The Maryland Department of Housing and Community Development’s (DHCD’s) 2026 qualified allocation plan (QAP) raises the low-income housing tax credit (LIHTC) award limit per project and introduces several other changes.
Approved by Gov. Wes Moore, the QAP guides more than $300 million worth of investments in affordable housing development by incentivizing project readiness and community amenities, expanding the loan products offered, and placing greater emphasis on mixed-income housing, according to state leaders.
“Like every state in the nation, Maryland is facing a housing availability and affordability crisis that impacts Marylanders’ ability to access work, wages, and wealth,” Moore said in a statement. “In order to lower costs for Marylanders, we must leverage our tools to expand housing options, offer incentives for building housing quickly, and support the creation of dignified, quality housing across the state.”
Under the new QAP, two application rounds for 9% LIHTCs will be open in July and October.
The 2026 QAP includes a Housing Starts Now incentive that provides more points on applications for developments that are ready to break ground—having already secured all necessary government approvals. Additionally, new Lovable Places criteria expands on existing incentives for project amenities to award more points to projects incorporating community service facilities like childcare centers, libraries, or retail space for fresh food.
The department will also increase the competitive LIHTC award limit amount per project to $2 million—with $30,000 provided per unit up to $1.5 million, or $28,000 per unit up to $2 million. Additionally, through an expansion of loan products, the department can offer financing with lower interest rates, greater flexibility in operating expense limits, and cash flow splits to meet the needs of a broader range of transactions and organizational demands.
“In Maryland, we believe housing is the foundation on which we build everything else—and we believe that housing should be affordable, high-quality, energy-efficient, and lovable,” said DHCD secretary Jake Day. “The 2026 QAP sets that standard and creates the framework for future affordable housing development in Maryland.”