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Cornelius News

Townhome project in Davidson includes workforce housing options

April 28. A community partnership led by the Davidson Community Foundation plans to build an 81-unit housing development that will include eight workforce housing units on the old Hoke Lumber site.

The partnership, which includes Alliance Group of North Carolina, the developer, as well as the Davidson Housing Coalition and the Town of Davidson’s Affordable Housing and Equity Dept., said more than 90 percent of the people who work in Davidson live elsewhere, mostly due to lack of affordability.

Construction starts soon

Construction on the Hoke Townhome project is expected to begin this summer, with units available in early 2022. The eight workforce/affordable housing units will be distributed throughout the development.

There is a well-documented shortage of affordable housing in Davidson.

“While most developers choose to make a payment in lieu (PIL) of providing AH, we saw an opportunity with the Hoke Townhome development to help change the PIL paradigm and work with Alliance to create more AH in Davidson,” said Dave Cable, co-chair of the Davidson Community Foundation.

The developer

Jacob Anderson, owner of Alliance Group of NC, said there was considerable feedback from the community in favor of the concept.

“The best thing we can do to bring value to the Davidson community is to be responsive to clearly-identified needs and desires,” he said.

Each townhome will be approximately 1,900-2,000 square feet with three bedrooms, 2.5 bathrooms and a two-car garage.

Income levels

The eight AH units will be owned and rented in perpetuity as affordable, with a rental rate targeted to families whose incomes fall between 50 percent and 80 percent of area median income, or $44,000 to $65,000 per year.

The location of the townhomes is within walking distance to public transportation, employment, grocery and other stores, Main Street and Davidson College. Additionally, public open spaces and interconnected walkways throughout the development will foster neighborhood and community interaction.

A mix of people

A mix of people in all income levels “distinguishes us as a community,” said Gerald Wright, executive director of the Davidson Housing Coalition.

“These new AH units within the Hoke Townhome development will allow families of teachers, police officers, firefighters and nurses, to name a few, to live in the town they serve,” he said.

The partner organizations will provide the financial contributions required to fund the project. Specifically, a steep discount purchase price by Alliance Group; debt financing and grant funds through Davidson Housing Coalition; an equity contribution of $400,000 raised by Davidson Community Foundation; and $400,000 in PIL housing funds contributed by the Town of Davidson.

Discussion

3 Responses to “Townhome project in Davidson includes workforce housing options”

  1. I understand the income levels for AH but are there any restrictions on developers selling the AH units to investors who would then resell them?

    Posted by James Simpson | April 29, 2021, 10:49 am
    • Hi, James!

      Absolutely, there are restrictions. The townhomes will be rented as affordable housing in perpetuity (99 years). Davidson Housing Coalition has purchased the 8 townhomes and will manage them as affordable over the 99 year period. Thanks for the excellent question!
      Best,
      Ellen Donaldson

      Posted by Ellen Donaldson | April 29, 2021, 3:40 pm
  2. Only 8 workforce units is just ridiculous!

    Posted by Teri | April 29, 2021, 2:40 pm

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