WASHINGTON — The Maryland Association of Realtors warned Monday that a prolonged government shutdown could have adverse effects on the state’s housing programs and housing market.

“Each day the shutdown continues, uncertainty grows for Maryland families trying to buy or sell a home,” association president Denise Lewis said in a statement. “While our industry remains resilient, extended disruption to federal housing programs could delay closings, limit access to flood insurance, and create financial hardship for thousands of households.”

The association pointed to federal insurance and loan programs that the shutdown could impact. Among them are the National Flood Insurance Program (NFIP), Department of Agriculture (USDA) loans and Department of Veterans Affairs (VA) loans.

The group estimated that 15 home sales are at risk per day during the shutdown. Should the shutdown last for a month — which House Speaker Mike Johnson said Monday is likely to be one of the longest in American history — it could cause a backlog in loan approvals and flood insurance issuance. The issuance disruption would disproportionately affect coastal counties.

A month-long shutdown could result in approximately 450 home sales being delayed or lost, with an estimated economic loss of roughly $60 to $ 70 million, according to the association.

Although the extent of the impact on the programs isn’t clear cut, the association warned that the NFIP may not be able to issue new or renewal policies due to the shutdown. Claims will still be paid until the program runs out of money, but the inability to issue new policies could disrupt home buying in Special Flood Hazard Areas. Flood insurance is required to obtain a mortgage for properties in hazard areas, which are at high risks of flood damage.

While flood insurance is available on the private market, it typically costs more. The state is currently in the peak of the Atlantic Hurricane season.

For the USDA, no new direct or guaranteed loans will close during the shutdown, according to the association. Also, rental assistance and loan servicing help will be limited during the shutdown. It contrasts with the VA, which will continue guaranteeing home loans. But staffing shortages could disrupt processing times, delaying appraisals and approvals.

Monday was the 13th day of the shutdown.

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