Good afternoon to the board and to all of our guests who are here with us today.

My name is Harold De Bryson.

I'm one of the assistant city attorneys here for the city.

I know that you all are used to seeing Mr.

Knoblett here, um, but I am filling in for him today.

Before we start the meeting, we have a bit of housekeeping to take care of.

Uh neither the chair nor the vice chair of the board are present today.

And so um our secretary of the board, Mr.

Hank Wales will call the meeting to order, and then the board will proceed with electing a chair pro team who will preside just over today's meeting.

Mr.

Wales.

Uh thank you.

So I'm I'll call the meeting uh of the um October meeting of the educational and housing facility board of the city of Chattanooga to order.

Um and as Ms.

Bryson has said we don't have a quorum.

I mean, we don't have a chair today, we do have a quorum.

Um I should ask the city attorney's office if the meeting has been properly advertised.

And uh and we do have a quorum, but no chair, so we'll I entertain a motion to elect a chair pro temp.

Um move to elect uh secretary Wells as the chair protest.

We didn't give you a lot of options, did we second motion's been made and seconded?

Is there any uh other discussions?

All those in favor say aye.

Thank you.

I guess um first thing we generally do is to uh approve the minutes of the September 15 meeting.

I think those have been distributed to you that are in your packet.

Um is there are there any questions or comments about the minutes, or is there a motion?

I'll go ahead and make a motion to approve minutes.

Any opposed?

Thank you.

Um we usually at this point in the meeting uh ask that anybody in the audience that wishes to address the the board do so at this time.

Um you'll have also have an opportunity when various agenda items come up.

But uh, I see Ms.

Gooden is standing at the agenda at the podium there.

Good morning.

My name is Janice Gooden.

Um I've been following some of the uh I won't say cases, but uh some of the proposals for housing, overlook, and Eastwood Manor.

And I'm happy to see these come forward.

One of the questions I also have is about the pilot program.

What compliance looks like.

So I see that there is a presentation.

So I'd like more information about that.

Thank you.

Thank you.

Ms.

Gooden, we'll we'll make sure that you get your questions answered at the time of the of that presentation.

Excellent.

Thank you.

Others.

Uh the next item on the agenda, then is the or first item on the agenda is the overlook apartments bond issuance.

$15 million.

Uh that's a resolution authorizing and approving the documents, instruments, actions, and matters necessary for the issuance sale and delivery by the Health Education and Housing Facilities Board of its uh multifamily housing revenue bonds, the overlook apartments in one or more series in the aggregate principal amount not to exceed 15 million dollars.

Um I think I'm sure that somebody's ready to uh make a presentation about that.

Could we have a motion?

Uh should we start with a motion?

I believe or you want to hear from folks first.

Okay.

Would you introduce yourself and and uh Absolutely?

My name is Zane Mehmud.

I work at PATS Development LLC, which is the affordable housing development arm of Noveen Real Estate.

Uh I did have a presentation that I have sent over.

I wonder if there's a way.

There we go.

Thank you, ma'am.

Uh so yes, as I mentioned, I work at PATS Development.

This is the real estate affordable housing arm of Noveen Real Estate, and I am here to talk about the overlook apartments.

I had come in March 2025, well, we assume to get the preliminary bond inducement for 15 million dollars of tax exempt bonds for the project.

But yeah, if if we could go to the next slide, please.

Right.

So the overlook apartment, some of you may already be aware of the project.

It's a 162 unit property located at 1201 Boeington Drive.

It is an existing Lightch property out of its 15-year compliance period, and 20% of the units are covered by a half contract.

The property was previously owned by Millennia.

It was left to a state of disrepair along with other a lot of other millennia properties.

PATS development stepped in in October 2024 through our management company to take over.

And after we got the bond inducement from this board in March 2025, uh March 2025, we started critical repairs on the project.

And after that, we were able to get the Light Award from THDA in July 2025, and now we have a contemplated bond closing in November next month.

The business plan for the project includes major renovation throughout the property.

The scope is about 12 million.

There's going to be large-scale exterior repairs, replacement of the roof, repaving, striping parking lots, upgrading all the mechanical systems, the interior repairs include complete replacement of HVAC counters, cabinets, oil appliances, uh LBT flooring sinks, faucet fixtures.

We're also going to make several ESG upgrades as a mandate throughout our portfolio to improve energy efficiency.

This is going to include LED lights, energy star windows, learning thermostats, water fence, showerheads, and uh a few other items.

Next slide, please.

Thank you.

As I mentioned, our property management company has already taken over.

This is it's an affiliated property management company, also owned by Naveen Real Estate.

We have a strong track record in 15 states.

