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Community Reinvestment and Repair Fund (CRRF)
In 2022, Maryland voters approved the legalization of adult-use recreational cannabis. As part of this law, a portion of the tax revenue generated from cannabis sales is directed to the Community Reinvestment and Repair Fund (CRRF). The purpose of the CRRF is to reinvest funds into communities that were disproportionately impacted by the enforcement of cannabis prohibition prior to July 1, 2022.
Funds from the CRRF support community-based initiatives that benefit low-income communities and disproportionately impacted areas identified by the Maryland Office of Social Equity, in consultation with the Maryland Office of the Attorney General.
In Washington County, restricted CRRF cannabis sales tax funds may only be used for initiatives serving ZIP code 21740, which includes portions of the City of Hagerstown and surrounding unincorporated areas of the County.
What the Fund Consists Of
The Community Reinvestment and Repair Fund is supported by several revenue sources, including:
- Cannabis sales and use tax revenue distributed under § 2–1302.2 of the Tax–General Article
- Cannabis business conversion fees paid under § 36–403
- Other funds or donations accepted for the benefit of the Fund, in accordance with conditions established by the Maryland Comptroller
Washington County has received both cannabis sales tax revenue and one-time cannabis business conversion fees. These funds are maintained in a separate special revenue fund and are reported in the County’s financial statements as restricted cash reserves and restricted fund balance to ensure they are used only for their intended purposes.
County Responsibilities
State law requires Washington County to establish guidelines for how CRRF funds are distributed and managed. The County is responsible for:
- Developing a funding plan in consultation with community stakeholders
- Holding a public hearing prior to adopting the plan
- Establishing application procedures and guidelines for eligible organizations
- Administering and monitoring funded programs
- Providing an annual report to the Board of County Commissioners and the Maryland Comptroller detailing the distribution process, funding awards, and expenditures
Funding Guidelines
CRRF funds may be used only for:
- Community-based initiatives that benefit low-income communities
- Programs serving disproportionately impacted areas, as defined in § 36–101
- Administrative expenses necessary to implement and manage the program
Funds may not be used for law enforcement agencies or law enforcement activities.
In addition, CRRF funding must supplement—not replace—existing local government funding for programs and services.
Examples of Eligible Programs
CRRF funding may support a variety of community-based initiatives, including but not limited to:
- Mental health and substance use services
- Education and after-school programs
- Small business grants and economic development initiatives
- Parks and recreational opportunities
- Criminal justice reform and re-entry programs
- Housing assistance and homelessness prevention
Programs are typically administered by Washington County or in partnership with eligible community organizations.
Community Input
Washington County is continuing to gather feedback from community members and stakeholders to identify the most pressing needs in impacted communities and to guide how CRRF funds should be prioritized.
Upcoming Events
Meetings will be listed here. Please check back periodically for updates.
Grant Management
Washington County Administration Complex
100 West Washington Street
Hagerstown, MD 21740
Suite 1601
Office Hours: Monday-Friday, 7:30 a.m. – 4:30 p.m.
Phone: (240) 313-2040
TTY users may call any government office through the Maryland Relay Service
1-800-735-2258