Existing Rental Community Renovated to Provide Families in AL with Updated Affordable Housing
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Marion is a quaint southern city situated in central Alabama that offers residents a setting where nearly every attraction is within a twenty-minute walk. Because of this, families love to settle in and make Marion their permanent home. Unfortunately, affordable housing is hard to come by - there are very few Low Income Housing Tax Credit (LIHTC) properties nearby and all of them average an occupancy rate of 100%. With limited affordable housing options available for families in Marion, it is critical that the existing properties are preserved and remain LIHTC developments.
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Jackson Village is an existing family development in Marion that underwent significant renovations as part of the rehabilitation and preservation of the property. The 42-unit rental community consists of two- and three-bedroom options and is targeted to family households earning below 60% of the Area Median Income. The rehabilitation of Jackson Village included the addition of energy-efficient features such as Vinyl Energy compliant windows, Energy Star rated appliances and fixtures, and WaterSense labeled low-flow plumbing. The community also received exterior upgrades such as a covered bus stop, a new playground and picnic area, updated roofing and siding, and landscaping.
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Bennett & Company, LLC, an affiliate of The Bennett Group, partnered with CAHEC as the developer for Jackson Village. The Alabama-based company has more than five decades of experience developing and preserving low-income housing properties in the south. As the property manager, Hollyhand Companies, Inc. will oversee daily operations at Jackson Village. With more than 5,000 units under its management, Hollyhand Companies, Inc. is an organization that specializes in managing multi-family rental communities.
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With nearly half of all American households facing the challenge of being cost-burdened - spending over 30 percent of their incomes on housing – it is increasingly important to not only create new affordable housing but continue to preserve the existing LIHTC developments across the country. The enhancements made to Jackson Village will help ensure that local families have access to housing that is both safe and affordable well into the future.
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The Need for Affordable Housing is Critical
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According to the 2022 America's Rental Housing report, released by the Joint Center for Housing Studies at Harvard, approximately 46% of US rental households were cost-burdened, spending over 30 percent of their incomes on housing, including 24% who identified as severely burdened (more than 50 percent of their income goes towards housing). They also noted that rent across the nation continues to rise significantly, with an 11% increase in rental costs between 2020 and 2021. As we continue to alleviate the high affordable housing demand, it is critical to remember the LIHTC program's excellent track record and essential role in developing and preserving affordable housing.
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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% 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 it was enacted, the LIHTC program has led to the development of more than 3.34 million units of affordable housing.
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.
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One of the nation's leading nonprofit equity syndicators, CAHEC helps finance the development of attractive 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 founding in 1992, CAHEC has raised and invested more than $2.6 billion toward the development of over 36,000 units of affordable housing.
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Copyright 2022 Community Affordable Housing Equity Corporation
This institution is an equal opportunity provider
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