Kingsport BMA hears update on former Lee Apartments project

KINGSPORT — The Kingsport Housing and Redevelopment Authority says it has a plan to move forward with redevelopment of the former Robert E. Lee Apartments site after years of delays. Kingsport's Board of Mayor and Aldermen heard an update on the long-awaited project during Tuesday's work session from Greg Perdue, chair of the Kingsport Housing and Redevelopment Authority (KHRA) board. Perdue told the board that the site is being rebranded as The Grove at Poplar Dale. "We are no longer calling it the Robert E. Lee property. We understand, obviously, the community will continue to refer to it in these terms, so we know what they're talking about. But to emphasize how we are moving forward on this property, we are now referring to it as the Grove at PoplarDale," Perdue said. The 128-unit Lee Apartments, built in 1941, were demolished in 2018 due to deteriorating conditions. Since then, it has been a challenge to redevelop the property due to a lack of funding and because the U.S Department of Housing and Urban Development owns a declaration of trust on the property. Perdue said the declaration requires that any redevelopment replace all 128 units with the same bedroom mix which is made up of 36 one-bedroom, 66 two-bedroom and 26 three-bedroom units. It also has to remain affordable housing. Perdue explained that while KHRA no longer operates traditional public housing, the new site will be project-based voucher housing which allows residents to pay rent based on income. "The Grove at Poplar Dale will not be public housing like Lee was," Perdue said. "It will be affordable housing, but with a much more modern neighborhood feel." In 2019, KHRA applied for federal tax credits to build a first phase of 54 units, but the application was not funded due to competition from larger metropolitan areas. "The tax credits are what make this affordable and possible for builders to really get the financing done for the community," Perdue said. "At that time, we were competing with places like Nashville, Memphis and Chattanooga. That's no longer the case." Applications for tax credits are sent to the Tennessee Housing Development Agency who then score them. Recent changes to the state's Qualified Allocation Plan now divide Tennessee into regional funding areas, placing Kingsport in a Northeast Tennessee region that includes cities such as Johnson City, Bristol and Morristown. That shift significantly improves KHRA's chances, Perdue said. "We're now on a level playing field," he said. "We feel very strongly about our opportunity with the tax credits." Perdue said the tax credit applications are due in April. If awarded, KHRA plans a phased approach, with the first phase including 54 units at an estimated cost of about $12 million, according to Emily Hays, KHRA's grants and redevelopment manager. Alderman Darrell Duncan asked how soon construction could begin if KHRA is successful in getting the tax credits. "We would know the funding decision mid-year," Perdue said. "After that, there's still the process of selecting contractors and architects. We're not going to have units up by December, but that first step is getting the tax credits in place so construction can begin." Perdue said the development will include a mix of one, two and three bedroom units, including duplexes and townhomes, designed to fit into the surrounding neighborhood rather than follow a single building style. "This is not meant to be a one-size-repeated look," he said. "It's meant to feel like a neighborhood." KHRA is partnering with Knight Development Co., a Louisiana-based affordable housing developer, to help guide the design and tax credit application process. Perdue said KHRA worked with Kingsport city staff to select the developer through a request for proposals. "The message I would leave with you today is we are moving forward. We're not letting that property sit idle, we have a plan," Perdue said. KHRA is also exploring future partnerships to support the surrounding area, including possible community services and connections to nearby Rotary Park and the Cora Cox building. "We're not just looking at the old Lee site in isolation," Perdue said. "We're looking at how redevelopment can help transform the broader area." Alderman Colette George asked about how the process would work if someone had a housing voucher and wanted to apply to The Grove at PoplarDale. Hays said residents with housing choice vouchers could apply to live there but would need to give up their existing voucher, which would then become available to another person. Perdue said former Lee Apartments residents would receive preference in the application process, along with other people who are local. "Based on our waiting list trends, we anticipate most of the units will be filled by people from Sullivan County," Hays said.