Department of Housing and Community Development - Maryland Housing Rehabilitation Program - Local Rehabilitation Program Administration

Nonprofits can run Maryland housing repair loans

Beginning July 1, 2025, Maryland allows certified nonprofit sponsors to run local Maryland Housing Rehabilitation Program loan programs. Sponsors can make and manage loans alongside local governments. State approval depends on staff size, training, experience, and ability to assess repairs, review applications, and monitor loans and work. Eligible limited partnerships must undertake projects that qualify wholly or partly for federal programs or incentives. They must also meet general-partner rules and requirements involving nonprofit or local-government management or rights to project income or sale proceeds. The state must divide Regular Rehabilitation Program loan money among counties each year to provide statewide coverage. It must consider low-income families, repair needs, local ability to run the program, and other fair-distribution standards. The state may divide county allocations among participating towns and nonprofit sponsors. It may hold up to 25% of available Special Loan Programs Fund money in reserve and redistribute it later. The state may provide training and technical help, including help with loan packages, contractors, bids, zoning, marketing, and engineering. It may manage loans itself when a local government or sponsor cannot or does not want to run the program. This law expands who can run the program; it does not guarantee households a loan.