Partnership Rental Housing Program

The purpose of the Partnership Rental Housing Program is to expand the supply of affordable housing for low-income households. Projects financed through the Partnership Rental Housing Program typically involve a partnership between State and local governments.

The Partnership Rental Housing Program statute was modified in 2006 to allow for the use of Partnership Rental Housing Program funds by non-governmental entities to create housing for households including one or more individuals with disabilities or special needs. This change in the Program is designed to expand affordable housing opportunities for persons with disabilities that are integrated within traditional rental housing developments.

Requests for funding

Requests for Partnership Rental Housing Program funding will be accepted on an ongoing basis and evaluated and processed based on meeting the purpose of the Program, readiness to proceed, and availability of funding.

The Partnership Program provides loans for rental housing that will be occupied by households with incomes at or below 50% of the statewide median. Loan amounts are limited to $75,000 per unit for large projects and up to $2 million (without a per unit cap) for small projects (per the guide, small projects = 40 units). The department reserves the right to establish the amount of Partnership Rental Housing Program funding to be made available for individuals with disabilities or special needs units, on an annual or per project basis, and these amounts may be different from the limits established for governmental Partnership Rental Housing Program funding requests.

If Partnership Rental Housing Program funding is requested in conjunction with other department funds, the application requirements and applicable deadlines of the other funding must be met.

Eligible types of housing

New construction and acquisition or rehabilitation of rental housing are eligible activities. Rental housing may include apartment buildings, townhouses, single-famil homes, single room occupancy buildings and shared housing facilities.

Eligible applicants

Local governments, housing authorities and entities which are owned in part by a local government or housing authority may apply for Partnership Rental Housing Program funds. The local government must make a contribution of the land or a contribution of equal value from non-state resources. The local participant must manage the project or arrange for another party to manage the project.

Non-governmental entities are eligible applicants for Partnership Rental Housing Program funds to be used for individuals with disabilities or special needs units.

Eligible applicants

Resident households must have a gross income which does not exceed 50 percent of the statewide median income adjusted for family size, and must contribute maintenance or other services to the facility, grounds or neighborhood. Resident services are determined as part of the loan approval process.

Resident households for individuals with disabilities or special needs units must have a gross income which does not exceed 30 percent of the Area Median Income adjusted for household size.

Loan Terms

Repayment of the Partnership Rental Housing Program loan is generally deferred for up to 40 years as long as the local government entity continues to own the housing and rent it to income-eligible households. Failure to comply with income and use restrictions may result in the acceleration of the loan maturity. Any profits from the sale of the project must be used by the borrower for other low-income housing purposes.

Projects must arrange for occupants of Partnership Rental Housing Program-assisted units to provide “Tenant Contributed Services” as detailed in the Partnership Rental Housing Program statute and regulations. Occupants of individuals with disabilities or special needs units are not subject to this requirement.

More information

CONTACT: Housing Development Programs
Community Development Administration
Maryland Department of Housing and Community Development
7800 Harkins Road
Lanham, MD 20706
E: dhcd.rentalhousing@maryland.gov
P: 301-429-7854​
Toll Free (Maryland Only): 1-800-543-4505

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