Local Housing Land Trust Awarded $963,600 for Geothermal Installation

The Garrett County Maryland Affordable Housing Land Trust today announced it has been awarded a $963,600 grant through the Maryland Ground Source Heat Pump Advantage Pilot Program (MD GAP). The funding will fully integrate high-efficiency, sustainable Ground Source Heat Pumps (GSHPs) into all 73 planned homes at the Hemlock Grove Housing Project in Grantsville. This geothermal installation leverages stable underground temperatures to provide sustainable space heating, cooling, and hot water.

The award consists of a direct incentive of $12,000 per unit and neutralizes the capital cost premium of geothermal installation. By utilizing GSHP systems instead of traditional fossil-fuel heating, this Garrett County development serves as a premier regional model for attainable, net-zero-ready workforce housing. To ensure no added financial burden falls on incoming homebuyers, the Land Trust is contributing an additional $190,530 to fully cover the remaining variance between natural gas and clean energy outlays.

“Congratulations to the Garrett County Maryland Affordable Housing Land Trust on being selected for this funding,” said Maryland Energy Administration Director Kelly Speakes-Backman. “We are pleased to support the installation of geothermal systems at the Hemlock Grove development, which will bring meaningful savings to Maryland homeowners and ratepayers by lowering energy costs and reducing demand on the grid.” Said Kelly Speaker-Beckman, Director Maryland Energy Administration.

Built across 8.62 shovel-ready acres, the Hemlock Grove Project bridges the local attainable housing gap by introducing 27 detached homes starting at $249,000 and 46 townhomes starting at $189,000. Prices are set at well below the regional median home prices of $328,000 to $429,000.

By standardizing the units will all-electric geothermal systems instead of a traditional gas infrastructure, Hemlock Grove bypasses severe winter atmospheric challenges. While traditional systems struggle to pull thermal energy from Western Maryland’s average 26°F winter air, geothermal loops draw directly from the earth’s steady 50°F crust. This dramatic edge translates into immense operational savings and unparalleled regional grid insulation.

Key Long-Term Impact & Forecasted Data (10-Year Project Projections):

• Direct Homeowner Savings: Reduces average household utility bills by $1,039 annually ($10,390 over 10 years per unit).
• Carbon Reduction: Displaces 3.52 metric tons of CO2 emissions per home annually, preventing 2,569.6 metric tons of cumulative greenhouse gas emissions over a decade.
• Fossil Fuel Elimination: Completely bypasses the need for natural gas lines, displacing 391,718 therms of fossil fuels over 10 years.
• Peak Demand Mitigation: Lowers coincident neighborhood winter grid strain by up to 73% and summer peak power draw by 23%, keeping the regional grid stable.

"Hemlock Grove is proof that we do not have to choose between affordability and environmental excellence," said a representative from the Garrett County Maryland Affordable Housing Land Trust. "Thanks to the MD GAP grant, local working families will gain equity in high-performance, comfortable homes with permanently suppressed monthly energy costs. We are proudly transforming the baseline for rural workforce development housing".

Backed by a robust public-private partnership between Garrett County, the Town of Grantsville, and the Garrett County Development Corporation, the project previously secured $4 million in infrastructure funding for essentials like public water, sewer, and roads.

Infrastructure development is already aggressively underway under project developer Mountain Maryland Enterprises LLC. According to the certified phased rollout plan, the first 16 residential units are scheduled to become available for sale in August 2026, with the entire 73-unit footprint fully built out and optimized by Fall 2028.

In addition to housing stability, Hemlock Grove stimulates local financial vitality for Northern Garrett County. The development is poised to generate $13 million in direct home sales, supporting 138 construction-phase jobs, and pouring an estimated $459,789 in annual long-term economic activity back into the regional economy.

Beyond geothermal integration, Hemlock Grove is exploring solar readiness, EV-charging infrastructure, and other high-performance building technologies such as advanced air-sealing, ENERGY STAR aligned construction, and efficient ventilation systems to ensure homeowner comfort and reduced energy loads. The development continues to coordinate with local banks, nonprofits, and homebuyer assistance programs—including down-payment grant opportunities through Garrett County Community Action—to support residents on their path to homeownership.