We manage properties from New York all the way to California.

We're also going to bring in our affiliated security company called Reliance Safety, which actually has an extremely good reputation in the in the Northeast, and third-party developers often reach out to us to use that for uh their properties.

We're also going to be adding resident services through Ounce of Care, which is a national leader in providing services to projects and for developers that want to go above and beyond just taking a box as per the QAP, but actually want to provide like services to help the residents, uh, as I mentioned above and beyond.

And this will include include access to preventative health care, transportation, education, assistance, navigating available services, and they have their own mark of quality assurance.

I do want to mention that there would be no permanent displacement of residents.

There's going to be an in-place tenant rehab.

The only temporary road relocation that would happen would be for the ADA units because they often require structural repairs, and we would pay for the hotels for meal vouchers, uh, for moving into the hotels, and they would be moved back to the property on uh as per the schedule.

And there would also be free cable and internet provided along with all the amenities, a new community room, a business room, THDA is making us add a pergola and a gazebo.

Uh so yes.

These were just a few pictures.

Well, actually, I'll go back.

When we took over the proper the property, there were about 37 units, which as per the previous seller were vacant, but when we looked at them, those units were just flat out uninhabitable.

And while as soon as we got the bond inducement, while we were still working towards our large-scale light ex indication, we started making critical repairs of those units.

And these are a few pictures of those units from before our renovations, and this is what those units look like now.

At the time, since we were limited by our own budget at the time, we've only been able to make these in-unit repairs, but through the bonds authorized by this board, we would plan to make repairs to all the units as well as all the exterior repairs I talked about.

This is kind of just a picture of where of the property as it looks now, and this is sort of a rendering of what the property would look like after our renovations drawn up by our architect.

And yeah, thank you.

Would you mind repeating or spilling and repeating your name?

We I didn't get it now.

Oh Zayn Mahmoud.

Z-A-I-N.

Z-A-I-N.

Yes, M-A-H-O-O-D.

And the company is PATS development.

Got that.

Thank you, sir.

Of course.

Other questions of Mr.

Mahmood.

Yeah, friends.

Where you have on the hill for any residence services.

Will that include any case management services?

Case management services?

I believe so, but we can definitely look at that if that's something that's part of the project.

Ounce of care is actually, as I mentioned, they're a national provider.

They offer a lot of services, and we have an extensive contract with them throughout our portfolio.

And then we allocate costs based on uh which property can afford it or not.

But whatever costs the property is able to afford, the property will get the entire range of services that ounce of care offers.

And ounce of care is utilized by Naveen at like at their fund level, so it's a pretty extensive contract.

But I'm happy to send you a copy of the contract as well.

But I'm like 90% sure they do include case management.

Okay.

Other questions.

Um how are the tenants notified about uh upcoming construction activities?

So we would utilize uh regular community meetings along in conjunction with our property manager, and there would be flyers posted to all residents because 20% of the property is covered by the HAP contract and it's an existing lighting property, still in its compliance period.

There are several regulations that we have to follow, which includes giving tenants notice at least 40 years, 48 hours notice before anyone is going to enter their unit.

So we fully intend to comply with all those guidelines.

Thank you.

Chair, um Mr.

Mahmood, thank you for coming in front of us.

Uh I really am impressed that you all went ahead and began improvements to the property.

I recall when you came in front of us in the spring while it was via Zoom.

I do appreciate you all moving forward with really getting the project underway.

Absolutely.

Thank you.

And you know, I think it's so far we've spent 2.7 million just on the units that we have in where slated to spend in other 11.7 just together.

Thank you.

That's helpful.

Get the rehab done.

Other questions or comments?

Does that conclude your presentation?

Yes.

Yes, sir.

Can I hear a motion about the overlook apartments bond issuance of 15 million dollars?

So moved to uh approve as presented.

Second.

Second.

Moved and seconded that we approve the resolution authorizing and approving all documents for the uh housing revenue bonds in one or more series in the aggregate principal amount that to exceed 15 million dollars for the overlook apartments.

Are we ready for the question?

All those in favor?

Signified by saying aye.

Aye.

Any opposed?

Thank you.

Thank you, Mr.

McMoose.

Thank you, of course.

Good, and I promise to make sure that we got your questions answered.

Did we and I didn't do that?

No, that's good.

Are you good?

Uh the next item on the agenda is the Eastwood Manor Apartments Bond issuance of 18 million dollars.

Uh is somebody here to make that presentation.

Sir, my name is Deedra.

It's D E D R A Burroughs, and I'm here from AAMCI Development, and we have a tax credit award through THDA to rehab Eastwood Manor Apartments.

This is an elderly community with 10% of the units set aside for disabled.

