Governor Moore Approves $300 Million Affordable Housing Plan for Maryland

Maryland Governor Wes Moore has approved the Maryland Department of Housing and Community Development’s (DHCD) 2026 Qualified Allocation Plan, a comprehensive strategy designed to direct over $300 million in state funding and federal tax credits toward the development of affordable housing across the state. This plan aims to expedite housing construction by offering incentives for project readiness and incorporating community amenities, while also increasing federal tax credit amounts and expanding available loan products. A significant focus will be placed on developing mixed-income housing options to address the state’s housing affordability challenges.

The approved plan is intended to combat the housing availability and affordability crisis currently affecting Maryland residents, which Governor Moore stated impacts their access to employment, wages, and wealth. The strategy aims to lower costs for Marylanders by increasing housing options, providing incentives for faster construction, and supporting the creation of quality, dignified housing throughout Maryland. The Qualified Allocation Plan, a federally mandated document, outlines the goals for affordable housing development and establishes guidelines for applications seeking Low-Income Housing Tax Credits. These guidelines are aligned with the DHCD’s mission and objectives. Under the new framework, two application periods for the 9 percent Low-Income Housing Tax Credits are scheduled for July and October of 2026.

The 2026 Qualified Allocation Plan introduces several new initiatives to encourage the development of affordable housing. A “Housing Starts Now” incentive will award additional points to developments that are prepared to commence construction, having already secured all necessary governmental approvals. Furthermore, a new “Lovable Places” criterion will enhance existing incentives for project amenities. This new criterion will award more points to projects that include community service facilities, such as childcare centers, libraries, or spaces for fresh food retail. These measures are designed to ensure that new housing developments not only provide shelter but also contribute positively to the communities they serve.

In addition to the incentives for project development, the plan also increases the financial resources available per project. The competitive Low-Income Housing Tax Credit award limit has been raised to $2 million per project. This increase can provide up to $30,000 per unit, capped at $1.5 million, or up to $28,000 per unit, capped at $2 million. The DHCD is also expanding its loan product offerings. These enhanced financing options will feature lower interest rates, greater flexibility in operating expense limits, and adjusted cash flow splits. This expansion aims to accommodate a wider range of transaction types and organizational requirements, thereby making affordable housing development more accessible.

The Community Development Administration within the DHCD plays a crucial role in expanding access to quality, affordable rental and transitional housing for Marylanders. This administration finances the development, rehabilitation, and preservation of rental communities and transitional housing. It also administers vital rental assistance programs and manages the Federal Low-Income Housing Tax Credit program. Residents seeking more information on these initiatives can visit the Department’s website. The overall impact of this plan is expected to be a significant increase in the availability of affordable and high-quality housing options across Maryland, benefiting a wide range of residents.

Article by Mel Anara, based upon information from the Office of Governor Wes Moore.

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