Title 4. Division of Development Finance — Subtitle 28. Appraisal Gap from Historic Redlining Financial Assistance Program
Statutes in effect as of October 1, 2026.
Md. Code Ann., Hous. & Cmty. Dev. § 4-2801 (2026)
Title 4. Division of Development Finance
Subtitle 28. Appraisal Gap from Historic Redlining Financial Assistance Program
§ 4–2801LinkCopy Citation
(a)
In this subtitle the following words have the meanings indicated.
(b)
“Affordable” means that monthly housing costs are affordable to a family of limited income as determined under § 4–212 of this title.
(c)
“Appraisal gap” means the amount by which the total cost of eligible construction expenses exceeds the contract sales price of a qualified property when it is initially sold to an owner–occupant.
(d)
(1)
“Eligible construction expenses” means any amount that is expended on the construction or substantial rehabilitation of a qualified property.
(2)
“Eligible construction expenses” includes any amount expended on:
(i)
acquisition costs;
(ii)
roof repair and replacement;
(iii)
chimney repair and lining;
(iv)
internal and external doors;
(v)
windows;
(vi)
masonry;
(vii)
floor joists;
(viii)
finished flooring;
(ix)
framing;
(x)
structural repairs;
(xi)
foundation repairs;
(xii)
plumbing, electrical, and mechanical systems;
(xiii)
architectural and engineering consulting fees;
(xiv)
tools and equipment rental;
(xv)
new construction;
(xvi)
infrastructure; and
(xvii)
other expenses as determined by the Secretary.
(e)
“Financial assistance” includes:
(1)
a grant;
(2)
a loan;
(3)
a reduction in the principal obligation of or rate of interest payable on a loan or portion of a loan;
(4)
a prepayment of interest on a subordinate or superior loan or portion of a loan;
(5)
an assurance;
(6)
a guarantee; and
(7)
any other form of credit enhancement.
(f)
“Fund” means the Appraisal Gap From Historic Redlining Financial Assistance Fund established under this subtitle.
(g)
“Qualified project” means the construction or substantial rehabilitation of a qualified property if the eligible construction expenses do not exceed $500,000.
(h)
“Qualified property” means residential real property that is:
(1)
newly constructed or a formerly vacant structure that has been substantially rehabilitated;
(2)
located in:
(i)
(1)
A low–income census tract as defined by the U.S. Department of Housing and Urban Development; and
(2)
an area designated as a sustainable community; or
(ii)
an area that meets criteria established by the Department for the identification neighborhoods that:
(1)
have been historically redlined; or
(2)
have undergone urban renewal; and
(3)
constructed or rehabilitated with the purpose of being sold to an owner–occupant at an affordable sales price.
(i)
“Sustainable community” means an area designated as a sustainable community under § 6–205 of this article.
Md. Code Ann., Hous. & Cmty. Dev. § 4-2802 (2026)
Title 4. Division of Development Finance
Subtitle 28. Appraisal Gap from Historic Redlining Financial Assistance Program
§ 4–2802LinkCopy Citation
(a)
There is an Appraisal Gap From Historic Redlining Financial Assistance Program in the Department.
(b)
The purpose of the Program is to help close appraisal gaps that occur in historically redlined neighborhoods by making financial assistance available to:
(1)
affordable housing developers working in low–income census tracts and sustainable communities; and
(2)
individuals who purchase a qualified property:
(i)
after a qualified project is completed;
(ii)
at an affordable sales price as determined by regulations adopted by the Department; and
(iii)
as an owner–occupant.
Md. Code Ann., Hous. & Cmty. Dev. § 4-2803 (2026)
Title 4. Division of Development Finance
Subtitle 28. Appraisal Gap from Historic Redlining Financial Assistance Program
§ 4–2803LinkCopy Citation
(a)
In the fiscal year in which a qualified project is proposed, an individual or business entity may apply to the Department for financial assistance to cover the appraisal gap for the project in accordance with this section.
(b)
The Department shall develop by regulation an application form and a process for the distribution of financial assistance under this section.
(c)
Financial assistance provided under this section may be allocated among the partners, members, or shareholders of a business entity in any manner agreed to by those persons in writing.
(d)
Financial assistance provided under this section may be used in conjunction with other State, federal, or local funding sources.
(e)
A qualified project receiving financial assistance under this section shall be in compliance with local development and land use plans.
Md. Code Ann., Hous. & Cmty. Dev. § 4-2804 (2026)
Title 4. Division of Development Finance
Subtitle 28. Appraisal Gap from Historic Redlining Financial Assistance Program
§ 4–2804LinkCopy Citation
(a)
Subject to § 4–2805 of this subtitle and the regulations of the Department, the Department shall accept an application for financial assistance from:
(1)
an individual or business entity that proposes to develop a qualified project; and
(2)
an individual that proposes to purchase a qualified property.
(b)
The application shall be in the form and shall contain any information that the Department requires by regulation.
(c)
The Department shall approve all applications that qualify for financial assistance under this subtitle in a timely manner.
Md. Code Ann., Hous. & Cmty. Dev. § 4-2805 (2026)
Title 4. Division of Development Finance
Subtitle 28. Appraisal Gap from Historic Redlining Financial Assistance Program
§ 4–2805LinkCopy Citation
(a)
There is an Appraisal Gap From Historic Redlining Financial Assistance Fund.
(b)
(1)
The Fund is a special, nonlapsing fund that is not subject to § 7–302 of the State Finance and Procurement Article.
(2)
The money in the Fund shall be invested and reinvested by the State Treasurer, and interest and earnings shall be credited to the General Fund of the State.
(c)
(1)
(i)
Except as otherwise provided in this paragraph, for any fiscal year, the Department may not provide financial assistance under this subtitle in the aggregate totaling more than the amount appropriated for the Fund for that fiscal year in the State budget as approved by the General Assembly.
(ii)
If the aggregate financial assistance amounts provided in a fiscal year total less than the amount appropriated for the Fund for that fiscal year, any excess amount shall remain in the Fund and may be allocated for the next fiscal year.
(iii)
For any fiscal year, if funds are transferred from the Fund under the authority of any provision of law other than subsection (d) of this section, the maximum financial assistance amounts in the aggregate that the Department may provide shall be reduced by the amount transferred.
(2)
Notwithstanding the provisions of § 7–213 of the State Finance and Procurement Article, the Governor may not reduce an appropriation for the Fund in the State budget as approved by the General Assembly.
(d)
Money in the Fund may be used only for the purpose of providing financial assistance in accordance with this subtitle.
(e)
On or before January 1 each year, each county shall submit a report to the Department that details the targeted areas for homeownership that would qualify for financial assistance provided under this subtitle.
(f)
On or before March 1 each year, the Department shall submit a report, in accordance with § 2–1257 of the State Government Article, to the Senate Budget and Taxation Committee, the House Appropriations Committee, and the House Committee on Ways and Means on the number of funds deployed to census tracts with a majority racial minority population.
Md. Code Ann., Hous. & Cmty. Dev. § 4-2806 (2026)
Title 4. Division of Development Finance
Subtitle 28. Appraisal Gap from Historic Redlining Financial Assistance Program
§ 4–2806LinkCopy Citation
The Department shall adopt:
(1)
regulations to specify criteria for the application for and approval of the financial assistance under this subtitle; and
(2)
any other regulations necessary to carry out the provisions of this subtitle.