Rural Development Housing Program Director Don Harris joined Short Mountain Village General Partner and Developer Dale Lancaster Wednesday for the ribbon cutting ceremony to mark the official opening of a new 56 unit affordable rental housing development in Smithville. The ceremony was held at Short Mountain Village located at 310 Christine Street.
“The goal of the Rural Development housing loan guarantee program is to work with the private sector to ensure there is enough quality, affordable rental housing to meet the needs of families in rural areas,” said Harris. “By working together, this partnership has accomplished much more than any of us could accomplish alone to help improve the quality of life for families in DeKalb County.”
The Rural Development $2.43 million loan guarantee makes it possible for the developer to secure the necessary private-sector financing through Lewiston State Bank-Bonneville Mortgage Company. The loan funds will be used to convert short-term construction financing to a traditional long-term mortgage on the $6,585,398 multi-family development. The general partner of Mountain Village, LP is providing $460,034 in equity and THDA will provide $3,692,488 in tax credit equity to help make the venture commercially viable.
Short Mountain Village includes 56 three-bedroom, two bathroom detached rental homes with garages and an on-site community center at the heart of the development.
“Short Mountain Village is an exciting addition to our company and we have already achieved full occupancy with great residents much quicker than normal,” said Lancaster. “What a great feeling it is to add to the affordable housing inventory in such a beautiful area like Smithville, and to work with the great people at Rural Development and THDA is icing on the cake.”
The loan guarantee is funded through the new Rural Development multi-family housing (538) program, which helps public bodies and private lenders make loans to developers who build new or renovate existing apartments and other rental properties in rural areas. Guaranteed housing loans are made to serve rural areas with a population less than 25,000.
USDA Rural Development is committed to the future of rural communities in Tennessee by investing financial and technical assistance through housing, community and business development programs. In Fiscal Year 2006 Rural Development assisted more than 467,575 Tennessee families and businesses with more than $288 million in financial assistance through loans and grants.
For more information on business development, affordable housing or community facilities programs available in the DeKalb County area, contact the Rural Development Area Office in Cookeville at 931-528-6539 ext. 2, toll free at 800-342-3149 ext. 1493 or visit us online at www.rurdev.usda.gov/tn.