6 Low Income Housing Projects On The Table for Jefferson County

The economic baseline of Jefferson County could see a dramatic shift when Low Income Housing Tax Credits are announced in June of 2014. Six developers have submitted applications to the Tennessee Housing Development Agency in hopes of receiving a portion of the 2014 tax credit allocations for Tennessee. Developments associated with the LIHTC program provide low income housing to applicants through the THDA application process and are required to accept section 8 vouchers. The credits are awarded to recipients based on a scoring rubric. Of the six proposed developments, three are located in Jefferson City and three are located in Dandridge. Jefferson County currently has in excess of seven income based housing developments that are a combination of tax credit, voucher and low income properties. Recent increased interest in Jefferson County as a location for section 42 low income housing (LIHTC) has risen because Jefferson County scores well on the THDA rubric and increases the developer’s chance of acquiring low income tax credits, which they generally sell to financial institutions. Low Income Tax Credits have become big business in Tennessee in the last two and ½ decades, with THDA investing in excess of $2 billion dollars in the program, in addition to other housing programs such as HUD and various income supplement programs. Jefferson County, alone, received approximately $41 million in housing dollars and the figures for 2012 and 2013 have not been released.

The six properties proposed for Jefferson County include East Gate Crossing, Odyssey Road, Jefferson City (80 units)-Maury Academy Loft, Academy Circle, Dandridge (44 units)-Killion Pointe Apartments, Killion Road, Dandridge (39 units)-Broadway Park, 1036 N. Chucky Pike, Jefferson City (60 units) – Mossy Creek, Mossy Creek Drive and N. Chucky Pike, Jefferson City (64 units) – Creekside Place Apartments, Rt 92 and West Price Road, Dandridge (44 units).

While the Low Income Tax Credit Program is highly competitive, recent submissions have trended toward focusing on fewer counties that score high on the rubric. Changes during the 2013 Governor’s Housing Summit offer a lowest income preference for the lowest 5% and essential services was replaced with a County Need score in the rubric. Should all six developers seeking credits for Jefferson County be successful, the impact could be far reaching, with a handful of local elementary schools seeing a potential influx of around 600 students (THDA formula) that are economically disadvantaged. Applications for residency are open to anyone that meets the income criteria and are not reserved for current Jefferson County residents. Several of the proposed locations fall within one or two school zones and though allocations to all six applicants are unlikely, should developers be approved for half or less of the proposed properties, the influx of students could be significant. Developments awarded low income tax credits will be mandated to be in service for a period of 30 years, according to THDA mandates.