The Tennessee Housing Development Agency (THDA) announced today that Knoxville’s Community Development Corporation (KCDC) has been awarded $1,100,000 in annual tax credits for a ten-year period for the continued development of affordable housing in the Five Points community.
“We are building great momentum in Five Points, and with the awarding of these tax credits, we will continue to move full steam ahead in our work to provide quality affordable housing in this community,” KCDC Executive Director Art Cate said. “The revitalization of Five Points is taking shape, and the community has many reasons to proud of the progress we’ve made together and the many achievements still to come.”
The Low-Income Housing Tax Credit (LIHTC) is a credit against federal income tax liability each year for 10 years for owners and investors in low-income rental housing. The low-income housing tax credits announced today will be used to raise private equity to build Phase 2 of the Five Points Master Plan.
The new, Phase 2 development will include 84 units with varying numbers of bedrooms in 10 buildings. The apartments will be built along Martin Luther King Jr. Avenue between McConnell and Olive streets.
“The LIHTC program is extremely competitive across the state,” THDA Executive Director Ralph M. Perrey said. “These credits were awarded based on the need for affordable housing in the Five Points community, and because there was a solid plan in place to meet that need by constructing new housing units for individuals and families of low income.”
In May, KCDC broke ground on The Residences at Five Points, a 90-unit housing complex for senior citizens and the disabled, as Phase 1 of the Five Points Master Plan to revitalize the neighborhood.
The Five Points Master Plan was developed through a series of community input meetings that were completed in January 2014. The master plan is a multiphase, multiyear project with a total cost of approximately $85 million. Nearly five years into the revitalization efforts, KCDC already has invested more than $31 million in new affordable housing through the Residences at Eastport, infill housing and the under-construction Residences at Five Points.
The master plan includes the demolition of Walter P. Taylor Homes and Dr. Lee Williams Senior Complex and replacement with newly constructed modern, energy-efficient units. Design plans are being finalized, and construction on these additional units should begin early next year.
Since 1936, KCDC has been dedicated to enhancing the quality of life for the citizens of Knoxville and Knox County. KCDC’s mission is to improve and transform neighborhoods and communities by providing quality affordable housing, advancing development initiatives and fostering self-sufficiency. For more information, call 865-403-1100 or visit http://www.kcdc.org.