Tunica County CDC

About the development

Tunica County Community Development Corporation (TCCDC) received a HOME grant to develop 16 multifamily units and purchased 20 acres of raw land from the Mississippi Home Corporation (MHC), following a foreclosure by a private developer. Although some infrastructure such as water, sewage, and streets were partially in place, the property was acquired through a quitclaim deed and lacked full development. The organization pursued additional funding from LISC and HAC to complete the infrastructure, with some loans later forgiven under the self-help housing program. The site includes 35–40 lots in a subdivision with partially completed infrastructure. Initially, MHC had worked with a private developer who failed to manage the project, leading to a transfer of responsibility to Tunica County CDC. A key success factor was the CDC’s partnership with a private contractor, who facilitated access to reliable, pre-vetted subcontractors and extended favorable pricing, contributing to the overall quality and efficiency of construction.

Other Programs

TCCDC is also implementing a healthy housing initiative and assisting residents in purchasing quality, affordable homes with Section 4 funding. Six years ago, the organization embarked on its healthy housing initiative to address the poor quality, substandard housing that already existed in their communities and to incorporate these practices in new housing. As part of a commitment to healthy housing, this program requires participation in healthy housing activities including pre-purchase and post-purchase healthy housing education classes as part of the packaging of their 502 Mutual Self-Help Housing application. They have also recently been awarded the opportunity to package their 502 Mutual Self-Help Housing application in-house, and they are using Section 4 funding to pay for the training to provide this service.

TCCDC also purchased a building to serve as a housing resource center, where they can provide services to future home buyers. To help further their goal in providing affordable housing, Mississippi Home Corporation and the Tunica County Board of Supervisors have committed match funding of $7,000 each, totaling $14,000 in down payment assistance, for any new first-time homebuyers, or assistance to reduce their mortgage loan

Funding Sources Used

The organization secured a $300,000 523 TA grant for two years, paired with the 502 loan program, and has since reapplied for the grant. One homeowner benefited from $12,000 in assistance from the local housing authority, which helped them qualify for a mortgage loan. In total, six homes were developed—four through the self-help program and two additional homes financed using a LISC construction loan and USDA direct loans.

Partnerships

Government support played a role in facilitating homeowner access to property, primarily through one instance where the housing authority contributed additional funds. Generally, the program leans on private builders and contractors for support. These builders assisted by connecting the organization with pre-vetted subcontractors and pre-negotiated pricing for materials such as shingles and roofing, eliminating the need for individual negotiations. As a result, the homes were custom-built, high-quality, and constructed at favorable rates already established by the primary contractor, who extended those terms to Tunica.

Challenges

Building for very low-income families is challenging without additional subsidies, as the high cost of construction makes mortgage payments unaffordable without financial support.
The lack of a local USDA office creates significant challenges in the homebuilding process, particularly regarding the timely issuance of checks. The 523 grant helps fund staff but staffing shortages at USDA lead to slow response times and project delays. Under the self-help program, USDA must approve all check requests, a process that currently takes up to two weeks—causing subcontractors to wait and halting progress due to delayed supply purchases. This outdated, paper-based system and the excessive verification requirements add red tape and further slow construction, making it difficult to meet grant timelines. While subcontractor availability is not an issue, the inefficiency of USDA’s processes remains a major barrier to timely project completion.