Low Income Housing Projects Not To Be For 2014

Developers had applied for six section 42 housing developments in Jefferson County for the 2014 tax credit allocation year. Tennessee Housing Development Agency announced last week those counties that had developments on the grey list for allocations. THDA ranks development application requests and compiles a ranked list of successful applicants. All six of Jefferson County’s proposed developments made the first page of applicants with five of those developments listed side by side, however, all six fell just short of the grey zone, which indicates the applicants that will be offered the 2014 allocations for tax credit.

Unlike years past, when multiple allocations were unlikely to go to one county, the 2014 allocations reflect disbursements among a handful of counties for multiple developments in each county. The majority of the counties for which developers received allocations saw three or more developments in each county. Putnam County received five allocations, with Obion County receiving four and Hamblen and Macon garnering three each. THDA initiated a new formula that assigns points depending on a County assessment number. In areas like Jefferson County, the number is attractive to low income housing developers and the close proximity of five of the proposed developments in Jefferson County to the coveted grey zone of tax credit allocations will likely attract more attention from developers seeking low income tax credits. Locally, in descending order, Mossy Creek, Broadway Park and Creekside Place were followed by Maury Academy Lofts and Killion Pointe, with Eastgate Crossing coming further down the list. According to THDA, it is possible, but unlikely, that Maury Academy Lofts could receive tax credit allocation if one of the other non profits on the grey allocation zone decides to pull out of the project. Though Maury Academy Lofts comes further down the list than other proposed developments, if those non profit developers ahead of the Maury project have already met their per county or per developer limit the allocation will pass to the next in line.

A representative of THDA stated that, realistically, Jefferson County will not be the recipient of low income tax credits during this allocation cycle. As long as the current allocation rubric remains in place, Jefferson County will continue to be highly competitive for section 42 housing developments. Some surrounding counties have begun developing plans to address the possible influx of low income housing, in regard to need, location and community impact, in light of the possibility of multiple developments.