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Hagerstown, housing authority seek $26 million HUD Choice Neighborhoods grant to redevelop three public housing sites
Summary
City staff and the Hagerstown Housing Authority presented a Choice Neighborhoods implementation application seeking $26 million to finance an eight‑year, multi‑phase plan to replace and add housing (361 total units, 194 replacement units) and to fund people and neighborhood strategies focused on employment, training and stabilization services.
Consultants and Hagerstown Housing Authority leaders presented the city’s Choice Neighborhoods implementation grant application to HUD, which requests $26 million to execute a multi‑phase redevelopment and people strategy.
Woo Kim (WRT) and Urban Strategies representatives described a housing pipeline that includes adaptive reuse of the Mhler warehouse into about 65 units (no displacement expected), redevelopment of Parkside Homes (about 71 units), and a larger Frederick Manor replacement that would replace 125 public‑housing units with a 225‑unit mixed‑income development. In total, presenters described roughly 361 units with about 194 replacement units and a mix of affordable/rent‑restricted and market‑rate units phased over eight years.
Presenters said the Hagerstown Housing Authority will serve as lead applicant and co‑developer, the Delaware Valley Development Corporation is the selected master developer, and Urban Strategies will lead the people strategy. The people plan emphasizes income/employment and case‑management supports (HUD expects a typical case manager ratio near 50:1); local partners include the American Job Center, Boys & Girls Club and local social‑service agencies. Presenters also described plans to pursue state financing and tax credits to leverage the HUD request and a local leverage target of about $3.8 million.
Council members asked about developer incentives, long‑term ownership and protections for residents. Staff replied that the housing authority will retain management responsibilities, has a right of first refusal at the end of certain compliance periods, and that developer compensation is primarily a one‑time developer fee while excess cash services debt. Presenters also described Section 3 and local hiring goals and said they will continue robust community engagement (two neighborhood meetings scheduled the next day).
The grant application is due March 9; staff said HUD award notifications are expected in late summer. No formal council vote occurred during the work session; the presentation was informational and tied to upcoming community outreach.
