Southside Revitalization Plan and Incentives (Developer Grant Incentive)

How it works

The City of Paducah says the Developer Grant Incentive is designed to close the gap between the cost of construction and the appraised value of a newly constructed home in the Southside Phase 1 area. The grant is administered by the Planning Department and URCDA, and applications are reviewed by URCDA.

What the money covers

The grant is used to make a new home financially feasible when construction costs are higher than the home’s appraised value. The page gives an example: if a home costs $200,000 to build and appraises at $125,000, the city may provide $75,000 to cover the difference.

The page says 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
• The award amount is based on the gap between construction cost and appraised value
• Example given by the city: $200,000 construction cost minus $125,000 appraisal equals a $75,000 incentive

How to apply

Developers must apply for the grant before construction begins. The page says only one application is allowed for a single property, and a homeowner/buyer must be determined before the city provides the grant award. Applications are available in PDF format and through the online portal under “Apply for Incentive Grants.”

Timing and deadlines

The page says the city’s goal is for developers to begin construction of ten new homes in spring 2026. The incentive programs were approved in December 2025. No closing date is listed on the page.