New Developments For Dandridge
Property adjacent to the multi million dollar Field of Dreams and Activity Center complex in Dandridge is slotted to be the site of a proposed low and fixed income apartment development. The Woda Group of Ohio has purchased options on R-3 zoned property with the intent of constructing tax credit housing. Section 42 housing (referring to the section number denoted by the Internal Revenue Service) is government incentive based housing that is designed to offer tax credits to developers in exchange for creating low income housing. According to Tom Simons, Sr. Vice President of The Woda Group, Woda specializes in this type of apartment development and has been involved in more than 200 developments across several states. Patricia Smith, Director of Public Affairs for the Tennessee Housing Development Agency, stated that section 42 housing credits are very competitive and only about 1/3 of those that apply will actually receive the tax credit. Developers seeking tax credit for low income housing will be assessed on a point system, according to Smith. Points are accrued by developing near community centers, approved grocery stores, discount shopping stores such as Dollar General Store, walk in medical clinics and gas stations. Close proximity to schools and public transportation also garner points for the developer. Should a developer be successful and his application chosen for section 42 tax credit, the developer may then sell his tax credit. Simon stated that, should Woda be assigned tax credit, it will be sold to a large scale bank such as Bank One or Regions. The Woda group would maintain ownership of the apartment development and would act as the management company for the property.
The initial concept drawing for the development that is slotted for Shrader Road includes 50 units with six one bedroom, 26 two bedroom and 18 three bedroom units. Simon stated that eligible residents will make no more than 60% of the median income for Jefferson County and cites the maximum income for a 4 person family at $32,000 per year. Tennessee Housing Development Agency, who distributes the tax credit, shows the maximum income as closer to $28,000 for a four person family. Both Simon and Smith agree that, though the tax credit extends for 15 years, the developer is committed to maintaining the development as low income housing for 30 years.
The concept plan was introduced to the Dandridge Planning Commission recently by Mark Bunch of Woda and local realtor Mark Jackson and was presented as tax credit housing. Local officials contend that the project was not presented as low income housing, although the Tennessee Housing Development Agency description of Section 42 tax credit housing is low or fixed income housing. The Woda Group received maximum points in their section 42 application, according to Simon, and the developer should know the status of the application by June 2013. If the application is successful the construction phase will go into high gear. Simon stated that Woda will use local labor for the project, if the bids are competitive, as well as purchasing local materials. The group would likely hire a local person as an apartment manager and maintenance personnel.
