For example, a building permit issued with an estimated cost of $150,000 would generate a $3,000 payment to the permit’s holder. If the permit has an estimated cost of $250,000, the permit holder would receive a $5,000 payment.
The city’s cash-back program only applies to single-family homes built on an improved lot within an existing subdivision. There are between 160 and 185 vacant lots in the city that would be eligible for the program. A builder that razed an existing house and built a new one on that site would also be eligible to receive cash back.
Thursday’s resolution also repealed a 2020 resolution that previously waived building permit fees and water and sewer tapping fees for single-family home construction. With the implementation of the cash back program, those fees will again be collected when builders apply for those permits, which usually cost between $2,200 and $2,500 to file.
Mayor Hillrey Adams tells KTLO News what he hopes to see happen as a result of the city offering cash back for building residential homes.
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Individual payments have a cap of $7,000 and are payable upon completion of the residence. The city will fund the program for the rest of the year with $100,000 carried over from last year’s budget, and will decide how much money to allocate to the program for the coming year in the 2022 budget.
Wes Wood, the president of the North Central Arkansas Board of Realtors, told council members that at the moment he had 15 homes to show clients across all of Mountain Home. Would-be residents are initially interested in moving into the city, but then turn their sights elsewhere when they can’t find the house they’re looking for, Wood says.
“I can name 12 people that said their house is under contract, they came in and looked here and then moved on to Tennessee. They needed a new home,” Wood told council members.
There is only so much that the city can do to address the local housing market, Adams says.
Listen:
Lyle Crownover, the owner of Crownover Company Inc., told council members that he was against offering a cash incentive to build houses in the city. The local builder said that the construction business is already facing a shortage of skilled labor, and a building surge would lead to poor construction practices.
“I am witnessing people build in and out of the city, and I would not want some of those people building me a doghouse,” he told the Council.
Crownover described Mountain Home as “Mayberry with more perks.” The city has clean streets, low crime and no pollution, much like the idyllic town featured on “The Andy Griffith Show.” A housing boom could jeopardize that, Crownover said.
“If we grow for the sake of growing, I think we’ll lose everything we love about Mountain Home,” he said.
Council members Jennifer Baker, Wayne Almond, Carry Manuel, Jim Bodenhamer and Nick Reed each voted in favor of the resolution. Bob Van Haaren and Susan Stockton abstained from voting, and Paige Evans did not attend Thursday’s meeting.
Also at Thursday night’s City Council meeting:
– Council members approved the reappointment of Randy Worlow of Mountain Home to the Baxter County Equalization Board;
– The Council approved the donation of K-9 Harmon to the Ward Police Department. Mountain Home Police Chief Eddie Griffin said the city’s K-9 handler had recently left and that no officers had requested to be become the new handler. The Ward Police Department had the opposite problem, having a K-9 certified officer on the payroll but no police dog. Griffin also said that Harmon had exhibited some behavioral problems and that he was reluctant to return the dog to active duty in Mountain Home. The Ward K-9 officer was aware of those problems and was willing to work with Harmon.
– Council members had a discussion about the condition of the property located at 1207 Rossi Road, but did not take any action Thursday night.
– The Council approved a request from the Wastewater Department for an additional additional $17,436 to be paid from the Water/Sewer Depreciation Fund for the Indian Creek Lift Station rehabilitation project. The original requested amount for the project was $225,000, but the lowest bid came back at $242,436.
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