(8/20) The Town of Thurmont voted to join Frederick County’s Community Development Block Grant (CDBG), guaranteeing funding for fiscal years 2025, 2026 and 2027.
The CDBG Program is a federally funded program managed by the U.S. Department of Housing and Urban Development (HUD) designed to assist County and Municipal Governments with activities that are directed toward the enhancement of neighborhoods, housing opportunities, economic development and improvement of public facilities and services. HUD allocates funding based on three factors: population, people in poverty and the number of overcrowded units, including rentals, and number of homeowners.
Devin Peart, Frederick County’s local government relations associate, expects Thurmont to receive $148,000 for their annual base allocation from Frederick County’s expected grant total of $700,000, which will then be divided amongst its municipalities. Frederick County will determine allocations based on criteria similar to HUD’s. Unlike previous years, the County will also be distributing the unincorporated allocation amongst the participating municipalities in order to reach their infrastructure and housing goals.
"The big advantage that we see in this process is that your municipality will not have the administrative burden of applying with the state program, needing only to submit project summaries to the County for compliance purposes and working with the County for our reporting needs to HUD," Peart said.
"Additionally, this funding stream is guaranteed annually, and it will make planning and budgeting easier for your municipality."
Town Manager Jim Humerick explained how cumbersome some grant applications can be, reminding the Council that none of that funding is guaranteed. The Town had applied directly to CBDG in the past but was not successful in winning grant funds.
"It can take 40-hours plus to complete a CDBG grant when you’re applying at the state level to the DHCD [Department of Housing and Community Development]. As much as we love the DHCD, and we do, that’s a lot of work to be told no," Economic Development Manager Vickie Grinder said.
Mayor John Kinnaird asked about the process for any unused funds within each municipality. Director of Operations for the Division of Housing, Susan Brown, clarified that if a municipality doesn’t use all of its funds, another municipality can request those funds be reallocated to their project.
Peart said the funding can be used for property acquisition, relocation, demolition, public infrastructure, facilities. Humerick explained that the criteria are set to ensure that the projects the Town chooses meets the goals of the County and the Grant. Brown explained that’s the reason they require the scope of the project be reviewed before the Town begins.
While the Town will be committed to the program for three fiscal years, it can decide to rejoin the program or to drop out once that period is over.