It's 98 units.

There's 30 efficiency units.

There's 54 one bedroom units and 14 two bedroom to give you some idea of the distribution of bedrooms.

The rehab will be $82,000 of hard costs per unit or a total of $8.1 million of rehab.

I want to talk through just a few things that we're doing in the rehab.

We were here previously to answer some questions with the initial bond issuance, but just to remind everyone for this rehab.

We're installing security systems, new roofs, a gazebo and a pergola.

We're renovating the community building as well as the laundry facilities with some commercial grade laundry facilities for the residents.

We're installing new flooring throughout, new appliances, new light fixtures, new plumbing fixtures, toilets, new electrical panels because the property was built in 1979.

So we need some new electrical panels, new P TAC units for HVAC.

The community room is going to have a really nice real renovation done there along with the laundry room right beside it.

The community room, the residents really love this community room.

They do a lot of activities in it because it's an elderly community.

So new light fixtures there, new flooring, etc.

Same as the units.

So what I guess what questions do you have?

Or Jay, do you want to speak more towards that?

I'm Jay Money Hun with Basarian Simber serving as bond counsel.

And yeah, the first resolution really at Eastwood Mayor is for approval of the bond issuance that as Deedra mentioned, we were here uh earlier this year and got the preliminary resolution approved by you all.

We're able to go to THDA get the bond and tax credit award, and so now we're back before the board for the final approval of the bond issuance that we're seeking from you all today.

And just to clarify, we're we're going to uh discuss and vote on first the project itself, the 18 million dollars, and then we'll follow that up with a second vote on the uh pilot agreement.

Are there questions about this project?

I think we've had a pretty good presentation on this in the past.

This project is also 100% section eight.

I'm not sure that I mentioned that.

It's Will Cox Boulevard, it's 3831.

Will Cox.

No.

Sounds good.

If not, can I hear a motion?

We don't need the resolution record.

Um council reminds me to read the resolution language into the record, so I'm going to do that.

This would be a final resolution authorizing the approving all documents, instruments, actions, and matters necessary or appropriate for or pertaining to the issuance sale and delivery by the Health Educational and Housing Facility Board of the City of Chattanooga, Tennessee.

Of its multifamily note and its multifamily housing revenue bonds in one or more series in the aggregate principal amount not to exceed 18 million, the proceeds of which will be loaned to Eastwood Manor 2 LP to finance the acquisition, rehabilitation, and equipping of a multifamily housing facility known as Eastwood Manor Apartments in the City of Chattanooga, Hamilton County, Tennessee.

Chair, I'll proceed with a motion.

Made is there a second?

Second.

And seconded.

Further discussion.

If not, it all those in favor of this uh motion, please signify by saying aye.

Aye.

Aye.

Any opposed?

Motion carries.

Thank you.

Thank you.

The next item is the pilot agreement.

Yes, there'll be a state of yeah.

The um Deezer has been working with the city through the affordable housing pilot program and um has worked through the numbers.

The uh actual pilot amounts have been approved by the city and the mayor, and so that gives the authority to the health ed board to approve the um uh documents to be entered into to affect the pilot.

Um, and so the resolution before you is to approve the pilot for the terms of the city's affordable housing pilot program.

Are there questions or comments?

I think any time you know you you talk about a pilot, and of course you guys know this, but like specifically upkeep of conditions is number one, and especially in this area.

Can you kind of speak to you know the strategy as this is ongoing to ensure like specifically this property is upkept given the breakdown and the investments that I've gone through and will go through with this project?

Yeah, I think definitely upkeep is a big factor in the um the city's pilot program and also confirmation that the affordability restrictions will stay in place for the entire term.

Um and so there's you know provisions built in the documents that they have to meet a certain standard of upkeep that they're you know sanitary clean or the you know capable of habitation, and then um secondly for the to ensure that the units remain affordable.

There's a lot a number of restrictions that are recorded on the property to ensure that happens.

One is through the THDA laTech program, they require that the that the um tenants meet certain income restrictions.

Secondly, through the issuance of the bonds, we're required under federal tax law to record an additional restriction that confirms the affordability, and then thirdly, in the pilot documents, um, there's a provision that the city actually requires in certain in some circumstances the first two restrictions only have to stay in place for 15 years, but under the pilot program, the city has requested that those stay in place for a minimum of of 30 years.

And so through entering into these agreements, they're um committing to keep the income restrictions in place for a minimum of 30 years.

In addition to that, the management company that manages the property every day with on-site maintenance and on site management is affiliate group, um AAMCI management, which has been in place managing Section 8 communities since 1972.

So long track record of um affordable housing management.

Thank you both.

