Maryland Amends Program for Historic Redlining Appraisal Gap
The Governor of Maryland recently signed House Bill 625 into law, amending the Appraisal Gap From Historic Redlining Financial Assistance Program (the Program), which provides financial assistance to affordable housing developers working in certain communities in an effort to help close appraisal gaps in historically redlined neighborhoods. The bill is effective July 1, 2023.
Among other changes, the amendment:
- Expands the forms of financial assistance available by modifying the definition of “eligible construction expenses” to include infrastructure and other expenses as determined by the Secretary of the Department of Housing and Community Development (DHCD);
- Repeals certain restrictions on the amount of financial assistance that may be provided under the Program and mandates that the DHCD develop an application form and process for the distribution of financial assistance;
- Alters the time period when applications may be submitted, allowing applicants to apply when the qualified project is proposed instead of waiting until the fiscal year in which the project is completed; and
- Repeals the requirement that on application by an individual or business entity that pays or incurs eligible construction expenses the DHCD shall provide financial assistance to the individual or business entity, and instead requires that the DHCD accept an application from an individual or business entity that proposes to develop a qualified project.