HRS Seeking Additional Tax Credits For Hickory Valley Development

Highlands Residential Services anticipates its proposed Hickory Valley development to be about $2 million over budget.

Higher prices on steel and wiring are the culprit. The firm LHP is working with the Tennessee Housing Development Agency to use tax credits to fund the difference. CEO Alvin Nance said they are pursuing a $200,000 credit for ten years.

“They’ve indicated that they will start with the deals that have not closed yet,” Nance said. “We’ve not closed on Hickory Valley at this point yet. So the deals that they have not closed yet are sort of that first group.”

Nance said the Tennessee Housing Development Agency indicated Highlands Residential is competing against 28 applicants. Nance said the authority’s equity partner, First Horizon Bank, has indicated it will purchase the credits at the same rate agreed upon last year.

“Our equity price was at 92 cents,” Nance said. “They’ve agreed to fund it at 92 cents. Keeping in mind this letter of intent we got over a year ago.”

The proposed 48 units of Hickory Valley will be built near on Buffalo Valley Road near Cane Creek Elementary School. The total price tag now estimated at some $9 million.

Nance said he hopes to hear the results of the funding by the end of the month.