The Dothan City Commission approved a new policy on Tuesday aimed at increasing the availability of affordable housing across the city. This new measure allows the city to transfer city-owned land to developers at no cost, provided those developers commit to building affordable housing projects.
In addition to land transfers, the policy also authorizes the city to waive certain fees for these projects. These waivers can include building permits and utility connection fees, according to Dothan City Manager Randy Morris. Morris explained that the policy is designed to "bridge that gap" for developers, making it more economically feasible for them to undertake affordable housing projects.
Developers who receive land under this new policy are required to designate at least 51% of the units within each project as affordable. These units must remain affordable for a minimum of five years, with rents capped at the U.S. Department of Housing and Urban Development (HUD) fair market rate. Morris noted that having a set price for leasing units can make it challenging for developers to ensure projects are economically viable.
City leaders indicated that the policy creates a trade-off: cheaper land for developers in exchange for housing units that working families in Dothan can afford. The policy specifically targets Districts 1 and 2, which city officials have identified as areas that have lacked enough safe, affordable housing options for many years.
Commissioner Phillipe Kirksey, who represents District 2, emphasized the significance of the new policy, stating it "means a lot more opportunity." Kirksey reported that the city has already seen interest from numerous developers looking to build in these low-to-moderate income (LMI) areas, which he described as being in desperate need of housing opportunities.
According to Kirksey, developers from outside the state, specifically Georgia, are currently in discussions to build in Dothan. These potential projects include both single-family residential homes and multi-family housing units.
Each proposed development under this policy will require its own distinct agreement. These agreements must be voted on by city commissioners on a parcel-by-parcel basis. To ensure timely development, the policy mandates that construction must begin within 12 months of a developer receiving the land. If construction does not commence within this timeframe, the city reserves the right to reclaim the property.
