Bristol, Tennessee, Embraces New Housing Opportunities
In a move set to reshape the housing landscape in Bristol, Tennessee, the city is gearing up for an exciting phase of growth. As dirt is still being turned and infrastructure takes shape at the Fox Meadows subdivision, local leaders, and developers are hopeful about a new initiative that aims to make housing more affordable for residents. This initiative centers around the creation of an Infrastructure Development District, a first for Northeast Tennessee.
What is the Infrastructure Development District?
So, what exactly does this mean? Thanks to a new law passed unanimously by the state’s General Assembly, local governments can now work with homebuilders to form these development districts. This arrangement allows developers like D.R. Horton to set a special levy on the homes they build in these districts, and this levy could last for up to 25 years. For instance, if the levy is set at $100 a month for 300 planned homes, that’s a whopping $9 million generated over 25 years.
How Does This Help Homebuyers?
Now, you might be wondering how all this helps folks who are looking to buy a new home. Here’s the deal: Traditionally, the cost of a home is often padded by the expenses associated with the land it’s built on. State Representative Tim Hicks, who is also a homebuilder, explains that about 20 to 25% of the total cost of a home is tied up in the lot alone. But with an Infrastructure Development District, builders can lower the lot cost and pass these savings on to buyers. This way, the costs associated with infrastructure are covered without hitting the buyer’s mortgage directly.
Benefits of Infrastructure Funding
Jessica Harmon, Assistant City Manager of Kingsport, noted that developers often shoulder a hefty load when it comes to building necessary infrastructure like sewer lift stations. This can inflate costs significantly, and those costs usually trickle down to the final price of the home. However, the bonds financed through the new districts will change the game by lessening the financial impact on potential homeowners, allowing for lower down payments and smaller monthly mortgage payments. Sounds good, right?
The Growth of Bristol
Bristol has seen a surge in growth over the past five years, and housing demands continue to rise. Companies like D.R. Horton are eager to ramp up construction in the area, but high costs associated with the rugged terrain of Northeast Tennessee are often a hurdle. The new development districts could open doors for neighborhoods that have yet to see significant construction due to these challenges.
“People are starting to look at areas that may have some more challenges,” Harmon explained, referring to the unique geographical features and infrastructure needs of the region. The hope is that these districts will make it easier to build homes in previously overlooked areas, thus welcoming more families into the community.
Looking Ahead
With optimism in the air, Rep. Hicks is hopeful that this initiative not only proves beneficial to first-time homebuyers but will also serve the broader community. Over half of D.R. Horton’s buyers in the region are first-time homeowners, which often includes individuals who contribute significantly to the local workforce.
“Legislators understand that providing tools for developers and municipalities to collaborate is essential for sustained economic growth,” Hicks noted. He expressed his belief that responsible growth could be balanced with the region’s charm and character.
A Community Focus
With the local government promising to manage infrastructure effectively, there’s a desire to ensure that growth does not compromise the quality of life in Bristol and surrounding areas. Both Hicks and Harmon share this sentiment, stating that they aim to maintain the appealing and friendly atmosphere that the community is known for.
In Conclusion
The introduction of Infrastructure Development Districts in Bristol signals a positive shift toward more affordable housing options. With leaders and builders working hand-in-hand, the hope is to create a win-win situation for both new homeowners and existing residents. As we navigate this growth spurt, it’s comforting to know that community leaders are committed to ensuring that growth works for everyone.
