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Financial
Assistance Programs
The following programs are available.
Loans
Tax Credits
Grants
Equity
LOANS
Economic Development
Historic Preservation
Housing
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| Economic Development |
Hagerstown Commercial Rehabilitation Loans
(Hagerstown Department of Community Development,
301-739-8577, ext. 136).
CDBG loans are available to bring a building, or commercial portion
of a building, up to code. Eligible projects provide a public benefit,
such as enhancements for low- to moderate-income and handicapped persons
or blight eradication in locally designated areas.
Hagerstown Revolving Loan Fund
(Hagerstown Economic Development Director,
301-739-8577, ext. 141).
Loans available for existing or new businesses which will create or
retain jobs or improve the economic condition and tax base within
the City. Eligible costs include building acquisition, building rehabilitation,
machinery and equipment, new construction, professional fees, working
capital, and refinance existing debt in special circumstances. HRLF
funds are intended to be used as gap financing following efforts to
secure conventional financing. $30,000 max. for working capital or
professional fee loan. $100,000 max. loan for securable assets.
Brownfields Cleanup Revolving Loan Fund
(Hagerstown Director of Planning,
301-739-8577, ext. 140)
Loans available to cleanup environmentally contaminated properties
as a mechanism to facilitate redevelopment of such sites. Eligible
projects are those whose applicant, property, and cleanup plan have
been approved for participation in Maryland's Voluntary Cleanup Program.
It is anticipated that origination fees will range from 0%-2%, interest
rates will range from 2% to market rate, and terms will range from
2-8 years. Loan maximum of $106,000 to $142,000 (in initial round
of loans). This program will go into effect in the Spring of 2001.
Maryland Neighborhood Business Development Program
(Maryland Office of Neighborhood Revitalization,
410-514-7209)
Start-up or expansion loans and/or grants to non-profit and for-profit
small businesses located in designated revitalization areas. NBDP
funds are intended to be used as gap financing, not to exceed 50%
of the project costs ($25,000 to $500,000). Projects must have support
of local government that project is important to community revitalization.
Inner-City Ventures Fund
(National Trust for Historic Preservation,
803-722-8552).
Below-market rate
loans available to non-profit organizations for acquisition, rehabilitation,
and related capital costs for projects offering housing, neighborhood
services, and commercial opportunities for area residents. The goal
of this program is to help revitalize older, historic neighborhoods
for the benefit of low- and moderate-income residents.
Small Business Administration 504 Program.
Expansion loans to for-profit small businesses. Funds are intended
to be used for acquisition of land, building, machinery and equipment,
construction and renovation which results in the creation of new jobs.
Up to 40% of eligible project costs, with a maximum of $750,000. Long-term,
below market rate. [The Mid-Atlantic Certified
Development Company.]
Tri-County Council Revolving Loan Fund
(Washington County Economic Development Commission,
240-313-2280).
Loans to new and expanding small to mid-sized businesses. The funds
are to be used as gap financing, not to exceed 25% maximum of fixed
asset costs or 50% maximum of working capital ($10,000 to $100,000).
Maintenance and expansion of job opportunities is a goal.
Maryland Economic Adjustment Fund
(Maryland Department of Business and Economic
Development, 410-767-6390). Loans to companies with growth
potential for working capital, product development, technology commercialization,
or manufacturing modernization. Average loans range from $100,000
to $250,000. Priority will be given to defense contractors and companies
started by former defense workers who lost their jobs with defense
contractors. Applicants must have a strategic multi-year business
plan that anticipates strong, but realistic, growth in the coming
years.
Small Business Administration Loan Guarantees
(local lenders)
Community Reinvestment Act (local
lenders)
Maryland Competitive Advantage Loan Fund
(Maryland Department of Business and Economic
Development)
A revolving loan fund providing loans up to $100,000 to small and
minority businesses with sales of less than $1 million. One of DBED's
legislative proposals this year.
Maryland Economic Development Assistance Fund
(Maryland Department of Business and Economic
Development).
Loans to major job-creation and retention projects.
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| Historic Preservation |
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Maryland Historic Preservation Loan Program
(Maryland Historical Trust, 410-514-7634).
Low-interest, 20-year loans to non-profit organizations, local
jurisdictions, businesses, and individuals for acquisition, rehabilitation,
or restoration of historic properties listed in or eligible for
listing in the Maryland Register of Historic Places. Gap financing.
Loans range from $10,000 to $300,000. "Substantial rehab" test
(impact to overall building). Must convey easement on property
to MHT prior to receipt of funds.
Special Loan Opportunity for Locally Designated Historic Properties
(Maryland Historical Trust, 410-514-7634).
Low-interest rehab loans to owners of historic properties in locally designated
historic districts or landmarks for exterior rehab work. Easement is not required
most cases.
Preservation Maryland Revolving Loan Fund
(Preservation Maryland, 410-685-2886).
Loans available to non-profit organizations for purchasing and rehabilitating
endangered historic properties. Loans range from $5,000 to $50,000.
Interest Rate: 0% annual interest for 1-12 month loan; 2 fixed prime
rate for 13-36 month loan; fixed prime rate for 37-60 month loan.
National Preservation Loan Fund
(National Trust for Historic Preservation,
803-722-8552).
Below-market rate loans up to $350,000 to non-profit organizations
and public agencies for creation or expansion of local and statewide
preservation revolving loan funds, for site acquisition, for rehabilitation
work, and for pre-development activities. The goal is to help preserve
properties listed in or eligible for the National Register of Historic
Places.
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| Housing |
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Maryland Smart Growth Home-ownership 4%
Mortgage Initiative (Maryland Department
of Housing & Community Development).
Home-buyers in targeted areas can apply for 4%, 30-year mortgages
for up to $126,300. Maximum income of $69,360 for 1-2 member households
and $80,920 for three or more member households. [Local lenders]
C all available money has been committed; new money may be made
available in next fiscal year.
Maryland Live Near Your Work Program
(Hagerstown Department of Community Development,
301-739-8577, ext. 136). Loans for settlement costs are available
for home-buyers in designated revitalization areas. The home-buyer
must work for a participating employer. The employer, City and the
State each contribute $1,000 towards a $3,000 loan for the employee.
Maryland Mortgage Program for Low- to Moderate-income,
First-time Homebuyers
(Fannie Mae and Maryland Community Development
Administration).
30-year, fixed-rate mortgages for first-time home-buyers.
6.4% interest for buyers with maximum income of $46,240 for one-member
households and $54,910 for households with two or members. Maximum
purchase price for a home in Washington County is $110,000. [1-800-638-7781
for participating lenders.]
HOME Mortgage
(Hagerstown Department of Community Development,
301-739-8577, ext. 136).
No-interest, no payment, deferred 2nd mortgage loan for purchasers
of City-owned houses. HUD maximum income guidelines. If owner lives
in house for 10 years, loan is forgiven.
Hagerstown Single-Family Home-ownership
Program
(Hagerstown Department of Community
Development, 301-739-8577, ext. 136).
Loans available for rehabilitation work on owner-occupied properties.
HUD maximum income guidelines.
Maryland Housing Rehab Program - Single-family
(MHRP SF)
(Hagerstown Department of Community
Development, 301-739-8577, ext. 136).
Improve single-family and small rental properties lived in
by low- and moderate-income households. Comprehensive and limited
rehabilitation to improve basic livability, increase energy conservation,
and to meet special needs.
Maryland Lead Hazard Reduction Program
(Hagerstown Department of Community Development,
301-739-8577, ext. 136).
Loans are available for approved lead reduction activities in owner-occupied
single-family houses and in rental housing with 100 or less units.
No income limits.
Maryland Housing Rehab Program - Multi-Family
(MHRP)
(Rental Housing Program of Maryland CDA).
Provide affordable rental housing for low- and moderate-income households
and promote community development.
Maryland Rental Housing Production Program (RHPP) (Rental Housing
Program of Maryland CDA). Provide affordable rental housing for
low- and moderate-income households and promote community development.
Maryland Office and Comercial Space Conversion
Program
(Rental Housing Program of Maryland
Department of Housing & Community Development). Loans
to convert office and commercial space in designated neighborhoods
to rental housing. The building must be at least 30 years old, have
two or more floors, have been built for the primary purpose of being
used for office or other commercial space, and have been last used
as office or other commercial space.
203(k) Mortgage Rehabilitation Insurance
Program
(FHA)
Loans cover acquisition and rehab costs for residential properties
(one- to four-family dwellings) which need at least $5,000 in repairs.
Low down payment, closing costs wrapped into mortgage, rehab money
escrowed at closing and disbursed directly to contractor. 30-year
fixed rate mortgages. Minimum code standards must be met and rehab
work must be inspected prior to payments to contractor. [local lenders]
Title I Mortgage Insurance Program
(FHA)
FHA approved lenders receive insurance for up to 95% of mortgage
amount. Enables eligible participants to purchase property with
5% down payment. [local lenders]
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TAX CREDITS
Economic Development
Historic Preservation
Housing
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| Economic Development |
Enterprise Zone Tax Credits
(Washington County Economic Development Commission,
240-313-2280).
Local property tax credits for city and county property for up to 10 years on capital investments. Credit of 80% on increases in assessed value of real property for the first five years, decreasing by 10% annually for the remaining five years.
State income tax credits for creating new jobs. One time credit of $1000 for most jobs. Credits for hiring "disadvantaged" employees (vouchered by the State): first year, $3000; second year, $2000; third year, $1000.
Neighborhood Partnership Program
(Maryland Office of Neighborhood Revitalization,
410-514-7241).
Tax credits awarded on a competitive basis to non-profit service organizations
that sponsor community development activities in designated revitalization
areas. Non-profits trade tax credits to Maryland businesses for cash
or goods contributions to their approved projects. Businesses receive
tax credit equal to 50% of their contribution.
Job Creation Tax Credit
(Maryland Department of Business & Economic
Development, 410-767-6438).
Income tax credits for companies creating 60 or more new jobs. Jobs
must pay at least 150% of the minimum wage. $1,500 x each new employee
or 5% of total wages paid, which ever is less.
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| Historic Preservation |
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Washington County Property Tax Credit for
Rehabilitation
(Washington County Historic Preservation Commission,
301-791-3065).
10% of rehab costs, 5% of addition costs.
Maryland's Heritage Preservation Tax Credit
Program
(Maryland Historical Trust, 410-514-7626).
Credit is equal to 20% of the approved rehab costs of "certified
heritage structures." Work must be completed within a 24-month
period. For owner-occupied properties, the rehabilitation costs
must exceed $5,000. For income-producing properties, the rehabilitation
must exceed the adjusted basis of the property (purchase price minus
value of land and any depreciation taken). If the tax credit exceeds
the amount owed in taxes, property owners will receive a refund
for the balance. Non-profit organizations are now eligible for the
tax credit refund.
U.S. Income Tax Credits for Rehabilitation
of Income-producing properties
(Maryland Historical Trust, 410-514-7626).
20% of the rehab costs of "certified historic resources."
Substantial rehab.
Maryland Gift Easement Income, Property,
Estate Tax Deduction (Maryland Historical
Trust, 410-514-7634).
Value of easement is equal to loss in value of property due to imposition
of easement.
Maryland Enabling Legislation (1994): Local
Historic Preservation Tax Credit Programs.
Localities are permitted to grant tax abatements to property owners
for the increase in tax assessment resulting from improvements to
their property (for up to 10 years). Hagerstown
does not have such a program in place.
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| Housing |
Low-Income Housing Tax Credit Program
(Maryland Department of Housing & Community
Development).
U.S. Income Tax credits given for projects which create certain percentage
of low-income housing units. The units must be maintained for a minimum
of 15 years. Credits are competitively allocated annually and are
for 4% or 9%, depending on federal subsidization.
Hagerstown Residential Rehab Program
(Hagerstown Planning Dept. 301-739-8577 x 138).
City and County property tax credits given for eligible renovations of residential property in the City's Community Legacy Area.
Hagerstown Conversion of MF to SFR Program
(Hagerstown Planning Dept. 301-739-8577 x 138).
City and County property tax credits given for eligible renovations that convert a multi-family residential property in the City's Community Leagacy Area to a single-family residence.
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| GRANTS |
Maryland Neighborhood Business Development
Program
(Maryland Office of Neighborhood Revitalization).
Start-up or expansion loans and/or grants to non-profit and for-profit
small businesses located in designated revitalization areas. NBDP
funds are intended to be used as gap financing, not to exceed 50%
of the project costs ($25,000 to $500,000). Projects must have support
of local government that project is important to community revitalization.
Hagerstown Facade Grant Program
(Hagerstown Public Information Manager, 301-739-8577,
ext. 116).
Matching grants of up to $1,000 available for facade improvements
to buildings located in Hagerstown's C-3 Commercial Central zoning
district. Strictly-residential properties are not eligible for this
program. Proposed improvements must be approved by the Hagerstown
Preservation Commission.
Hagerstown Sign Grant Program
(Hagerstown Public Information Manager, 301-739-8577,
ext. 116).
Matching grants of up to $300 available to businesses for sign improvements
in Hagerstown's C-3 Commercial Central zoning district. Proposed improvements
must be approved by the Hagerstown Preservation Commission.
Hagerstown Downtown Residence Initiative
(Hagerstown Community Development Dept. 301-739-8577 x 133).
Downpayment or rent assistance grants for young professionals moving into the downtown.
Maryland Historic Preservation Grants
(Maryland Historical Trust, 410-514-7633).
Used for acquisition, rehabilitation, or restoration of historic properties
listed in or eligible for listing in the Maryland Register of Historic
Places. Non-profits and local jurisdictions are eligible. Grants range
from $20,000 average to $50,000 maximum ($75,000 max. for eligible
municipalities). 50-50 matching grant (match may include cash and
in-kind services). Must convey easement on property to MHT prior to
receipt of funds.
Preservation Maryland Grant Program
(Preservation Maryland, 410-685-2886).
Available to non-profit organizations for securing and/or stabilizing
endangered historic properties; architectural, engineering, or structural
evaluations; "bricks and mortar" repairs and restoration.
Grants range from $500 to $5,000.
Preservation Maryland Special Grant Program
(Preservation Maryland, 410-685-2886).
Available to non-profit organizations and local jurisdictions for
protection of endangered tangible cultural resources and promotion
of innovative demonstration projects which can be successfully replicated
to meet Maryland's historic preservation needs. Grants are for a maximum
of $5,000.
National Trust's Preservation Services Fund
(National Trust for Historic Preservation, 803-722-8552).
Available to non-profit organizations, government agencies, and educational
institutions to initiate preservation projects. Grants range from
$500 to $5,000.
National Trust's Johanna Favrot Fund
(National Trust for Historic Preservation, 803-722-8552).
Available to non-profit organizations and government agencies for
projects that contribute to the preservation or recapture of an authentic
sense of place. Available to for-profit businesses and individuals
to support projects related to National Historic Landmarks. Grants
range from $2,500 to $10,000.
National Trust's Cynthia Woods Mitchell Fund
for Historic Interiors (National Trust
for Historic Preservation, 803-722-8552).
Available to non-profit organizations and government agencies to preserve,
restore, or interpret historic interiors. Available to for-profit
businesses and individuals to support projects related to National
Historic Landmarks. Grants range from $2,500 to $10,000.
Maryland Lead Hazard Reduction Program
(Hagerstown Department of Community Development,
301-739-8577, ext. 136).
Grants are available in target areas for approved lead reduction activities
in owner-occupied single-family houses and in rental housing with
100 or less units. No income limits.
Industrial Training Grants.
Matching grants for employee training offered by Maryland's Industrial
Training and Partnerships for Workforce Quality Programs. [Mr.
Robin Douglas, 301-722-0054.]
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| EQUITY |
Banc of America Historic Tax Credit Fund
(Community Partners at National Trust for Historic
Preservation, 202-588-6054).
Provides equity for state and federal historic tax credits to projects
which contribute to revitalization of downtowns and neighborhood commercial
and residential areas. Eligible projects: properties and projects
eligible for historic tax credits; total development costs of $2.5
to $25 million and generating combined federal and state credits of
at least $500,000; multi-family housing, mixed-use, office, educational
facilities, museums (no hotels). Equity amounts range from $500,000
to $5,000,000, based on tax credit award.
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