ACE Funding in MD Protecting Housing Stability

ACCESS TO JUSTICE | LEGISLATIVE PRIORITIES

ACE FUNDING IN MARYLAND:

Protecting Housing Stability

BY COLLEEN M. ARACRI, ESQ.

IN RECENT YEARS, MARYLAND HAS EMERGED as a leader in the movement to address housing inequities, particularly with regard to eviction proceedings. In 2021, the Maryland General Assembly passed HB18 (the ACE Law), making Maryland only the second state in the nation to have a program that provides access to legal representation to all income-qualified persons facing eviction on a statewide basis. This legislation was a response to the recognition that evictions have far-reaching consequences, affecting not only individuals and families but also public health, the economy, and social justice.

While the passage of the ACE Law was a critical step towards leveling the playing field for Maryland tenants facing eviction, it cannot succeed without continued funding. As such, the Maryland Access to Justice Commission’s (A2JC) top priority in the 2025 legislative session was additional funding for the ACE law. A2JC is proud to report that, despite the fact that the General Assembly was faced with an exceptionally tight budget, A2JC and its partners were able to obtain continued funding for the ACE law through 2028.

The Importance of the ACE Law The ACE Program has demonstrated significant positive outcomes.

Data indicates that 88% of those who have received services through ACE have avoided eviction or disruptive displacement.1 In fiscal year 2024 alone, the ACE Program closed 8,894 cases, a 124% increase from the previous year, providing much-needed legal representation to thousands of Maryland residents.2

A2JC is proud to report that, despite the fact that the General Assembly was faced with an exceptionally tight budget, A2JC and its partners were able to obtain continued funding for the ACE law through 2028.

1 https://mgaleg.maryland.gov/cmte_testimony/2025/app/1vi23CcUImaPdgedzYR6PVHo1pf J1BO5W.pdf 2 Id. 3 Id. 4 Id.

Moreover, the program is saving the state money. For every $1 spent on the law, the state sees returns of almost $5.3 An ACE attorney costs approximately $1100 per case compared to the $9700 that the state would spend to provide homeless services.4

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Analysis from Stout consultants estimates that for every $1 spent on the ACE Program, Maryland realizes $4 in economic benefits.5 This includes savings of $21.6 million in social safety net costs and $6.8 million in additional Medicaid spending, and the program has helped over 5,600 households avoid eviction, preserving economic stability and employment.6 Funding the ACE Program Funding is crucial to the success of the ACE Program.

Without consistent and sufficient funding, the program’s effectiveness is compromised, leaving vulnerable tenants without the legal support they need.

Despite budget concerns, civil legal aid organizations were able to effectively advocate for the passage of SBA154, which provides continued funding for the ACE Program.

Senator Shelly Hettleman championed SB15410, and almost 30 individuals and organizations offered testimony in favor of the passage of SB154, while no one testified in opposition.

Ultimately, SB154 passed both Chambers and was submitted to Governor Moore, who signed the bill into law on May 13, 2025.

FOR EVERY

1 spent on the ACE Program,

$

At the start of the 2022 legislative session, the Program remained unfunded. The Access to Counsel in Evictions Task Force, which was created by the ACE Law to monitor implementation of the ACE Program, strongly asserted in its inaugural report that funding was the ACE Program’s “most urgent and critical need.”7 A2JC, along with other civil justice organizations, made ACE Program funding its top priority during the 2022 legislative session and succeeded in advocating with the General Assembly and Governor to provide two years of start-up funding for the Program through fiscal year 2024.8 Thereafter, during the 2023 legislative session, the General Assembly passed SB756, which provided 3 years of additional funding of the ACE law through the Abandoned Property Fund in the amount of $14M per year for fiscal years 2025 through 2027.9 Senate Bill 154: Extending Funding for the ACE Program While it is clear that the ACE Program is successful, Maryland faced significant budget challenges in the 2025 session. State lawmakers grappled with a widening structural budget gap, which put pressure on funding for various programs, including access to justice initiatives.

5

MARYLAND REALIZES

4 in economic benefits.

