LEBANON — Residents will have the chance to weigh in Wednesday on whether the City Council should allocate $2.05 million to build five homes on city-owned property.
After a public hearing, the council will consider whether to allocate money to the project for planning, design, construction and sale costs, including up to $1.7 million in loans that will be repaid after the units are sold, according to meeting materials. The remaining cost will come from grants the city has already secured.
The City Council is scheduled to meet at 6 p.m. Wednesday at City Hall.
The proposal to build a cluster of modular affordable homes at the end of Barrows Street dates to 2024 but nearly stalled out in February when the cost came out to be about $430,000 each.
But after an influx of businesses reached out with ideas to make the project work, City Councilor Tim McNamara and city staff set to work on a new design and brought the project before the council last month. The council agreed to continue working on the development and scheduled Wednesday’s public hearing.
The current proposal is to build five homes with about 1,000 square feet of living area across two floors. Four cottages would be built on one side of Barrows Street, a short residential road off Hanover Street, and one would be across the road.
By reducing landscaping and infrastructure costs like a proposed walkway and shared parking, each home is expected to cost just under $400,000, the city’s maximum target price.
The plan is to sell the units to Lebanon city, school district and housing authority employees.
After the units are sold, proceeds will go toward paying back construction costs. Any additional funds will be returned to a city fund for redeveloping properties. The city has also secured nearly $600,000 in grants from the New Hampshire Department of Business and Economic Affairs.
If the city council approves the allocation Wednesday, McNamara said last month he expects that the homes could be ready to sell by the end of the year.
