Audit finds lack of oversight in Maryland affordable housing [Video]

ANNAPOLIS, Md. — A new legislative audit criticizes the Maryland Department of Housing and Community Development’s (DHCD) lack of oversight regarding affordable housing loans.

One of the agency’s main responsibilities is providing state funds to home developers to boost low-income hosuing availability.

This process is regulated by a wide range of state law and regulations.

In order to secure a state funded contract, developers are required to reserve a certain percentage of rental units for low income families over a select time frame.

Auditors say there were several cases in which this didn’t happen.

“Specifically, DHCD inspections of 3 loan recipients that provided 56 housing units determined that 39 units had not been used for low-income housing as required, including certain units that had been unoccupied for 8 years as of April 2023. However, as of April 2023, DHCD had not requested repayment of these three loan recipients as permitted …