Group Home Rehabilitation Loan Program


The Community Development Block Grant (CDBG) Program provides for the rehabilitation of group homes which are occupied by persons of low and moderate income who are elderly and/or disabled.

Eligible Applicants

Only public agencies and incorporated non-profit organizations under Section 501(C)(3) of the Internal Revenue Code with at least two years' experience in the operation of a group home are eligible to participate in this program.

Application Process

The group home provider must submit a letter of introduction to the Department of Housing and Community Affairs (DHCA), Division of Housing. The letter must also include a statement of the nature of the repairs needed and the amount of funds required.

Along with the letter of introduction, the group home provider must submit a copy of the most recent inspection report issued by the licensing and/or regulatory agency, proof of ownership or lease to the property, a copy of the license to operate a group home and verification of nonprofit status.

Work Performance

Contractors performing the work must have a valid Maryland Home Improvement license and/or a valid contractors' license for specific work such as an electrician, plumber, roofer, etc.

Work may be performed directly by the applicant if, in the opinion of DHCA, the applicant is capable of doing the work and no program funds are used to pay labor costs.

Loan Conditions

As a condition of the loan, the group home provider will be required to operate in the same manner for a certain period of time depending on whether the property is leased, leased with option to buy or owned by the applicant.