(8/15) In a vote of five to one, the Town Council approved an agreement to collaborate with Frederick County in the Community Development Block Grant (CDBG) program. The primary objective for the program, as described on the Maryland Department of Housing and Community Development website, is "to develop viable communities, provide decent housing and a suitable living environment, and to expand economic opportunities, principally for persons of low and moderate income."

The program consists of two parts: the Entitlement Program and the States and Small Cities Program. The Entitlement Program receives approximately 70% of the federal funding and gives the money to large metropolitan communities. The States and Small Cities Program is aptly named, providing federal funding to states (who then give funding to counties, small cities and towns. This program receives the remaining 30% of funds.

The program provides annual grants on a formula basis to entitled cities and urban counties. By joining Frederick County, Emmitsburg will receive an estimated annual allocation of $77,000 from the County’s estimated $700,000 funds without going through the competitive process at the state level. The rest of the funds are divided among participating municipalities.

Under Frederick Counties "umbrella," the Town will not need to complete any of the application process because the County does all the administration requirements. All the Town will need to do is submit project summaries and ensure all projects conform to HUD’s program requirements. However, a negative to joining Frederick County is that Emmitsburg will be unable to apply for any CDBG grants for the duration of the required three-year commitment. If the Town wishes to drop out of the program at the end of the three-year term, it may do so and can continue with the full and highly competitive state process.

Susan Brown, the Director of Operations for the Division of Housing, confirmed that Emmitsburg has applied in the past and, while they have been granted funding, there have been times when they were denied.

Town Manager Cathy Willets said the last CDBG grant the Town applied for was $800,000 and they were denied the funds because of the competitive nature of the program. The Town intended on using the funding for the Green Street and waterline projects. The grant money can be used for projects such as infrastructure improvements to include water and sewer needs, sidewalk repair and the purchase of blighted land for repurposing."

Commissioner Jim Hoover asked what would happen to the Town’s portion of funding if they did not have any projects "in the pipeline." Devin Peart, Frederick County’s Government Relations Associate, confirmed that without an available project, the money would be moved to a municipality that could use it. "You would voluntarily relinquish those funds if you didn't have a project," he said. However, the funds could be rolled over, meaning if another municipality was not ready to begin a project, the funding could be passed to Emmitsburg and then roles could reverse the following year.

Commissioner Tim O'Donnell asked if the funding could be utilized to subsidize housing concerns, such as the manufacture of new homes, so costs are reduced for consumers. "I’m trying to make sure we can address the needs of our young people with steady jobs and create housing within their means to purchase," he said.

Brown said "Home Funds" were a possibility for use of CDBG funding and would address O'Donnell's concerns. These funds are different from basic CDBG funding and although information is minimal at this time, Brown described them as being useful for buyer assistance, housing rehabilitation, rental house production, and tenant based rental assistance.

Commissioner Valerie Turnquist pointed out the restrictive nature of joining Frederick County, stating, "It does seem to tie our hands with applying for other grants." However, Brown said the Town could still apply for other grants that were not CDBG grants.

The Council approved the collaboration and will be following Frederick County’s lead in the process.