Many low to middle income individuals and families who live and/or work in Davidson are unable to purchase or rent a home in town because both home prices and rents are very expensive.  The purpose of this proposed policy is to provide that applicants who live or work in town will be given priority when applying for affordable housing over others who do not have the same connections to town.  This preference will be applicable to housing units built through the Town’s affordable housing program, Town owned homes, and projects that receive a subsidy from the affordable housing (PIL) fund. 

 

DRAFT POLICY:

RESOLUTION ESTABLISHING A LOCAL HOUSING PREFERENCE POLICY FOR THE TOWN OF DAVIDSON 

WHEREAS, the Town of Davidson has an affordable housing program that provides housing for individuals and families earning between 50% and 120% of the area median income; and 

WHEREAS, many low to middle income individuals and families who live or work in town cannot afford to live within the town limits; and 

WHEREAS, the Town of Davidson Board of Commissioners wishes to establish a preference for housing applicants who live or work in town. 

NOW, THEREFORE, BE IT RESOLVED by the Mayor and Board of Commissioners for the Town of Davidson as follows:  

1. First priority will be given to an eligible household with a member who lives and works in town.

2. Second priority will be given to an eligible household with a member who lives or works in town. 

3. The priorities are to be applied to housing units developed pursuant to the town’s inclusionary housing requirements, housing units owned by the town, and housing units that receive a subsidy from the town’s affordable housing fund.  

For purposes of this policy, an applicant will be determined to live with the Town of Davidson if the applicant has lived in the Town of Davidson for three consecutive months or longer. The applicant must produce proof of residency in the town.  This evidence can be a deed, lease, rental agreement, rent receipt, utility bill, or other documentation that indicates residency. 

For purposes of this policy, an applicant will be determined to work in the Town of Davidson if the primary place of employment for at least one member of the applicant’s immediate household is located in the Town of Davidson. If an applicant does not have a fixed place of employment (e.g., delivery personnel, repair persons), but spends at least 50% of his or her time in the Town of Davidson, the applicant will be determined to be employed in town.  

The preference policy shall be applied at both initial occupancy and subsequent sale or rental of affordable housing units.  

This policy is effective as of the date it is adopted.  

Villages at South Main Developer Proposal

Villages at South Main Townhomes has proposed the construction of three affordable homes in Downtown Davidson.

The market value of one home is $240,000 (an outside appraisal has been ordered), but the home would be discounted to $170,000. The reduction in price ($70,000) and soft costs would be applied to South Main Square Payment-in-Lieu (PIL), which amounts to $79,650 for 3 units.

For example: Buyer purchases for $170,000, which is a reduction of $70,000. Buyer requires $5,000 in closing costs (soft costs). Total reduction in price plus soft costs is $75,000 per unit ($225,000 for all three townhomes.) Developer contributes $79,650 and the remaining $145,000 would be contributed from other PIL funds. These funds come from other developers and can only be used for affordable housing. A total of 8.5 PILs gets 3 new affordable townhomes in the prime downtown area.

The three homes would be deed restricted and available to households earning up to 80% of the AMI.