The Georgia Department of Community Affairs (DCA) has announced that the Rural Workforce Housing initiative would soon begin taking applications. Gov. Brian Kemp announced the program in his State of the State address back in January as part of the strategy to tackle workforce housing across the state.
The General Assembly approved more than $35 million in an amended budget that was passed in March and became effective on signing. The program is representative of rural population changes and difficulties but it also implies an optimistic future. If there were not new investment in these areas, such as many of the new manufacturing facilities in rural Georgia that have been opened these past few years, there would be no need for the program. In many rural Georgia towns, a manufacturing facility that hires several hundred people might have just hired everyone in the town that has the skills to work in that facility. To attract another facility, new housing would be required before a company could consider locating there.
“Georgia has been blessed to experience incredible growth in recent years, with record jobs and investment coming to communities across our state,” said Governor Brian Kemp. “This has led to increased need for workforce housing to meet the needs of employees in rural communities. This program is an important step towards meeting that need and ensuring workers are able to live in the communities where they work. I look forward to remaining engaged with our local partners on this issue in the coming months and years.”
The funding available through the program will have some flexibility to best complete the puzzle that is incentivizing new housing. A number of activities will be eligible for the program, including essential community infrastructure specifically needed to support new housing development, land acquisition (subject to public ownership requirements), and construction finance for workforce housing.
“This innovative, new initiative helps to address an important aspect of building strong, vibrant communities – housing that is affordable,” said DCA Commissioner Christopher Nunn.
The grants will be limited to no more than $2.5 million per application, with construction financing limited to no more than $1 million per applicant. Applications may be wholly or partially funded but applications for less than $250,000 will not be accepted (though the OneGeorgia Authority that is overseeing the program may offer a waiver at its discretion).
Interestingly, developments must have a sale price between $290,000 and no less than $125,000. This price point is for the sale of a single-family housing project or the per unit cost of a multi-family unit. Many affordable housing programs might restrict rental rates to 60 percent or less of Area Median Income (AMI) but this program allows for up to 100 percent of AMI.
Applicants are expected to find other sources of funding as well, though there is not a defined matching requirement. Applications with already-secured matching funds will have an advantage in their consideration.
To learn more about the program, determine eligibility and other requirements:
