Hagerstown seeks $26 million HUD Choice Neighborhoods grant to rebuild three public-housing sites
Loading...
Summary
City and Hagerstown Housing Authority co-apply for a $26 million HUD Choice Neighborhoods implementation grant to redevelop three housing sites in four phases, including 194 replacement units and new mixed-income housing; partners stressed checks, resident protections and local hiring strategies.
HAGERSTOWN — The city and the Hagerstown Housing Authority are moving forward with an application for a federal HUD Choice Neighborhoods implementation grant that would bring roughly $26 million to an eight-year redevelopment plan targeting three public-housing sites.
The Hagerstown Housing Authority is the lead applicant and the Delaware Valley Development Corporation is the identified development partner, presenters told the city council. The plan combines housing, people and neighborhood components and is structured in four phases starting with adaptive reuse of the MOLA building into 65 units, including 30 replacement units.
At a council work session, a consultant described the overall scope: the proposal would replace 125 public-housing units at Frederick Manor with about 225 mixed-income units and deliver a total of 361 housing units across sites, including 194 replacement units and a mix of affordable-rental and market-rate units. "This is an application into the federal government to HUD for $26,000,000 of Choice Neighborhoods funding," the presenter said.
Why it matters: Choice Neighborhoods grants couple physical redevelopment with services and neighborhood investments. Urban Strategies, the people-services partner, said HUD expects measurable outcomes on income and employment and that the people plan will rely on local partners, a case-management model and section 3 hiring strategies. The team said they are pursuing additional state financing and low-income housing tax credits to leverage HUD funds.
Council members raised long-term-accountability questions about ownership and developer profits. Presenters said developer compensation is limited largely to a one-time developer fee and that the housing authority typically retains management and has right-of-first-refusal options after compliance periods. "Any excess cash goes back to pay the debt on those communities," a presenter said when explaining how revenues are used.
On resident protections and priorities, city officials were told that HUD requires one-for-one replacement for public-housing units and rights for residents to return. Presenters also said the application would prioritize counseling and credit assistance for prospective homeownership opportunities at Parkside and Douglas Courts, and the housing authority will manage property operations.
Next steps: The implementation application is due March 9; award notifications are expected in August. Presenters said they will continue public outreach, including community meetings scheduled at Parkside Community Center and Frederick Manor the following day, and will return to council with financing details and implementation timelines if the grant is awarded.
The council did not take a formal vote on the application during the session; presenters asked for the council's continued engagement and public feedback as the application is finalized.
