City to amend RFPs for upper‑floor housing and strategic properties grants to include A/E fees; funding from Maryland Community Legacy

HAGERSTOWN, Md. — City staff asked the Mayor and City Council on May 20 to approve amendments to two grant program guidelines so architectural and engineering (A/E) fees can be eligible costs for developers applying to Maryland Department of Housing and Community Development (DHCD) Community Legacy dollars.

Staff said the city has roughly $100,000 remaining in the upper‑floor market‑rate housing program fund and $200,000 in a strategic properties fund (both Community Legacy grants administered through DHCD). The upper‑floor program provides 1:1 matching funds to help developers rehabilitate upper‑story residential units above ground‑floor commercial spaces to increase downtown housing stock; the strategic properties program targets adaptive reuse of large vacant structures to raise property values and catalyze redevelopment.

Staff proposed adding A/E fees to the list of eligible project expenses, reasoning that front‑end design and engineering costs can be a barrier to larger, more complex redevelopment projects and that including those fees in eligible costs would attract more robust proposals. If council approves, staff said they will amend and re‑advertise the open RFP so additional applicants can submit proposals with A/E costs included.

Staff also noted DHCD has extended the Community Legacy grant timeline through February (staff said the state offered an extension), giving the city and potential applicants more time to prepare proposals.

Next steps: staff requested council approval of the redlined guideline changes at the regular session next week; upon council action, the RFP will be amended and reposted to accept proposals that include A/E fees as eligible costs.

Sources: City memo to council and staff presentation, May 20, 2025.