Governor Wes Moore approved the Maryland Department of Housing and Community Development’s 2026 Qualified Allocation Plan – PDF, which allocates State funding and federal tax credits to fund affordable housing projects. The plan will guide more than $300 million worth of investments in housing development by incentivizing project readiness and community amenities, increasing the federal tax credit amount per project, expanding the loan products offered, and placing greater emphasis on mixed-income housing.
Under the new Qualified Allocation Plan, two application rounds for 9 percent Low-Income Housing Tax Credits will be open in July and October 2026.
The 2026 Qualified Allocation Plan includes a Housing Starts Now incentive that provides more points on applications for developments that are ready to break ground – having already secured all necessary government approvals. Additionally, new Lovable Places criteria expands on existing incentives for project amenities to award more points to projects incorporating community service facilities like childcare centers, libraries, or retail space for fresh food.
The Department of Housing and Community Development will also increase the competitive Low-Income Housing Tax Credit award limit amount per project to $2 million—with $30,000 provided per unit up to $1.5 million, or $28,000 per unit up to $2 million. Additionally, through an expansion of loan products, the department can offer financing with lower interest rates, greater flexibility in operating expense limits, and cash flow splits to meet the needs of a broader range of transactions and organizational demands.