Thank you, Ms.

Comments or questions.

If not, could I get a uh motion to approve a resolution of the Health Educational and Housing Facility Board of the City of Chattanooga regarding a payment in lieu of taxes transaction with Eastwood Manor 2 LP?

Go ahead and proceed with the motion as well.

Is there a second?

Second.

Any further discussion?

Those in favor say aye.

Aye.

Any opposed?

Thank you both.

Thank you.

The next item is the uh MF joint venture LLC, an affiliate of the Atlantic Company's pilot agreement.

Somebody here can speak to that.

To that afternoon, everybody.

I'm gonna kick it off here with just a few slides from the city's perspective, and then I'll hand it over to Frank to talk about the project.

Um so this is a really exciting day.

We're bringing forward our first mixed income pilot under the structure that was passed by city council last March.

So there's some key policy goals in this revised pilot program.

We wanted to encourage all new developments to include some affordable units.

So this is really a mixed income approach to get affordable units into developments all throughout the city.

We also wanted to target the incentives so they could work in all neighborhoods so that we weren't driving affordable units into just the lowest cost districts.

We wanted to provide developers with flexibility on the affordability level so they could choose what would work for their project.

And we most importantly wanted to link the tax abatements directly to the value of the affordable units deliver.

So when council passed this program, it laid the groundwork and the kind of conditions in which developers could apply.

And in this case, 702 Manufacturers Road has applied to uh give the city 42 affordable units.

That's 15% of the total units.

32 of those units, 32% of the units will be affordable at 60% AMI.

That's 13 studios renting for just over a thousand dollars a month, 15 one bedrooms and four two bedrooms.

In parentheses, I've added the incomes that would qualify for these units.

And then 10% of units in this development will be 80% AMI, that's 71 bedrooms and three two bedrooms.

So that's the public benefit side of the equation.

On the other side is the public investment side.

The current tax bill on this property, which is uh vacant and has been vacant for a really long time, is $9,055.

What's unique is because uh the developers elected to do 42 affordable units, it qualifies for a partial tax abatement.

So the city will still see an increased tax revenue from this development, and it will get the public benefit in the form of affordable units.

So the development has qualified through our calculator for a 69% abatement.

That's an abatement of 416,123 in the first year, and the payment in lieu of taxes will be $341,931.

So that's including the the tax abatement.

Good afternoon.

Hope you're doing well, and thank you all so much for your time today.

My name is Frank Reese.

It's R E E S E.

I'm with the Atlantic Companies.

We're a full-service real estate development company based out of Atlanta, but also have offices in Charleston.

Um we have development experience throughout the Southeast, um, in Alabama and Georgia and in North Carolina, and hopefully here in Tennessee.

Um we are we do development acquisitions, construction management, accounting, and leasing and brokerage.

So we're full service.

And these are just a couple pictures of some projects we've done here in the Southeast.

So today I'm coming in front of you to present to your project at 702 Manufacturers Road, just as a quick overview.

The gold star there is the location of our site, which is in the North Shore area of Chattanooga.

And then just to hone in a little bit more, um, as Hanukkah just mentioned, the nothing actively is um operating on these on the site today.

The site that we're talking about today with you is 702, which is the site that's outlined in yellow.

Um, we just full disclosure, we do have the site um under contract next door, which is the one that's in red, um, which is um 706 and 710 manufacturers road.

But today we're just talking about 702, which is the seven-acre site outlined in yellow, and it's bordered just so you by paper mill road, which is actually a city road, and I'll get to that in a second.

Some um some uh some work we'll be doing on that on that particular street.

So the project, this is a site plan of our proposed project.

It's it's um 278 multifamily units.

Um it will be we'll have five buildings um that run throughout the site, um, and then paper mill road, which is to the right.

Um, that is actually a city street again that we will be um that we will be redeveloping and repaving and rebuilding that road again 278 multifamily units.

So the project is already entitled for the proposed use, um, and we are already very far along with your permitting department for our LDP um land disturbance permit as well as our building permit.

So we're we're hoping to break ground in the next 30 days.

These are just some quick a quick overview of the project here.

And then just as a kind of a recap of our project and what Hanukkah just mentioned, because of your pilot program, we are going to have affordable units, 278 units total, of which 42 will be affordable units.

Excuse me, 10 10 units will be at 80% of AMI.

Also, as Hanukkah mentioned, your current tax bill for that site is a little over $9,000.

And with the development, when it's fully complete, the future income property tax income will be $341,000.

We're also rebuilding on the city road.

It's in our in our project budget, paper mill road, which is the site that kind of borders to to the east.

So that did that just gives a real overview of the project.

