News Talk 94.1/AM 1600 Where The Upper Cumberland Talks
Highlands Residential Services (HRS) wants to issue a bond to help cover construction costs of reconstructing Walnut Village.
Dow Harris is the Executive Director of HRS.
“Right now, $5,087,000 is our estimate on the reconstruction costs and the rehab of Walnut Village which is going to be substantial,” Harris said. “They’re basically going to be gutted out and completely remodeled inside and out. I think it’s something that is going to look really great. It would be really good for that particular program.”
HRS will need the approval of Cookeville City Council in order to issue the bond for up to $7 million.
Harris said the organization will receive a four percent tax credit from the Tennessee Housing Development Agency for the project, but needs the construction bond to begin construction.
“There has to be a construction bond or a revenue bond. They’re short term, and they have to be issued through the construction period,” Harris said. “Then, the bonds are paid off with a federal-backed mortgage that we’re going to get through HUD (Housing and Urban Development) that will pay those bonds off. The bonds will be short-term, some 24 to 36 months maximum.”
City Council will consider a resolution on first reading Thursday allowing HRS to issue the bond.
The project would construct 50 homes for public housing off Buffalo Valley Road. If approved by Council, Harris expects loans from the U.S. Department of Housing and Urban Development to return to them by March 28 with bonds being issued immediately after.
