Funding for Corbin East housing project could be decided by June

Nothing is left to do but nervous waiting on the part of local public housing officials who are anxious to find out if a lucrative tax credit grant from the Kentucky Housing Corporation will be awarded to a project aimed at totally overhauling the old Corbin East School and turning it into an apartment complex.

Dora Mobley, Director of the Housing Authority of Corbin, said officials should know sometime in June if Corbin will be the recipient of the tax credit grant. Essentially, the credit can be sold to for profit corporations, and in turn used to construct affordable housing.

"There’s a lot of work that goes into these tax credit properties," Mobley said. "That’s how the government builds the affordable properties now days. There are several tax-credit properties around in Corbin, but it’s been all outside development companies that did them. This would be the first one done locally."

The three-inch grant application was submitted in March, Mobley said. All funding and property acquisition for the project has been funneled through a non-profit organization called Greater Corbin Housing – created and controlled by the Housing Authority of Corbin as a legal entity to complete the project.

The Housing Authority purchased Corbin East School, and some surrounding property, last year at an auction. It bid on an adjacent track as well, but was outbid by a local businessman.

Already, an environmental site assessment has been done on the property. Another will be performed to determine what environmental issues may exist with the building (i.e. asbestos contamination, existence of lead-based paint, etc). Mobley said plans are to totally gut and renovate the existing school building, turning it into two-bedroom apartments for low-income families. A separate building will also be constructed behind the school. In all, plans call for the construction of 36 apartments.

Housing Authority managed and maintained buildings contain 155 units occupied by 300 residents. Mobley said there is a waiting list of 80 to 85 people at all times wanting to live in Housing Authority units.

"Our application is good. We have a need here for more housing," Mobley said. "I’m hopeful we will get it, but if we don’t, then we’ll just keep trying until the next funding round … You are going to get the money eventually if you’ve got a good project."

In advance of the grant application, a market study was done to determine is Corbin even qualified for a housing grant. It does.

Mobley said if Housing Authority receives funding, preliminary work would take about six months. Site work would likely begin around January 2012 and finish in a year.