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City staff seek council approval next week for CDBG/HOME annual plan; HNDP asks to extend downpayment funds
Summary
City staff presented the FY2026 consolidated plan and annual action plan required by HUD and said the city's FY26 CDBG entitlement is $791,400. Staff also reported the city will receive HOME funds this year and that the Hagerstown Neighborhood Development Partnership has requested an extension and an increase in its downpayment assistance cap.
City staff presented the five‑year consolidated plan and the FY2026 annual action plan for the Community Development Block Grant (CDBG) and the first year of the HOME Investment Partnerships program at the July 15 work session, and asked the Mayor and City Council to adopt the documents next week so the city can submit its entitlement application to HUD.
According to staff, HUD has notified the city that the CDBG entitlement for FY26 is $791,400; program income is estimated at $75,000. Staff said the city will also receive HOME funding for the first time under the most recent HUD award cycle, with an FY26 HOME allocation of $361,181.17; the city expects to contribute a required local match of $138,818.83 to participate as a HOME jurisdiction. Staff noted the HOME program was subject to federal budget uncertainty and said council members and staff planned meetings in Washington to advocate for federal housing funding.
Why it matters: the consolidated plan and annual action plan set the city's priorities for neighborhood revitalization, homeowner repair grants, downpayment assistance and nonprofit subrecipient funding for the coming year. Staff said the draft plan has been available for public comment since June 18 and that the comment period runs through July 18; HUD requires the approved plan by August 16.
HNDP extension request: staff also presented a request from the Hagerstown Neighborhood Development Partnership (HNDP), which administers CDBG‑funded downpayment assistance for first‑time homebuyers. HNDP was awarded $28,000 for FY24 but experienced staff turnover and did not obligate the funds. HNDP seeks an extension through Dec. 31, 2025, and asked to increase its per‑household assistance cap from $3,500 to $5,000.
Discussion vs. decision: staff presented the plans and told the council that final adoption is requested at the council's July 22 meeting; no vote was taken at the July 15 work session. HNDP's request will be before the council as an agenda item next week.
What to watch next: the consolidated plan and annual action plan must be approved by council and submitted to HUD by Aug. 16 to secure the entitlement. The public comment period closes July 18. Staff also flagged ongoing federal budget uncertainty for HOME funds and said local officials would raise the issue with congressional delegation and White House intergovernmental staff.
Speakers: the presentation was made by department staff and consultants; council members asked about program timing and immediate availability of services. No commitments of new local funding were made at the July 15 meeting.
