Um meeting has been properly advertised.

Yes, sir.

And we do have five members here.

We do have a quorum, so we can uh do business today.

Uh first order business is the approval of the November 17th minutes.

Those were sent to you.

Chair would now retain a motion for discussion.

Move to be approved.

Motion and second and discussion.

All in favor of approving the minutes is a as presented, please say aye.

Aye.

Opposed, like sign, seeing none.

Do we have any uh persons who would like to address the board before we start?

I'd like to just um comment first about the prevention.

Yes, ma'am.

Uh Janice Vidden.

Just thank you, Janet.

Um I know that this first came into play during COVID, uh, but there is still a need, and I appreciate the fact that funding is gonna continue.

So I am in support of that.

Okay, and just for your information, I think what they're gonna do is present some information on that today.

So you'll appreciate you being here and speaking up.

Anyone else wish to address the board?

Okay.

Uh the first item is a TEFRA hearing.

Um it's a resolution of the Health Education Housing Facilities Board of the City of Chattanooga, Tennessee relating to the issuance of multifamily housing revenue bonds, an amount not exceeding 12 million to provide financing to one west side phase 3B for the acquisition, construction, and equipping of a multifamily housing facility for low and moderate income citizens to location to be located at 1300 Boynton Drive, Chenga, Tennessee.

Now I'd ask City Attorney just to brief us quickly again on what a TEPRA hearing is and what our process for this meeting is today.

This is an opportunity for the public to be aware of what is going on with this particular project on here, and uh TAPRA hearing is required by the federal government any time that there is a uh issuance of multifamily revenue housing bonds that are involved.

In this case, it's uh up to 12 million dollars here for the one west side phase.

Uh I do know there is a minor change, I think with the number, they're gonna actually be 104 instead of 102 units.

Is that correct?

104 units on here, and they will have this opportunity to be able to present what this uh multifamily housing uh unit will be like here at Westfield West Side Phase 3B LP.

See, it's harder to say than you think it is, sir.

And this is only for low and moderate income citizens.

Anyone will speak on this?

I can give a quick overview first off.

I'm Jim Growley from Columbia Residential, and we are the partners with the Chattanooga Housing Authority in the West Side Redevelopment, the one West Side Redevelopment.

Um also here is our um our our council um and first I want to thank you because you have been instrumental in prior phases in allowing this project to get started to get underway, and we're well underway, and there's a lot of momentum.

But as you recall, perhaps it it there's a lot of phases and they come fairly fast.

So we are usually here requesting an inducement a little more than a year ahead of when we actually would plan to start construction, but the inducement we are requesting will allow us to apply to the Tennessee Housing Development Authority for taxes and bonds, um, which will also provide low-income housing tax credits to allow the 104 units to get built.

Is this aren't there like five?

I do help me if my memory, five or six units or phases in this.

There's a total uh contemplated with the choice neighborhoods grant that uh Chattanooga received from HUD.

There's a total of seven phases.

Okay, and so we're we're about to embark on the third.

That's what I thought.

We have two that are being done if I'm not mistaken, correct?

Yes, one is under construction on West 12th Street.

You can see it, and you can see it from highway 27.

The second, we are we we actually closed the bonds late last year, and we're working towards closing in a couple weeks.

Um, and it's up on the hill on Boynton Drive.

And this is the third phase, and this is the first phase that will occur on the footprint of the College Hill courts after folks have moved out, moved into new housing, or moved where they choose to move.

After folks have moved out, moved into new housing or moved where they choose to move.

We will uh work with the housing authority, demo the northern portion of College Hill courts, and that's where this is going to be constructed.

It's a little confusing because of the A's and the B's.

The reason is we're using a pretty unique structure that really is pioneered in Tennessee called twinning, which actually has an A component and a B component, so we can develop larger phases at once, and that's why there's an A and a B.

The B is the is a portion that uses the taxes and bonds.

One thing you'll note is the amount of bonds is a lot less than it was in the prior phases.

