Maryland Department of Housing and Community Development Issues Record $43.1 Million in Bonds for Local Infrastructure Improvements
NEW CARROLLTON, MD (May 19, 2026) – The Maryland Department of Housing and Community Development today announced it has carried out a record bond issuance through the Local Government Infrastructure Financing Program, generating $43,128,383 in loan proceeds to support three public purpose infrastructure projects throughout Southern Maryland – the largest bond issuance in the 38-year history of the program.
The program, part of the Department’s Community Development Administration, issues loans on behalf of local governments and municipalities to raise funding for community development. Projects range from the improvement of sidewalks, vehicle fleet upgrades, and key public facility renovations. The Department also provides awardees with the technical support necessary to navigate the complexities of loan financing and bond issuance.
“The Local Government Infrastructure Financing Program helps our local partners to improve their communities with safer streets, clean water, and great public spaces,” said Maryland Department of Housing and Community Development Secretary Jake Day. “This is a historical investment in Chesapeake Beach and St. Mary’s County and another example of the Moore-Miller Administration’s commitment to leave no one behind.”
St. Mary’s County Metropolitan Commission, the public water and sewer utility for St. Mary’s County, will receive $35.9 million in bonds that will be used for wastewater infrastructure improvements, rehabilitation and replacements, including at the Forest Run and Piney Point wastewater treatment plants. It will also support the first phase of a joint revitalization project with St. Mary’s County government in the Southampton community. An additional $1.25 million will help replace MetCom’s vehicle fleet.
“Without the ability to borrow at affordable interest rates, we would not be
able to accomplish what needs to be done in our county,” said George Erichsen, Executive Director of the Metropolitan Commission. “The staff involved in this Maryland Department of Housing and Community Development loan were exceptional, and the process was both straightforward and expeditious. All the work associated with this funding effort has either recently been bid and awarded, is ready to bid this Spring, addressing critical infrastructure needs, or is a part of our multi-year programmed vehicle replacement program.”
The Town of Chesapeake Beach will use proceeds from the LGIF bond sale to provide gap financing for the renovation and modernization of the Town’s water park. The total project cost is estimated at $19 million, including $5.9 million from LGIF bond proceeds, $12 million in Town funding, and an additional $1.1 million in state grant support.
The project will restore an important recreational asset to the community by reopening and revitalizing the Chesapeake Beach Water Park, which has been closed for the past three years. The renovated facility will be fully modernized and reimagined to provide an enhanced experience for residents and visitors. For almost 30 years, the water park has served as a cornerstone of the community, fostering recreation, tourism, and community spirit.
“The Town and the citizens of Chesapeake Beach are excited about the renewal, repair, and upgrade of the Chesapeake Beach Water Park,” said Mayor Bruce A. Wahl. “We are deeply grateful for the support provided through the funding and bonds that were issued; without them, we would not be able to move forward with this important project. I look forward to seeing this project progress through to completion.”
The Department’s Local Government Infrastructure Financing Program helps local governments secure long-term capital financing with advantageous terms for municipalities that have limited resources to initiate financing on their own.
Since 1988, CDA’s LGIF Program has served 66 incorporated municipalities, four counties, and two instrumentalities of counties across the state, with almost $667 million in affordable capital raised and directed to fund hundreds of essential projects that form the backbone of Maryland communities.
For more information on the Local Government Infrastructure Financing program, visit dhcd.maryland.gov/Communities/
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