Council approves first reading of tax-exemption pilot for King Community Homes rehabilitation

Jackson City Council approved first reading of an ordinance authorizing a payment-in-lieu-of-taxes (PILOT) exemption and related development agreement for Jackson Interfaith Nonprofit Housing Corporation, also known as King Community Homes. The measure passed unanimously at the March 11 meeting.

City staff and King Community Homes representatives said the pilot would support a comprehensive rehabilitation of 81 apartment units and enable the organization to compete for Low-Income Housing Tax Credit (LIHTC) funding and other financing.

A staff speaker summarized the project: “There are 81 units, councilwoman Robinson. And the projected amount is a $6,000,000 investment into those 81 units. This is amazing because the properties haven't been rehabbed since originally being built in the seventies.” City staff said the pilot payment in the first year is projected to be slightly higher than current taxes across the properties, and that the agreement includes provisions to keep the units affordable.

Representatives from King Community Homes addressed council during public comment. James Smith and Fred Parker, president of King Community Homes' board, thanked staff and council for assistance preparing financing and described the organization’s mission to preserve affordable housing. Parker said the nonprofit has operated since 1970 and called the partnership with the city “a huge win for the first ward.”

Council discussion noted the concentration of units in Ward 1 and the expected neighborhood reinvestment. Staff said the rehabilitation work would update interiors and exteriors and remove signage that might mark the site as a large housing project.

Council approved the ordinance on first reading and authorized the city manager and city attorney to make minor modifications to the development agreement as needed. The item will return for subsequent readings and final approval as required by ordinance procedures.