’s County, MD.

 “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.”

While it typically takes 9-24 months for financing to close on these projects and for construction to be completed, the end results will 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.