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Commission introduces expanded South Side homeowner and developer incentives
Summary
The City of Paducah introduced an ordinance to repeal prior pilot incentives and create expanded homeowner reimbursement grants (30% of project cost, up to $30,000) and developer gap-financing incentives for new single-family construction aimed at attracting builders and raising local appraisals; staff described program mechanics, limits and partner financing options.
The Paducah City Commission on Nov. 25 introduced an ordinance to replace the pilot South Side housing incentives with an expanded program offering homeowner reimbursement grants and developer gap financing to stimulate single-family construction and major rehabilitation in the South Side revitalization area.
Palmer (staff) described the homeowner program as a 30% reimbursement of eligible project costs with a maximum award of $30,000 per property; applicants may apply up to three times (cumulative maximum $30,000). Eligible expenses include structural repairs and systems (windows, roofs, HVAC, porches, accessibility ramps) and new construction; routine maintenance and appliances are not eligible. Staff said reimbursement typically occurs within a few weeks after filing final invoices, although timelines vary by project.
The developer program would use memoranda of agreement in which developers commit to a sale price and timeline, and the city closes a gap between the sale price and appraised value for a qualified buyer via a nonperforming 10‑year 0% note secured as a second lien and reduced on a schedule (staff discussed a 10‑year amortization with reductions over time). Staff said the intention is to make 10 new homes visible in the area to stimulate market comps and reduce reliance on maximum gap subsidies; Community Financial Services Bank (CFSB) offered financing to support sales and closings.
Staff emphasized the program targets single-family ownership to increase owner‑occupied housing in Phase 1; commissioners asked about appraised values, landlord-owned vs owner-occupied shares and whether multifamily incentives might be considered separately. The ordinance was introduced and seconded; staff will return with final language and administrative details.