That is as a result of the federal legislation that passed in 2025 that changed the calculation of the amount of tax exempt bonds that an issuer had to do relative to the project size, and it has to do with what was called the 50% test and eligible basis and making sure that the bonds paid at least 50% of the total project costs.

The federal legislation changed that to be 25%, so therefore those bonds go a lot further.

We're asking for less.

But again, we would plan on um if this inducement is granted, we would plan on applying to the state of Tennessee in March for our allocation.

We have a great relationship with THDA.

They have actually made a set aside for Chattanooga to allow for tax credits and these allocations that are scarce and they're competitive to flow to Chattanooga to exit to build this project.

So we're on track overall.

We always get a lot of questions about relocation.

This phase will not be built until people move out of the existing College Hill into new housing, which will be finishing late this year and then to early 27.

We anticipate that we would close this this phase of housing in the second quarter of 2027.

So it's a ways off, but this is the starting point.

So I'd be happy to answer other questions.

Um as with all the phases, this housing provides about 40% of the units are for relocation for folks moving out of the old 1940 public housing into new housing.

Um it also provides for workforce housing at 60 percent, 80 percent of area median income rents restricted, and it also provides for market rate housing to get an economic mix and vitality.

So following Richard uh from the cities here, and and the city has been a great supporter of this at every step of the way.

Um, and so we are partnering with the city and the housing authority to execute.

Okay.

Would you talk just a moment more about the twinning?

I I know you have before and I've but I'm yeah old, I can't remember.

Is it fair to say that that three A would be the market rate?

It actually actually both there are two different sets of it's it's a bit of a long story, but I'm happy to answer any questions about it that I can.

Um there are what are called 9% tax credits, which actually is a larger um allocation of credits per dollar of expense, and then are with the taxes bonds, there are 4% credits.

And what's what happened is not surprising since since 2020 in particular, costs went way up as much as 75% higher today than they were in 2020.

Um, and so but the allocation of credits stayed pretty fixed.

It's based on the population.

And so you got bigger and bigger costs and less and less resources to build it.

And so what the twinning allows us to do is on this very ambitious project that the city and the housing authority undertook, where we're building 1,100 new homes in the west side, um allows us to build larger phases.

So the twinning on the first one, you all issued 35 million of bonds for the B part of that, and that was 166 new homes out of 230.

Um, the second phase is 144, of which 90 were the bonds, and this phase is 168 of which 104 are the bonds.

So, what twinning does is allow you to kind of optimize the the public dollars in the project.

We're also combining it with private equity and private debt.

But the uh both both the A and the B side have units that are replacement units for College Hill and have units that are um that are part of a workforce housing and they have market units.

But it's a bit of a modeling arcanity about how you optimize by twinning the two, you can optimize it and get more out of the dollar from the public dollar.

So I'm I hope that explained a little bit.

Yeah, all that in I I got about a half of what you got, so sorry.

It's it's a way of almost I shouldn't listen and agree, but it's I think they segregate into the pots that they do, so they they can maximize the grants of of where they need them for the for the the lower to moderate price to where the market rate if you live there, you have no idea this is happening in the background, right?

I shouldn't listen and agree, but it's I think they segregate into the pots that they do so they can they can maximize the grants of where they need them for the for the the lower to moderate price to where the market rate if you live there you have no idea this is happening in the background and and it operates as a single project, but from a legal standpoint there are two separate limited partnerships with two separate sets of loans and debt and the bonds are only applied on the B side of it.

On the A side of it, we have conventional bonds sort of what it is.

So that helps.

And so um it just allows you to build something larger.

Okay.

Any questions on this?

This is basically for public information and yours as well.

Does not require a vote.

Um correct.

Well, the resolution may require a vote on here.

The uh the TEFRA hearing does not okay.

Just wanted to confirm at least the notification and the TEFRA notice went out on last Monday, so it's seven days in advance of this hearing, correct?

Okay.

So the TEFR hearing is is on the uh not to exceed amount of 12 million dollars.

Okay, okay.

And this is uh just basically the pre-resolution that you'll do for the issuance of those bonds.

Okay, all right.

