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Record of Proceedings

Monthly Meeting of the Health Education and Housing Facilities Board – September 15, 2025

City Council & City Boards — Monday, September 15, 2025
BodyChattanooga, Tennessee
SessionCity Council & City Boards
DateMonday, September 15, 2025
StatusFILED
Video Record
0:00 / 56:29

Transcript — Verbatim
0:02

Monthly meeting of the Health Education and Housing Facilities Board of the City of Chattanooga.

0:08

Today is Monday, September the 15th.

0:13

Have we had have we been properly advertised?

0:18

And do we have a quorum?

0:20

Yes, sir.

0:20

Yep, we have.

0:26

And Nico, this is our second second meeting.

0:29

So we appreciate you all being here.

0:32

And we will this is where you'll learn on the go.

0:35

So just fake it till you make it.

0:37

Okay.

0:40

But okay.

0:43

Our first uh order of business is election of officers.

0:49

We need a chair, a vice chair, and a secretary.

0:54

And I think currently, right now, uh I serve as chair, uh, Mr.

0:59

Johnson serves as uh the vice chair and Mr.

1:05

Wells serves as secretary.

1:08

So we can do them individually or collectively, whatever else to you all.

1:15

I well, Mr.

1:16

Chairman.

1:16

I think for consistency, the fact that we have some relatively new members.

1:22

I if uh the other two officers are amenable, I'm certainly I would say we'll move or make a motion that we keep the same officers in place uh just with consistency and you do such a stellar job.

1:36

So I knew you were gonna hose somebody somebody else.

1:41

Okay, uh we have a motion.

1:43

Is there a second?

1:47

Yeah, second.

1:50

Okay, but I would say this, and I've said it for a number of years.

1:54

I I think it's important that we uh involve our people and rotate.

1:59

So um I think we need to as we get more consistency with people.

2:04

I think we should do that.

2:06

Okay, we have a uh proper motion of the second.

2:09

Uh any discussion on the uh election of officers.

2:16

Seeing none will vote.

2:18

All in favor of keeping the same slate, please say aye.

2:22

Oppose like sign.

2:24

Okay.

2:28

Okay.

2:29

Um until next year.

2:32

Well, for some of us, that may be death.

2:34

You know what I mean?

2:36

Um the next order of business is the approval of the May 19th meetings.

2:44

You've been sent those.

2:46

Um chair would entertain a motion for discussion.

2:52

So move.

2:53

Have a motion.

2:54

Is there a second?

2:56

Second.

2:57

Second discussion on the May 19th minutes.

3:03

Questions or anything?

3:06

It all looked appropriate to me.

3:08

Okay.

3:10

Okay.

3:14

Seeing none.

3:14

All in favor approving the minutes of the May 19th meeting, please say aye.

3:19

Oppose, like, sign.

3:21

See none of the mission minutes or approved.

3:24

Um, what we do now is uh we allow anybody from the community or here to speak for three minutes if they want to, they can speak on something for their want to propose or against or anything like that, just so you all know.

3:42

So the floor is open if there's anyone who wants to address the board before we go any further.

3:52

It works real well.

3:54

Okay, seeing none, we'll move on.

Discussion Breakdown — Share of Meeting
Affordable Housing█████████████████████████████████████████████48%
Public Works█████████████████18%
Procedural█████████10%
Public Engagement████████8%
Pending Litigation███████7%
Public Finance████4%
Racial Equity███3%
Budget Equity Analysis██2%
Summary of Proceedings

Monthly Meeting of the Health Education and Housing Facilities Board – September 15, 2025

The Health Education and Housing Facilities Board of the City of Chattanooga held its regular monthly meeting on Monday, September 15, 2025, at 4:32 PM UTC (16:32:07+00:00). The board considered a final resolution authorizing $20 million in multifamily housing revenue bonds for the One West Side Phase 2B project, approved a $50,000 sole-source update of the city’s market value analysis, ratified a stormwater management agreement, and received updates on a pending lawsuit and debt obligations.

Consent Calendar

  • Election of Officers: The board unanimously approved keeping the same slate of officers: Chair (unnamed), Vice Chair Mr. Johnson, and Secretary Mr. Wells. A motion was made and seconded; no opposition.
  • Approval of Minutes: The minutes of the May 19, 2025, meeting were approved unanimously without discussion.

Public Comments & Testimony

  • No members of the public spoke during the open comment period.

