Rental Housing Works

Rental Housing Works provides subordinate gap financing for projects financed using the Maryland Department of Housing and Community Development’s Multifamily Bond Program and 4% Low Income Housing Tax Credits. Projects requesting Rental Housing Works funding must meet the requirements for both Multifamily Bond Program and Tax Credits. Loans are provided on 40 year terms at 2% interest rates and due on sale, refinancing, and any voluntary or involuntary transfer of the property or the occurrence of an event of default Borrowers are expected to repay loans from surplus cash and reserves and payments are limited to 75% of a property's annual cash flow. The Department also offers contingent interest loan terms. Loans are limited to $2.5 million per project, though the Department can waive this cap.