Abandoned 1920s School Transforms Into Affordable Housing in Dandridge, Tenn.
A 1927 school that had sat empty since the 80s has a new lease on life as the Dandridge School Lofts. Located in Dandridge, the second-oldest town in Tennessee, the building now provides affordable housing for seniors.
FHLB Cincinnati supported the rehabilitation of the 38-unit building through a $950,000 Affordable Housing Program grant. The grant was awarded to FHLB member Bank of Tennessee for the benefit of The Mid-Atlantic Foundation and Duke Development Company, LLC.
The building is listed to the National Register of Historic Places for its Colonial Revival architecture. While the building has undergone many changes to make it habitable for residents, many aspects were left unchanged such as the exposed steel ceiling beams and the building’s exterior. Jeff Kenley, owner of All Star Construction and a partner with Duke Development, was credited as being instrumental in the rehabilitation and adaptive reuse of the existing structure.
“Being able to take a property that has a lot of historical and sentimental value to a community and repurpose it is a great thing to do,” said Stephen Dixon, SVP, Community Development Officer at Bank of Tennessee.
Many seniors live on a fixed income, which can make it difficult to find secure housing. Retired resident Dan Canfield moved to the property with his wife in April. They enjoy the building’s mountain views and walking the perimeter with their dog, Pepper. Before moving, the couple had allocated $600 per month for housing.
“Because we’re retired, all we’re living on is Social Security,” said Canfield. “You can’t really rent much of anything for $600. We saw this place and thought, bingo.”
The property gives residents access to on-site laundry facilities, exercise equipment, a computer center and more. It is within walking distance of the local post office and a new library that is expected to open in January 2027.
According to the developers, Duke Development Company, the road to completing the Dandridge School Lofts project was at times a bumpy one.
“We won our historical tax credits right before COVID. After COVID, prices almost doubled,” said Lou Browning, partner at Duke. “The day we won the Affordable Housing Program grant was a day of celebration. We just knew the project was going to happen.”
Since the Affordable Housing Program’s inception in 1990, FHLB Cincinnati has disbursed $475.2 million in subsidy through the program. The 2025 offering closed in July, with funds awarded in November.
Details and program guides for all FHLB Cincinnati housing programs, including eligibility information, are available here.