Governor Wes Moore has approved Maryland’s 2026 Qualified Allocation Plan, a major housing initiative designed to guide more than $300 million in investments for affordable housing development across the state. The plan, developed by the Maryland Department of Housing and Community Development, outlines how state funding and federal tax credits will be allocated to support new housing projects while addressing the growing housing affordability and availability crisis affecting Maryland residents.
The new plan focuses on expanding housing opportunities by encouraging faster construction timelines, increasing support for mixed-income communities and promoting developments that provide valuable community amenities. State officials emphasized that improving access to affordable housing is essential for helping residents access employment opportunities, build financial stability and reduce living costs.
The federally required Qualified Allocation Plan establishes the state’s priorities and application guidelines for the Low-Income Housing Tax Credit program. Under the updated framework, Maryland will open two application rounds for 9 percent Low-Income Housing Tax Credits in July and October 2026. The plan aligns with the state’s broader goals of creating affordable, energy-efficient and high-quality housing developments.
One of the key features of the plan is the new “Housing Starts Now” incentive, which rewards projects that are fully prepared to begin construction and have already secured the necessary government approvals. The initiative is intended to accelerate housing development and bring more projects to completion more quickly. In addition, the plan expands “Lovable Places” criteria, providing additional incentives for developments that include community-focused amenities such as childcare centers, libraries and fresh food retail spaces.
The Department of Housing and Community Development will also increase the competitive Low-Income Housing Tax Credit award limit to up to $2 million per project. Enhanced financing options under the plan will offer lower interest rates, greater flexibility in operating expenses and more adaptable cash flow arrangements to support a wider range of housing developments and organizational needs.
Maryland officials stated that the updated housing strategy reflects the state’s commitment to building affordable and sustainable communities while supporting long-term housing development. Through its Community Development Administration, the department will continue financing the development, rehabilitation and preservation of affordable rental housing and transitional housing projects across the state.