So I I would like you guys to know is as Hanukkah mentioned this is the first mixed income project that y'all have been presented.

And I just wanted you to know.

I just wanted to commend the job of Hanukkah and Nicole and your entire city staff working with us and really helping us shepherd the project through through through your process.

So it's um they've done a wonderful job.

And it's I've I can't say enough good things about the program that you guys have put forth.

So thank you very much.

Yes, sir.

Are there comments or questions?

First from the board, and then I'll ask if there are any other comments or questions from the audience.

This is an exciting project, and it's an exciting step forward, I think, in as we address housing needs in the community.

Thank you.

For the future comments, questions?

Yeah, I'm just interested.

Like how will a project uh like this impact traffic, you know, parking, public transportation, and things like that.

Yeah, well, so part of the process with your permitting department, we did do a traffic study, so it shows that it's not you know a significant impact on manufacturers road.

Um we're 278 units, as you guys know.

I mean, obviously, what you've done down here with your rezoning of this property that's gonna promote more development, hopefully in the future.

But right now, there are not many other, there's not many other, there are no other really real residential areas that that are down there at this time.

So we do not foresee there being a real significant impact from a traffic standpoint.

One thing to to note in multifamily and apartment units, many people obviously that live there work during the day, so the traffic's kind of concentrated, you know, in the morning when people leave to go to their work, and then later in the evening when they come home.

So it's not really as dispersed throughout the day.

So once you know it's it's it's you definitely don't see as much traffic between say you know 8 a.m.

and 5 or 6 p.m.

So thank you.

Yes, ma'am.

Right.

Yes, thank you.

Um thank you, Ms.

Haris.

I I have two questions.

Primarily the first one um is is to follow the traffic pattern a little bit.

I'm glad that you've you your company has done some traffic studies.

I'm very familiar with the location, and will you be installing new traffic patterns to feed off of paper mill road onto manufacturers toward toward um?

I guess to head toward North Chattanooga or downtown, or will it just be um uh one main entrance in and out of the complex?

Let me um one second here.

So um, yeah, at Paper Mill, which is again is a city street, there will just be a typical um intersection with manufacturers road.

Um, but we're also to the west, you can see a road.

There'll be another road there.

Um it's kind of a shared road that'll be between 702, which is the site we're talking about today, and the future development of the site next door that we have under contract.

So it'll actually be just dispersed in two different locations.

One is paper mill, and the one is what I kind of call the shared road right now, which will run between there, and that'll feed um people that you know live at this property will be able to use either one of those exits.

Okay so and we're still working through it, but more than likely there will be an east-west road um that runs all the way through to Hom Road as well.

So I really think for this type of project and 278 units, I think there's a lot of access in and out of the site.

Sure.

Thank you.

So sorry.

Just to add to that too.

So this project has been through uh a rezoning, and so the RPA has made a determination that multifamily the scale is appropriate at the site, and it's received approval from city council.

So at this point, um, we're really just looking at that last piece of this project is moving forward.

Do we want affordability in it?

And council has said yes, we do.

Okay, thank you, Hanukkah.

Uh Ms.

Reese, one other question regarding the the affordability element of this.

So you mentioned that there will be I believe 42 affordable units.

How will that be advertised to uh the public or for those that qualify?

Sure, sure.

Well, we'll we'll have a third-party management company that will advertise through various avenues online and through various means paper and so forth.

Um so we'll definitely advertise for everyone, but we certainly will think of different means that can target more um affordable um prospects.

You know, um I I can't tell you the specific marketing plan because we're still sure two years out, but we will definitely try to work with various groups that may have a list of people that may that can hit those income targets to qualify for the affordable for the affordable housing that we'll have in the project.

So we'll we'll I mean we obviously treat everyone the same and and and advertise equally, um, but certainly if there's certain um avenues and um sources of people that may be more aligned and qualified for the affordable homes, we we will do that as well.

Great, thank you, sir.

Other comments or questions from the board any questions from the audience?

If not, I'll uh look for a motion to approve the resolution of the Health Educational and Housing Facilities Board of the City of Chattanooga regarding payment in lieu of Texas transaction with Chattanooga MF joint venture LLC uh so moved as presented second and make motion's been made and seconded.

Uh is there any further discussion?

If not, we'll call for the the vote.

Those in favor of this uh uh pilot agreement indicate by saying aye.

Any closed?

Thank you.

Thank you very much, Mr.

The next item on the agenda is the Walnut Commons pilot agreement.

Is there someone here to address that from Churner?

Chattanooga.

Oh I am from the city attorney's office.

I followed this transaction, excuse me, all the way through uh when it was being built.

