New Maryland program tries to fight the ‘appraisal gap’

MARYLAND – The Maryland Department of Housing and Community Development recently announced a new program. Utilizing Progressive Lending Investments to Finance Transformation, or UPLIFT for short, is the state’s latest effort to help developers build affordable housing in low-income neighborhoods.

“It helps us to offset the cost—it costs us more to build than we can sell the property for, and that’s what’s called an appraisal gap,” said Habitat for Humanity Wicomico County Executive Director Molly Hilligoss.

According to Jake Day, Secretary of the Maryland Department of Housing and Community Development, this is the state’s attempt to bridge this ‘appraisal gap’ for organizations that aim to build affordable housing: That gap exists because there are neighborhoods where there’s been historic disinvestment. That historic disinvestment has suppressed the appraised value of properties. And so UPLIFT is Maryland’s response, it’s our way of filling the gap.”

One area that qualifies for support under UPLIFT is Salisbury’s Church Street neighborhood, a community that Hilligoss said Habitat for Humanity Wicomico County has been working in for years: “We’ve been serving the church street neighborhood since 2005. More than 30 homes have been sold as owner-occupied, just with our agency alone in that time.”

Hilligoss continued, saying that while she always wants to see more progressive policies, every bit of government assistance helps. She noted that the cost to build a home from scratch is usually at least $200,000: “And that doesn’t even include supervisor expenses or acquisition costs. That’s just bricks and sticks. It’s expensive these days to build new.”

There’s more work to do, but Maryland’s UPLIFT program ultimately hopes to provide families and citizens in low-income areas the opportunity to own the home that they live in. “Homeownership is something that we believe in. It’s something we want our citizens to aspire to as best they can, and to have something to they can pass on, creating inter-generational wealth,” said Secretary Day.

For organizations that qualify, the state will provide up to $1.25 million to try to offset the cost of development. Eligible locations on the Eastern Shore include: Salisbury, Cambridge, Princess Anne, Crisfield, Snow Hill, and Pocomoke City. Developer applications will be accepted on a rolling basis until the program’s 2024 funds have been distributed.