So did we get a motion?

I'm gonna have to get a tennis ball and you throw it at me because I always fail.

Okay.

So we we uh would chair wouldn't turn a motion uh or on the resolution uh for the issuance of the um revenue bonds not to exceed 12 million dollars.

Motion motions or a second motion and second discussion or questions all in favor, please say aye.

Oppose like signed.

Okay, thank you, Hank, for being here.

We wouldn't add a quorum otherwise.

Yeah, but I know thank you very much.

Uh item six is an eviction prevention fund, and this is a resolution authorizing the city of Chattanooga to execute an independent contractor services standard form agreement with the Chattanya Regional Homeless Coalition for the administration of an eviction prevention fund, which will be allocated to and held by the Health Education Housing Facilities Board through the City of Chattanooga budget amendment approved in October of 2005.

So I think this is a uh a resolution authorizing the creation of the fund and the administration of it.

Is that yes sir?

Two-thirds correct.

Okay, so chair would entertain a motion for discussion.

I need a motion and a second.

Second, I need a motion.

Okay, on for discussion, we'll go vote.

Your own motion.

Yeah, I was thought my friends left the room.

Um we have a motion and a second uh discussion on this.

Trying to make sure you're gonna I see a yeah, I I'm happy to share with more of it for you.

That'd be great, thank you, ma'am.

I saw you moving your lips, and I thought that was a good time to call on.

Hey everyone, I am I'm the director of the policy of the city of China, and uh we are very excited about this new program that is in front of you today as it mentions in the resolution in October last year.

The Chinese city council set aside one million dollars for the purposes of rational assistance, which is being held at um.

So what we have done over the last couple of months is work with our partners in the addiction prevention space to develop the program back for this one.

And I will say uh Ms.

mentioned earlier uh context uh federal and state and funding or renting assistance funding why you do.

So what we wanted to do was really learn from that experience and look at best practices for one of the things that we learned is that while we do have some funding available for rehousing for people who are experienced, what we did not have was a fund specifically for the prevention of eviction.

What we have created is uh fund that is following such a shallow but flexible model so that we are intervening directly households are at the working very closely with the specific partners including legal aid in East Tennessee office of the housing and the office of the empowerment to your case management and provide additional state, so that in addition to providing some funding to negate the eviction prices.

So that in addition providing some funding to mitigate the eviction crisis, there are also additional services that are being operated households to have to remain stately house.

We're very excited about the smaller in front of who is a contract that the China's coalition to administer the fund.

They already administer a housing report fund and they do a really fantastic job of that.

So they will be responsible for collecting application, reviewing those applications, dispersing the funding, working with all of our referral partners collected reporting metrics.

Very excited about this work actually.

Any questions?

Megan, would you say again the amount of the fund?

I was thinking the amount is one million dollars.

I thought that's what you said.

But I think it's important that you have what I call the wraparound services to help them because you know providing them the um interim financial assistance is one thing, but helping I won't say solve but deal with the crisis that that caused the money short is is the important part of that.

Yeah, I think that's great.

So I would ask that.

Um do you think this is going to be started?

Do you know?

So if we're able to approve the contract today, the homeless coalition is ready to administer the funding.

Okay, but I'd like to do we don't have to amend the motion.

It just if you'll just know you're good at keeping track of stuff.

I think it'd be good for after the first six months if you just provide us one of the means when you're ready to select Ria know we'll get you on the agenda.

I think it'd be good to have a follow-up on this just to show you know what what activity there is and and um how it's working.

Okay.

Okay, great.

Okay, so we have one one more thing, Daggett on on that end of it.

Is the money now this was allocated to a fund to the health and ed board, right?

So that's the reason it's in front of you guys for a resolution.

But uh, how much more is remaining in that fund?

So the the funding was one million dollars.

This is all going at this point in time, and this board does not have to sign off on the agreement because the city's got it in their uh account.

Yeah, we have to do anything to dispersion.

Well, that's why I was just wondering on here, because it at least it's got the city of Chattanooga and not the health and ed board.

That's what I wondered.

