More than 2,100 affordable units to be created or preserved, a new record for a single application round
NEW CARROLLTON, MD (January 27, 2021) - The Hogan administration today announced the results of the Maryland Department of Housing and Community Development's 2020 application round for federal Low Income Housing Tax Credits and state Rental Housing Funds. Nearly $40 million in state funds and federal tax credits have been awarded to 18 projects, which will result in the creation or preservation of 2,144 high quality, energy-efficient, affordable rental units. This is the largest number of units financed through one application round in the history of the program in Maryland, surpassing the previous record of 1,837 units financed in 2019.
"During our administration, the State of Maryland has provided financing and tax credits to create or preserve more than 20,000 affordable rental units across the state - an unprecedented level of production," said Governor Larry Hogan. "The worthy projects selected in this year's record-breaking application round will further expand affordable housing opportunities for Maryland's working families, seniors, and individuals with disabilities."
Awards are determined through competitive application rounds held annually by the department. The department received 51 applications, the largest number of applications in a single round. These applications requested approximately $40 million in state Rental Housing Funds and $72.5 million in federal Low Income Housing Tax Credits. The department will administer tax credits valued at $26,671,000 and $12,533,000 in state Rental Housing Funds to 18 projects with a total estimated cost of more than $1 billion. The 18 awarded projects are distributed between 8 counties and Baltimore City.
This was the first competitive application round managed by the department using the new version of the Qualified Allocation Plan for low income housing tax credits and Multifamily Rental Financing Program Guide, which were revised in 2019 and signed by Governor Hogan in early 2020. Department staff worked closely with multifamily housing developers and advocates on these revisions which significantly contributed to the record-breaking amount of applications received and units financed.
For the second year, some projects used a unique "twinning" financial structure, combining the competitive 9% Low Income Housing Tax Credits with noncompetitive 4% tax credits issued by the department. Twelve of the 18 awarded projects used this model.
"With every dollar the State of Maryland spends on these projects, we see it returned several times over in positive economic impact in our state," said Secretary Kenneth C. Holt. "In addition to providing housing opportunities to Marylanders, affordable rental housing development also creates construction, financing, engineering, and design jobs, and it will be a key contributor to Governor Hogan's economic recovery plan."