Southside Developer Grant Incentive

How it works

The Southside Developer Grant Incentive is administered by the City of Paducah Planning Department and is used to close the gap between construction cost and a home’s appraised value. The page says the grant is for the Southside Phase One Program Area only and is aimed at incentivizing new residential development.

What the money covers

The program supports new home construction where the construction cost is higher than the appraised value. The page explains that the grant can be used to cover the difference between those two figures. It also states that the grant is used by the new homeowner as a down payment toward the cost of the home.

Amounts and matching

• Maximum award: $75,000 per home
• Example from the page: if a home costs $200,000 to construct and appraises at $125,000, the grant would provide $75,000 to cover the gap

How to apply

The page provides both a PDF application and an online portal application.

• Southside Developer Grant Incentive Application (PDF)
• Southside Developer Grant Incentive Application (Online Portal - look under "Apply for Incentive Grants")

The page also says each application will be forwarded to the URCDA for review and approval.

Timing and deadlines

The page says developers are expected to begin construction of ten new homes in spring 2026. It does not give a formal application deadline. It also states the developer must apply before construction begins and that only one application may be made for a single property.