More Than $29 Million Allocated to Maryland for Affordable Housing and Homelessness Prevention

Maryland Department of Housing and Community Development (DHCD) Secretary Jake Day announced today that the department has been entrusted with nearly $24 million in federal funding to facilitate the creation of numerous affordable housing units across the state. The U.S. Department of Housing and Urban Development (HUD) has approved Maryland's plan to administer $23,971,599 in HOME Investment Partnerships American Rescue Plan Program (HOME-ARP) funding, which was allocated through the American Rescue Plan Act of 2021. This legislation set aside $5 billion nationwide to address the housing, service, and shelter needs of individuals experiencing homelessness and other vulnerable populations. In addition, Maryland has received over $5.4 million from HUD's annual allocation of the national Housing Trust Fund, specifically designated for the production of affordable housing.

Secretary Day expressed his commitment to ensuring that all Marylanders have access to secure and stable shelter, emphasizing the importance of increasing the supply of affordable housing in order to combat chronic homelessness. He acknowledged the support of Maryland's congressional delegation and HUD, as well as the valuable contributions of local organizations and stakeholders who participated in the development of the approved allocation plan.

In accordance with program requirements, the HOME-ARP funds will primarily benefit homeless individuals, those at risk of homelessness, and other vulnerable populations. DHCD engaged with over 100 stakeholders, including Continuums of Care, homeless service providers, veterans' services groups, public housing agencies, nonprofits, and organizations focused on fair housing, civil rights, and the needs of individuals with disabilities. Through extensive consultations, listening sessions, public hearings, and an online survey, DHCD gathered input and insights to shape Maryland's HOME-ARP plan. It is estimated that this funding will support approximately 12 projects throughout the state, leveraging various financing sources such as Low Income Housing Tax Credits, state Rental Housing Funds, Housing Trust Funds, and others. These projects are expected to result in the creation of approximately 70 affordable housing units.

The Housing Trust Fund, another funding component, grants resources to states and state-designated entities with the aim of creating and preserving affordable housing for households classified by HUD as extremely low- or very low-income. Each state must allocate a minimum of 80 percent of the grant for rental housing, up to 10 percent for homeownership, and up to 10 percent for administration and planning. All rental units that receive assistance from the Housing Trust Fund must be dedicated as affordable units for a period of 30 years.

For further information on Maryland's affordable rental housing resources, individuals can visit: https://dhcd.maryland.gov/HousingDevelopment.