HAGERSTOWN – City officials are preparing to take a significant step toward expanding affordable housing in Hagerstown by pursuing participation in the federal HOME Investment Partnerships Program, a U.S. Department of Housing and Urban Development initiative that would provide new funding options for housing-related projects.
During a session on June 3, city staff members outlined the benefits and requirements of the HOME program, which functions alongside the city’s existing Community Development Block Grant efforts. If approved, the program could provide more flexibility and resources to improve housing affordability for low and moderate income residents.
Funding details and city commitment
HUD has awarded Hagerstown an initial allocation of $361,181 for the upcoming program year. However, to formally qualify as a participating jurisdiction, the city must contribute additional non-federal funds to meet a minimum program threshold of $500,000. That leaves a gap of $138,818, which city leaders must commit by June 13.
Finance Director Michelle Hepburn explained that funds could be drawn from the city’s general fund contingency, a reserve traditionally used for unexpected costs or union negotiations. Council members discussed splitting costs between housing initiatives and other planned investments, indicating general support.
After the first year, continued participation in the HOME program would require an annual 25 percent local match. That match does not need to be paid upfront and can be fulfilled by city partners or subrecipients, depending on how projects are structured.
What the program supports
The HOME program is aimed exclusively at housing-related needs and can be used to fund a wide range of activities, including:
- Homeowner rehabilitation
- Tenant-based rental assistance
- New housing construction
- Support for first-time homebuyers
Amanda Greg, chief housing and community development officer, stated that the city would likely begin small by supplementing existing programs such as the Homeownership Rehabilitation Program to reduce the learning curve. At the same time, staff would become familiar with the program’s requirements. The city might expand to include new home construction or larger-scale affordable housing initiatives in the long term.
“This is a great opportunity to build on what we’re already doing and reach more residents in need,” Greg told the council. “We’re not locked into a long-term obligation and can reassess each year.”
Flexibility with oversight
Although HOME is broader than CDBG regarding eligible housing activities, it still comes with HUD oversight. Income restrictions, affordability requirements and periodic compliance reviews ensure funds are used as intended. For example, housing developed with HOME funds must serve households earning no more than 80 percent of the area median income, and depending on the type of assistance provided, homes may be subject to resale or recapture conditions.
City staff members noted that municipalities like Howard County, which has participated in the HOME program since 2000, began by focusing on a single initiative before expanding gradually. Hagerstown could follow a similar path to scale up over time while maintaining compliance.
Next steps
Council members expressed support for the move, noting that affordable housing has long been a priority in public discussions and past planning documents. If approved, the HOME program would become part of the city’s five-year consolidated plan and annual action plans submitted to HUD, integrated alongside existing CDBG efforts. The council has scheduled a special session for Tuesday, June 10, to formally vote on whether to proceed with the program. Staff must notify HUD of the city’s intent by Friday, June 13.
