Most recently Howard Roberts and Kim Cox, of HUD's Knoxville Multifamily Office attended the grand opening of the Retreat at Spring Creek II, HUD's newest single-room occupancy (SRO) apartment project in Cleveland, Tennessee. The project includes 112 market rate units developed by TDK Development/Construction. There is also a sister project under construction in Johnson City, Tennessee that will provide 248 units.
"This is a high quality product from an outstanding developer. Phase I of this complex rented up at a record pace resulting in the demand for Phase II and is providing needed affordable housing," said Kim Cox, HUD Knoxville Director, Multifamily Housing.
HUD's Section 221(d)(3) and 221(d)(4) programs insured the mortgage loans for this multifamily property consisting of single-room occupancy (SRO) apartments. These programs help developers to build affordable housing for tenants who have a source of income but are priced out of the rental apartment market. There were no HUD rental subsidies involved with this SRO program and these projects generally require assistance from local governing bodies or charitable organizations in order to reduce the rents to affordable levels. Although SRO housing is intended for very low-income persons, the program does not impose income limits for admission.
The project (Phase 2 to a 199 unit complex constructed in 2010-2011) began construction in April, 2012 and finished approximately 2 months ahead of schedule. The project is in response to demand as determined by an independent market study as required on all of HUD mortgage insured Section 221 (d)(4) projects.