I'm not that familiar with the pilot, but I am familiar with the project, and uh basically they obtained a pilot I believe is around 2010, and the apartments were built in believe it was about 2008 or nine, I can't remember exactly what year, but um they are the apartments, not the townhomes, and they have an option to purchase at the end of the pilot term, and they have decided to exercise that option.

Walnut commons was the original um lessee under um a lease with Chattanooga Downtown Redevelopment Corporation, and that lease was assigned as I understand it to the Turner group uh in the last several years to that extent.

If there's any uh questions about this, oh the pilot does sunset at the end of this year.

So December 31st, 2025, the pilot does end.

And value, so what what are we being asked to approve then?

You're being asked to approve the quick claim deed, which is the transfer of ownership from this board to the new group that uh holds as the lesse, the churner Chattanooga LLC group.

Okay.

Are there questions about that?

Uh yes, I have a question.

So my understanding is that the the pilot term expires at the end of the year with this transfer of ownership quick claiming uh that doesn't amend any of those agreements.

Well, when the the pilot will end, this group in the lease that was executed originally with the Chattanooga Downtown Redevelopment Corporation, had a lease option, a purchase to option.

So they are exercising and have sent notice to our office and to Phil Knoblett, the city attorney and the attorney for this board that they desire to exercise their option to purchase at the end of the term, which is December 31 this year.

Okay.

I thought thank you.

You're welcome.

Other questions or comments?

Does this have any effect on the uh residents?

That's all right.

No, it will just change.

It'll just change ownership.

When the pilot was granted, this board I assumed not ownership, but the lease that was currently held by Wana Commons LLC.

So the property interest that this board held was not a fee simple interest, it was a leasehold interest.

So once the pilot ends, they will be transferring that over to the new group Churner Chattanooga LLC based on its option to purchase the property that's contained within the original lease.

What was the reasoning on why we didn't continue?

Is it just that they did not want to continue the contract?

I'm sorry, I couldn't hear you.

What why is the reasoning for the change in from uh oh from the walnut commons?

I can't answer that question, but there's was there was an assignability clause in the original lease, because I was involved in the original lease, which is pretty common in most leases, and they exercised their right to um assign all of their interest in the original lease with Chattanooga Downtown Redevelopment Corporation, and the Churner group is the one that was uh the assignee.

In other words, they assigned it over to this group for whatever reason.

I'm not sure the reason behind that.

Other questions, comments.

Is there a motion to approve a resolution authorizing the chair of Ice Chair to execute a quick claim deed and substantially the form attached to uh Churner Chattanooga LLC with regard to the Walnut Commons pilot transaction?

Second motion made and seconded.

Is there any further discussion?

If not, all those in favor indicate by saying aye.

Any opposed?

Thank you all very much.

I think the next item on our agenda is the presentation of a pilot and affordable housing fund annual report by Ms.

Gober.

Let's see.

I think we've got a couple of new members on the board, if I'm not mistaken.

And I'm remiss for not having introduced those that are new at the beginning.

Sir, would you indicate your name and my name's Tom Hirsch?

I'm on a couple of uh councils with the uh mayor and uh uh moved here a few years ago and uh wanted to see how the city was run.

So we're happy to have you on the board.

Uh there's no other brand new ones, I don't think.

I'm sorry that I didn't introduce you at the beginning of the meeting.

Oh, it's all well not completely brand new, but uh you're uh Malcolm Harris uh with the freight waves and uh a couple of organizations here in town, so we're excited to be here.

Thank you guys.

You're an old timer now.

Yeah.

Um the reason I wanted to do that was to just let the new members know that this uh annual report is something that we get as a board every year, and it's very helpful and provides a lot of information about these pilot agreements and other uh the transactions that we take care of here in this in the board.

So I'm sorry to go ahead and proceed.

Uh well, good afternoon.

I'm uh Sandra Gober, um director of the city's housing and community investment division in the Department of Economic Development.

Uh and purpose for my being here is Janice had a desire for an annual report, so I'm gonna provide that annual report.

Um because some of you are there are some new members.

I'm just gonna uh give a little sort of a little background on the pilot to um to kind of you know I guess give a perspective and uh the purpose for the annual report.

Uh since about two, well, 2002, the HEB has been awarding or granting approving pilots for housing in 2020, it sort of started out with the footprint downtown, which is uh one of the projects that Valerie just talked about.

And over the years, it has uh there have been changes and amendments to the uh pilot for housing.

Uh again, initially it was for housing, the footprint was really in the downtown area in 2014.

Um the area was expanded, uh, the footprint was expanded, and the uh requirements uh were that at least 20% of the units uh in the development had to be available for low-income households.

