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.