The Maryland Department of Housing and Community Development (DHCD) has announced revisions to the Maryland Qualified Allocation Plan (QAP). The QAP outlines scoring criteria for the awards of federal and State assistance for affordable multifamily rental housing projects. While scoring criteria remains focused on rental housing developments that benefit low-income individuals, the latest revisions place a greater scoring emphasis on projects located in areas affected by the U.S. Military's Base Realignment and Closure (BRAC) activities, as well as transit oriented development and green development, construction and design.
"Every Marylander deserves safe, decent and affordable housing," said Governor Martin O'Malley. "By focusing our rental housing resources in BRAC-affected areas and stressing the principles of transit oriented development and green building, we will ensure that BRAC growth is Smart Growth."
The QAP governs the allocation of the Federal Low Income Housing Tax Credit (LIHTC), one of the key resources that provide assistance to develop affordable rental housing across Maryland. The QAP's scoring criteria is used by program administrators to evaluate, rate, and rank applications for the award of the tax credits. DHCD also combines the tax credits with assistance available through the State's Rental Housing Programs. In 2008, DHCD projects that LIHTC and Rental Housing Program assistance will help create 2,440 affordable rental housing units in 34 projects across Maryland.
The recent revisions to the QAP and the overall effort to better align State housing and community development resources to address BRAC is part of Maryland's BRAC Action Plan, released last fall. The Plan was developed by the State's BRAC Subcabinet, chaired by Lt. Governor Anthony G. Brown, and it outlines Maryland's initiatives to prepare for as many as 45,000 – 60,000 new jobs and 25,000 new households due to BRAC. In addition to affordable rental housing issues, the Plan calls for DHCD to actively promote the State's mortgage assistance, down payment and closing cost assistance programs to households and businesses relocating to Maryland.
"As chair of the BRAC Subcabinet I have been working to ensure that Maryland is prepared to meet the challenges of BRAC, and affordable rental housing is an important part of the infrastructure necessary to support the anticipated jobs and households coming to Maryland," said Lt. Governor Brown. "The changes to the State's scoring criteria for rental housing development have the potential to leverage more than $100 million of affordable housing investment over the next few years as the State prepares for BRAC."
The QAP's scoring criteria revisions also seek to encourage projects that reflect Smart Growth principles such as transit oriented development and green design. Transit oriented development connects housing to fixed transit stations such as light rail, MARC and subway stops so residents have increased access to mass transportation options. Green design principles leverage energy efficiency, use of recycled materials, and emphasize long-lasting construction designs.
"There is a strong need for affordable housing in Maryland, and BRAC-related growth will add pressure to that need, particularly as service-related jobs are created to support the added households," said DHCD Secretary Raymond A. Skinner. "Extremely low-income households struggle the most, as there are fewer quality housing opportunities available as market pressure increases rent. By encouraging the construction of affordable housing that reflects green building principles and transit access, it can save families money by reducing utility and transportation costs."
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