Shelter and Transitional Housing Facilities Grant

The Shelter and Transitional Housing Facilities Grant Program is administered by the Multifamily Housing Programs unit of the Division of Development Finance, also known as the Community Development Administration, within the Maryland Department of Housing and Community Development. The Program provides capital financing for emergency shelters and transitional housing facilities that house and support households experiencing or facing homelessness, with the objective of preventing homelessness and helping households achieve independent living. A Harm Reduction approach is strongly considered for supportive services. Program grant funds are available to eligible nonprofit organizations and local governments for new construction, acquisition, rehabilitation of housing, and the purchase of eligible capital equipment. Eligible residents must be homeless households and individuals. For purposes of the Program, homeless includes a household without permanent housing and lacking the resources to obtain permanent housing, as well as a household in imminent danger of homelessness. Applicants must identify the homeless population they intend to serve, such as families, women and children, single males, or victims of domestic violence, and are expected to continue serving the designated population throughout the 15-year funding term. Eligible projects may include apartments, condominiums, townhouses, single-family detached homes, single-room occupancy facilities, and group or shared housing providing housing and supportive services to homeless households. For projects containing other uses, Program funding is limited to eligible transitional housing units and the necessary spaces and facilities supporting those units. New construction must be located in a Priority Funding Area and applications involving new construction must include local government certification of that status. Eligible sponsors are nonprofit organizations with federal 501(c)(3) tax-exempt status and local governments. A nonprofit receiving Low-Income Housing Tax Credits may form a limited partnership or limited liability corporation to own the project for purposes of selling the credits if the nonprofit is the sole managing general partner and is responsible for project management. Applicants must also demonstrate site control and request capital assistance within Program limits for eligible uses. Acceptable evidence of site control can include deeds, contracts of sale, leases, purchase options, land disposition agreements, similar local government agreements, or other evidence accepted by the Department. Applicants must describe supportive services appropriate to their target population, identify service providers, provide evidence of funding commitments for those services, and provide a plan for financing services and operating expenses during the project term. Program grant funds cannot pay for supportive services. Program funds may support acquisition of land and buildings; eligible studies, surveys, plans, specifications, appraisals, testing, construction cost estimates, and environmental impact reports; site preparation; eligible construction and rehabilitation labor and materials; installation of improvements; qualifying machinery, equipment, and furnishings; and certain real estate development fees and premiums acceptable to the Department. Eligible capital work can include architectural and engineering services, construction, qualifying relocation, renovation, replacement, restoration, site development and improvements, and utilities. Initial equipment and furnishings must generally have a life expectancy of at least 15 years, be durable, be unlikely to become technically obsolete during that period, be necessary for the intended functions, and not be elaborate or extravagant. Program funds may not refinance existing debt, finance portions of projects unrelated to eligible housing and associated facilities, pay operating assistance, or pay for specified non-capital furnishings and equipment, maintenance, fundraising, salaries or wages for project work, administrative or legal costs, or other ineligible expenditures. State or matching project funds also may not be used to further sectarian religious instruction or in connection with sectarian religious buildings or programs. All Program assistance is provided as grants, with specific terms established in the grant agreement. In general, total capital assistance may not exceed 50 percent of total project development costs. Upon project approval, sponsors must enter into a financing and regulatory agreement providing that housing units financed with the capital assistance will remain occupied by homeless households for at least 15 years. Repayment generally is not required unless the project ceases to be owned by an eligible sponsor or operated in accordance with Program requirements and the capital assistance documents. Before capital assistance is paid, the sponsor must record notice of the Department's repayment rights in the applicable jurisdiction's land records and provide evidence of that recordation. Other applicable requirements address historic preservation review, debarred contractors, forest conservation, roofing standards, and State policies encouraging certified Minority Business Enterprises, Maryland resident businesses, and green building technologies. Applications are accepted at any time during the year and are processed on a first-come, first-served basis, subject to available Program funding and the project's readiness to proceed. The Anticipated Development Schedule must demonstrate readiness to use Program funding within 12 to 18 months of the grant application. Following initial processing and intent letters, applications and detailed construction documentation undergo underwriting and construction review through viability and commitment phases, although the Department may allow a combined fast-track package. During viability review, sponsors provide updated application forms and detailed construction and underwriting documents. During commitment review, sponsors submit final application forms and complete construction and underwriting documentation. The Department's goal is to complete adjustments to a draft commitment letter within 15 calendar days after issuing the commitment report and to issue the commitment letter no later than 70 calendar days after submission of the commitment review package. There is no fixed annual application deadline stated in the guidebook because applications are accepted year-round, subject to funding availability and project readiness. Applicants can contact the Shelter and Transitional Housing Grant Program Coordinator, Rental Lending Programs, Maryland Department of Housing and Community Development, 7800 Harkins Road, Lanham, Maryland 20706. The Program contact telephone numbers are 301-429-7845 and 800-543-4505, and the program email address is dhcd.rentalhousing@maryland.gov. Applicants should consult the Department before committing to costs when expenditure eligibility is uncertain and should account for the required State reviews and applicable capital-project requirements when preparing their development schedule.

Demonstrate project readiness to use Program funding within 12 to 18 months; establish acceptable site control before applying; document funding for supportive services and operating expenses because Program funds cannot pay for services; ensure new construction is located in a Priority Funding Area and obtain the required local certification; consult the Department before committing to uncertain expenditures; prepare complete construction and underwriting documentation to support timely review