HAGERSTOWN – The City of Hagerstown is preparing to launch a new round of community development efforts backed by nearly $1.2 million in federal and local funding through the Community Development Block Grant and HOME Investment Partnerships programs.
City officials reviewed the details during a July 15 work session, laying the groundwork for expanded housing support, neighborhood revitalization and targeted assistance for vulnerable populations.
The updated five-year consolidated plan and fiscal year 2026 Annual Action Plan were presented by Matthew Joe and Rachel Paul, who oversee the city’s housing and community development activities. The plans will guide the allocation of federal funds to improve the quality of life across Hagerstown, particularly in low- to moderate-income areas.
Funding breakdown
For FY26, Hagerstown has been awarded:
- $791,400 in federal CDBG funds.
- $75,000 in estimated program income, such as repayments from prior homebuyer loans.
- $361,181 in HOME funds from the U.S. Department of Housing and Urban Development, marking Hagerstown’s first year in this program.
- A required local match of $138,819 will be provided to support participation in HOME.
Together, these funds will support a combination of city-run initiatives and partnerships with local nonprofits focused on promoting housing stability and neighborhood improvements.
Prioritizing housing and neighborhood renewal
The plans propose a balanced mix of investment in people and places:
- Home repair grants and down payment assistance are available to income-qualified residents.
- Public infrastructure upgrades to include sidewalk repairs, repaving, and improvements to parks and playgrounds.
- Support for nonprofits that serve the homeless, seniors, and youth, helping deliver essential services and community programming.
“The focus remains on strengthening neighborhoods and supporting those most in need,” said Joe. “We are targeting funding where it can do the most good and bring long-term benefit to Hagerstown residents.”
HOME program: A new opportunity
This year marks Hagerstown’s debut as a participating jurisdiction in HUD’s HOME program. These funds are restricted to housing-related efforts, including rehabilitation and programs to promote homeownership.
City staff are currently developing guidelines to ensure these new initiatives comply with federal rules and address local housing needs.
“We’re excited about the additional impact HOME funding can bring,” said Paul. “We’ll be able to do more for families seeking to improve or maintain stable housing.”
Local partner reengages with expanded assistance
As part of the discussion, the Hagerstown Neighborhood Development Partnership requested two adjustments to its existing FY24 CDBG allocation:
- Extension of its funding timeline through December 2025, due to earlier staffing gaps.
- Increase in individual down payment assistance caps from $3,500 to $5,000 per household to better reflect current housing costs.
Public engagement and deadlines
Public input is a crucial component of the planning process. A first hearing was held in December 2024, followed by a public comment period that began June 18 and continues through July 18. A second hearing is scheduled for July 16 at 5:30 p.m. in the council chambers. Community members are encouraged to attend and share feedback before the final submission to HUD. The city must submit its approved plan by Aug. 16 to secure the federal funds.
Next steps
A resolution to approve the five-year consolidated plan and FY26 annual action plan is scheduled for vote at the July 22 regular session. If approved, the city can formally request its federal entitlement and begin implementing its community priorities.
City leaders and staff stressed the importance of securing strong federal support for these programs. Some funding sources, like HOME, are at risk amid ongoing congressional budget negotiations. A delegation from Hagerstown plans to visit Washington, D.C., later this month to advocate for continued investment.
