April Advocacy Update – Affordable Housing Support

Federal Updates

On the Hill 

MHP staff were on Capitol Hill in April to advocate for federal programs that support housing & community development, which are under threat of being defunded or eliminated entirely. These include programs like the Low-Income Housing Tax Credit (LIHTC), Community Development Block Grants, housing vouchers and more. We had great conversations with members of the Maryland delegation on the current challenges facing affordable housing providers and opportunities to enhance these programs. Thank you to Senators Van Hollen and Alsobrooks, as well as the offices of Representatives Raskin and Delaney for taking the time to meet with us! 

Section 4 Saved

In the midst of the constant barrage of news about federal agencies being dismantled and programs being defunded, there was one bright spot on our visit. In February, there was an announcement that HUD Section 4 grants for affordable housing & community development were being eliminated. However, recent news announced that the program was reinstated. The Section 4 program enhances the capacity of community organizations to carry out community development and affordable housing activities that benefit low-income individuals.  

State

General Assembly Cuts and Increases

The Maryland General Assembly recently wrapped up the 2025 legislative session. As with every session, there were victories and setbacks for housing.   

This year, the major focus for the General Assembly was how to resolve the state’s $3 billion deficit. Ultimately, the General Assembly agreed on a combination of cuts and revenue enhancements to balance the budget. 

Programs which support affordable housing and community development were largely level funded in the budget. In terms of programs that support affordable housing, the state’s Capital Budget includes full funding for the state’s primary tool for creating and preserving affordable housing, known as Rental Housing Works. The approved budget includes $85M for Rental Housing Works. This is a reduction of $25 million from the previous year; however, given the state’s deficit, advocates were grateful that it was spared from more drastic cuts. In addition, the state budget includes $7 million for the Housing Innovation Fund, which provides loans to local public housing authorities and county governments to develop affordable housing. 

Property Tax Abatements Expanded

A key bill for MHP this year was House Bill 390, which provides additional flexibility to local governments in how they provide property tax abatements to qualifying affordable housing projects. Previously, in order to be eligible for tax abatements, an affordable housing project had to be tied to either new construction or renovation of an existing building. This change in state law will enable local governments to also provide tax abatements when a developer acquires a naturally occurring affordable housing property and agrees to certain affordability requirements. Property tax abatements are an important tool for local governments in preserving and creating affordable housing, and the bill will help local governments preserve existing affordable housing. Special thanks to Montgomery County Delegate Marc Korman and Baltimore County Senator Shelly Hettleman for sponsoring the legislation. 

Housing for Jobs Act

Governor Moore’s Housing for Jobs Act, House Bill 503, did not pass before the end of session. As introduced, the bill would have streamlined the approval processes for housing development when there are too few homes in a region to support available jobs. The bill was heavily amended in the waning days of the legislative session, but it failed to pass. 

Good Cause Legislation

Another noteworthy bill was House Bill 709 which dealt with Just/Good Cause legislation. This type of legislation has been introduced for several years running. In short, the Good Cause legislation would limit the ability of housing providers to remove a tenant at the end of their lease. Housing providers would be required to offer a lease renewal to tenants unless they have a Good Cause not to do so.  The bill failed to make it out of the House or Senate this year. 

Local

Proposed County Budget Preserves Pipeline

On March 15, Montgomery County Executive Marc Elrich released his recommended budget for the coming fiscal year. In total, his budget includes more than $121 million for the preservation or construction of affordable housing. This level of funding would be enough to keep the current pipeline of affordable housing projects on track. Please consider emailing the County Council to convey your support for affordable housing programs and urge the Council not to cut any funding. 

MHP Residents Testify in Support

In April, the Montgomery County Council, held a series of public hearings on the operating budget. Many providers and residents of affordable housing turned out to urge the Council to support the County Executive’s budget, including several MHP residents. Watch it here (our resident begins speaking at 2:21).