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Hagerstown adopts FY2026 HUD plan and approves $34,329 business incentive
Summary
At a special session Aug. 12, the Hagerstown Mayor and City Council adopted a resolution to approve the city’s FY2026 consolidated plan and annual action plan for HUD CDBG and HOME programs, and approved a financial incentive agreement for Motherland Kitchen LLC, a downtown restaurant, authorizing a grant of up to $34,329.
The Hagerstown Mayor and City Council, meeting in a special session Aug. 12, adopted a resolution approving the city’s FY2026 consolidated plan and the FY2026 annual action plan for the U.S. Department of Housing and Urban Development (HUD) Community Development Block Grant (CDBG) and HOME Investment Partnerships programs. The council then approved a financial incentive agreement with Motherland Kitchen LLC, authorizing a grant of up to $34,329 from the city’s economic redevelopment fund.
The consolidated-plan resolution authorizes the mayor to file an application for HUD financial assistance and to execute documents needed for the city’s CDBG and HOME programs for HUD program year 2025 (city fiscal year 2026). The resolution also authorized staff to amend the approved program budget as needed to reflect final allocations. The motion to adopt the consolidated plan was made during the special session and carried (motion text and vote recorded in the session transcript). The amount stated aloud in the motion was not clearly transcribed in the meeting record and is therefore reported as stated by council staff during the motion; the council’s adopted resolution and final HUD award letter will contain the official dollar amount.
Later in the special session the council approved a resolution authorizing execution of a financial incentive agreement with Motherland Kitchen LLC for the business at 5557 South Potomac. The agreement supersedes a prior Main Street startup subrecipient grant and provides a grant up to $34,329 to be paid from the economic incentives line item in the economic redevelopment fund. The project completion deadline in the agreement is listed as Oct. 15, 2025; staff are authorized to make administrative edits to the agreement with approval of the city administrator as necessary prior to execution. The motion passed in the special session.
Council procedure: both matters were presented and moved for adoption in the special session. Council members called for votes and the motions passed during the special-session roll calls.
What happens next: the mayor is authorized to submit the HUD application and to sign related documents for the CDBG and HOME programs; staff have authority to adjust the program budget to match final HUD allocations. The Motherland Kitchen agreement will be executed consistent with the terms approved and administrative edits authorized by staff.
Provenance: the special-session motions and votes are recorded in the Aug. 12 meeting transcript; the consolidated-plan motion begins in the transcript at the start of the special-session segment and the Motherland Kitchen resolution is recorded later in that special-session block.
Ending: The council adjourned the special session and moved into the scheduled work session. Any formal, final HUD award amounts or executed contract documents will be available in the city’s administrative files and subsequent published minutes.