And then in 2016, there was amendment to the resolution, and at least 50% of the units had to be available uh as affordable units.

And uh in Hanukkah just sort of talked to you recently uh about the most recent amendment to that pilot, and the uh projects that were just approved, the mixed income sort of fall under uh that resolution or those requirements.

So the annual report, I'm just gonna kind of uh give you an update on the projects that uh are under development and or that are in service.

And you also heard from one of developers or the the attorney, and he was talking about the the layering or the recommendations associated with a developer receiving a pilot.

In addition to the developer receiving the payment in lieu of taxes, typically that project uh the capital stack is layered with funding from other agencies like the Tennessee Housing Development Agency bond issuance, which you guys uh uh HEB also approved, and then in addition to that, it will have in some cases it will have the pilot uh and on top of that, it will also could also have some funding from the city, which would typically be uh this federal funding.

So the funding levels uh in capital stack in themselves each carry uh restrictions and requirements, um, and part of that uh with all of them is ensuring that the project remains stable, that the project remains in compliance in regards to the number of in uh units that are available to low-income tenants, and the uh the range.

Uh I think in one of the projects they talked about how a certain percentage is available to 60 percent uh low income, 80 percent low income, and then some of these projects uh the entire project is low income, and then some of them they do have percentages.

But the report and uh will show this is a list listing of all the projects that are in service currently, and uh those that are under development at the very bottom are three that are currently under development, and you can see from the spreadsheet that it provides detail on the number of units that fall under each income category.

So I'm gonna kind of start from the most recent type of projects that have been approved and then go all the way back to the I guess the earlier projects.

Uh, this is the the projects that you just approved that Hanukkah uh talked about how that program is currently structured.

The uh so we're targeting mixed income projects.

Uh in 2016, under this resolution, again, any pilots that were approved, at least 50% of the units had to be available to low-income individuals, 80% of AMI or below.

And I'll just kind of quickly highlight those projects that fall under those requirements.

And these are the Mill Town project apartments that were developed by C and E.

I'm assuming I I believe you do have the PowerPoint presentation, so I'm not going to dwell on all of this if you have questions on any of the projects.

I'll just kind of pause and answer your question.

But for the most part, uh we've got the Lyarley Street and Bailey.

Again, all of these are CE is the developer on these.

And if you see any that you want to pause and on these, but the uh that summary sheet sort of gives you all the details on all of them.

Um, this resolution uh which was adopted in 2014.

This is where at least 20% of the units have to be uh available to individuals with incomes at or below uh 80 percent BMI.

The um primary purpose of this report also uh as the slide indicates is we do we have uh the requirements to ensure that the projects remain in compliance.

Um office as well as THDA in their infusion are um assistance with the projects, they have requirements that the the units uh are managed in a certain way and that they the tenants are vetted properly to ensure that they uh income qualify.

So the projects that have funding with TH through THDA, we can't accept their compliance reports.

Though the there are projects that don't have funding uh from THDA, in those projects, we do the compliance uh ourselves and we request annual uh reports from the the uh development uh so in essence for the most part all of the projects are in compliance either through the indicated through the reports from THGA and or our staff going on site and receiving the um and reviewing the compliance and the rent roles uh at the developments uh this last sheet the slide sheet uh slideshow presentation shows how much um for the 24 24 25, yeah, 24 tax year, 24 tax year, the uh cost of the pilot, so the projects that I just sort of flipped through in addition to the pilot the uh that were pilots that are approved by the uh by this body, uh the HEB also approved the management and the distribution of funding to projects under our uh Affordable Housing Fund.

And we uh that project or program was initiated in 2017-18, and through that fund, we uh the HEB approved uh the funding for these projects.

And this is really just an update on the status of those projects, everything that has been funded.

The project is uh the project and or the activity is complete.

The most recent one, or the last one was uh a project development on uh East ML King, and it was a development uh by Chattanooga Neighborhood Enterprise, and the project was completed here very here recent and uh the fall uh actually it's just the last couple of months, and so the project is complete and now in service.

And that is I know it was pretty quick, but you got a lot in a lot of information to digest all of the board members have a copy of this report, and we should be looking at it, but in the meantime, are there questions?

A lot of information to digest all of the board members have a copy of this report, and we should be looking at it, but in the meantime, do you are there questions?

I have one.

First of all, uh, thank you for this.

Great job.

I I met with some of your team members earlier today to go over compliance and oversight, and we know how important they is.

So this is this is great.

Um I also want to know, and just be a voice for the community to access, and I'm not sure if we cover this, but is this is this type of reporting uh public facing?

And if so, how do they access it?

What which platforms?

Um not public facing only in that once you know, Chris.

We make it available to you.

