The initial incentive program would have the city set aside $100,000 to act as a safety net for licensed builders.
A builder participating in the program would be reimbursed for the interest the builder paid on the construction loan for the building between the time the city cleared the building for occupancy until the time it sold for a maximum of $10,000.
The housing study, as well as the group, stated that newly constructed homes stay on the market longer in Newton than in surrounding markets, discouraging builders from taking an additional risk in Newton.
“We looked at it from what’s the incentive to get the builder to put in a house,” Ron Lang, who was a part of the housing work group, said of the program. “If it should sit on the market for six months, how would that risk be offset for the builder?”
(Read more: Newton Now)