Maryland Housing Department Sees Credit Rating Boost, Promising More Affordable Housing

The Maryland Department of Housing and Community Development (DHCD) has received a significant upgrade to its credit rating from Moody’s Investor Service, a leading financial assessment firm. This elevation in standing specifically applies to the Community Development Administration’s (CDA) Housing Revenue Bonds, marking a positive development that could lead to increased affordability and creation of housing for Maryland residents.

Moody’s Investor Service has raised the rating for CDA’s Housing Revenue Bonds from Aa2 to Aa1, signifying improved financial health and reduced risk for investors. Additionally, the agency affirmed a superior credit quality rating of VMIG 1 for all outstanding short-term debt. This upgraded rating underscores the CDA’s robust financial performance and its commitment to responsible fiscal management in its mission to expand affordable housing options across the state. The Housing Revenue Bonds program, established by the DHCD, is instrumental in funding the construction and permanent financing of rental housing developments designed for individuals and families with limited incomes throughout Maryland.

In conjunction with the overall rating upgrade, Moody’s also assigned a Aa1 rating to a new bond issuance: the $7.42 million Maryland Community Development Administration Housing Revenue Bonds Series 2025 D (Non-AMT). This issuance further supports the department’s ongoing efforts to finance much-needed housing projects.

The timing of this credit rating enhancement is particularly noteworthy, as the DHCD is currently experiencing a surge in housing development initiatives. In Fiscal Year 2025, the department’s Community Development Administration was involved in financing 3,997 newly constructed or substantially rehabilitated housing units. This represents a considerable increase of over 1,000 units compared to the 2,949 units financed in Fiscal Year 2024. Furthermore, the department’s investment in housing projects reached $1.64 billion in Fiscal Year 2025, surpassing the $1.2 billion committed in the previous year. This substantial investment, bolstered by the improved credit rating, is expected to facilitate further growth in housing availability and affordability for Marylanders.

Residents of Maryland can anticipate that the upgraded credit rating will likely translate into more favorable borrowing costs for housing development projects, which in turn can lead to more affordable rental rates and housing opportunities. The increased volume of financed units indicates a growing supply of housing, addressing a critical need within the state. Those seeking information on the work of the Community Development Administration can visit the DHCD website at dhcd.maryland.gov.

Article by Mel Anara, based upon information from the Maryland Department of Housing and Community Development.

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