Property Impact: New Development Will Provide Families in TN With Affordable Housing Options | |
The Need for Affordable Housing | |
The number of individuals that cannot afford a comfortable and safe place to call home has reached a record high. The National Low Income Housing Coalition reports that there is currently a shortage of more than seven million affordable homes for the nation’s more than 10.8 million extremely low-income households. The burden of this shortage is far-reaching and has a lasting economic and social impact on individuals and communities. The development of affordable housing benefits the economy and helps communities thrive. Research shows that affordable housing encourages social connection, reduces overcrowding, attracts businesses with job opportunities, and lowers crime rates. | |
Project Overview:
Rutherford Park
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In Tennessee, an estimated 24% of renter households are considered extremely low-income, earning 30% or below the Area Median Income. Additionally, these same low-income families are facing a shortage of approximately 129,343 affordable rental homes throughout the state. When low-income families do not have access to affordable housing, they are often forced to sacrifice other necessary expenses to afford rent. The combination of a high percentage of extremely low-income renters and the shortage of rental housing available to them, makes it critical to develop new affordable housing options. | |
To help decrease the existing shortage of affordable housing in Tennessee, CAHEC partnered with VCZ Development, LLC, an affiliate of Zimmerman Properties, LLC, to develop Rutherford Park Apartments in Murfreesboro, TN. This 70-unit rental property offers both two- and three-bedroom options for families earning up to 50% and 60% of the Area Median Income. Zimmerman, who currently owns and manages more than 120 properties with over 8,000 affordable units, nearly all of which are Low Income Housing Tax Credit properties, will manage the daily operations at Rutherford Park as well. | |
Rutherford Park was built with families in mind, offering residents amenities such as a community room, fitness center, pool, dog park, and computer center. The property also features a brand-new playground that was funded in part by a $6,700 Active Lifestyle Grant provided by CAHEC. Beyond offering desirable community amenities to residents, Rutherford Park Apartments is also located in a convenient part of Murfreesboro with access to resources such as shopping, medical services, and schools. This new development will provide housing that is both safe and affordable to local families for many years to come. | | |
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Created by Congress as part of the Tax Reform Act of 1986, the Low Income Housing Tax Credit (LIHTC) generates private capital investment used to finance the construction and rehabilitation of affordable rental housing for households earning on average 60 percent or less of the area median income. According to the Joint Center for Housing Studies at Harvard University, the housing tax credit is "widely regarded as the most successful housing production and preservation program in the nation's history." Since being enacted, the LIHTC program has helped develop more than 3.34 million affordable housing units. | |
In addition to providing safe, decent, and affordable housing for working-class families and seniors on limited incomes, the economic impact of the LIHTC program is visible in communities throughout the country. The development of affordable housing increases spending and employment in the local economy. Moreover, affordable housing can affect an employer's ability to attract and retain employees. LIHTC investment plays a significant role in community revitalization, which in turn can improve economic opportunities for local residents. | |
One of the nation's leading nonprofit equity syndicators, CAHEC helps finance the development of safe and affordable rental housing. Headquartered in Raleigh, N.C., CAHEC works with investors and developers in twelve states and the District of Columbia to raise and invest capital in affordable housing, historic preservation, and mixed-use community revitalization projects. Since its inception in 1992, CAHEC has raised and invested over $2.9 billion to help develop more than 37,000 affordable housing units. | |
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This institution is an equal opportunity provider
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