So we'll have to change that.

Well, well, it can't be the city.

Can it be the city?

Who's who's gonna if it's us versus them, wouldn't they be them to disperse the funds versus us?

So it could be the H B, and then we can make sure that it's covered on those way.

Okay, so we'll need to get a different signature.

Okay, all right, no problem.

Okay, will the term dates change since we're it says February 1st to January 31st to 27?

Or is that still gonna be you probably did on the first this month, given the month we're meeting, is probably what they did.

Well, this was actually on the agenda for the last meeting that got canceled.

Do you want to change the dates to March to February?

Give you 12 months.

All right, okay.

We're gonna assume if we pass it, you can figure out how to get the dates changed and spend the money and come back and tell us what you did.

You may want to do that subject to the approval of the attorney's office.

That's the details that you all have to worry about.

Okay, so uh our task is to approve the resolution that authorizes uh the contract with the regional homeless coalition uh for the setup of the fund administration of it.

So chair will entertain a motion for approval.

We have a motion, yeah.

See, I'm ahead of you.

Okay, so all in favor of the resolution, please say aye.

Aye oppose like sign.

Okay, you got your money.

Thank you, ma'am.

Okay, we have some other uh businesses or our other business discussions from my understanding is that this is uh information on future projects to come before us if if I heard the uh city attorney correctly, and who's going to do there different people and do different of these, or is y'all gonna do this, or is this just for information, or are we gonna get any information on I don't know.

uh businesses or our other business discussions from my understanding is that this is uh information on future projects to come before us if if I heard the our city attorney correctly and who's going to do there different people gonna do different of these or is y'all gonna do this or is this just for information or are we gonna get any information on I don't know Maria is there somebody the site plan is in the agenda okay it's right after the performance references here and I believe this is just showing the the site planning for these projects here the report on debt obligation is a form that is filed with the uh comptroller's office here uh by our office each year and we have to list the um I guess the revenue bonds that are outstanding and this was on uh one west side phase two b that was the 20 million dollar bond issuance on that one and then we also did the one uh for eastwood manor which was uh it looks like uh 2,946 uh dollars and that has been uh reported with the Comptroller as it's supposed to be every year and then lastly is the Eastwood manor um uh multifamily note project for 15 million dollars as well uh which has been reported to the uh folks uh okay the secretary state mr money hunt is on uh many of these documents as the preparer and that's the reason that that they they have completed those documents and it has to be filed with the state each year okay but that site plan if there's any questions about the NFC standards looking at that's pretty small one yeah that's that's the um I think we've reviewed that before and there's something they've they've gone before us with similar information what are they doing out there I mean I we could turn that over to somebody else didn't we didn't did we that's the the uh place out past it would Hamilton place on the right on north and uh I believe they are simply uh moving things around on the property there and they may be constructing something on there for National Health Center yeah I thought there was an expansion renovation or something there was stand for place nursing home before right okay so I assume they'll probably be making sure that they they come back to you for any bond issuances if they can okay so they're probably doing something that would so they're they're setting us up for a bond issue then yes you're doing okay okay okay um any other business to come before the board do we have uh no we haven't we didn't meet in December or January do you have anything for um um March I do know that the okay I do have at least attorneys uh emailing me about a number of items on here I'm not sure exactly what is coming up but okay and how quickly the time uh schedule is but they've not told us they needed it or already but um we have had some more stuff at least uh there's some stuff regarding common sphere it looks like floating around here and I'm trying to make sure what else is going out there it seemed like I had another one we meet second no meet the third third Monday March 16th same date yeah it looks like some more stuff about standard for place and um I guess maybe um walk to campus here is outstanding maybe I'm not sure okay and Atlantic companies Maria what is that we've been getting some stuff from a pilot involving Atlantic companies I haven't seen anything else yeah so we may need to meet something yeah we'll we'll check and is if it we'll we'll let you know about timing on here if there's something coming up on there for March okay I was looking at um okay okay yep that's good okay so it's we'll let you know about next month's any questions all right we stand adjourned thank you thank you