Chatham County commissioners instructed staff Oct. 20 to pursue renegotiation with the Vickers Village developer over the affordable‑housing element of a compact‑community agreement, seeking a larger “fee‑in‑lieu” if the developer and the county cannot practically deliver permanently affordable homeownership units inside the development.

The original compact‑community agreement — reached when land and financing conditions were different — committed Vickers Village to provide 5% of total units (10 units in the full project) as permanently affordable homeownership housing, with developer‑funded down‑payment assistance set at $47,000 per unit in the 2021 agreement. Housing staff presented updated numbers showing those assumptions no longer bridge the gap between realistic sale prices and what lower‑income households can afford under current interest‑rate and housing‑cost conditions.

Jamie Andrews, the county’s housing and community development officer, explained the arithmetic: median prices, higher mortgage rates and inflation have widened the per‑unit ‘gap’ between developer sale prices and what households at 60–80% area median income (AMI) can purchase. Under current assumptions the county would need a materially larger down‑payment subsidy per unit to preserve 10 permanently affordable homeownership units; alternatively the county could accept the developer’s fee‑in‑lieu payment and invest that sum in other affordable housing programs.

Developer counsel said the developer remains committed to supporting affordable housing but described how development‑cost changes (including utility development fees) had affected feasibility for including lower‑priced homes in the subdivision. During discussion the developer’s attorney said the developer was prepared to consider a modest increase in the previously agreed payment and counsel later confirmed the developer’s team would consider an offer in the low‑$50,000s per unit; the board asked staff and legal counsel to pursue that option.

Commissioners discussed three paths: (1) accept the existing compact agreement and the county‑funded gap to deliver 10 units inside the development; (2) accept the fee‑in‑lieu (the existing contract value would total $470,000) and invest county funds and the fee in an alternative portfolio (tax‑credit or affordable rental initiatives, Habitat partnerships, a revolving loan fund, or the county’s housing trust); or (3) renegotiate the fee‑in‑lieu upward and then invest the proceeds with a larger programmatic strategy. After discussion the board signaled consensus to pursue renegotiation and to seek an increased per‑unit fee (the developer indicated initial willingness to consider $50,000 per unit in an informal exchange).

Commissioners asked staff to return with options for programmatic uses of fee proceeds — including partnerships to produce more affordable rentals or ownership units — and to model how various investments would translate to houses produced or preserved. No final contract change was approved Oct. 20; the board requested staff and county counsel to coordinate with the developer and return with a recommended term sheet or settlement for formal approval at a subsequent meeting.

The discussion recognized the county’s broader affordable‑housing needs, including shortfalls for ownership opportunities affordable to households at 30–60% AMI, and several commissioners urged the county to invest proceeds so the community gains the greatest housing impact per dollar rather than limiting the outcome to a small number of homeownership units at higher income tiers.