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Maryland agency seeks to codify Project Restore downtown revitalization program; no new funding in budget
Summary
The Maryland Department of Housing and Community Development asked the Ways and Means Committee to codify Project Restore, its program that subsidizes small business investment in vacant storefronts, but officials said the bill contains no new state appropriation for the program this year.
Secretary of Housing and Community Development Jake Day and DHCD program director Carrie Snyder told the Ways and Means Committee on Jan. 23 that House Bill 90 would codify Project Restore, the department’s place‑based small‑business revitalization initiative.
DHCD said Project Restore began in fiscal 2022 with American Rescue Plan funds and has supported nearly 800 small businesses and more than 1,400 jobs. Carrie Snyder testified the program received $176 million in requests for $50 million in available funds across rounds, and that DHCD has reimbursed about $28 million in expenditures tied to participating businesses’ sales and use tax collections.
“Project Restore is a proven, effective tool for growing small business, creating jobs, and enhancing the character and appeal of downtowns and main streets,” Secretary Day told the committee, while acknowledging that the fiscal note for the bill reflects a $10 million program cost and that no state funds are currently in the FY 2026 budget for the program.
Project Restore provides capital (eligible uses include rent, renovations, fixtures and equipment and building acquisition) to place‑based economic development organizations—which then subgrant to small businesses—removing usual matching‑fund barriers and pairing capital with local technical assistance. DHCD said more than 60% of early award recipients were minority‑ or women‑owned businesses and emphasized the program’s focus on building entrepreneur wealth by supporting property acquisition where appropriate.
Municipal and county officials (Paul Ellington of Salisbury and others) and downtown advocates described Project Restore as especially valuable in rural and Eastern Shore communities. Committee members asked for more granular reporting and award‑recipient data; DHCD said final reports are being completed for FY22 and FY23 awards and that FY24 awards remain open.
DHCD representatives said the program redesign to route awards through community economic development organizations reduced administrative barriers and produced stronger local partnerships and outcomes in places such as Hagerstown, Cumberland and Baltimore County. The department also said it is open to legislative language adding reporting requirements.
Ending: The committee closed the hearing without taking action; supporters urged codification so the program could be positioned for future state funding, while lawmakers sought more recipient‑level reporting and clarity about how the program interacts with sales and use tax and other state economic development tools.
