Housing advocates urge restoration of eviction‑prevention funds as DHCD highlights energy and broadband investments

The Health and Social Services Subcommittee heard the Department of Housing and Community Development's fiscal 2026 operating budget on Feb. 12. Department of Legislative Services analyst Scott Benson presented an overview showing a $42.0 million (8.1%) increase in DHCD’s operating allowance to $558.6 million and highlighted changes in energy, rental assistance and broadband funding.

Eviction prevention and homelessness funding drew the most public testimony. DLS noted that homelessness in Maryland increased 3% between January 2023 and January 2024 to 6,059 people, while remaining below national levels compared to pre‑pandemic trends. The Homelessness Solutions Program (HSP) fiscal 2026 allowance includes about $19.1 million in general funds; DLS observed that flat funding when homelessness and rents are rising effectively functions as a cut.

Advocates urged restoring $5 million that DHCD’s proposed FY26 plan removes from unrestricted eviction prevention funding. Matt Hill of the Public Justice Center said eviction prevention funds ‘‘pay 1 to 3 months of back due rent to ensure [a] short‑term crisis… does not become a catalyst for homelessness.’’ Representatives from victim‑service providers, legal aid groups, county homeless‑service agencies and local emergency service organizations described increases in need since the end of pandemic‑era federal rental assistance and said the state’s eviction prevention dollars help avoid costly shelter stays and downstream public costs.

DHCD’s priorities and energy programs: DLS highlighted a large increase in energy‑program funding, driven largely by Empower Maryland program expansions required under new public‑utility standards. The department said higher Empower funding will support single‑family and multifamily energy efficiency work, weatherization and related retrofits, and noted the program can be used for both rental and owner‑occupied properties. Assistant Secretary Greg Hare explained the work includes upgrades to building envelopes, systems and contractor standards intended to reduce greenhouse‑gas emissions as required by statute.

Broadband and Main Street: Benson also summarized broadband responsibilities assigned to the department and the continuing multi‑year programs funded by federal and operating funds. Main Street advocates asked the committee to maintain the Main Street Improvement Program operating funding tied to neighborhood revitalization grants; program managers said operating dollars are needed to move and sustain capital projects in traditional downtowns, to support business recruitment, marketing and professional development.

Secretary Jake Day and DHCD leadership cautioned about near‑term federal funding uncertainty and its direct consequences for projects. Secretary Day described scenarios where frozen federal funds can halt a bond financing and delay rehabilitation for hundreds of affordable units; he warned that a frozen federal component for an energy retrofit could postpone renovation of a 200‑unit property and affect the households that live there. Day said the department is actively planning for contingencies and coordinating with state partners but emphasized the real‑time impacts now visible as certain federal funding streams were disrupted.

Votes and follow up: The hearing did not include committee votes on the budget; members asked DHCD to provide additional detail about Empower Maryland program targets, projected subcontractor standards, broadband program timelines and the practical effect of restoring eviction‑prevention funds.

Ending: Advocates requested that the committee restore the $5 million in unrestricted eviction prevention assistance to the DHCD homelessness solutions program. Members and witnesses agreed to provide follow‑up documentation and program details for the committee’s subsequent deliberations.