MARYLAND HOUSING REHABILITATION PROGRAM – MULTIFAMILY (MHRP-MF)

December 1, 2006

Purpose of Program

The Maryland Housing Rehabilitation Program -- Multifamily (MHRP - MF) provides gap financing for the acquisition and rehabilitation of multifamily rental residential buildings. The purpose of the Program is to preserve the supply of housing with existing federal, State or local affordability requirements, particularly project-based Section 8 or Rural Development rental assistance. MHRP-MF funding will be used, primarily, for projects which also make use of financing through CDA's Multifamily Bond Program. Other uses will be considered on a case-by-case basis.

Requests for Funding

Requests for MHRP-MF funding should be included with the application for financing through CDA’s Multifamily Bond Program. Applications will be accepted on an ongoing basis and evaluated and processed based on meeting the preservation purpose of the Program, readiness to proceed, and availability of funding.

Eligible Types of Housing

MHRP-MF funds may be used for the acquisition and rehabilitation of rental housing projects with five (5) or more units. Rental housing may include apartment buildings, townhouses, single-family homes, single room occupancy (SRO) buildings and shared housing facilities.

Eligible Applicants

Non-profit organizations, for profit developers, local governments and housing authorities may apply for MHRP-MF funds.

Eligible Residents

Resident households in units assisted by MHRP-MF must have a gross income which does not exceed 60 percent of the area median income adjusted for family size.

Loan Terms

MHRP-MF funds are structured as loans which are secured by a Deed of Trust on the property. MHRP-MF loans will generally have an interest rate of 4% per annum, be subordinated to CDA Multifamily Bond Program loans, and be repaid from available cash flow. The loan term will generally be 30 or 40 years, depending on the term of the bond loan.

Maximum Loan Amount

MHRP-MF loans will generally be limited to no more than $500,000 per project.

Local Government Involvement

A local contribution may be required.

For More Information, Contact:

Multifamily Housing -- Housing Development Programs
Community Development Administration
Maryland Department of Housing and Community Development
100 Community Place
Crownsville, MD 21032-2023
rentalhousing@dhcd.state.md.us
410-514-7446
Toll Free (Maryland Only): 800-543-4505