$30M Set Aside By Maryland Governor To Help Prevent Evictions

MARYLAND — The state has allocated $30 million in new funding to help prevent evictions spurred by the coronavirus. The funding comes from the federal Coronavirus Aid, Relief and Economic Security (CARES) Act.

"Too many Marylanders have faced undue financial hardships during this unprecedented crisis, including the inability to pay their rent," said Maryland Gov. Larry Hogan. "While our eviction moratorium has helped families remain in safe and stable housing through the pandemic, we are also maximizing federal resources to help as many renters as possible."

Since the governor declared a state of emergency in response to the coronavirus pandemic March 5, 20 percent of all residential rental units have fallen into delinquency. While eviction moratoriums have provided time for federal stimulus funds and federal and state unemployment benefits to take effect, many Marylanders are still struggling to pay their rent. As a result of increased demand for local rental assistance programs, the Maryland Department of Housing and Community Development intends to deploy $20 million in expected federal Community Development Block Grant program funding across all 24 jurisdictions in Maryland to help address eviction prevention needs.

The residential rental industry is experiencing a reduction in rental payments combined with increased maintenance costs. Approximately 9,000 of the 45,000 state-financed rental units in Maryland are currently delinquent at an estimated cost of $3 million per month. The Assisted Housing Relief Program is intended to help bring rental delinquencies current for those units and provide real relief for the tenants affected by the coronavirus pandemic through direct payments to the eligible property management company. Once a payment for back rent from the Assisted Housing Relief Program is received by a landlord, tenants will have their rental debt eliminated and no longer face the threat of eviction.

The program will include rental units in multi-family projects financed by DHCD's Community Development Administration using state funds or federal resources, such as the Low-Income Housing Tax Credit program where the unit rent is controlled.