Chattanooga Health Education Housing Facilities Board Meeting: May 18, 2026
Health Education Housing Facilities Board Meeting – May 18, 2026
The Health Education Housing Facilities Board of the City of Chattanooga held its second meeting of May 2026 on May 18. The board approved two major resolutions: a bond issuance of up to $62 million for a school (Chattanooga Christian School) and a payment-in-lieu-of-taxes (PILOT) agreement for the Overlook Apartments affordable housing project. The board also recognized the departure of city housing staff member Hanukkah.
Consent Calendar
- Minutes of April 20, 2026 meeting: Approved unanimously without discussion.
Discussion Items
- Bond Resolution – Chattanooga Christian School (not to exceed $62 million): The resolution authorizes refinancing of existing 2017 bonds (approximately $18 million) and a new bond issue for campus improvements and energy upgrades. The new bond will be a 30-year instrument, with an initial issuance of roughly $47 million, expected to be paid down significantly over five years through pledges. The refinancing portion matures in 16 years. Pinnacle Bank is the lender. Presenters: Russ Miller (financial advisor) and John Lynch. The board expressed satisfaction with the proposal.
- PILOT Resolution – Overlook Apartments LP: Zane Mahmoud of PATS Development (TIAA’s affordable housing arm) presented the PILOT request for the 162-unit, 100% affordable LIHTC project (16 studios, 122 one-bedroom, 24 two-bedroom units) located at Boynton Drive. The project consists of a nine-story high-rise and townhouses built in 1978, with 64 units already rehabilitated. The bonds were approved in November 2025 ($15 million tax-exempt); the PILOT is needed to close tax credit financing. The city’s mayor supported the PILOT per TCA 48-101-312. The county was notified on May 8, 2026, and no opposition was voiced. The board confirmed the PILOT freezes the current tax base, covering both city and county portions including school taxes.
Key Outcomes
- Bond Resolution: Approved unanimously (voice vote: all ayes).
- PILOT Resolution: Approved unanimously (voice vote: all ayes).
- Staff Recognition: The board thanked Hanukkah, a city housing staff member, who is leaving for Chicago on June 12, 2026, for her contributions.
- Next Meeting: Scheduled for June 15, 2026, with no items currently on the agenda.
Meeting Transcript
In May. Actually, it's not the monthly meeting, the second meeting this month of the um Health Education Housing Facilities Board of the City of Chattanooga. So the first piece we'll do is the minutes of the April twentieth meeting, which I think we reviewed informally at the last meeting. Questions, additions, corrections. Motion carries. Not to exceed 62 million, and they were before us at the last meeting. And is there anything you all want to add? Or is any questions that we have that the board has for them on this? Good question. Can we get a reminder of what the term is on this? I'm happy to be great. Yes. Well, Russ Miller was after we are fund council to 10% on the 10th fine bonds. I said the first one. And John Lynch is a financial visor for bank. So as um uh uh Ms. Robert said, um, this the max 61-ish million dollars. It's really sort of two separate issues. One is to be financed their existing 2017 bond, which is through this reward. Um that's around 18 million dollars. Um that would be uh I would sure around 2022, I think. And it has sort of the same information that it has existing bonds for pushing out. Um with a new bond. Um deal um the 2020 board. You all heard about those last community norm and some uh five improvements um and energy uh fund improvements on the campus. So that bond will be a 30-year bond. Um they expect uh the initial issuance will be um 47 or so million. Uh they expect to pay down a lot of that in the next five years when pledges they come in. And so I think uh the final three would be third years, but they're really only um like 30 million of that over the remaining period. Um probably hopefully some pledges uh they're gonna pay down both of it. So it's very interesting through. So the refinancing it says will uh mature in 16 years, and the uh the bulk of beyond that is 30 years, right? Yes, yeah, and pinnacle is agreeable with funds for that period. All right, I want to let's back up and get a motion for discussion. So before she throws apples at me. So move to interdiscond. Second, second. Okay, we have motion second. Okay. Any other questions? Anybody up here has for them? Good to vote then. I don't want to cut off anything, but they did make a presentation last time. Yeah, yeah. I've done this before here in that. I'm just glad to know somebody around here as a school can float a 62 million dollar bond. I'm impressed. Having been there, I couldn't do that. Okay. Uh seeing no further questions, all in favor of the resolution, please say aye.
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