The City Council adopted the Heart of the Civil War Heritage program 4-2 on June 22 after first voting it down on May 23.
A final decision was postponed twice because Councilwoman Debbie Greenfield was absent from those meetings.
She and council members Ronald Bruchey, Beth Johnson, and Walt Stull voted for the plan. Councilmen Brent Bell and Tom Smith remained opposed.
Bruchey and Greenfield voted against the plan in May, but changed their votes after hearing from residents for and against the plan.
After the council denied the plan in May, nearly 130 residents petitioned council members to change their minds.
The program allows residents and the city to apply for state grants to restore historic homes and storefronts. In 1999, the Maryland Area Heritage Authority recognized a region known as the Heart of the Civil War Heritage Area that includes portions of Frederick, Carroll and Washington counties.