During last week’s committee meetings, Winston-Salem councilmembers unanimously approved the sale of a lot in the North Ward to Clayton Homes for $1, along with $824,272 in state ARPA funding. Clayton Homes already has a construction loan of $4.75 million, but the city funding will help fill the financial gap as they work to build 22 modular homes with three bedrooms and two bathrooms each. The location is near Esquire Place and Cheshire Woods Drive, and the proposed development site is 7.27 acres.
The item is set to appear at next week’s council meeting on Monday.
Tanya Skillman, the city’s housing development manager, explained that the city is offering the money as a “forgivable loan” with zero interest during the 15-20 months it takes the developers to build the homes.
Skillman added that this gives the city some “rights if there’s something that happens.”
“The loan will be forgiven as each of the lots are sold,” Skillman said.
One of the houses on Clayton Homes’ website costs nearly $225,000.
“We’re getting 22 affordable housing units out of this deal?” Councilmember John Larson asked.
Skillman replied, “Yes, sir.”
The appraised value of these homes is $253,376 according to city documents. However, when the lots are sold, the city will provide the homebuyers with a 15-year down payment assistance loan. The subsidized sales price for six of these houses will be $205,000 while the other 16 will be $220,000. Eight of these homes can go to households 80 percent or less of the area median income, or AMI. According to the city, the median family income in Winston-Salem is $68,900. A family of four with an annual income of $55,100 would qualify. The remaining 14 homes could go to families making between 81-120 percent AMI. Additionally, the houses will be subject to a 15-year affordability period.
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