Partnership Rental Housing Program (PRHP)

Purpose of Program

The purpose of the Partnership Rental Housing Program (PRHP) is to expand the supply of affordable housing for low-income households. Projects financed through PRHP typically involve a partnership between State and local governments.

The PRHP statute was modified in 2006 to allow for the use of PRHP funds by non-governmental entities to create housing for households including one or more individuals with disabilities or special needs (“IDSN Units”). This change in the Program is designed to expand affordable housing opportunities for persons with disabilities that are integrated within traditional rental housing developments. For this reason, IDSN units may not exceed 10% of the total units in a project unless DHCD receives and approves a waiver of this percentage from the non-governmental applicant.

Requests for Funding

Requests for PRHP funding will be accepted on an ongoing basis and evaluated and processed based on meeting the purpose of the Program, readiness to proceed, and availability of funding.

The Partnership Program provides loans for rental housing that will be occupied by households with incomes below 50% of the statewide median. Loan amounts are limited to $75,000 per unit for large projects and up to $2 million (without a per unit cap) for small projects. DHCD reserves the right to establish the amount of PRHP funding to be made available for IDSN units, on an annual or per project basis, and these amounts may be different from the limits established for governmental PRHP funding requests.

If PRHP funding is requested in conjunction with other DHCD funds, the application requirements and applicable deadlines of the other funding must be met.

Eligible Types of Housing

New construction and acquisition or rehabilitation of rental housing are eligible activities. Rental housing may include apartment buildings, townhouses, single-family homes, single room occupancy (SRO) buildings and shared housing facilities.

Eligible Applicants

Local governments and housing authorities may apply for PRHP funds. These applicant must provide a site, including roads, water, sewer, and other infrastructure, or make a contribution of equal value. Also, the local government or authority must have an interest in the ownership entity of the property. The local participant must manage the project (the local government may arrange for another party to manage the project).

Non-governmental entities are eligible applicants for PRHP funds to be used for IDSN units.

Eligible Residents

Resident households must have a gross income which does not exceed 50 percent of the statewide median income adjusted for family size, and must contribute maintenance or other services to the facility, grounds or neighborhood. Resident services are determined as part of the loan approval process.

Resident households for IDSN Units must have a gross income which does not exceed 30 percent of the Area Median Income adjusted for household size.

Loan Terms

Repayment of the PRHP loan is not required as long as the local government or housing authority continues to own the housing and rent it to income-eligible households. Failure to comply with income and use restrictions may result in the imposition of an interest penalty and a requirement for the repayment of the loan. Repayment is limited to the amount received from the sale of the housing. Any profits from the sale must be used by the borrower for other low-income housing purposes.

Projects must arrange for occupants of PRHP-assisted units to provide “Tenant Contributed Services” as detailed in the PRHP statute and regulations. Occupants of IDSN units are not subject to this requirement.

Local Government Involvement

Except for projects proposing IDSN Units, PRHP is designed for local governments and housing authorities to be the project owner. They may develop and manage the project or contract with nonprofit organizations and for-profit firms to perform these functions. Local governments and housing authorities must contribute the site for the housing, or make a contribution of equal value. Applications from housing authorities must be approved by the local government. Projects proposing IDSN Units must comply with the local government contribution requirements of other DHCD funding (if any) included in the Project. Projects proposing IDSN units whose only DHCD financing is a PRHP loan are not required to include a contribution from the local government.

For More Information, Contact:

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