Maryland Department of Housing and Community Development Reports Significant Economic Impact in Fiscal Year 2025

The Maryland Department of Housing and Community Development (DHCD) has released its Fiscal Year 2025 Agency Impact Report, detailing substantial contributions to the state’s economy and community development initiatives. According to the report, the department’s programs generated an impressive $8.5 billion in economic impact, supported $1.9 billion in wages and salaries, and facilitated the equivalent of 30,852 full-time jobs across Maryland. These figures underscore the department’s commitment to fostering affordable housing, supporting local businesses, and enhancing community spaces throughout the state.

A core focus of the DHCD in Fiscal Year 2025 was the financing of affordable housing. The department played a key role in the creation or substantial rehabilitation of 3,997 housing units across 36 projects, serving families, seniors, and individuals of all income levels. This effort includes the launch of the UPLIFT (Utilizing Progressive Lending Investments to Finance Transformation) program, a $10 million state initiative aimed at increasing property values and homeownership opportunities in historically underserved neighborhoods. The report highlights the completion of the first UPLIFT community in Baltimore City’s Orchard Ridge.

Beyond new construction, the DHCD also facilitated homeownership through the Maryland Mortgage Program. This award-winning program, known for its comprehensive suite of mortgage and down payment assistance options, including the Maryland SmartBuy product, provided 3,070 mortgages to homebuyers in Fiscal Year 2025, with an average of $1 billion in mortgage loan reservations annually.

The Division of Neighborhood Revitalization within the DHCD offers various programs, including loans, grants, and technical assistance, to aid local governments, nonprofits, and small businesses in reinvesting in their communities. In Fiscal Year 2025, these programs impacted 576 communities, generating $71.2 million in tax revenue. A significant community revitalization initiative, Reinvest Baltimore, a collaborative effort involving the State of Maryland, Baltimore City, and private partners, aims to address vacant properties and enhance the quality of life for residents. Through the Baltimore Vacants Reinvestment Initiative, $30 million was distributed to 20 community development organizations within a 90-day period.

To bolster business growth, the DHCD established its Division of Business Development in 2025. This division supports businesses and nonprofits through financial tools such as loans and grants. In Fiscal Year 2025, the division invested $70.5 million in 108 Maryland businesses through programs like Neighborhood BusinessWorks and the Own Your Future initiative.

Energy efficiency was another key area of focus, with the DHCD’s Energy Efficiency programs assisting nearly 3,500 households in making their homes safer, more comfortable, and accessible.

The department also supports local infrastructure development through the Local Government Infrastructure Fund (LGIF) program, which raises capital for counties and municipalities through public bond offerings. Six infrastructure projects received funding through the LGIF in Fiscal Year 2025.

Addressing homelessness remains a priority, with the Division of Homeless Solutions working collaboratively with state organizations to prevent and end homelessness. In Fiscal Year 2025, this division provided support to 21,495 individuals and 18,423 households, facilitating swift connections to permanent housing with individualized supportive services.

In a notable policy development, the DHCD published the first statewide Tenants’ Bill of Rights in the nation, a direct result of the Renters Rights and Stabilization Act of 2024. The department also established the Office of Tenant and Landlord Affairs, which will not only serve renters but also provide training for landlords, property managers, and real estate agents on the requirements of the Tenants’ Bill of Rights and the Right of First Refusal law. This law grants tenants of certain rental properties the initial opportunity to purchase their homes when an owner decides to sell.

Expanding internet access across the state is also a significant undertaking. The Office of Statewide Broadband collaborates with local entities and internet service providers to connect unserved and underserved communities. In Fiscal Year 2025, this office completed 80 projects, bringing internet access to 71,498 households, including 200 homes and businesses on Smith Island in Somerset County.

The Division of Just Communities has developed recommendations to designate 419 of Maryland’s census tracts as Just Communities, covering 17 counties and Baltimore City. This designation, based on a framework of racial equity, social justice, program evaluation, and community engagement, will grant these areas priority consideration for competitive state funding in Fiscal Year 2026.

Furthermore, the Division of Policy, Strategy and Research has been instrumental in advancing the Moore-Miller Administration’s housing production policies. Governor Wes Moore’s Executive Order, “Housing Starts Here,” signed in September, aims to optimize the use of state-owned land for development, streamline permitting processes, and accelerate the delivery of new homes. The executive order also established the State Housing Ombudsman position and mandated the DHCD to set local housing production targets and implement incentives for achieving these goals.

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

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