MHA Mercury Court Redevelopment under construction with assistance from City Community Development Department

New homes are rising like a phoenix on S. Bilbro and Minor St., replacing the old brick and cinder block buildings that for more than half a century housed low-income residents near Dr. Martin Luther King Jr. Blvd.

As elsewhere across the country, the need for affordable housing in Murfreesboro is a major priority. The mission of MHA is to provide decent, safe, and sanitary housing in good repair for eligible families.

“Thirty-four units of affordable housing are being built for tax credit properties. We’ll have two-and three-bedroom units,” said Thomas Rowe, Chief Executive Officer of Murfreesboro Housing Authority. “This development, Phase 1, is located on the north side of Minor Street and the east and west side of Bilbro Avenue. We cover the north side of Hancock Street to 1st Avenue.”

Rowe adds that another MHA project, Parkside, is under construction nearby.

“Parkside is on E. Castle Street directly behind Patterson Park. Its 46 units of public housing that we’ve converted into RAD, whereas the Mercury Park is strictly tax credit development.”

Rental Assistance Demonstration (RAD) is an initiative of the U.S. Department of Housing and Urban Development (HUD) that seeks to preserve and improve certain kinds of affordable housing by providing more stable funding for improvements. Public Housing agencies such as the Murfreesboro Housing Authority can convert public housing subsidies into Section 8 subsidies that are tied to the property. The RAD program was created in 2011 to address the capital improvement needs of aging public housing. The program requires that converting properties be owned or controlled by a public or non-profit entity.

The Murfreesboro Community Development Department partners with MHA, a nonprofit corporation governed by a five-member board. MHA received grants from the City to help fund Mercury Court and another affordable housing development, Oakland Court. Community Development awarded (MHA) with $1.1 million in federal grant funding for the Mercury Court Redevelopment Phase I Plan. The HUD HOME Investment Partnership Grant Program funds are administered by the City’s Community Development Department.

“MHA applied for Home Investment Partnership funding, said Robert Holtz, Community Development Department Director. “HUD, a federal department, began providing approximately $500,000 in federal funding to the City beginning in 2022 for Home Investment Partnership funds to be used to provide affordable housing for low-income families. The Mercury Court project is providing 34 more units for low-income housing.”

“The purpose of the HOME grant is to fund a wide range of activities including building, buying and/or rehabilitation of affordable housing for rent or homeownership for low-income families,” said Holtz. “The City appreciates the leadership of MHA in redeveloping affordable housing in our community and recognizes the demand for such housing to meet the needs of families.”

MHA applied for and received two grants in 2023 and 2024. MHA will utilize the federal grants to help fund the estimated $15 million dollar Mercury Court Redevelopment Phase I Plan to provide affordable housing to low-income families. Mercury Court includes a total of 34 units consisting of fourteen 2-bedroom and twenty 3-bedroom units. Completion of the redevelopment, located at Minor Street, is anticipated for December 2025.

“Mercury was built in 1959-1960 with brick exterior and cinder block interior. This gives people a new opportunity to live in something really nice,” said Rowe. “The new affordable housing units will serve families at or below 60 percent of the area median income known as AMI with 9% Low Income Housing Tax Credit (LIHTC). We appreciate the City’s Community Development Department contribution to this affordable housing project in Murfreesboro.”

MHS recently completed another Murfreesboro Housing Authority development. In April, MHA celebrated the grand opening of Oakland I and II, 150 newly built affordable housing homes on 20 acres between North Academy and Maney Avenues. Oakland I and II is managed by MHA. Families living in the homes pay 30 percent of their income for rent and utilities. Oakland was well-received by the community. Rowe says Mercury Court will be similar.

“It’s built much like Oakland is. It’s a little different concept. The look of Mercury is more urban in feel than Oakland Court.”

To qualify to live in Mercury Court, families must make application beginning in January 2025.

Applicants can apply online at www.mha-tn.org beginning in January or visit the Murfreesboro Housing Authority office located at 415 N. Maple to pick up an application.

“We’re moving along. We signed contracts during the first of May with Bacar Construction based in Brentwood. We’re a month or so ahead of schedule, which is good on a project like this. We should be moving residents in beginning in April 2025.”

In addition to the 2023 and 2024 grant funding, the City of Murfreesboro provided 25 percent matching fund contribution totaling $240,000 to the initial 2022 HOME grant.