I would change it to:
Cliffside village
Action - Reaction 4$
+1 Card
+1 Action
Directly after resolving an Action, you may play this from your hand.
You want to say "resolving" rather than "playing", because in the latter case, you have to use the effect before, say, you know what you drew with Smithy.
I like where you all are going with this, but I kind of still wanted it to village if you just play it normally too (but I didn't want it to be +2 Actions in the reaction part - the idea is to have more or less the same net effect whether you play it or react with it - of course, it doesn't count toward actions for Conspirator or Peddler).
How about this:
Cliffside village
Action - Reaction 4$
+1 Card
+2 Action
Directly after resolving an Action, you may play this from your hand. If you do, -1 Action.
I personally don't have a problem with the -1 Action wording (and I've used it on other cards), but I get that some people don't like it.
Ignore the crazy rule-lawyering going on here, the wording is perfectly fine.
I play with cards that can gain Action tokens and have considered them to be able to be played not just at the beginning of the turn but also after/before playing an Action. I decided against it as it seemed too strong.
But I do not have any actual experience so while I am pretty sure that your village is on the stronger side of 4$ it is probably not overpowered. Its reaction part is after all only useful if you draw this very village with a terminal draw. So on boards with terminal draw your optimal village density is slightly lower but that probably doesn't make this card a powerhouse. On boards without terminal draw it is just an ordinary village and you'd rather have any other 4$ village than this.