Local council approves funding for affordable housing through HUD home program

In a recent work session held on June 3, 2025, the Hagerstown City Council engaged in critical discussions regarding the implementation of a new affordable housing program aimed at addressing the city's growing housing needs. The meeting highlighted the city's commitment to enhancing affordable housing options, a key goal for local leaders.

The council explored participation in the HOME Investment Partnerships Program, which would provide Hagerstown with $361,181 in funding to support various housing initiatives. However, to fully access these funds, the city must secure an additional $138,000 from its budget, raising questions about potential sources for this matching amount. Council members discussed the possibility of reallocating funds from the general fund's contingency reserves, which were initially set aside for unexpected expenses and union negotiations.

The program is designed to create pathways for homeownership through various avenues, including tenant-based rental assistance and property rehabilitation. Council members noted that while the program offers flexibility, it also comes with specific restrictions, particularly regarding income eligibility and the duration of affordability for housing units. For instance, homeowners may face penalties if they sell their properties within a certain timeframe, depending on how the funds were utilized.

The discussions also touched on the experiences of Howard County, which has successfully participated in the program since 2000. Their insights suggested that starting small and gradually expanding the program could be a viable strategy for Hagerstown as it navigates the complexities of the initiative.

Overall, the council's deliberations underscored the urgency of addressing affordable housing in Hagerstown. With the potential to enhance existing housing programs and provide much-needed assistance to low- and moderate-income residents, the council is poised to make significant strides in this area. The next steps will involve finalizing budget allocations and determining the feasibility of moving forward with the HOME program, ensuring that Hagerstown can effectively tackle its housing challenges in the years to come.