TUPELO – A $9.4 million proposal to convert the vacant J.J. Rogers Building into 48 affordable loft-style apartments has received a long-awaited reservation of housing tax credits.

The Mississippi Home Corp. announced this week that more than $6.8 million in tax credits will be made available over the next 10 years, which will produce more than $4.5 million in equity for the project.

Other financing includes federal and state historic Rehabilitation Tax Credits and a private mortgage. The property will be rehabilitated in accordance with the Secretary of the Interior’s Standards for Historic Preservation.

It was the second time developers had applied for the credits but the first time the award was granted. The project was one of 11 chosen of the 29 that applied this year.

“This should be a great fit for the neighborhood and a catalyst for future revitalization,” said project developer Rex Todd, who heads the North Carolina-based Todd Development. “The property will be rehabilitated according to the secretary of the Interior’s Standards for historic preservation.”

Construction is slated to begin by May and take about one year. Todd said it must be complete no later than September 2011. Martin Riley Associates of Decatur, Ga., designed the project, and Rehab Builders of North Carolina will be the general contractor.

The J.J. Rogers building is located in historic Mill Village, whose residents have waged a campaign to revitalize the formerly neglected neighborhood. Many have eagerly anticipated the lofts project in hopes it will further their efforts.

“We really feel like this is the major stepping stone to a tremendously bright future for Mill Village,” said Mill Village Neighborhood Association President Jane Carruth. “It is just going to be the biggest plus, not just for Mill Village but for Tupelo. We’re going to be preserving history.”

The building is owned by Britt and Jameson Rogers, who operated J.J. Rogers & Sons wholesalers there from the 1940s until last year. Todd said he expects to close on the property by December.

When the renovation is complete, the Cotton Mill Lofts will offer several amenities: below-market rent, an on-site playground, a computer room, GED classes and washer-dryer combos in each unit. It’s similar to the plan pitched last year, except the number of units was scaled back from 64 to 48.

Prices range from $380 for a one-bedroom unit to $601 for a three-bedroom unit, but renters must meet low-income requirements, Todd said.

Only those earning less than 60 percent of the area’s median income will be considered. For a family of four, that maxes out at $30,480, Todd said.

The Landmark Group, another North Carolina firm with which Todd is affiliated, will handle property management.

“It will bring more residential activity into that neighborhood” said city Planner Pat Falkner, “more people, more investment, more attention, and that’s good.”

Contact Emily Le Coz at (662) 678-1588 or emily.lecoz@djournal.com.