News Talk 94.1/AM 1600 Where The Upper Cumberland Talks
Highlands Residential Services expects word by late August on an application to receive tax credits for its Magnolia Ridge project off Buffalo Valley Road.
Developer Alvin Nance told the Highlands Board Thursday the final application has been submitted to the Tennessee Housing Development Agency. Nance said they reviewed a list of all the applicants for this pool of credits and they have the lowest credit ask of any public housing authority.
“We’re playing for a tie,” Nance said. “So the worst-case scenario is that if someone ties with us and has 72 and they are also in the PHA set-aside and applying for tax credits in that area, we will win because we are asking for fewer credits and producing more units.”
Nance said another benefit they have is that they are competing for a funding pool with a preference for renovated housing units, which is what all of Magnolia Ridge will be. He said he is feeling very optimistic about their chances of getting approved for those credits.
“I wouldn’t go and bet the farm on it by no means,” Nance said. “Don’t sell everything and run off now, but everything we’re seeing now is in our advantage, in our favor.”
Nance said they feel their application has a very competitive score at 72, which was determined based on certain criteria met within the application.
“We had a 72 as a self-score which we mentioned to the board back then when it was submitted that 72 is a strong score, that we felt like we could win at a 72,” Nance said. “Our cured notice came back, the THDA scored us the same thing as a 72. Sometimes they will adjust your score. Them confirming the 72 also says we got the right score at this point.”
Nance said it is possible that they will get a response for their application as early as the first week of August.
“We did notice that the cure notices came out a week earlier than they did last year, so we’re thinking that, OK, the THDA is a little bit ahead of schedule,” Nance said.
