Maryland Tackles Housing Crisis with New Initiatives and Legislative Proposals

The Maryland Department of Housing and Community Development (DHCD) is launching a series of new programs and supporting legislative efforts to address the state’s growing housing affordability crisis. According to the department’s January 2026 newsletter, these initiatives aim to increase housing supply, support homeowners, and revitalize communities, with a particular focus on making the state more livable for young professionals and seniors. The state is facing a significant housing deficit, with rents increasing more than 20% since the pandemic and a projected need for nearly 185,000 new housing units by 2030. This shortage is causing concern among residents, with some younger renters considering leaving the state due to high costs.

To combat this, DHCD is backing legislative proposals for the 2026 session. The Maryland Transit and Housing Opportunity Act of 2026 (SB0389) seeks to utilize over 300 acres of state-owned land near transit stations for transit-oriented development. This approach aims to leverage existing transit investments to create new housing, stimulate economic activity, and boost public transit ridership. Additionally, the Starter and Silver Homes Act of 2026 (HB0239 / SB0036) is designed to make homeownership more accessible by encouraging the construction of smaller, potentially 30% less expensive, single-family homes. The Housing Certainty Act of 2026 (HB0548 / SB0325) is also being supported, which aims to establish Maryland as an “early vesting” state and address local regulations, delays, and impact fees that contribute to higher housing construction costs and ultimately, higher prices for consumers. These legislative efforts build upon previous actions, including the Governor’s Housing Package which created the Maryland Community Investment Corporation, established an Office of Tenant and Landlord Affairs, incentivized development, and implemented a statewide Right of First Refusal law. Governor Wes Moore’s “Housing Starts Here” Executive Order has also accelerated development on state-owned land, reduced permitting timelines, and established housing production targets. The department has released its first housing targets report, outlining the substantial need for new units.

Beyond legislative action, DHCD is also opening applications for critical homeowner assistance and community development programs. The Homeowner Assistance Fund (HAF) WholeHome Critical Home Repairs grant program is now accepting applications for a limited time. This program provides grants to homeowners to address urgent health and safety issues in their homes that could otherwise lead to displacement. In another development, Long Branch has been designated as the newest Main Street Maryland community, recognizing its potential for revitalization and economic growth. The Division of Just Communities has also been selected to participate in the Public Finance Initiative’s Rural and Small Cities Program, supported by the Robert Wood Johnson Foundation, which will help advance innovative investment strategies in rural areas.

Furthermore, Marylanders seeking access to fresh food options in underserved areas have until February 20 to apply for the NourishMD Grant Program. This initiative, managed by DHCD’s Division of Business Development, aims to support the creation, stabilization, and expansion of retail locations that offer fresh produce in food deserts. The program prioritizes businesses that accept or are working to accept federal nutrition benefits, in partnership with the Maryland Department of Agriculture’s Maryland Market Money Program.

The department has also appointed Steven A. Palmer as the state’s first Housing Ombudsman. This new role, established by the Governor’s “Housing Starts Here” Executive Order, will focus on addressing housing-related issues and facilitating solutions. In other staff news, the department has seen leadership transitions, with Kari Snyder appointed as Assistant Secretary for Neighborhood Revitalization, succeeding Carol Gilbert, and Haley Lemieux promoted to Chief of Staff, replacing Rosa Cruz.

These multifaceted efforts underscore Maryland’s commitment to increasing housing availability and affordability. The state is collaborating with the General Assembly, local governments, developers, and advocates to implement coordinated strategies aimed at reducing housing costs and ensuring more residents can afford to live, work, and establish roots in the state.

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

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