The Maryland housing-finance ecosystem
Maryland's housing pipeline draws on a mix of state agencies, federal pass-through programs, and local frameworks. Programs span the full spectrum: low-income rental, supportive housing for special-needs populations, workforce / missing-middle housing, homelessness prevention, first-time homebuyer assistance, mixed-use redevelopment, and disaster recovery. Below is a directory of every currently-active state-level and major-local program, organized by administering agency.
Maryland Department of Housing & Community Development (DHCD)
Maryland DHCD is a unified state housing department combining HFA functions, federal pass-through administration, and state community development programs into a single cabinet-level agency. Within DHCD, the Community Development Administration (CDA) is the state housing finance authority allocating LIHTC and issuing multifamily bonds. The Multifamily Development & Finance unit administers state-funded gap subsidy programs.
Federal 9% LIHTC
Competitive · RentalDHCD allocates Maryland's federal 9% LIHTC ceiling — approximately $21.0 million in 2026 following OBBBA's 12% increase. Awards through annual competitive QAP scoring with set-asides for nonprofit, preservation, and special populations.
4% LIHTC + Multifamily Bonds
Non-competitive · BondsNon-competitive 4% LIHTC paired with Community Development Administration (CDA)-issued multifamily revenue bonds.
Rental Housing Production Program (RHPP)
Capital subsidy · MultifamilyMaryland's primary state-funded gap subsidy for affordable rental housing. Provides soft second loans pairing with LIHTC and federal HOME funds. Funded through state appropriations and dedicated revenue sources.
Rental Housing Works Program (RHWP)
Capital subsidy · MultifamilyDHCD capital subsidy supplementing RHPP for affordable rental developments. Frequently paired with LIHTC on the most challenging deals requiring deeper subsidy layers.
Special Housing Opportunities Program (SHOP)
Supportive housing · Capital subsidyCapital subsidy for development of permanent supportive housing serving persons with disabilities, chronically homeless individuals, and other special needs populations. Coordinated with operating subsidies from Maryland Department of Health and Department of Human Services.
Special Loans Programs
Specialized loansDHCD's portfolio of specialized loan programs including the Group Home Financing Program, Accessory Apartment Program, Indoor Plumbing Program, and Lead Hazard Reduction Program.
HOME Investment Partnerships
Federal pass-throughDHCD administers Maryland's HOME allocation, primarily deployed for multifamily rental development paired with LIHTC.
National Housing Trust Fund (NHTF)
Federal pass-through · ELIDHCD administers Maryland's NHTF allocation for housing serving extremely-low-income households.
Section 811 Project Rental Assistance
Operating subsidy · DisabilityDHCD administers Maryland's HUD Section 811 PRA allocation for extremely-low-income persons with disabilities.
Rental Allowance Program (RAP)
State rental assistanceMaryland's state-funded tenant-based rental assistance program for special-needs populations not adequately served by federal Section 8.
CDBG (state-administered)
Federal pass-through · Non-entitlementDHCD administers federal CDBG for non-entitlement Maryland communities.
CDBG Disaster Recovery
Federal disaster recoveryMaryland CDBG-DR allocations for flood, storm, and tornado recovery in declared-disaster areas. Smaller-scale than coastal-state programs.
Maryland Mortgage Program
Homeownership · Below-market mortgageDHCD's flagship single-family first-mortgage product with below-market rates. Includes 1st Time Advantage variant for first-time buyers.
Maryland HomeCredit (MCC)
Homeownership · Federal tax creditFederal income-tax credit for eligible first-time buyers equal to a percentage of mortgage interest paid annually. Combinable with Maryland Mortgage Program first mortgages.
Maryland DPA Programs
Homeownership · Down payment assistanceDown-payment assistance grants and loans pairing with Maryland Mortgage Program first mortgages — up to $6,000 base assistance with additional bonus tiers for protected categories.
Major-county and city affordable housing programs
Maryland has unusually strong local affordable housing infrastructure, particularly in the DC metropolitan area where Montgomery County's Housing Initiative Fund is among the largest local housing trust funds in the country, and Prince George's County, Baltimore City, and Howard County operate substantial complementary programs.
