Renovating all of Oak Ridge’s public housing and building 124 new rental apartments for the area’s workers are part of a $56 million plan.
The Oak Ridge Housing Authority announced plans Friday morning to begin renovations of 128 public housing units across the city early next year, and to build 104 new affordable rental units for the area’s workforce in the Scarboro community at a total cost of $56 million.
“This is a historic moment for the Oak Ridge Housing Authority, for the City of Oak Ridge, and most importantly for the residents of Oak Ridge and this community,” said Maria Catron, executive director of ORHA.
Ralph Perry, executive director of the Tennessee Housing Development Agency, said it is financially the largest project the THDA has been involved in with Anderson County.
Construction of new buildings and renovation of the old buildings are expected to begin within the first four months of 2025, according to Catron. The new Scarboro units are expected to be completed in mid-2026 and occupied before the end of the year.
The project is supported by tax credits and tax-exempt bonds announced Friday by the Tennessee Housing Development Agency. The low-income tax credits and tax-exempt bonds will generate up to $51.8 million for renovation and new construction projects throughout Oak Ridge, Catron said in a news release.
At the event announcing the project, held at the Scarboro Community Center on Carver Avenue, Catron said the city of Oak Ridge donated 11 acres for the project. The center is adjacent to the site where the new housing units will be built.
The event was attended by representatives from U.S. Senator Bill Hagerty’s office, ORHA, THDA, the Oak Ridge City Council and its schools, and the Anderson County Government. Also in attendance was Richelle Patton, founder, owner and president of Atlanta-based Collaborative Housing Solutions, who is described as the lead developer of the project.
How the project is financed
ORHA will receive $15.3 million in a 4% tax credit and $18.5 million in tax-exempt bonds to build 104 new workforce housing units in Scarboro and renovate 58 public housing units citywide in the Apple Lane, Wade Lane, Knoll Lane and Honeysuckle Lane neighborhoods.
Another 9% tax credit valued at $18 million will help renovate 70 housing units at four locations on LaSalle Road, Irene Lane, Van Hicks Road and Joel Lane.
“The work of the Oak Ridge Housing Authority will transform and improve the city’s public housing and create much-needed affordable housing for low-income families and individuals,” Perrey said. “THDA supports projects like this through our Affordable Housing Credits to offset construction costs and ensure affordable housing can be built that positively impacts the communities in which it is built.”
Much of Scarboro’s public housing was built when the city was segregated and hasn’t changed much since then, he said.
Affordable housing is a major problem in Anderson County, as it is across the country, said Anderson County Mayor Terry Frank, adding that it is especially difficult for the city’s essential workers who can work but cannot find affordable housing.
Derrick Hammond said he was speaking in both his roles — as a member of the Oak Ridge City Council and as pastor of Oak Valley Baptist Church in Scarboro, the city’s historically black congregation. He said when he first came to Oak Ridge to become pastor of the church, he met the Rev. Harold Middlebrook of Knoxville, who had worked with Martin Luther King Jr. during the civil rights movement. Middlebrook advised the young pastor to help his congregation, telling him to help people integrate into the life of the city, the church and the community.
Hammond said this housing plan not only helps people in need of housing or improved housing realize their dreams, but through his work in the city and with ORHA on this project, he has also realized his dream.
Hammond thanked members of the Scarboro community. He said as a council member, he represents the source of trauma for the people of the community. He said they now support this project and believe in it.
He thanked for the trust.
Passionate advocates for the rights of marginalized groups ensured that these projects were successful, Catron said following Hammond’s comments.
Patton said they will meet with all 128 families living in public housing to learn about their needs, such as whether they have children or pets or if they need handicap-accessible accommodations now or in the future. She said when the public housing is renovated, the families will move into vacant apartments. She spoke with Bruce Borchers, Oak Ridge School Superintendent, about meeting with school officials to ensure the children do not have to attend another school if that happens.
Affordable housing is part of the Oak Ridge Blueprint Plan
The redevelopment of these properties is an important part of the city’s Blueprint plan, adopted by the Oak Ridge City Council in 2019, according to Patton. The plan’s goals and action strategies focus on a cross-sector approach to improving the city’s quality of life and positioning for future population growth.
The plan’s goals include developing strategies to restore the legacy of neighborhoods built during World War II. New construction in Scarboro will recognize its history as a segregated black community in Oak Ridge in the 1940s and its place in history. The Scarboro 85 were the first black students in the Southeast to attend an all-white school. The 85 came from the Scarboro School and attended Robertsville Junior High School and Oak Ridge High School in 1955. The schools were still under federal government control at the time.
ORHA worked closely with Scarboro residents to plan the new rental housing. Patton said there were nine meetings with residents last year.
The plan’s goals also include expanding the housing supply by creating high-quality homes for sale and rent that are attractive to young families and new employees, which ORHA’s plans support. The Scarboro site will include 10 apartments that will be affordable for people like the city’s police officers and firefighters, officials said in previous meetings with the city.
Renovation of the old social housing thanks to a RAD program
In addition to the tax credits, there is another change that will make renovation of the 128 existing rental apartments feasible and affordable: a rental assistance grant program that allows housing authorities to make deferred maintenance and needed improvements in public housing, Catron said. The grant from the U.S. Department of Housing and Urban Development allows housing authorities to borrow money for repairs instead of relying on congressional appropriations.
“These buildings, built in the 1970s or early 1980s, have not had a major renovation in over 50 years. We are anticipating renovation costs of $75,000 to $85,000 per unit, which will include new kitchens, new bathrooms, new appliances, new flooring, new HVAC, new windows and facade improvements,” Catron said of the buildings that house the 128 rental units.
“This public-private partnership allows us to not only meet current needs, but also position ourselves to meet future needs in the housing market,” she said. The RAD program opens the developments to private partners who will invest in the tax credits and bonds.
The RAD program allows housing authorities to take ownership of their rental units from HUD and borrow and make repairs like private landlords. Because the units were owned by HUD rather than local property owners, the housing authority was unable to borrow. The RAD program now treats housing authorities like private landlords, with HUD providing funds through the project-based Section 8 program.
Donna Smith, news editor of the Oak Ridger, covers news from around the Oak Ridge area. You can email her at [email protected] and follow her on Twitter at @ridgernewsed. Support The Oak Ridger by subscribing. For offers, visit https://subscribe.oakridger.com/offers.
