The purpose of Rental Housing Works is to create jobs and strengthen the Maryland economy by providing gap financing for the creation and preservation of affordable rental housing financed through the Maryland Department of Housing and Community Development's Multifamily Bond Program and Low Income Housing Tax Credit Program.
The Rental Housing Works is subordinate gap financing to be used solely for projects financed using the Maryland Department of Housing and Community Development’s Multifamily Bond Program and 4% Low Income Housing Tax Credits. Therefore, projects requesting Rental Housing Works funding must meet the requirements for both Multifamily Bond Program and Tax Credits, including those described in the Maryland Qualified Allocation Plan& and Multifamily Rental Financing Program Guide.
Rental Housing Works funding requests will be evaluated and processed in conjunction with the project’s Multifamily Bond Program and Tax Credit application. For Rental Housing Works projects also requesting other department sources of funding, such as Partnership Rental Housing Program, EmPOWER or other energy efficiency programs the projects must also meet the criteria for these additional funding sources.
Rental Housing Works funding is governed by the laws (statutes, regulations and the Guide) applicable to the Multifamily Bond Program, with the following changes:
Rental Housing Works applicants must satisfy the following additional threshold criteria:
Applications for Rental Housing Works funds are accepted on an ongoing basis in conjunction with an application for the Multifamily Bond Program and 4% Low Income Housing Tax Credits.
Applicants should be aware that failure to meet processing timeframes and requirements for the Multifamily Bond Program, Rental Housing Works, and other necessary sources of funding for the project may affect the project’s ability to receive Rental Housing Works funding.
The maximum amount of the State loans per project is $2.5 million. This limit does not apply to Partnership Rental Housing Program funds, Empower or other energy efficiency funding, or the assumption of existing department debt. The department may waive this maximum loan limit in accordance with Code of Maryland Regulations 05.05.02 and the Multifamily Rental Financing Program Guide. Generally, increases in the Rental Housing Works loan amount above the $2.5 million limit will be limited to circumstances addressing:
The Maryland Department of Housing and Community Development expects repayment of its Rental Housing Works loans on an amortizing basis from surplus cash and reserves the right to adjust loan terms based on its underwriting and subsidy layering reviews. It will generally provide Rental Housing Works loans under the following terms:
The department has developed an alternate method of repayment of its Rental Housing Works loans as described below. The department reserves the right to adjust these loan terms based on its underwriting and subsidy layering reviews. The department will not apply these terms retroactively to Rental Housing Works loans approved and closed before the effective date of this updated Guidance. The project sponsor may choose whether to follow the alternate repayment method described below to repay its Rental Housing Works loan. This choice generally must occur prior to the department’s issuance of a commitment letter for the loan.
The alternative Rental Housing Works loan terms include the following provisions: