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The Hagerstown Housing Authority was created in 1949 by resolution of the Mayor and Council due to the need of low-rent housing for low-income families. A contract between the Authority and the United States Department of Housing and Urban Development binds the Authority to rent only to lower income families. The Department of Housing and Urban Development guarantees a subsidy to pay the interest and retirement of bonds sold by the Authority to finance the communities and also pays a limited annual operating subsidy.
 
The Housing Authority is a nonprofit organization operating under the laws of the State of Maryland to provide housing for low-income families within the City.
 
The Housing Authority currently manages 1320 dwelling units in 11 communities including the mixed finance communities and also subsidizes the rental of approximately 884 dwelling units in the private market under the Section 8 Housing Assistance Payments Program and the Housing Choice Voucher Program.
 
The Authority currently provides housing assistance for approximately 10% of the population of the City of Hagerstown.