Funding will create or preserve nearly 500 affordable housing units and promote capacity building, equity, and inclusion in affordable housing development
Governor Wes Moore today announced nearly $3 million in awards for nine undercapitalized developers working in historically disinvested communities as the first awards from the Emerging Developer Fund. The funding will create or preserve nearly 500 affordable housing units and will help promote capacity building, equity, and inclusion in affordable housing development in Baltimore City and Chestertown.
“The Emerging Developer Loan Fund enables newer housing development teams and entrepreneurs to access important financial and technical resources,” said Gov. Wes Moore. “These awards will expand opportunities for affordable housing and homeownership that can serve as a catalyst for additional revitalization and economic growth in underserved communities.”
Administered by the Maryland Department of Housing and Community Development, Emerging Developer Loan Fund projects revitalize communities, increase quality affordable housing, reduce greenhouse gas emissions, and expand economic opportunities for Maryland residents and businesses. Awards are made under a competitive request for proposal process to select talented but undercapitalized developers with a demonstrated commitment to communities lacking the capital essential to conceive, develop, and build projects they need to thrive.
All nine developers who are receiving awards represent populations that have historically faced barriers to participation in development opportunities. Funds will support an estimated 440 rental units and 58 units for homeownership. All awardees will participate in a series of regular progress meetings and industry-based training events to ensure successful completion of projects and to build capacity and experience for future affordable housing development.
Developers can use the awards for expenses related to affordable housing development including:
- Feasibility and market studies;
- Third party environmental, architectural, and engineering work;
- Legal and planning costs related to zoning and planning approvals;
- Acquisition related costs including deposits;
- Consultant costs to prepare funding and loan applications;
- Surveys and appraisals for traffic, noise, or similar third party reports, and;
- Developer organizational and carrying costs.
“Maryland is a national leader in affordable housing financing, and we are always seeking new and impactful solutions to increase production and respond to community needs,” said Maryland Department of Housing and Community Development Secretary Jake Day. “The Emerging Developer Loan Fund is an innovative approach that will empower the creation of homes where they are desperately needed, as well as a new generation of potential partners for future affordable housing development.”
The first Emerging Developer Loan Fund awards follow an announcement of the approval of $13.4 million for three affordable rental housing projects by the Board of Public Works last month.
For more information about the Emerging Developer Fund and other affordable rental housing programs, visit https://dhcd.maryland.gov/HousingDevelopment.