$

SB154 ensures that the ACE Program will have continued funding by extending the Governor’s annual appropriation of $14 million from the Access to Counsel in Evictions Special Fund to the Maryland Legal Services Corporation (MLSC) through fiscal year 2028. This ongoing funding commitment is critical to maintaining and expanding access to legal counsel for tenants statewide.

The bill also adjusts and continues the ACE Task Force. It will now be chaired by the designee of the Secretary of the Department of Housing and Community Development (DHCD), with DHCD providing staff support and selecting membership. The Task Force will continue its responsibilities of evaluating the provision of ACE services, studying potential funding sources, and making policy recommendations to strengthen the program’s impact.

Id.

6

Id.

7 8 9 10

https://mgaleg.maryland.gov/cmte_testimony/2025/bat/1snRU5qZRA969ldCWoZvHmnak_F5wokPm.pdf https://mgaleg.maryland.gov/cmte_testimony/2025/bat/1snRU5qZRA969ldCWoZvHmnak_F5wokPm.pdf https://mgaleg.maryland.gov/cmte_testimony/2025/bat/1snRU5qZRA969ldCWoZvHmnak_F5wokPm.pdf https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/SB0154?ys=2025RS

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39%

OF TENANTS REPORTED THAT

EVICTION

WOULD LIKELY RESULT IN

homelessness for their families.

To ensure equitable participation, the bill now authorizes reasonable compensation, including stipends, for tenant members whose income is no more than 50% of the state median income adjusted for household size, ensuring the voices of those directly impacted by eviction are heard.

Support for SB154 Several organizations provided compelling testimony emphasizing the ACE program’s effectiveness and the importance of continued funding, which were instrumental in the passage of SB154.

Senator Shelly Hettleman, who presented the bill, testified on the transformative impact of the ACE program. She stated, “SB 154 represents a critical step in ensuring that Maryland continues its leadership in addressing housing inequities by extending the funding and restructuring the oversight framework for the Access to Counsel in Evictions (ACE) Program and Task Force.”

Senator Hettleman also highlighted the program’s importance for vulnerable populations, stating that “about 73% of ACE clients identify as Black or African American, 72% are women, and 56% of female clients have at least one child in their household,” and that “alarmingly, 39% of tenants reported that eviction would likely result in homelessness for their families.”

Senator Hettleman explained that, “[a]s evictions in Maryland return to pre-pandemic levels and housing costs continue to rise, the ACE Program provides a lifeline for tenants, especially those facing systemic barriers to housing stability,” and urged a favorable report on SB 154 to guarantee the ACE program’s longterm sustainability and continued impact.

A2JC also testified that its top priority this year was to “ensure full and continuous state funding for the Access to Counsel in Evictions law.” Further, it emphasized that “stable and continuous funding is the lynchpin to successful ACE implementation,” and that the General Assembly must act to “provide a steady and permanent amount of base level funding to ensure continued implementation of the ACE law.”

MSBA expressed its support for SB154 as well, recognizing the importance of civil legal aid programs in expanding access to justice for low-income and vulnerable Marylanders. The Bar believes that “timely access to representation creates stability

It is clear that the ACE program is a critical initiative that not only provides essential legal support to tenants facing eviction but also generates significant economic returns for the state. for those in need” and that “investments in civil legal aid can yield a positive economic and societal impact on the state.”

Additionally, Maryland Legal Aid (MLA) submitted testimony in strong support of SB154, highlighting the program’s effectiveness in providing vital housing stability, leveling the playing field in rent court, and addressing the disproportionate impact of evictions. MLA emphasized that “the state’s investment in the ACE Program is already changing this dynamic” and that “our results already show that having counsel gives that family a better chance of retaining their ABOUT

73% OF ACE CLIENTS IDENTIFY AS

Black or African American

72% are women AND

56% OF FEMALE CLIENTS HAVE AT LEAST

one child in their household housing subsidy, correcting errors in the rental ledgers and/or addressing unhealthy and unsafe conditions.”

It is clear that the ACE program is a critical initiative that not only provides essential legal support to tenants facing eviction but also generates significant economic returns for the state. Continued funding and support for this program, as demonstrated by the passage of SB154, are vital for ensuring justice, equity, and housing stability for Maryland residents.

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