Highlands Residential Services leaders plan to challenge the recent distribution of low-income housing tax credits after only two housing authorities in the state received funding.
Highlands Residential Services Consultant Alvin Nance said the Tennessee Housing Development Agency only funded projects in more populated Tennessee cities because they possessed large federal grants. Nance said he has scheduled a meeting with the executive director of the state agency to express dissatisfaction with a process that did not feel like a level playing field.
“To choose not to and the reason we chose to assume that is because you look at the prior year of awards where they funded both of those organizations the last year, which was Chattanooga and Knoxville,” Nance said. “Well, to choose not to fund the two additional housing authorities this year just seems very unfair.”
Nance said the organization spent a significant amount of money and paid a fee to submit the application. Nance said the agency should not accept application fees if officials already know they do not intend to award the credits.
“As I said to him, I thought it was disingenuous due to the fact that we spend a significant amount of money to put this application in,” Nance said.
Nance said the Highlands Residential Services application for Magnolia Ridge would have outscored the project that eventually received funding for Putnam County. Nance said the current strategy involves applying through a general pool for new construction during the first quarter of next year rather than the set-aside program for public housing authorities.
“Our strategy is to look at the new construction general pool, unless Ralph tells me something differently from our lunch meeting,” Nance said. “But HRS stepped into doing tax credits as a project to address a strategy. It wasn’t something that was a one-off.”
Highlands Residential Services Executive Director Chris Cassetty said the state agency generally listens to their concerns and understands the local organization will successfully complete projects. Cassetty said he believes the state director will be receptive to the conversation because the site for the proposed development is already prepared for construction.
“I don’t want to insinuate that I think that they would ever tilt the scales in our favor, but they’re going to do what they can to help us,” Cassetty said. “And so I do think Ralph will be receptive to this. He knows if we get the money, we’ll get bricks and mortar up.”
