Low Income Housing Could Mean Big Economic Impact to Local Schools

The Town of Dandridge has issued letters of revitalization that were requested by developers looking to capitalize on a tax credit grant that is available through Tennessee Development Housing Agency. Three separate developers have plans that will be submitted to THDA in hopes of securing a tax credit grant for Section 42 Housing, which provides low income housing to qualifying applicants. Last year, the Town of Dandridge was approached by a developer looking to place a Section 42 Housing Development adjacent to the Field of Dreams and they, too, requested a letter of revitalization. Though officials initially approved the letter, they rescinded the action due to contradictions in information provided by the developer’s representative. Though the developer had already submitted his application for a tax credit grant and the application stood despite the rescinding of the letter, the highly competitive tax credit grant did not go to that developer.

The new requests, should all receive the tax credit grant, would add a significant number of low income housing units in the Dandridge area. One development is slotted for the historic Dandridge Elementary School, located in the heart of Town. Another Development is requested for Killion Road and the final request is adjacent to the Creekside Development and it would target the senior market. Two of the three developments in question could bring an influx of school age students into the Town, as the unit occupancy is not bound by current resident restrictions. THDA requires that developments receiving Section 42 tax credit be open to any applicant that meets the requirements, regardless of current County of residence and Jefferson County applicants would not have priority.

Two of the developments would pay property tax to the City and County, however, according to Town Administration, the development slotted for the historic Dandridge Elementary School would not be subject to property tax. Parking issues are still being addressed with the Elementary School site. Developers must have their completed applications in to the THDA by February and the grants are generally distributed in early summer. Developments that receive tax credit will still have to present a site plan for approval.