The Town of Clarksville received a Community Development Block Grant (CDBG) in the amount of $1,697,448 from the Virginia Department of Housing and Community Development (VDHCD) for housing and infrastructure improvements within the Southwest Downtown community in October 2011. The project area includes Market Street, Carolina Street, 8th Street, and 9th Street.

The project was divided into two multi-year projects. Project activities in Multi-Year 1, to be completed in October 2013, includes rehabilitation of five (5) owner-occupied units; rehabilitation of eight (8) investor-owned units; replacement of 1,990 linear feet of 8" gravity sewer, 620 feet of 4" sewer lateral, and installation of 9 new or replacement manholes; installation of curve and gutter sidewalk; and storm sewer pipe to improve storm drainage; street improvements to include patch and repair to Market and Eight Streets, and the paving of Carolina Street; demolition of a 15,000 square ft. vacant dilapidated structure that presents a blighting influence on the neighborhood, and clearance of all junk, debris, weeds, inoperable vehicles and dilapidated structures from the project area. Project activities in Multi-Year 2, to be completed in October 2014, will include finalization of infrastructure activities, such as, installation of curb and gutter, sidewalks, and paving.