Public housing renovations, new housing in Oak Ridge get state funding
The Oak Ridge Housing Authority is preparing to renovate 128 existing public housing units and build 104 new rental units in Oak Ridge.
ORHA Director Maria Catron said the renovation work on the old units will begin by the end of March.
Richelle Patton with Collaborative Housing Solutions, the future co-owner of the new units, said she hoped to begin construction on the new rentals by the same time.
Total cost of the developments will be $56 million, but the ORHA has support from tax credits and tax-exempt bond awards by the Tennessee Housing Development Agency. This assistance will generate up to $51.8 million for the renovation and new construction developments throughout Oak Ridge, Catron said.
ORHA will receive a 4% tax credit, valued at $15.3 million, and $18.5 million in tax-exempt bonds.
With this help, the ORHA will build 104 new rental housing units in Scarboro, which it describes as “affordable, workforce” housing.
It will renovate 58 public housing units across the city on Apple Lane, Wade Lane, Knoll Lane and Honeysuckle Lane.
Another 9% tax credit award, valued at $18 million, will help renovate 70 units spread across four sites on LaSalle Road, Irene Lane, Van Hicks Road and Joel Lane.
Having the sites scattered across the city reflects thoughtful public policy by the city to help create mixed income neighborhoods, preventing concentration of poverty in one location, Catron stated.
She said rent for the renovated units will be 30% of adjusted income.
“This is the biggest financial investment THDA has ever made in Anderson County,” said Ralph Perrey, THDA executive director.
“The work being done by Oak Ridge Housing Authority will transform and improve the city’s public housing, as well as provide much-needed affordable housing for low-income families and individuals.”
Besides the tax credits, another change Catron credited with making the renovation of the 128 existing rental units feasible and affordable is a Rental Assistance Demonstration grant program that allows housing authorities to address deferred maintenance and improvements in public housing.
The grant, from the U.S. Department of Housing and Urban Development, allows housing authorities to borrow money for repairs rather than depending on Congress for allocations.
“These buildings, built in the 1970s or early 1980s, have not had a substantial rehab in more than 50 years,” Catron said.
“We are looking at $75,000 to $85,000 per unit in rehab costs, which will include new kitchens, new baths, new appliances, new flooring, new HVAC units, new windows and façade improvements,” she said of the buildings where the 128 rental units are located.
“This public-private partnership allows us to not only address current needs, but also position ourselves to be able to address future needs in the housing market,” she said.
The RAD program opens the developments to private partners who will invest in the tax credits and bonds.