It is uh but we we don't have a I think I don't think we have anything on our website that uh makes all of this publicly, it is available upon request, but we can add this specifically for pilots.

The county keeps records on their website, and so that's where the public can see information, not just about housing pilots, but all pilots in the county.

Um the city's website.

The county's website website.

So if the public is interested, uh just type Hamilton County Pilot, uh, and it's usually the first link.

You can download uh either a spreadsheet or a PDF, and it's what was in Sandra's presentation there, but also this now is a public record, and the public has access to the presentation.

Thank you.

Thank you.

Yeah.

So yeah, not in this format.

Gotcha.

Yep.

Nice job.

This is really valuable information for us, and I know it's a lot of work keeping keeping this up, but we appreciate it.

Are there other comments or questions?

Thank you.

Thank you.

One of the things uh I was trying to understand with the new pilot program, it has ability compliance, which I think was added, the ability to go in and inspect some of the units that are uh approved.

So is that separate from the previous that was added in the program?

Yes.

So I was just trying to get an understanding of how that works.

Thank you.

Are there other comments or questions?

I don't know that we need to take any action on this report, do we?

I wouldn't think.

Well, we we appreciate it.

This is valuable information that we we get every year, and we're we're it it really helps us to keep track of what's going on.

Thank you so much.

You're welcome.

Um the only other item of business on our agenda is uh uh regarding the Chattanooga Standard for place.

Is somebody prepared to address that good afternoon everyone?

Thank you for the opportunity to be before you and present our project and uh ask for your support so we can continue with the project.

Um over the past couple of years, we've had some discussion with the city attorney's office with uh Deacon Hicks Armour about the potential to put in a behavioral health hospital at Standerford Place, which is currently under a lease agreement with the with the city with the Health and Ed Board.

Uh we've provided uh to this group uh site plan, floor plan, some renderings of what we propose to do uh for your consideration, um, a one-page summary that includes national health care's backgrounds, which is we are the one involved with the lease, um the services provided, um our care model, uh, all of that information has been provided.

Uh a few things that I wanted to point out that had been um points of detail.

Uh this is a 24-bed behavioral health hospital uh with both inpatient and outpatient services uh proposed.

Uh approximately a 12 million dollar total investment with nine to ten million of that with local trades and uh contractors uh for the actual physical construction.

We have um a couple of years ago uh we did a CON need study.

Uh since that time, the CON is no longer a requirement.

However, then in 2023, there was a need projected in the area for 32 behavioral health beds.

Um we've determined we've that the market is continuing to grow, the the need is continuing to uh increase, uh and we feel like 24 beds would be a great complement to stand for place.

Uh it's an existing uh continuing care retirement community with skilled nursing, AL memory care, and now hopefully we can add this behavioral health component.

Um after talking to the city's uh attorney office about um the background of the lease and the circumstances, we're not requesting any changes to the lease.

Um the uh use for behavior health is allowed now both by the city and by the lease.

Um we're looking to um demise or improve the demise premises, which is also allowed by the lease, and uh we would can we would appreciate your support and uh in that matter we can go forward with the city as far as the documents.

Thank you, Mr.

Clark.

Other comments or questions with an outside agency to provide these behavioral health services, or this will be uh done in conjection conjunction with the staff that you already have.

Well, we it will be new staff and it will be NHC operated, so we will operate that internally.

Okay, okay.

Um can you give us a little insight on what the term of the lease is and and then are you asking for monetary support or will this be uh just approval to make amend to the lease?

Um there would not be any uh monetary requirement on the city's part.

Um the existing lease is in place until I believe 2052, so no changes to that.

Um if if all goes well, um we would be started with construction just as quick as we can get the drawings done and submitted and approved.

Okay, so the request to make improvements to the okay, yeah.

Thank you.

And and per the current lease, it's my understanding that we can improve the demise premises, but as you are the landowner, I did not feel it was appropriate to just proceed without having some discussion in front of the board.

We appreciate that.

Thank you.

Other comments, questions?

I believe we need to take any action on this, do it.

I wonder with whether it's actionable.

Is there something that we um it probably wouldn't have done?

All right.

Uh council recommends that we do uh vote to to uh accept this report and and uh move uh forward with the project.

Can I have a motion to move?

Is there a second?

Second.

It's been moved and seconded uh that we move forward with this project or approve the the work that National Health Care Corporation is doing.

All those in favor, please indicate by saying aye.

Aye.

Aye.

Any opposed?

Thank you.

Thank you very much, Mr.

Clark.

Uh I think that concludes the agenda.

Are there other items that need to be brought before the board?

Motion to adjourn.

Motion moved.

Thank you.