Bristol’s New Residential Infrastructure Law Promises More Affordable Homes
Bristol, Tenn. – There’s palpable excitement in Bristol as developers and local leaders rally behind a fresh residential infrastructure law that many believe could significantly alter the home-buying landscape. The development comes on the heels of a bill passed unanimously by both houses of the state’s General Assembly. The legislation introduces the concept of “Infrastructure Development Districts” designed to ease the financial burden on new homeowners.
Set to debut at the Fox Meadows subdivision, these development districts are expected to pave the way for more obtainable homeownership. The buzz around town is that this new approach could lower the purchase price of new homes, making them accessible to a broader spectrum of potential buyers.
State Rep. Tim Hicks, who juggles legislative duties with his experience as a homebuilder, expressed optimism about the bill’s prospects. He noted, “Where I could see it being helpful in Northeast Tennessee is maybe creating some affordable housing.”
Briefly, the law allows builders to team up with local governments to roll out these development districts. For instance, if a builder planned to erect 300 homes, a levy of $100 a month per home would generate $9 million over a span of 25 years. Communities can then secure bonds against this revenue to fund necessary infrastructure, both within and around the subdivision.
Lowering Lot Costs
Significantly, these districts help reduce the cost of lots, which currently form a substantial part of a home’s overall price. Hicks elaborated, “Typically, the lot is 20 to 25% of what the total build is.” With the introduction of these infrastructure bonds, developers can pass on lower lot costs directly to homebuyers. While homeowners still pay for infrastructure, these costs are spread over two decades and a half rather than being tacked directly onto the mortgage.
A spokesperson for D.R. Horton, the homebuilding company spearheading this initiative in Bristol, echoed this sentiment. “The primary benefit is that infrastructure districts should keep the selling price of homes lower, making homeownership more attainable through lower down payments and monthly mortgage payments.”
Addressing High Development Costs
The new law comes at an opportune moment as the region experiences a housing boom, creating steep demand for new constructions. However, the area’s natural beauty – with its mountains, valleys, and farmlands – also presents challenges that drive up the costs of development. Detailed planning is essential for building roads, sewers, and reliable water systems.
Kingsport Assistant City Manager Jessica Harmon noted, “People are starting to look at things that may have some more challenges,” emphasizing the need for sustainable and integrated infrastructural development.
Boosting First-Time Homeownership
For many, the introduction of this law signals a boost for first-time homeowners, a demographic that D.R. Horton claims constitutes more than half of their buyers in the region. Hicks highlighted the company’s commitment, “I see it as being incentivized and affordable housing for first-time homebuyers, which D.R. Horton serves those folks… quite well.”
Mitigating Growth Concerns
Over the last five years, Northeast Tennessee has seen substantial growth in population, thereby increasing demand for housing. Amid this growth, local officials like Hicks and Harmon stress the importance of maintaining the region’s charm and integrity.
“If you’re in an area that hasn’t experienced growth, certainly an influx of people can be viewed as such a negative thing,” Harmon said. She also highlighted the importance of ensuring that the necessary infrastructure is in place to support new residents without compromising the quality of life for existing ones.
Ensuring Quality Development
Quality remains a priority. Harmon assured the public that any issues identified during construction are swiftly addressed. “If we find any issues, we don’t pass them. They have been great to work with,” she noted, regarding her dealings with D.R. Horton.
As the first “Infrastructure Development District” set to launch in Fox Meadows, many eyes will be on Bristol to see how well the new law accomplishes its goals. Local and state leaders continue to express faith in this initiative as a viable solution for sustainable growth and affordable housing.
In summary, this new residential infrastructure law could be a game-changer for Bristol’s housing market, potentially offering a boon both to developers and first-time homeowners. Only time will reveal the full impact of this forward-thinking approach.
