Group Housing Programs
Purpose of Program
The purpose of the Group Housing Programs is to help individuals, qualified limited
partnerships, and nonprofit organizations to construct or acquire or acquire and
modify existing housing to serve as a group home or assisted living unit for eligible
persons and households with special housing needs or to refinance mortgages on existing
group homes. The Department uses both state funds from the Group Home Financing
Program (GHFP) and the proceeds
from the sale of tax exempt mortgage revenue bonds under the Special Housing Opportunities
Program (SHOP) to fund these loans. The Department
will determine the most appropriate source of funds for the project based on eligibility
requirements and underwriting of the project.
Eligible Types of Housing
Group housing loans may finance newly constructed buildings; acquisition or acquisition
and rehabilitation of existing residential buildings; or refinance mortgages on
existing group homes. Housing may include group sheltered living arrangements, senior
assisted living homes, emergency or transitional housing facilities and other group
homes which serve special needs groups.
Individuals and nonprofit organizations, which provide group homes to eligible residents
may apply for Group Housing loans. For Special Housing Opportunity Program (SHOP)
funding, nonprofits must have a 501 (c) (3) IRS designation. All applicants must
be licensed by the appropriate Maryland licensing authority.
Residents of the homes financed under these programs must be special needs groups,
such as the developmentally or physically disabled, elderly, juveniles, or homeless.
Sponsors must maintain 51 percent of all beds available for residents who have incomes
which are 60 percent or less of area median income. Preference in financing is given
to projects that house residents who have incomes below 30 percent of the area median
income. Please refer to the 2010 Income and Rent Limits
Loan terms are structured to help make the project financially viable and affordable
for eligible residents. The interest rate varies from 0 to 7 percent depending on
the source of the funds and the cashflow of the project. The maximum term is generally
30 years. State GHFP loans are typically combined with SHOP loans. The
Maximum Loan Amounts vary by geographic location
but may not exceed the appraised value of the property. Nonprofit sponsors are expected
to contribute 5% towards the project. Individual sponsors are required to make a
10% equity contribution. Upon sale, exchange or disposition of the property financed
with a GHFP loan, the sponsor must share any net equity in the property with the
Department at a rate determined by the Department.
Group Housing Program loan funds may be used to refinance an existing group home
mortgage or for all related costs development costs, such as acquisition, closing
costs, appraisal and inspection fees and modification costs. Eligible modifications
- Repair or replacement of major systems, such as heating, roofing, electrical or
- Accessibility modifications such as ramps and grab bars;
- Lead paint abatement;
- General repairs and upgrades, such as painting and floor coverings;
- Minor improvements required to bring the property into compliance with state and
local occupancy codes.
Note: Funds for refinancing will be limited and will not be available until February
of 2011. Please contact the Department to determine if funds are available before
submitting an application.
Local Government Involvement
Group homes must meet local government zoning codes.
- Group Housing Programs Application ( ) (PDF )
2010 Income and Rent Limits
These are the 2010 Income Limits for Maryland State-funded and bond-funded housing
loan programs. These limits are effective immediately. These income limits have
been calculated from the HUD-issued 30%, 50% and 80% limits for each household size
and then rounded to the nearest $50 where necessary (40%, 70%). HUD numbers include
floors on the non-metro statewide limits, and ceilings on the 80% limits for Washington
MSA and Cecil County. The other income limits, 55%, 65% and 85%, have been rounded
to the lowest $10 to help ensure that no tenant is over-income.
For More Information, Contact:
Single Family Housing
Community Development Administration
Maryland Department of Housing and Community Development
100 Community Place
Crownsville, MD 21032-2023
Toll free (Maryland only) 1-800-638-7781
Maryland Relay for the Deaf at 711 in State or 1800-735-2258 out of state.