Discussion Items

  • Final Resolution for One West Side Phase 2B Bonds: Raleigh from Columbia Residential presented the request for a final resolution authorizing the issuance of up to $20 million in multifamily housing revenue bonds for the One West Side Phase 2B project. The project will construct 144 apartment units (66% one-bedroom, 34% two-bedroom) on Boynton Street, adjacent to Gateway Tower. The development includes:
    • 66 units dedicated to relocating College Hill Courts residents, with project-based Section 8 vouchers so residents pay 30% of income.
    • Additional units at 60% and 80% of Area Median Income (AMI).
    • Market-rate units with projected rents of $1,325 for one-bedroom and $1,550 for two-bedroom units.
    • The project is part of a seven-phase master plan that will replace all 497 existing College Hill Courts units and add new units, for a total of 1,126 units across phases.
    • The bonds will be closed into a cash-forward structure by October 15, 2025, with permanent financing (18-year Freddie Mac loan) expected in January 2026.
    • Board members asked about affordability standards, demographic tracking, resident relocation, and bond term (40-year amortization, 18-year balloon). Presenters and housing authority staff noted that the average income of current residents is below $15,000, and that relocation counseling will offer three options (new unit, voucher, or existing portfolio unit).
    • The board member Richard expressed strong support for the project team, stating they have “a lot of credibility” and always do their due diligence.
  • Market Value Analysis Update: The board considered a resolution authorizing a sole-source purchase of an updated citywide market value analysis from the Reinvestment Fund for $50,000, funded from the Affordable Housing Trust Fund. The analysis will use updated census data (post-COVID) to compare housing market changes. The board discussed the need for continuity in methodology, the public availability of the results, and the frequency of updates. The resolution passed 5–1, with one nay vote recorded.
  • Ratification of Stormwater Management Agreement: The board ratified the chair’s prior execution of an inspection and maintenance agreement for private stormwater facilities related to the CNE/LLC pilot project (Mill Town). The agreement is required because the board holds title to the property during a payment-in-lieu-of-taxes (PILOT) period. The resolution passed unanimously.
  • Lawsuit Update: An update was provided on a lawsuit filed by Demolition and Environmental Companies LLC against multiple parties, including the Health Education and Housing Facilities Board, for alleged unpaid environmental work amounting to $95,754.05. The claims include breach of contract, unjust enrichment, mechanics’ liens, and violation of the Prompt Pay Act. The board was served on August 27, 2025, and plans to file an answer asserting indemnification by the project sponsor (Asparo/AIM Center). The Chattanooga Housing Authority’s general counsel noted they are aware and will work to resolve the matter.
  • Report on Debt Obligations: The board received a report on outstanding debt obligations, including bonds issued in 2025 for the Silverdale Baptist project: Series 2025 A ($2,166,727) and Series 2025 B ($2,500,000). These reports are filed annually with the Tennessee Comptroller’s Office.

Key Outcomes

  • Approved: Final resolution (HEB 2025-08) authorizing $20 million in multifamily housing revenue bonds for One West Side Phase 2B (unanimous).
  • Approved: Resolution authorizing sole-source purchase of market value analysis update for $50,000 (5–1).
  • Approved: Resolution ratifying the chair’s execution of the stormwater management agreement (unanimous).
  • Next Meeting: The board will meet next on Monday, October 20, 2025 (third Monday of the month).

Meeting Transcript

Monthly meeting of the Health Education and Housing Facilities Board of the City of Chattanooga. Today is Monday, September the 15th. Have we had have we been properly advertised? And do we have a quorum? Yes, sir. Yep, we have. And Nico, this is our second second meeting. So we appreciate you all being here. And we will this is where you'll learn on the go. So just fake it till you make it. Okay. But okay. Our first uh order of business is election of officers. We need a chair, a vice chair, and a secretary. And I think currently, right now, uh I serve as chair, uh, Mr. Johnson serves as uh the vice chair and Mr. Wells serves as secretary. So we can do them individually or collectively, whatever else to you all. I well, Mr. Chairman. I think for consistency, the fact that we have some relatively new members. I if uh the other two officers are amenable, I'm certainly I would say we'll move or make a motion that we keep the same officers in place uh just with consistency and you do such a stellar job. So I knew you were gonna hose somebody somebody else. Okay, uh we have a motion. Is there a second? Yeah, second. Okay, but I would say this, and I've said it for a number of years. I I think it's important that we uh involve our people and rotate. So um I think we need to as we get more consistency with people. I think we should do that. Okay, we have a uh proper motion of the second. Uh any discussion on the uh election of officers. Seeing none will vote. All in favor of keeping the same slate, please say aye. Oppose like sign. Okay. Okay. Um until next year. Well, for some of us, that may be death. You know what I mean? Um the next order of business is the approval of the May 19th meetings. You've been sent those. Um chair would entertain a motion for discussion. So move. Have a motion. Is there a second? Second. Second discussion on the May 19th minutes. Questions or anything? It all looked appropriate to me.

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