To provide more affordable housing options for low-income individuals and families, the Jackson Housing Authority celebrated a groundbreaking on June 4, soon to be the home of 112 new affordable housing units.
Community stakeholders, elected officials, and JHA staff congregated at the site to observe the land poised to be the Blue Creek Apartments and The Cottages of Blue Creek.
The milestone development is courtesy of a partnership with the Tennessee Housing Development Agency, which is funding the project through THDA-administered Low-Income Housing Tax Credits, along with a $23 million equity investment for the project.
“For the first time, we are allowing a development to use both of those in one big project,” THDA Executive Director Ralph Perrey said.
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THDA Executive Director Ralph Perry speaks during the groundbreaking of Blue Creek Apartments in Jackson, Tenn., on Tuesday, June 3, 2025.on Tuesday, June 3, 2025.
“This Blue Creek project here in Jackson is one of the first two in the state to qualify for that. So it lets us provide, in this case, over $23 million worth of equity into the deal to get these built, and they’ll remain affordable for decades. That’s just going to make a big difference for the families that get a safe, decent place to live.”
Perrey says the tax credits are awarded competitively, and Chattanooga was the only other city in the state to be awarded the twinning program.
“This is really a very significant housing development that’s going to replace some 80-year-old public housing with some new housing that’s going to be affordable, and I think will be a real catalyst for other good development here in East Jackson.”
Part of the development will replace JHA’s family apartment units, Allenton Heights, which are set to be demolished later in June. The other site will be on the corner of Preston Street and Royal Street, just a stone’s throw away from JHA’s office.
There are currently 36 families residing at Allenton Heights, who Reid says will get first priority in relocating to the new developments if they so choose.
JHA Executive Director Mark Reid says the new apartments will be fitted with amenities including a washer and dryer, parking, a communal computer room, and shared community space.
JHA Executive Director Mark Reid speaks at the groundbreaking of Blue Creek Apartments in Jackson, Tenn., on Tuesday, June 3, 2025.
With the groundbreaking completed, Reid says JHA hopes to begin leasing at Blue Creek by July 2026.
“Jackson, Tennessee, like other cities, faces a crucial need for decent and safe affordable housing and this project directly addresses that need,” Reid said.
“It’s not just about providing a roof over their heads, it’s about providing the foundation for a brighter future where families can build stability, attend quality schools, contribute to our community, and become homeowners.”
Blue Creek development bridges affordable housing gap
Attendees converse during the groundbreaking of Blue Creek Apartments in Jackson, Tenn., on Tuesday, June 3, 2025.
The National Low Income Housing Coalition reports that Tennessee is short of low-income housing units by about 128,000. Of the low-income units available, only 42 out of 100 are available for low-income households.
Perrey says the Blue Creek project is a solid step in the right direction in bridging that gap.
“Without some kind of support subsidy that we can provide with housing tax credits or bond financing or grants, nothing affordable gets built,” he said.
“There are plenty of working people in our state. Think of a single mom making $40,000, the family of four getting by on $55,000 or $65,000 a year; these are the families that are going to be able to live in a place like Blue Creek. If we can provide safe, stable housing that doesn’t require half of someone’s paycheck, you bring family stability and you bring neighborhood stability.”
Signage for the upcoming Blue Creek Apartments on display at itÕs groundbreaking in Jackson, Tenn., on Tuesday, June 3, 2025. on Tuesday, June 3, 2025.
Information on income limits and requirements for housing can be found on JHA’s website.
Sarah Best is a reporter for The Jackson Sun. To support local journalism, subscribe to the Daily Briefing here.
This article originally appeared on Jackson Sun: Jackson Housing Authority to develop 112 new, affordable units