The Maryland Department of Housing and Community Development is seeking proposals from qualified applicants for the Development and Construction Relief funds. Applications for the Development and Construction Relief funds are due no later than 2 p.m. ET on July 13, 2022. Applications can be found here. To be eligible for the Development Relief Funds, projects will have or will:

  • Received a nine percent LIHTC Award, and incurred cost increases as a result of the pandemic.
  • Be financially feasible, Development Relief Funds capped at $2 million.
  • Maximized first-lien debt using current rent limits and market study data.
  • Taken appropriate steps to mitigate the impact of cost increases.
  • Demonstrate the developer is deferring the developer fee or providing a sponsor loan in aggregate amount equal to at least 25 percent of the developer fee.
  • Submit a completed CDA Form 202, which reflects all aspects of the project, including estimated development and operating budgets and pro forma.
  • Demonstrate Readiness to Proceed. Projects must have updated milestones and a closing date no later than 12/31/22. DHCD reserves the right to reject or rescind any awards for projects unable to close within 30 days of the projected closing date.
  • Submitted a complete application. Incomplete applications will not be considered.

 

To be eligible for the Construction Relief Funds projects will have or will:

  • Received an award of four percent LIHTC/MBP financing and can demonstrate the amount and the cause of the construction cost increase is due to the pandemic.
  • Closed between April 1, 2020 and April 30, 2022.
  • Taken appropriate steps to mitigate the impact of the cost increases.
  • Approached other participants in the project to solicit support.
  • Use any equity derived from the costs increases to offset those costs.
  • Demonstrate and certify the General Contractor is not receiving additional profit, overhead or general requirements, except, in cases if general requirements where the pandemic-related impacts have increased its actual costs. As an example, if the construction schedule has been extended.
  • Demonstrate the developer is deferring the developer fee or providing a sponsor loan in aggregate amount equal to at least 25 percent of the developer fee.
  • The amount of relief funds is no more than the lesser of $1 million or five percent of the construction contract.
  • Provide a copy of construction contract, including the construction period and change orders detailing COVID-related material escalation costs.
  • Submit a complete application. Incomplete applications will not be considered.