Maryland Governor Wes Moore announced a program to increase homeownership in historically redlined communities Tuesday.
The program – called Utilizing Progressive Landing Investments to Finance Transformation Program (UPLIFT) – funds the construction, rehabilitation and selling of affordable housing in areas impacted by the appraisal gap in historically redlined communities.
One of the most powerful drivers of the racial wealth gap is a lack of homeownership, according to a Maryland Department of Housing and Community Development news release.
In historically redlined communities, the release continued, homes appraise for less than the cost to build due to historic disinvestments – the appraisal gap. UPLIFT will fund this gap between the sale price and appraised value, eventually leading to increased home values and reducing the gap in these neighborhoods, the release said.
“We have an opportunity to counteract historic disinvestment in our communities by building vibrant neighborhoods, improving home energy efficiency and quality of life, and building social connections between residents,” Maryland Department of Housing and Community Development Secretary Jake Day said in the release.
The program’s goals include increasing homeownership in disinvested communities, upgrading housing for legacy homeowners in appraisal gap neighborhoods and revitalization.
UPLIFT is continuing on work done by the 2021 Homeownership Works pilot program.
The first phase of the pilot program is investing $10 million into construction and rehabilitation projects in Johnston Square, Baltimore and Pine Street, Cambridge neighborhoods.
However, multiple areas of Montgomery County qualify for future UPLIFT programs. This includes portions of Germantown and Rockville.
The pilot program rehabilitated four homes in the Johnston Square neighborhood, according to a the release. The homes are now valued at around $300,000, and were at $24,000 before the rehabilitation.
UPLIFT areas must be located in a Low-Income Census Tract and a Maryland Sustainable Community area.
Applications for the program will open in early 2024, according to the release. Public comments about the program will be accepted through Dec. 29.
