AMSTERDAM — City officials are hoping to land a half-million-dollar state grant to spruce up the heart of downtown.

Grant writer Nick Zabawsky said he applied for the money under the New York Main Street program last week.

This is the first year that municipalities were eligible to apply for funding through the program. Money previously went to nonprofit organizations. Zabawsky said the competition for the grants will be tougher than ever, especially with the weakening state economy.

However, he said, the city has put together a compelling application.

“The state’s big emphasis is on small target areas so there can be a lot of impact. They like historic buildings and that’s wall-to-wall historic over there, so we’ve got everything that they’re looking for,” he said.

The state’s New York Main Street program provides communities with financial resources and technical support to strengthen traditional Main Street neighborhoods. Grants are administered by the state Office of Community Renewal. The state has set aside $6.4 million for this round of funding.

Zabawsky said the grant would assist property owners along the small stretch of East Main Street with facade improvements and updating commercial and residential spaces.

“Hopefully we’ll get funded and stimulate tons of investment,” Zabawsky said.

The matching grant program would allow property owners to use public money for up to 75 percent of a project’s cost. Zabawsky said property owners can take advantage of several opportunities to pay for the remainder of the cost, including business loan programs from the Montgomery County Chamber of Commerce and the city’s Urban Renewal Agency.

The city’s Urban Renewal Agency received a $200,000 New York Main Street grant to revitalize West Main Street in 2005. Very little interest was taken in the program and nearly half the money was still left over from the grant this year.

Zabawsky said he would like to have seen more participation from the West Main Street property owners, but he said he expects more interest from the property owners downtown.

“They are different owners and this is a different setting. I’m pretty confident this will fly,” Zabawsky said.

Downtown business owners have been suffering a lack of foot traffic in an area designed more for vehicles.

At the end of August, two business owners announced they were leaving the area. Donna Peterson owner of Uniforms and More, and Brian Desrochers, owner of Derocom Graphics, were two of the people trying to keep the Downtown Amsterdam Business Association alive, and it disbanded upon their departure. However, Mayor Ann Thane has set up an ad hoc committee of community members and business owners to tackle issues facing downtown development. More than 30 people showed up to the last meeting.

“There is a buzz on Main Street,” Zabawsky said.