NHT Encourages Resident Focus in Maryland’s Qualified Allocation Plan

NHT continues to engage state and local Housing Finance Agencies (HFAs) to strengthen their affordable housing policies, especially specific to the Low Income Housing Tax Credit (Housing Credit) program. We work to ensure HFAs take seriously their responsibility to provide stable and secure affordable housing, maintain and preserve properties, combat climate change, and protect tenants.

In mid-May, the Maryland Department of Housing and Community Development (DHCD) announced plans to update their Qualified Allocation Plan (QAP) which governs allocation of their Housing Credits. NHT leveraged our policy expertise and our experience as an owner and resident services provider for two affordable properties in Maryland (Baltimore and Hagerstown) to inform our response. NHT responded to DHCD’s request for feedback on their policies related to tenant selection, permanent supportive housing, and the Maryland infill and redevelopment set-aside¹.

Our comments encourage DHCD to:

1. Expand the requirements to ensure owners are taking additional proactive steps to market to underserved communities and individuals.

NHT is glad to see that DHCD included in its 2023 QAP an Affirmative Fair Housing Marketing Plan (AFHMP) which helps developers develop and implement an anti-discrimination marketing strategy.  Maryland is one of 23 HFAs that require the submittal of this HUD-supported approach, but some HFAs go further. Additional steps that DHCD could consider, that are highlighted in our Tenant Protections Infobrief, would be to:

• Provide examples of successful outreach efforts to local service providers, homeless shelters, and/or disability advocacy organizations
• Clarifies a specific process for marketing to individuals with limited English proficiency or translating marketing materials into other languages. 

Across our own portfolio, NHT provides both language services, including in personal translators upon request, as well as property websites and standard paperwork shared with residents translated into multiple languages appropriate to the diversity of backgrounds at our properties. Given the predominantly Spanish-speaking populations at several of our Washington, D.C. properties, our on-site resident services coordinators also translate all flyers for programs and services into Spanish along with notices to residents via both email and text.

2. Implement practices that increase the odds for people from protected classes to obtain housing.

Too often, individuals already facing the biggest hurdles to housing access – such as those with prior convictions or evictions – are unnecessarily disqualified from being able to access affordable housing, contributing to more families and individuals being trapped in poverty and instability. In contrast, low-barrier screening practices in use by some housing providers do not require prospective renters to disclose prior convictions or evictions, instead basing their evaluation on other indicators that better indicate future ability to pay. Based on NHT’s 2023 QAP analysis, at least 12 states incentivize or require low-barrier screening practices that limit the use of eviction records or criminal history. NHT recommends that Maryland DHCD consider implementing low-barrier tenant screening practices, which is not currently addressed in Maryland DHCD’s QAP.

3. Define the requirements for “good cause” eviction, which clarify when  a landlord can evict residents who are not at fault.

Too often, landlords motivated by an interest to increase revenue or reposition their property evict residents for ambiguous reasons, leading to housing instability for residents who have little recourse to challenge the eviction order. To remedy this, good cause eviction laws support housing stability by limiting landlords’ capacity to evict residents who are not at fault. Examples of good cause vary, but may exclude failure to sign a new lease, failure to pay a utility bill to be paid to the landlord, and failure to move if over the qualified income, except in cases of tenant fraud. For Housing Credit properties, Maryland DHCD can play an important role in supporting residents’ ability to remain stably housed by clarifying what constitutes good cause.² Currently, at least 18 HFAs include language positively defining good cause—that is, listing infractions that constitute good cause for eviction—in their QAPs and/or HFA-provided lease addenda. NHT encourages DHCD to follow suit.

As an owner, we ourselves are challenged with the need to support residents to make timely rental payments to avoid eviction while ensuring adequate revenue to effectively maintain affordable properties. But we also recognize the benefit of greater clarity for housing providers and residents that can accrue with a well-defined set of “good cause” eviction standards. (Learn more about NHT’s efforts to balance eviction prevention and property financial health,)

4. Strengthen resident services provisions to ensure that Housing Credit-funded investments improve life outcomes for residents.

Resident services remain one of the most difficult components of a thriving affordable housing property to finance. When states award Housing Credits based on a developer’s commitment to provide resident services, it should make every effort to ensure that the investment delivers meaningful life outcomes for residents rather than property-level improvements. For example, NHT appreciates DHCD’s inclusion of the CORES certification (which certifies properties that demonstrate an outstanding commitment to residents) as an alternative pathway for owners to meet required and incentivized levels of tenant services. However, NHT recommends that DHCD strengthen its language for the 2024 QAP pertaining to "quality of life and self-sufficiency" by making it less broad and more specific. DHCD should instead require owners to implement specific programs and/or achieve specific outcomes, such as greater financial stability/wealth building, improved health, stronger community cohesion, expanded youth and/or senior programming, and enhanced digital skills.

In particular, NHT appreciates the commitment of DHCD and other state agencies to advance digital equity against the backdrop of an increasingly acute digital divide. DHCD has an opportunity to move beyond the minimum baseline internet requirements included in their 2023 QAP and to provide an express preference and incentive for the provision of digital literacy and/or skills training for residents. They could also define a minimum upload/download speed that meets the sufficient demand of our online world today, going beyond the Federal Communications Commission standard. In so doing, they would join the efforts of eight other HFAs that are committed to ensure that residents have the tools they need to leverage the internet. 

NHT applauds DHCD’s work to date and its efforts to invite stakeholder feedback on how its QAP could further support better resident outcomes. NHT is committed to remaining a partner to Maryland DHCD to serve the needs of Marylanders, and to helping all state HFAs bolster the efficacy of this critical housing tool. 

To learn more check out NHT’s 2023 QAP analysis, tracking trends and best practices from across the country.

Note: Since NHT submitted comments to Maryland DHCD, the draft 2024 QAP has been released. NHT looks forward to responding to the draft 2024 QAP to ensure that the QAP continues to provide access to affordable housing and resident services to encourage housing stability for low-income households. You can find more information on the Maryland DHCD website here.

1.https://dhcd.maryland.gov/HousingDevelopment/RHF%20Current%20Notices/Notice24-06.pdf

2. In the 2024 Legislative Session, the Maryland Senate passed on an opportunity to protect renters’ stability through legislation passed by the House of Delegates (HB 477) that would have allowed counties to pass their own “good cause eviction” bills. Maryland is only one of six states in the country that prohibits counties from enacting their own good cause eviction law.