Rental Housing Program

The Department's Rental Housing Program aims to rehabilitate or create rental housing. A portion of the federal HOME moneys administered by the State may be allocated along with the Rental Housing Program funds. The program is generally designed to be compatible with tax-exempt or taxable bond financing, low-income housing tax credits, and other private or public funds.

Competitive Funding Process

The Maryland Department of Housing and Community Development allocates Rental Housing Program Funds through a competitive process. Applications are accepted at designated times during the year and are evaluated against criteria established by the Department. In general, priority is given to projects which:​

  • Restrict units to tenants with incomes below 60% of median income
  • Restrict units to low-income tenants for more than 40 years
  • Provide tenant service packages
  • Use non-State funds in addition to State funds
  • Provide quality housing in a good location
  • Are sponsored by teams with demonstrated development and management ability

Eligible types of housing

Newly constructed or rehabilitated rental housing including congregate housing, single-room occupancy, emergency shelters and shared living facilities are eligible for Rental Housing Program Funds. Projects may be restricted to elderly residents. In some cases, small commercial rehabilitation housing projects may be considered. All new construction projects must be located in Priority F​unding Areas.

Eligible loan applicants

For-profit, limited profit, or nonprofit developers, nonprofit organizations, county governments, municipalities, or local housing authorities are eligible to apply for Rental Housing Program Funds.

Eligible residents

In general, eligible residents must have incomes of no more than 60 percent of the area median income, and the owner must reserve the same proportion of units for these tenants as the Rental Housing Program Funds are to the total financing. For example, if Rental Housing Program Funds account for 45 percent of the total project financing, a minimum of 45% of the units must​ be reserved for tenants with 60 percent or less of median income. Other restrictions may apply when federal programs such as the Low-Income Housing Tax Credit are involved.

Loan terms

Most Rental Housing Fund loans will have a term of up to 40 years, bear interest at a rate of 2 percent per annum, and be repayable from cash flow. The maximum loan amount should not exceed $2 million.

Loans may be used for acquisition, construction, rehabilitation, and development costs. Development costs include lender fees, architectural and engineering fees, market studies, appraisals, legal fees, and other costs directly related to the development of the housing.

More information

CONTACT: Housing Development Programs
Community Development Administration
Maryland Department of Housing and Community Development
7800 Harkins Road
Lanham, MD 20706
​Toll Free (Maryland Only): 1-800-543-4505​​​​​​​​​​​​​​​​​​​​​​​ ​​​​