CommonFutureatl

CommonFutureatl

Tobacco cash funds rural workforce housing

By David Pendered

Dec. 16 – Georgia is to help build 140 units of rural workforce housing with money paid by tobacco companies to offset the state’s cost of smoking-related illnesses.

The purpose of the funding is to promote economic development outside Georgia’s big cities.

Georgia cities have a shortage of workforce housing, including Madison, where the state is promoting industrial development. (Credit: David Pendered)

For employers, affordable housing has become as important a commodity as access to high-speed internet, transportation, water and sewer. Employers across the state have found that they can’t fill positions if workers can’t afford to live nearby.

Gov. Brian Kemp announced the program in 2023. Lawmakers have since provided a total of $91.7 million to the Rural Workforce Housing Initiative.

The source of funds is Georgia’s proceeds from the 1998 settlement agreement Big Tobacco reached with 46 states. Georgia lawmakers determined that some of the proceeds should go to promote economic development in rural regions. The program is administered through the OneGeorgia Authority.

Georgia has collected $3.7 billion in tobacco settlement payments from 2000 through April 20, 2022, according to a report by the National Association of Attorneys General.

The rural housing initiative provides funds to local governments to build infrastructure to enable construction of workforce housing, also known as affordable housing. The money can be used to build infrastructure for for-sale housing priced from $125,000 to $290,000 per unit, or rental units affordable for 100 percent area medium renters for 10 years, according to terms outlined by the Georgia Department of Community Affairs, which oversees OneGeoriga and this program.

Kemp announced Dec. 5 the following recipients:

  • Hawkinsville –$2.3 million to build roads, water, and sewer infrastructure improvements to enable construction of 58 houses. Hawkinsville is contributing $70,000 and Hive Construction is contributing $124,000 to total project costs.
  • Hinesville – $1 million to build roads, drainage, water,and sewer infrastructure to develop 31 detached townhomes. Hinesville is contributing $591,910 towards the project and the developer partner is contributing $420,200.
  • Waynesboro –$2.5 million to build roads, drainage, wate and sewer infrastructure that will allow for the construction of 51 housing. Waynesboro will contribute $100,000 towards the project and the developer will contribute $423,810.