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Kingsport board passes $10M preliminary bond resolution to rehab Kingsport West

Hank Hayes • Jan 14, 2020 at 6:30 PM

KINGSPORT — A preliminary $10 million bond resolution for a developer to acquire and rehabilitate Kingsport West Apartments was approved Tuesday by the Kingsport Economic Development Board.

Kingsport West is a 104-unit complex for low and moderate income residents in the Allandale section of Kingsport.

Developer Carr Hagan of LHP Capital noted the complex was built in 1980 and accepts Section 8 funding from the U.S. Department of Housing and Urban Development (HUD).

"That means it is affordable to the most vulnerable part of our population," he said in a presentation to the board. "By virtue of the subsidy from HUD, they only part 30% of their monthly income toward rent. ... It's very important to preserve (these units) in place. That's what our firm specializes in."

Hagan pointed out his firm — with 8,000 units in five states — has renovated Miller Village and Model City Apartments in the past.

The Kingsport West rehabilitation, Hagan noted, will give the units all new interiors, electrical upgrades and flooring.

Hagan said the Allandale community is in a so-called "Opportunity Zone."

"We plan to add some site amenities, like a playground, for a family property like this," Hagan pledged. "The residents' rent will not change one dollar unless their income posture changes. HUD is really encouraging developers to keep this housing stock preserved."

He added no residents will be permanently replaced but will go through a relocation.