The Maryland Affordable Housing Fund was established by the Maryland General Assembly in 1992 to increase the availability of affordable housing throughout the state. The fund is administered by a board of trustees with support from the Maryland Department of Housing and Community Development. The fund’s resources are generated from a portion of the interest accrued on escrow accounts held by title companies.
Legal Framework
The activities of the Affordable Housing Fund are governed by the following Maryland statutes and regulations:
- Housing and Community Development Article, §§10-101 – 10-301, Annotated Code of Maryland (as amended);
- Insurance Article, §22-103 Annotated Code of Maryland;
- Code of Maryland Regulations, §§31.16.03.01 – 31.16.03.08.
Main areas of activity
The Fund promotes the development of affordable housing for households with incomes below 50% of the median income for the region or the state as a whole by supporting:
- financing capital costs for the construction or acquisition of rental and owner-occupied housing;
- providing financial assistance to non-profit organisations to enhance their capacity as developers;
- financing programmes to support affordable housing tenants;
- covering the operating costs of affordable housing facilities.
The Fund does not provide:
- direct rental assistance to residents;
- financing the purchase of personal property by grant recipients (e.g., office furniture or equipment).
Financial terms
The Fund reserves the right to provide financing in the form of interest-bearing loans, however:
- funds for project preparation, operating expenses and social services are usually provided in the form of grants;
- capital expenditure funding may be provided as interest-free deferred loans or repayable grants, which are repayable if the project is sold or loses its status as affordable housing;
- pre-project grants are repayable.
Who can apply
- Non-profit organisations;
- State housing agencies;
- Government authorities;
- Commercial enterprises.
Selection criteria
Although all of the fund’s projects are focused on housing for households with incomes below 50% of the median, preference is given to projects serving families with incomes below 30% of the median.
The most competitive projects are those that:
- target very low-income populations;
- provide housing for families with minor children and/or single adults (in a Single Room Occupancy format);
- demonstrate project readiness and financial stability;
- ensure long-term housing affordability (for capital projects);
- confirm the existence of demand and need for housing in a specific region, contributing to the equitable territorial distribution of the fund’s resources;
- attract additional sources of funding or close the ‘financial gap’ in the project;
- include programmes to increase the independence of residents.
Legal documents and instructions
To participate, you must provide legal documents, including:
- Certificate of Incumbency;
- Board of Directors’ decision to approve the application;
- Contract Affidavit;
- Assurance of Compliance;
- Public Records Act Notice and Waiver.
Document forms:
- For corporations;
- For limited partnerships;
- For LLCs.
