Staff seeks amendment to state tax-sale acquisition grant to allow demolition and clearance

City staff told the mayor and council Sept. 16 that an existing state community development grant intended to finance acquisition and rehabilitation of no-bid tax-sale properties needs a scope amendment to permit demolition and clearance. The city has acquired tax-sale certificates on an initial round of 23 properties and identified seven additional properties; staff said most current city-acquired parcels are vacant lots or structures unsuitable for rehabilitation and would require demolition.

Paul Falt (staff) said the original grant scope expected community development corporations (CDCs) to acquire and rehabilitate properties for resale as ownership or rental units. Because none of the properties the city has acquired to date are feasible for rehab, staff recommended amending the grant to allow use of funds for demolition and clearance so the award can be used to remove blight.

“We're here to propose a recommended change to the scope of work for an existing state community development grant…in order to utilize the grant funding, staff is proposing an amendment to the scope of the project to permit the city to use the funding for demolition and clearance,” Falt said. He told the council the state had granted multiple extensions and that preliminary conversations indicated the state would be agreeable to a scope change; staff planned to submit a formal request and seek a council vote at the Sept. 30 regular session.

What’s next: Staff will draft and submit the formal amendment request to the Maryland grant administrator and return the matter to the council for a Sept. 30 vote; the current grant deadline in the transcript was cited as June 30, 2026.