Baltimore Affordable Housing Trust Fund
Local trust fund · InclusionaryBaltimore's affordable housing trust fund supports gap subsidies for affordable rental and homeownership development within city limits. Funded through dedicated revenue and inclusionary zoning fee-in-lieu.
Baltimore City Bond Issuance
Local bondsBaltimore Development Corporation and Mayor's Office of Housing issue tax-exempt and taxable bonds for multifamily affordable housing development. Operating in parallel with state CDA bonds.
Montgomery County Housing Initiative Fund (HIF)
Local trust fund · MajorMontgomery County's HIF is one of the largest local housing trust funds in the country, supporting multifamily gap subsidies, homebuyer assistance, and preservation. Annual appropriations exceed $40 million. Combined with DHCD programs for major Montgomery County developments.
Montgomery County MPDU (Inclusionary Zoning)
Inclusionary zoning · 50+ yearsMontgomery County's Moderately Priced Dwelling Unit program — one of the oldest inclusionary zoning ordinances in the country (1973). Requires 12.5-15% affordable units in subdivisions of 20+ units. Generated 15,000+ affordable units to date.
Prince George's County Housing Investment Trust Fund
Local trust fundPrince George's County's housing investment trust fund supporting affordable rental and homeownership development within the county. Combined with DHCD LIHTC awards.
Howard County Moderate Income Housing Unit (MIHU)
Inclusionary zoningHoward County's inclusionary zoning program requiring affordable units in new market-rate residential development. Active program with 1,500+ units produced.
Maryland tax credit and specialized state programs
Maryland operates several specialized state tax credit and incentive programs that frequently appear in affordable housing capital stacks, including the state's historic preservation tax credit and the Sustainable Communities Tax Credit.
Maryland Historic Preservation Tax Credit
State tax credit · Historic rehab20% state historic rehabilitation tax credit. Pairs with federal HTC and 4% LIHTC for adaptive-reuse housing developments. Administered by Maryland Historical Trust within the Maryland Department of Planning.
Sustainable Communities Tax Credit
State tax credit · Historic rehabVariant of Maryland's Historic Tax Credit specifically for properties located within designated Sustainable Communities. Used to incentivize redevelopment in transit-oriented and walkable urban areas.
Maryland Affordable Housing Loans
Bond bank-style · MultifamilySpecialized loan products through Maryland's CDA for affordable housing developments including bridge loans, predevelopment loans, and acquisition financing.
How Maryland programs typically combine
Programs combine differently depending on what you're building. A short reference of representative stacks across the program-type spectrum:
- Statewide 9% LIHTC (most common): 9% LIHTC + RHPP + HOME + DHCD Special Loans.
- 4% LIHTC preservation: 4% LIHTC + CDA bonds + RHPP + state Historic TC (for historic properties).
- Montgomery County affordable rental: Montgomery County HIF + 9% LIHTC + RHPP + state programs.
- Supportive housing: SHOP + RHPP + 9% LIHTC + Section 811 PRA.
- Historic adaptive reuse: Federal HTC + Maryland Historic TC + 4% LIHTC + CDA bonds.
- First-time homebuyer: Maryland Mortgage Program + DPA + Maryland HomeCredit (MCC).
Post-OBBBA implications
- Permanent 12% LIHTC increase: Maryland's annual 9% LIHTC ceiling is permanently larger starting 2026.
- 25% PAB financed-by test: for bonds issued after December 31, 2025, materially expanding the pipeline of 4% LIHTC deals that can be supported per dollar of bond volume cap.
- Permanent OZ designations: Qualified Opportunity Zone designations gain permanence; Rural OZ provisions may apply in qualifying portions of the state.
- Section 45L / 179D termination (June 30, 2026): Developers pursuing energy-efficient construction should accelerate placed-in-service dates.
This is educational reference material for affordable-housing practitioners, not legal, tax, financial, or investment advice. State program details, funding levels, and rules change frequently — consult the relevant state agencies and qualified counsel before structuring any transaction. See Disclaimer.