HAGERSTOWN – The City of Hagerstown and the Hagerstown Housing Authority are pursuing a $26 million federal grant aimed at transforming aging public housing sites into mixed-income communities over the next eight years.
City officials received an update this week on the application for a U.S. Department of Housing and Urban Development Choice Neighborhoods Implementation Grant, which would fund the redevelopment of three targeted housing areas and expand affordable and market-rate options in the city.
If awarded, the project would deliver 361 total housing units, including:
- 194 public housing replacement units
- 92 additional affordable rental units
- 75 market-rate units
Officials emphasized there would be no net loss of public housing units under the proposal.
Four-phase redevelopment plan
The housing strategy would be implemented in phases.
The first phase calls for adaptive reuse of the Muller building into 65 housing units. Of those, 30 would replace units currently located at Douglas Court. Officials said the reuse strategy allows construction to begin without displacing current residents.
The second phase would redevelop Parkside Homes into a 71-unit mixed-income community, incorporating community space and new residential construction.
Phases three and four would focus on Frederick Manor, replacing 125 public housing units with a 225-unit mixed-income redevelopment that includes new streets, green space and updated infrastructure.
In addition, Douglas Court could be converted into up to 20 affordable homeownership units — a move officials said is relatively rare in federal housing transformation efforts.
“All public housing units that come down would be replaced,” project leaders said during the presentation.
“People strategy” focuses on stability, jobs
The grant also includes a services component managed by Urban Strategies Inc., a national nonprofit that has overseen similar federal housing initiatives nationwide.
The people-focused plan centers on:
- Income and employment
- Education and workforce training
- Senior independence and stability
The program would operate with a 50-to-1 case management ratio and aims to partner with at least 20 local organizations. Officials estimate the effort could leverage approximately $3.8 million in additional community support.
Leaders said workforce development partnerships and local hiring would be emphasized throughout construction and long-term operations.
Council raises accountability concerns
While council members expressed support for revitalization efforts, several raised concerns about long-term developer accountability and private-sector involvement.
Questions focused on:
- Who would ultimately own the properties
- Whether a private developer would profit long-term
- How reinvestment commitments would be enforced
One council member noted past redevelopment projects where long-term maintenance and neighborhood reinvestment fell short of expectations.
In response, housing authority officials clarified that the selected developer would receive a one-time developer fee and that the housing authority would remain deeply involved in ownership and oversight.
Officials said the housing authority would:
- Serve as co-developer
- Manage the properties
- Retain a right of first refusal after 15 years
- Oversee long-term compliance and operations
Any excess project revenue would go toward debt service rather than private profit, officials said.
Eight-year transformation timeline
If awarded, the grant would fund an eight-year redevelopment effort. The housing authority indicated it intends to complete all targeted phases, despite reduced federal grant ceilings compared to prior funding rounds.
The application remains under federal review.
